.. _

_.

_._

_..

Sheri L. Wainscott

i
i

From:
Sent:
To:
Subject:
Attachments:

Robbie Ferris <RFerris@sfla,biz>
Tuesday, November 17, 2015 3:45 PM
Keith R. Powell
HCS contracts
Bookl.xlsx

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Keith,
All the needed sign offs are still coming in from our team but I think we're very close to being checked off. I do have one
revision request. We would like to bill for pre-construction ,proposal development and schematic design. The
breakdown is in the attachment but the total is $5,504,430.00. We are actually in DD so I think billing for SD is very
reasonable,
What do you think?
Robbie

{
~~~~~
Z~

h'..'. C 41 1 1 1 L' 1 5

Robert W. Ferris, AIA, REFP, LEED AP
CEO/President
333 Fayetteville Street, Suite 225
Raleigh, NC 27601
Cell: 919.610.2251
Fax; 919,573,6355
rferrisC~sfla.biz
www.sfla.biz

1
PAPR - 004453

 Firstfloor Proposl Dev
Pre construction estimating and bidding
A&E-Schematic design

3
4
1
2
5
$ 253,187.00 $ 250,165.00 $ 260,035.00 $ 206,721.00 $ 231,417.00
$ 126,000.00 $ 126,000.00 $ 126,000.00 $ 126,OOQ.00 $ 126,000.00
$ 750,840.00 $ 741,878.00 $ 771,147.00 $ 722,760.00 $ 685,280.OQ

totals
$ 1,201,525.00
$ 630,000.00
$ 3,672,405.00
$ 5,504,430.00

PAPR - 004454

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Keith R. Powell
Tuesday, November 17, 2015 4:11 PM
Robbie Ferris
RE: HCS contracts

Follow Up Flag:
Flag Status:

Follow up
Completed

Categories:

Red Category

There is a clause about this in my draft, but I had no amounts. I only used $500K as the "catch up" billing allowable (per
project) simply because I heard you say near the end of the competition that you had about $2.5M invested, but if the
concept is the same I don't see a big difference in using your enclosed figures if HC5 concurs.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-snail inay contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to exai7iine, copy or distribute the accompanying material. if you receive this message in error, please
notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerris@sfla.biz]
Sent: Tuesday, November 17, 2015 3:45 PM
To: Keith R. Powell
Subject: HC5 contracts
Keith,
All the needed sign offs are still coming in from our team but I think we're very close to being checked off. I do have one
revision request. We would like to bill for pre-construction ,proposal development and schematic design. The
breakdown is in the attachment but the total is $5,504,430.00. We are actually in DD so I think billing for SD is very
reasonable.
What do you think?
Robbie

Robert W. Ferris, AIA, REFP, LEED AP
CEO/President
333 Fayetteville Street, Suite 225
Raleigh, WC 27601
Celt: 919.610.2251
Fax: 919.573.6355
rferrisC~sfla.biz
www.sfla.biz

1

PAPR - 004455

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Clark, Brad <Brad.Clark@BBandT.com>
Tuesday, November 17, 2015 5:31 PM
Keith R. Powell; Robbie Ferris
RE: HCS ~ Exhibit B

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Keith,
Can you please send me the Causes of Loss Form referenced in the Builders Risk Coverage Form and all applicable
endorsements/exclusions? I would like to review the excluded perils as the policy wording in the attachments you send
provides very limited coverage for the exposure.
Thank you,
Brad Clarl<, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clarl<@bbandt.com
mailcode: 120-80-01-15
From: Keith R. Powell [mailto:kpowell@childs-halligan.nefi]
Sent: November 17, 2015 1:22 PM
To: Robbie Ferris
Cc: Clark, Brad
Subject: RE: HCS ~ ExhibiC B
Here are the forms, The BR policy talks about "your" property, but the IRF won't let HCS name a nongovernment entity
as an insured or loss payee.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.chiIds-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-avail in error, this does not constitute permission to examine, copy or distribute the aCcompanyfng material. If you receive this message in error, please
notify us by telephone as listed above immediately.

From: Robbie Ferris f_mailto:RFerris(a~sfla.biz]
Sent: Tuesday, November 17, 2015 12:22 PM
To: Keith R. Powell

PAPR - 004456

 Cc: Clark, Brad (Brad.Clark(~BBandT.com)
Subject: FW: HCS ~ Exhibit B

Keith,
Apparently our insurance company sent mean email about this a few days ago thatInever sent yau.
Sorry!!
Feel free to call Brad directly to discuss his concerns.
Robbie

Robbie/Mike,
After reviewing this updated draft, I still see the same potential problem areas as previously outlined. There are some
significant gaps in the protection of First Floor and subcontractors with the language used for Builder's Risl< coverage,
specifically:
•
•

•

•

design-Builder and subcontractors of all tiers should have insured status on the Builder's Risl< policy in order to
ensure your interests are protected.
HCS should agree to waive subrogation against First Floor and subcontractors of all tiers for losses covered by
the Builder's Risk policy. This waiver will prevent HCS' insurer from seeking subrogation against First Floor's or a
subcontractor's GLcoverage if a contractor caused damage to the project.
The contract states that HC5 has the responsibility to pay losses not covered by deductibles, but the contract
does not state anything regarding excluded perils, inadequate limits, or property not covered. These can all be
significant exposures.
Other areas as outlined in the attached "Builder's Risk Considerations".

Additional Insured status is still referenced for Pollution Liability coverage even though that coverage is not required by
HCS. I recommend striking this language since First Floor is not required to carry Pollution Liability by HCS. As discussed
previously, BB&T still recommends that you purchase Pollution Liability coverage to protect First Floor.
Thanl~s,
Brad Clark, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clarl<@bbandt.com
m a ilco d e: 120-80-01-15
From: Peeples, Kenneth
Sent: November 17, 2015 10:30 AM
To: Blanchard, Kathy; Clark, Brad
Subject: Fwd: Hcs

Ken Peeples
919-2$1-4510 office
919-215-9779 cell
z
PAPR - 004457

 Via ii'hone
Begin forwarded message:
From: Robbie Ferris <RFerris _,sfla.biz>
Date: November 17, 2015 at 9:55:52 AM EST
To:lVancy Zablud <NZablud(c~sfla,biz>, Mike Wawrzynialc <mwawrzvnialc cr,sfla.biz~,
"Kenneth J. Peeples" <l~eenles a
cr bbandt.com>, Aaron Thomas <athoinas(cr~,metconus.com>,
Mike Richter <mrichter ,talovin .com>
Subject: Fwd: Hcs
Guys,
See attached exhibit B in the email from Keith Powell.
Robbie
Sent from my iPhone
Begin forwarded message:
From:. "Keith R. Powell" <kuowellnas,childs-halli ~an.net>
Date: November 17, 2015 at 9:47:32 AM EST
To: "Robbie Ferris (RFerris ,sfla.biz)" <RFerris~,sfla.biv, Mark Wolfe
<MWolfe002(a~honvcountyschools.ilet>, "Ara Heinz
(AHeinzna~horrvcountvschools.net)" <AHeinz~a,hon,vcountyschools.net>, John
Gardner <JGardner(~~horrycountyschools.net>, Kenneth Generette
<KGenerette(a~,horr~c
vschools.net>, "rni~evCcr~,hoixycountyschools.iiet"
<nnaxevnhonvcountvschools.net>
Cc: "William F. Halligan" <bhalli~(c~childs-halli ~an.net>
Subject: RE: Hcs
Robbie & HCS folks:
Ex B updated draft attached for review &comment. Waiting nn HCS comments
on 141 and Ex A.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.Childs-halli ~an.coin
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential,
non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or
distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.
On Nov 17, 2015, at 7:43 AM, Robbie Ferris <RFenis o,sfla.biz~ wrote:
Keith

PAPR - 004458

 Can you send the latest version of the contract for review
Robbie
Sent from my iPhone

Il~c~ irif~rrrr~~rtro» u~~ this tr°cn~,s~rr~i.sti•vn mc~y CO1'1lGlil ).)r~,1~r~lercrry ~rncl nnrr-~ul~lic i~?torrr~crtior~i ~~f .B.GcIrT «r~ it,r
(•7.1~~1~1U/L',S l/Yll.~ T~9(!1' h!'. J'][~7.1('.("/ /(,1l71'!I/PCfl(.')F? W11fIG'T' f~1C lCfl•I•'. T~lf', 171E'S,$'U.1~E'. 7,S 71?IG)1(~6iI.f~L)1' /~IE~ SO~E,' 1.lS'G' 0,~ ~~7P•
inc~ii~icltriil a~' C'19f11:)- CU YPI91CI7 l~ !.S' ctc~cl~°c~,ssec~, 1/;vc~z~ are trot tlac< ir~~e.~r~~lc~cl rc~cr.~~ier~rt, ,}~vrr urc~ nc~tific~d that a~ii~ c.~,s~c~,
clr.s~~r'i1r2~lii~7t t~Y Cpf)1;1i9f; l7~ flt~ )'%1!.',s•.ti~u~jc~ is str~zcll~. ~~rohihite~! If :~~nrt t~ecc~ived /Iris r~zc~,~~.s~~r e ire er~~nr,1~Ic~cr.5~e clrle~c~
/•l?L' %fl(i/C!/'7f./~ ~t'O('ll :VU111' ~SV.sJc~rn i~i~itlrtau/ r'C[IC~/39~,r 1~9~ G'Ul1/('17/ C/724~ 7Z0/1~' /~9~7 S'C'11c7~(,l' ll7%71'1C'C~1!/1.~'ly' (!~ !~7(' lillft~l~(?7"IE'N//
~7'('li7.S'171i.1'.5'101`l.

.

PAPR - 004459

 Sheri L. Wainscott
From:
Sent:
To:
Cc:
Subject:

Keith R. Powell
Tuesday, November 17, 2015 6;44 PM
Clark, Brad
Robbie Ferris
Re: HCS ~ Exhibit B

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category.

Sure -have asked district for it. IRF is an odd bird -they cover hurricanes and civil rights violations well but
not so good on normal commercial stuff. You might need a DOC policy or consider the DB taking all the
builders risk if you can get a premium comparable to HCS's costs it could consider reimbursing.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.Childs=halli pan.com
(803)254-4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected
by attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to
exainuie, copy or distribute the accompanying material. If you receive this message in error, please notify us by
telephone as~listed above immediately.
On Nov 17, 2015, at 5 :31 PM, Clarlc, Brad <Srad.Clark(ce,BBandT.com> wrote:
I<e ith,
Can you please send me the Causes of Loss Form referenced in the Builders Risl< Coverage Form and all
applicable endorsements/exclusions? I would like to review the excluded perils as the policy wording in
the attachments you send provides very limited coverage for the exposure.
Thank you,
Brad Clarl<, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad,clarl<@bbandt.com
mailcode: 120-80-01-15

1
PAPR - 004460

 From: Keith R. Powell [mailto:kpowellC~childs-halligan.net]
Sent: November 17, 2015.1:22 PM
To: Robbie Ferris
Cc: Clark, Brad
Subject: RE: HCS ~ Exhibit B
Here are the forms. The BR policy tall~s about "your" property, but the IRF won't let HCS name a
nongovernment entity as an insured or loss payee.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: Tliis e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If
you Piave received this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive this message in error, please notify us by telephone as listed above iininediately.

From: Robbie Ferris [mailto;RFerrisCa~sfla.biz]
Sent: Tuesday, November 17, 2015 12:22 PM
To: Keith R. Powell
Cc: Clark, Brad (Brad.ClarkCo~BBandT.com)
Subject: FW: HCS ~ Exhibit B

Keith,
Apparently our insurance company sent mean email about this a few days ago that T never
sent you. Sorry!!
Feel free to call Brad directly to discuss his concerns.
Robbie

Robbie/Mike,
After reviewing this updated draft, I still see the same potential problem areas as previously outlined.
There are some significant gaps in the protection of First Floor and subcontractors with the language
used for Builder's Risl< coverage, specifically:
•
~

•

•

Design-Builder and subcontractors of all tiers should have insured status on the Builder's Risl<
policy in order to ensure your interests are protected.
ICS should agree to waive subrogation against First Floor and subcontractors of all tiers for
losses covered by the Builder's Risk policy. This waiver will prevent HCS' insurer from seeking
subrogation against First Floor's or a subcontractor's GL coverage if a contractor caused damage
to the project.
The contract states that HCS has the responsibility to pay losses not covered by deductibles, but
the contract does not state anything regarding excluded perils, inadequate limits, or property
not covered. These can all be significant exposures.
Other areas as outlined in the attached "Builder's Risk Considerations".

Additional Insured status is still referenced for Pollution Liability coverage even though that coverage is
not required by HCS. I recommend striking this language since First Floor is not required to carry
Pollution Liability by HCS. As discussed previously, BB&T still recommends that you purchase Pollution
Liability coverage to protect First Floor.
2

PAPR - 004461

 .;::

----

_

_ ..

). .
i

Tha n I<s,

j
i'

Brad Clark, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Celi
brad.clarl<Ca~bbandt.com
ma iIco de: 120-80-01-15

I
i
i
j

From: Peeples, Kenneth
Sent: November 17, 2015 10:30 AM
To: Blanchard, Kathy; Clark, Brad
Subject: Fwd: Hcs

Ken Peeples
919-281-4510 office
919-215-9779 cell
Via iPhone

Begin forwarded message:
From: Robbie Ferris <RFerris(c~sfla.biz>
Date: November 17, 201S at 9:55:52 AM EST
To: Nancy Zablud <NZablud cr,sfla.biv, Mike Wawrzyniak
<niwawrzyniak cyr sfla.biz>, "I~enneth J. Peeples" <lcpeeples(a~bbandt.com>,
Aaron Thomas <athoinas(c~metconus.coin>, Mike Richter
<mrichter ,talovin~; com>
Subject: Fwd: Hcs
Guys,
See attached e~ibit B in the email from Keith Powell
Robbie
Sent from my iPhone
Begin forwarded message:
Frorn: "Keith R. Powell" <kpowellnchilds-halli gan,net>
Date: November 17, 2015 at 9:47:32 AM EST
To: "Robbie Ferris (RFerrisna,sfla.biz)" <RFerris e,sfla.biz>, Marlc
Wolfe <MWolfe002(~honycountyschools.net>, "Ara Heinz
(AHeinz(c~,horr~c untvschools.net)"
<AHeinz ,hoi~rycountvschools.net>, John Gardner
<JGardner cr,horrycountvschools.net>, Kenneth Generette
<KGenerette~a~,honycountyschools.net>,
PAPR - 004462

 "rrnaxey a,horrvcountXschools.uet"
<rmaxe~cr,horrycountyschools.net>
Cc: "William F. Halligan" <bl~alliga~~Ca~,childs-halli an.net>
Subject: RE: Hcs
Robbie & HCS folks:
Ex B updated draft attached for review &comment. Waiting on
HCS comments on 141 and Ex A.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halli ~an,com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and
confidential, non-disclosable and protected by attorney-client
privilege. If you have received this e-mail in error, this does not
constitute permission to examine, copy or distribute the
accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.
On Nov 17, 2015, at 7:43 AM, Robbie Ferris <RFenis ,sfla.bi~?
wrote:
Keith
Can you send the latest version of the contract for
review
Robbie
Sent from my iPhone

The i»fi:~r~r»n~rorr iii dais tr•unsmis,~~zon n~~~y~ cn~~rrin ~~r•c~f~rie~cn;v ~r~7d taor~-p~.rl~lic infr~rnr~~~rc,rt of
13I3c~%:I' clr it.s~ crffilicrtc~,s c~~ul rrurJ~ Cie S'GlI7%f'Ct ~0 ~)f'c~t~~clic.~Fa u~~c.~er thc~ Icn-v. '1'7u; rne,ssil~E~ i,s r'~~te~7cl~~.~
,for the s~~le ~rsc v~'~l~e +f7c/i~~icliaul ~~r errtilj~ fa ~i-1~ir{~ rl' i,s c~dclres,~~~d .lf~,i~vrr. cr~•e rant the inlerzcle~l
1'CrC7f:)]G'71/. ~'OL/ !.!1'f' no/ific~cl Ih~ll czr?~~ •rt,sE~, i/i,slr"Ir72lIdCJi2 L'l7" C°c~~~pirt,~;r ~~f i~tc~ n~e,ssiic rs s/rrc/ly,
~.~rvlr.zl.~ilc~cl. I~ j-or.~ r•e~c~i~-c~c~ lhi,s »~es,scrge in c~rrc~r, ~~l~;cr,s~: i~clele ~hc~ ~r~a~er•ir~l,fr•vt~a J-otir• .`J~,s1ei~~
irithntrl r•c~adin~~r Jl~e rv~~tcr~t af~cl rzotr.'fj- tlre: se~iiler• i~nr~~eclicrtel~~ gt'the r.'nacli-e~~terat tran.s~r~~is.s•inn.

4

PAPR - 004463
Y

 Sheri L. Wainscatfi
From:
Sent:
To:
Subject:
Attachments:

Robbie Ferris <RFerris@sfla.biz>
Wednesday, November 18, 2015 10:04 AM
Keith R. Poweil
hcs draw request.xlsx
hcs draw request.xlsx

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Keith, I should have put the names on the schools. See the new attachment. Also I made a $10,000 typo on the Myrtle
beach MS that I send you last might. This version is corrected. The amount in this spreadsheet aligns with our schedule
of values so hopefully these amounts will be ok with you but if not we could round it to 1,100,000 per school. Rounding
just means we would have to re do the schedule of values and it would get a little messy with subs.
am planning on being at HCS at 3 to sign everything unless I hear otherwise from you.
Robbie

~~~~~
.L

h'v'C. II I IA c7}

Robert W. Ferris, AIA, REFP, LEED AP
CEO/President
333 FayeCCeville Skreet, Suite 225
Raleigh, NC 276Q1
Cell: 919.b10.2251
fax; 919, 573.6355
rferrisC~sfla.biz
www.sfla.biz

1
PAPR - 004464

 Firstfloor Proposl Dev
Pre construction estimating and bidding
A&E-Schematic design

Socastee ES
Socastee MS
tota Is
Myrtle beach MS
Carolina forest
St James Inter
260,035.00 $
206,721.00 $
250,165.00 $
231,417.00 $ 1,201,525.00
$
253,187.00 $
126,000.00 $
126,000.00 $
126,000.QO $
126,000.00 $ 630,000.00
$
126,000.00 $
771,147.00 $
722,760.00 $
760,840.00 $
741,878.00 $
686,280.00 $ 3,682,905.00
$
1,118,043.00 $ 1,157,182.00 $ 1,055,481.00 $
$
1,043,697.00 $ 5,514,430.00
1,140,027.00 $

PAPR - 004465

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Keith R. Powell
Wednesday, November 18, 2015 10:14 AM
Robbie Ferris
Re: hcs draw request.xlsx
image001jpg

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Thanks. Discussing all (finally) with HCS today.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halli~an.com
(803) 254-4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.
On Nov 18, 2015, at 10:04 AM, Robbie Ferris <RFerris@sfla.biz> wrote:
Keith, I should have put the names on the schools. See the new attachment. Also I made a $10,000 typo
on the Myrtle beach MS that I send you last might. This version is corrected. The amount in this
spreadsheet aligns with our schedule of values so hopefully these amounts will be ok with you but if not
we could round it to 1,100,000 per school. Rounding just means we would have to re do the schedule of
values and it would get a little messy with subs.
am planning on being at HCS at 3 to sign everything unless I hear otherwise from you.
Robbie

<image001. j pg>
Robert W. Ferris, AIA, REFP, LEED AP
CE~lPresident
333 Fayetteville Street, Suite 225
Raleigh, NC 27601
Celt: 919.b10.2251
Fax: 919.573.6355
rferrisCsfla. biz
www.sfta. biz

i
PAPR - 004466

  

<hcs draw request.xlsx>

PAPR - 004467

Sheri L. Wainscott
Fram:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Wednesday, November 18, 2015 12:27 PM
Keith R. Powell
RE: HCS contracts

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Great, the 2.5 mil was sfla internal cost and it did not include consultants or estimators. It was my SD fee for
architectural only.
__
From: Keith R. Powell [mailto:kpowellCa>childs-halligan.net]
Sent: Tuesday, November 17, 2015 4:11 PM
To: Robbie Ferris
Subject: RE: NCS contracts

_

There is a clause about this in my draft, but I had no amounts. I only used $500K as the "catch up" billing allowable (per
project) simply because I heard you say near the end of the competition that you had about $2.5M invested, but if the
concept is the same I don't see a big difference in using your enclosed figures if HCS concurs.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerris@sfla.biz]
Sent: Tuesday, November 17, 2015 3:45 PM
To: Keith R. Powell
Subject: HCS contracts
Keith,
All the needed sign offs are still coming in from our team but I think we're very close to being checked off. I do have one
revision request. We would like to bill for pre-construction ,proposal development and schematic design. The
breakdown is in the attachment but the total is $5,504,430.00. We are actually in DD so I think billing for SD is very
reasonable.
What do you think?
Robbie

~~~

:~. i [: I1 I 1 •t f: 1

.~ ~.

PAPR - 004468

 Robert W. Ferris, AIA, REFP, LEED AP
CEO/President
333 FayetCeville 5treel, Suite 2Z5
Raleigh, NC 27601
Cell: 919.610.2251
Fax: 919.573.6355
rferris~sfla. biz
www.sfla.biz

PAPR - 004469

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Keith R. Powell
Wednesday, November 18, 2015 12:56 PM
Clark, Brad (Brad.C~ark@BBandT.com) (Brad.Clark@BBandT.com); Robbie Ferris
(RFerris@sfla.biz)
FW; HCS ~ Exhibit B
Architect Fees Limitations.pdf; Builder's Risk Policy Info.pdf; Causes of Loss Earthquake.pdfi Causes of Loss.pdf; Endorsement Clauses - Certificates.pdf; Flood
Insurance.pdf; SC Changes - Valuation.pdf

Importance:

High

Follow Up Flag:
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Follow up
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Categories:

Red Category

Attached info for your use.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosahle and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

From: Ara Heinz [mailto:AHeinz@horrycountyschools.net]
Sent: Wednesday, November 18, 2015 12:40 PM
To: Keith R. Powell
Subject: RE: HCS ~ Exhibit B
Mr. Powell,
Sorry for the delay. In a mtg this morning and dr's appt right after. Let me Know if you need anything else.
Regards,
~t 4'a~
Ara Heinz ~ ProcurementS~rvices~ ~xP: 843J48S-6930
Horry County Schools ~ 335 four Mile Rd. ~ Conway, SC 29526
VJebsite: Procurement.horrycountyschools.net
R,_;~
Ibry Cp.n'y SrM~M

From: Keith R. Powell [mailto:kpowell@childs-halli~an.net]
Sent: Tuesday, November 17, 2015 6:39 PM
To: Ara Heinz
Subject: Fwd: HCS ~ Exhibit B
PAPR - 004470

 Ara -can you get your irf policy to me? Y know you sent two excerpts in the summer but the insurance agent
for ffep needs to see it all. Thanks.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.chi lds-halli gan.com
(803)254-4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected
by attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to
examine, copy or distribute the accompanying material. Tf you receive this message in error, please notify us by
telephone as listed above immediately.
Begin forwarded message:
Frorn: "Clark, Brad" <Brad.Clarlc(c~BBandT.com>
Date: November 17, 2015 at 5:30:59 PM EST
To: "Keith R. Powell" <lcpowell cr,ehilds-halli ag nnet>, Robbie Ferris <RFei~ris a,sfla.biz>
Subject: RE: HCS ~ Exhibit B
Keith,
Can you please send me the Causes of Loss Form referenced in the Builders Risk Coverage Form and all
applicable endorsements/exclusions? I would like to review the excluded perils as the policy wording in
the attachments you send provides very limited coverage for the exposure.
Thank you,
Brad Clarl<, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 30~
Durham, NC 27703
919.281,4545 Direct
678,612.7403 Cell
brad.clark@bbandt.com
ma ilcode: 120-80-01-15
From: Keith R. Powell [mailto:kpowellC~childs-halligan.net]
Sent: November 17, 2015 1:22 PM
To: Robbie Ferris
Cc: Clark, Brad
Subject: RE: HCS ~ Exhibit B
Here are the forms. The BR policy talks about "your" property, but the IRF won't let HC5 name a
nongovernment entity as an insured or loss payee.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan,com

PAPR - 004471

 (803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If
you have received this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive this message in error, please notify us by teleF~hone as fisted above immediately.

From: Robbie Ferris [mailto:RFerrisCa~sfla.biz]
Sent: Tuesday, November 17, 2015 12:22 PM
To: Keith R. Pov~iell
Cc: Clark, Brad (Brad.Clark(~BBandT.com)
Subject: FW: HCS ~ Exhibit B

Keith,
Apparently our insura~7ce company sent me an email about this a few days ago that Z never
sertit you. Sorry!i
Feel free to call Brad directly to discuss his concerns.
Robbie

Robbie/Mike,
After reviewing this updated draft, I still see the same potential problem areas as previously outlined.
There are some significant gaps in the protection of First Floor and subcontractors with the language
used for Builder's Risk coverage, specifically:
•
•

•

•

Design-Builder and subcontractors of all tiers should have insured status on the Builder's Risk
policy in order to ensure your interests are protected,
HCS should agree to waive subrogation against First Floor and subcontractors of all tiers for
losses covered by the Builder's Rislc policy. This waiver will prevent HCS' insurer from seeking
subrogation against First Floor's or a subcontractor's GL coverage if a contractor caused damage
to the project.

The contract states that HCS has the responsibility to pay losses not covered by deductibles, but
the contract does not state anything regarding excluded perils, inadequate limits, or property
not covered:.These can all be significant exposures.
Other areas as outlined in the attached "Builder's Risl< Considerations".

Additional Insured status is still referenced for Pollution Liability coverage even though that coverage is
not required by HCS. I recommend striking this language since First Floor is not required to carry
Pollution Liability by HCS. As discussed previously, BB&T still recommends that you purchase Pollution
Liability coverage to protect First Floor.
Thanks,
Brad Clark, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clarlc@bbandt.com
mailcode: 120-80-01-15

PAPR - 004472

 From: Peeples, Kenneth
Sent: November 17, 2015 10:30 AM
To: Blanchard, Kathy; Clark, Brad
Subject: Fwd: Hcs

Ken Peeples
919-281-4510 office
919-215-9779 cell
Via iPhone

Begin forwarded message:
From: Robbie Ferris <RFerris cr,sfla.biz?
Date: November 17, 2015 at 9:55:52 AM EST
To: Nancy Zablud <NZablud~ic ,sfla.biv, Mike Wawrzyniak
<mwawrzyniak esfla.biz>, "Kenneth J. Peeples" <kpeeples~a bbandt.coin>,
Aaron Thomas <athomas(a~metconus.coin>, Mike Richter
<mrichter(a~talovin~>
Subject: Fwd: Hcs
Guys,
See attached exhibit B in the email from Keith Powell.
Robbie
Sent from my iPhone
Begin forwarded message:
From: "Keith R. Powell" <kpowell(lchilds-halli~an.net>
Date: November 17, 2015 at 9:47:32 AM EST
To: "Robbie Ferris (RFerris e,sfla.biz)" <RFei7is(a~sfla.biz>, Mark
Wolfe <MWo1fe002 cr,horrycountyschools.net>, "Ara Heinz
(AHeinz(a,honycountyscliools.net)"
<AHeinz(c~lion~countvschools.net>, John Gardner
<JGardner cr,horr, countyschools.net>, Kenneth Generette
KGenerette(a~horrvcountvschools.net>,
"rinaxey~a~horr,~countyschools.net"
<rmaxev~horrvcountvscliools.net>
Cc: "William F. Halligan" <bhalliwan cr,childs-halli ga1l.net>
Subject: RE: Hcs
Robbie & HCS folks:
Ex B updated draft attached fox review &comment. Waiting on
HCS comments on 141 and Ex A.
Keith R. Powell
Childs &Halligan, P.A.
PAPR - 004473

 Columbia, South Caxolina
www.childs-halli an.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and
confidential, non-disclosable and protected by attorney-client
privilege. If you have received this e-mail in error, this does not
constitute permission to exannine, copy or distribute the
accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.
On Nov 17, 2015, at 7:43 AM, Robbie Ferris <RFerris(a~sfla.biv
wrote:
Keith
Carr you send the latest version of the contract for
review
Robbie
Sent from my iPhone

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Plior~c: (h(13) 737-0020

ARCHITECT FEES LIMITATIONS
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY
?his endorsement modifies insurance provided under the following:
BUILDING AND PERSONAL COVERAGE FORM
BUILDERS RISK COVERAGE FORM
With respect to PD 05 01 01 Section C. Limitations, the following is added:
6. The payment of architect's fees to include plans and specifications, engineering studies and supervision of construction is
limited Io losses greater than $100,000 in total project cost.

INSURANCE RESERVE FUND

By
Director

PAPR - 004475

 POLICYHOLDER'S MANUAL
ALL LINES

STATE FISCAL ACCOUNTABILITY AUTHORITY
INSURANCE RESERVE FUND
POST OFF{CE BOX 11066
12Q1 MAIN STREET -SUITE 500
COLUMBIA, SOUTH CAROLINA 29201
PHONE NUMBER (MAIN)
803-737-OOZO

FAX NUMBERS
803-737 0393 -Underwriting
803-737-3757 -Medical Professional Liability
803737-0042 - Ciaims
July 2015 (REV.)

July 2015

PAPR - 004476

 i.

"Business income" means net income that would have been earned or
incurred or continuing normal operating expenses.

ii. "Extra expense" means the additional expenses that are necessary to avoid
or minimize the interruption of business.
b. ADDITIONAL COVERAGES INCLUDE:
"Civil authority" applies to the extra expense caused by a civil authority
prohibiting access to the damaged property.
"Alterations and new buildings" applies to new structures or alterations and
begins on the date That operations would have begun except for the occurrence
of the loss.
"Extended business income" applies to additional loss of business Income after
property is actually repaired and operations are resumed, until the business can
be restored, with reasonable speed, to the condition that would have existed had
no loss occurred.
6. BUILDER'S RISK (Form PD23 01-91)
a. COVERAGE; The Fund will pay for direct physical loss of or damage to covered
roe unless excluded or limited. Coverage is written on a replacement cost
basis with a 100% coinsurance clause. A standard $1,000 deductible applies to
each occurrence.
i.

"Covered property' includes the structure under construction, foundations,
and, if intended to become a permanent part of the structure, fixtures,
machinery, equipment, building materials and supplies within 100 feet of the
premises.

ii. "Property not covered" includes land, lawns, trees, shrubs and plants, radio
and television antennas, and signs not attached to buildings.
b. ADDITIONAL COVERAGES INCLUDE:
"Debris removal" applies to the expenses incurred in cleaning up covered
property after a covered cause of loss, up to 25% of the direct physical loss.
"Preservation of property" applies to property moved from an insured location for
protection from loss by a covered peril,
"Fire department service charge" applies to service charges accessed by a fire
department, up to $1,000.
"Pollutant clean up and removal" applies to expenses incurred to extract
pollutants from land or water at a covered location, if the discharge is caused by
or results from a covered cause of lass, up to $10,000,

D
July 2015

PAPR - 004477

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BUILDERS RISK COVERAGE FURM
Various provisions in this policy restrict coverage, Road the entire policy carefully to determine rights, duties and what is and is not
covered.
Throughout this policy, the words, "you" and "your" refer to Named Insured shown in the Declarations. The words "we", "us" and "our"
refer to the Insurance Reserve Fund.
Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION G -DEFINITIONS.
a Covered Cause of Loss that occurs during
A. COVERAGE
the policy period. The expenses will be Paid
only if they are reported io us in writing within
We will pay (or direct physical loss or damage to Covered
180 days of fhe earlier of:
Property at the premises described fn the Declarations caused
by or resulting from any Covered Cause of Loss.
(a) The date of direct physical loss or
damage; or
1. Covered Property
Covered ProPerly, as used in this Coverage Part,
means the following type of property for which a Limit of
Insurance is shown in the Declarations:
Building Under Construction, meaning tho building or
structure described in .the Declarations while in the
course of construction, Including:
a.

Foundations;

b.

It intended to become a permanent part of the
building or structure described in the Declarations,
the following property located in or on the building
or structure or within 100 feet of Its premises:
(1) Fixtures, machinery and eyulpmeni used to
service the building; and
(2) Your building materials and supplies used for
construction;.

c.

If not covered by other insurance, temporary
structures built or assembled on site, including
cribbing, scaffolding and construction forms.

2. Property Not Covered
Covered Property does not include;
a.

Land {including land on which the properly is
located) or water;

b.

The following property when outside of buildings:
(i) Lawns, trees, shrubs or plants:
(2) Radio or television antennas, including their
lead-in wir(ng, masts or towers; or
(3) Signs (other.than signs attached to buildings).

3. Covered Causes of Loss
See applicable Causos of Loss Form as shown in the
Declarations.
4. Addit(onal Coverages
a. Debris Removal

(2) The most we will pay under this Additional
paverage is 25% of:
(a) The amount we pay for the direct physical
loss of or damage to Covered Property;
plus
(b) The deductible in this policy applicable to
that loss or damage.
But this limitation does not apply to any
additional debris removal limit provided in the
Limits of insurance section.
(3} This Additional Coverage does not apply to
costs to:
(a) Extracts "pollutants" from land or water; or
(b) Remove, resloro or replace polluted land
or water.
b. Preservation of Property
If it is necessary to move Covered Properly from
the described premises to preserve it from loss ar
damago by a Covered Cause of Loss, we will pay
for any direct physical -loss or damage to that
property:
(i) While it is being moved or while temporarily
stored at another location; and
(2) Only of the loss or damafle occurs within 10
days after the property is first moved.
c. Fire Department Service Charge
When the (ire department is called to save or
protect Covered Property (ram a Covered Cause of
Loss, we will pay up to $1,000 for your liability for
fire department servico charges:
(1) Assumed by contract or agreement prior to
loss; or
(2) Required by local ordinance.

(1} We will pay your expense to romove debris of
Covered Property caused by or resulting from
PI)231.1/')l)

(b) The end of the policy period.

No deductible applies to this Additional Coverage.

Cupyri~;li1, I5Q Commercial RI!;k Sen4ces, Lic., I)83,19H7

I'AGL: L OR:{
PAPR - 004478

'

 d. Pollutant Ciean Up and Removal

We will pay your expense to extract "pollutants"
from land or water at the described premises if
the release, discharge or dispersal of the
pollutants" is caused by or results from a
Covered Cause of Loss that occurs during the
policy period. The expenses will be paid only if
they are reported to us in writing within 180
days of the earlier ot:
(1) The date of direct physical loss or damage;

or
(2) The end of the policy period,
The most we will pay for each location under
this Additional Coverage is $10,000 for the sum
of all such expenses arising out of Covered
Causes. of Loss occurring during each separate
12 month period of this policy.
S. Building Materials and Supplies of Others
a. You may extend the Insurance provided by this
Coverage Form to apply to building materials
and supplies that are:
(1) Owned by others;

b. The debris removal expense exceeds the
amount payable under the 25% Iimitatfon In the
Debris Removal Additional Coverage;
we will pay up to an Additional $5,000 for each
location in any one occurrence under the Debris
Removal Additional Coverage.
D. DEDUCTIBLE
We will not pay for lass or damage in any one
occurrence unttl the amount of loss or damage
exceeds the Deductible shown in the Declarations.
We will then pay the amount of loss or damage in
excess of the Deductible, up to the applicable Lfmit
of Insurance.
E. LOSS CONDITIONS
The following conditions apply in addition to .the
Common Policy Conditions and the Commercial
Property Conditions. .
1.

There can be no abandonment of any property

to us.
2.

(2) In your care, custody or control;
(3) Located in ar on the building described in
the Declarations, or within 100 feet of its
premises; and
(4) Intended to become a permanent part of
the building.
b. The most we will pay for loss or damage under
this Extension is $2,500 at each described
premises. Our payment for loss of or damage to
property of others will only be for the account of
the owner of the property.
This Extension is additional insurance,

Abandonment

Appraisal
If we and you disagree on the value of the
property or the amount of loss, either may
make written demand for an appraisal of the
loss. In this event, each party will select a
competent and impartial appraiser. The two
appraisers will select an umpire. If they cannot
agree, either may request that selection be
made by a judge of a court having jurisdiction.
The appraisers will state separately the value of
the property and amount of loss. If they fail to
agree, they will submit their differences to the
umpire. A decision agreed to by any two will be
binding. Each party will:
a.

Pay its chosen appraiser; and

b.

Bear the other expenses of the appraisal
and the umpire equally.

B. EXCLUSIONS
See applicable Cause of Loss Form as shown in the
Declarations

If there is an appraisal, we will still retain our
right to deny the claim.
3. Duties In The Event of Loss or Damage

C. LIMITS OF INSURANCE
The most we will pay for loss or damage in any one
occurrence is the applicable Limit of Insurance shown in
the Declarations.

You must see that the following are done in the
event of loss or damage to Covered Property:
a.

Notify the police if a law may have been
broken.

occurrence.

b.

The limits applicable to the Coverage Extension and the
Fre Department Service Charge and Pollutant Clean Up
and Removal Additional Coverages are in addition to the

Give us prompt notice of the loss ar
damage. Include a description of the
property involved.

c.

As soon as possible, give us a description
of how, when and where the loss or
damage occurred,

Payments under the following Additional Coverages wit!
not increase the applicable Limit of Insurance:

d.

Take all reasonable steps to protect the
Covered Property from further damage by
a Covered Cause of Loss. If feasible, set
the damaged property aside and in the
best possible order for examination. Also
keep a record of your expenses for
emergency and temporary repairs, for
consideration in the settlement of the
claim. This will not increase the Limit of
Insurance,

The most we will pay for foss or damage to outdoor
signs attached to buildings Is $1,000 per sign in any one

Limits of Insurance.

1.

Preservation of Property; or

2.

Debris Removal; but if:
a.

PD23 (1/91)

The sum of direct physical Ioss or damage and
debris removal expense exceeds the Limit of
Insurance; or

Copyright, ISO Commercial Risk Services, Ine.,1983, 1987

PAGE: 2 OF 4
PAPR - 004479

 e.

f.

5. Recovered Property

At our request, give us complete inventories of
the damaged and undamaged property. Include
quantities, costs, values and amount of loss
claimed,

If either you or we recover any property after loss
settlement, that party must give the other prompt
notice. At your option, the property will be returned
to you. You must then return to us the amount we
paid to you for the property. We will pay recovery
expenses and the expenses to repair the recovered
property, subject to the Limit of Insurance.

Permit us to inspect the property and records
proving the loss or damage.
Also permit us to take samples of damaged
property for inspection, testing and analysis.

g.

h.

L

If requested, permit. us to question you under
oath at such times as may be reasonably
required about any matter relating to this
Insurance or your claim, including your books
and records. In such event, your answers must
be signed.
Send us a signed, sworn statement of loss
containing the information we request to
investigate the claim. You must do this within
60 days. after our request. We will supply you
with the necessary forms.
Cooperate with us in the investigation or
settlement of the claim.

6. Valuation
We will determine the value of Covered Property at
actual cash value as of the t(me of loss or damage.
F.

ADDITIONAL CONDITIONS
The following conditions apply in addition to the
Common Policy Conditions and the Commercial
Property Conditions.
1. Mortgage Holders
a. The term "mortgage holder" includes trustee.
b.

We will pay for covered loss of or damage to
buildings or structures to each mortgage holder
shown in the Declarations in their order of
precedence, as interests may be appear.

c.

The mortgage holder has the right to receive
loss payment even If the mortgage holder has
started foreclosure or similar action on the
building or structure.

d.

If we deny your claim because of your acts or
because you have failed to comply with the
terms of this Coverage Part, the mortgage
holder will still have the right to receive loss
payment if the mortgage holder:

4. Loss Payment
a.

In the event of Ioss or damage covered by this
Coverage Form, at our option, we will either;
(1) Pay the value of lost or damaged property;
(2) Pay the cost of repairing or replacing the
lost or damaged property;
(3) Take all or any part of the property at an
agreed or appraised value; or
(4) Repair, rebuild or replace the property with
other property of Ilke kind and quality.

b.

We will give notice of our intentions within 30
days after we receive the sworn statement of
loss.

c.

We will not pay you more than your financial
interest in the Covered Property.

d.

We may adjust losses with the owners of lost or
damaged properry if other than you. If we pay
the owners, such payments will satisfy your
claims against us for the owners' property. We
wild not pay the owners more than their financial
interests m the Covered Property.

e.

We may elect to defend you against suits
arising from claims of owners of property. We
will do this at our expense.

f.

We will pay for covered toss or damage within
30 days after we receive the sworn statement
of loss, if:
(1) You have complied with all of the terms of
this Coverage Part; and
(2J (a) We have reached agreement with
you on the amount of loss; or
(b) An appraisal award has been made,

PD23 (1/91)

(1) Pays any premium due under this
Coverage Part at our request if you have
failed to do so;
(2) Submits a signed, sworn statement of loss
within 60 days after receiving notice from
us of your failure to do so; and
(3) Has notified us of any change in
ownership, occupancy or substantial
change in risk known to the mortgage
holder.
All of the terms of This Coverage Part will then
apply directly to the mortgage holder.
e.

If we pay the mortgage holder for any loss or
damage and deny payment to you because of
your acts or because you have tailed to comply
with the terms of this Coverage Part:
(1) The mortgage holder's rights under the
mortgage will be transferred to us to the
extent of the amount we pay; and
(2) The mortgage holder's right to recover the
full amount of the mortgage holder's claim
will not be impaired.
At our option, we may pay to the mortgage
holder the whole principal on the mortgage plus
any accrued interest. In this event your
mortgage and note will be transferred to us and
you will pay your remaining mortgage debt to
us.

Copyright, ISO Commercial ItLsk Services, Inc., 1983, 1987

PAGE: 3 Or 4

PAPR - 004480

 f.

If we cancel this policy, we will give written
notice to the mortgage holder at feast:

3. Restriciton of Additional Coverage -Collapse
if the Additional Coverage -Collapse is included in
the Causes of Loss Form applicable to this
coverage form, paragraph 6 of that Additional
Coverage does not apply to this coverage form.

(1) 10 days before the effective date of
cancellation if we cancel for your
non-payment of premium; or
(2) 30 days before the effective date of
cancellation if we cancel for any other
reason.
g.

4, Waiver of Rights of Recovery Against Others
You may not waive your rights to recover damages
from an architect, engineer or building trades
contractor or subcontractor with respect to the
described premises except as agreed to in writing
by us. This provision supersedes any provisions to
the contrary in the TRANSFER OF RIGHTS OF
RECOVERY AGAINST OTHERS TO US
Commerc(al Property Condition.

If we elect not to renew this policy, we will give
written notice to the mortgage holder at Ieast 10
days Before the expiration date of this policy.

2. Need For Adequate insurance
We will not pay a greater share of any Ioss than the
proportion that the Limit of Insurance bears to the
value on the date of completion of the building
described in the Declarations.

5. When Coverage Ceases
The insurance provided by this Coverage Form will
end when one of the following first occurs:

Example No. 1 (Underinsurance):
When: The value of the building
on the date of completion is
The Limit of Insurance for it is
The Deductible is

a.

This policy expires or is cancelled;

$200,000

b.

The property is accepted by the purchaser;

$100,000

c.

Your interest in the property ceases;

$250

d.

You abandon the construction with no Intention
to complete it

$80,000

The amount of loss Is

e. Unless we specify otherwise in writing:

Step 1: $100,000 / $200,000 = .50

(1) 80 days after construction is complete; or

Step 2: $80,000 x .50 = $40,000

(2) When any building described in the
Declarations is:

Step 3: $40,000 - $250 = $39,750

(a) Occupied in whole or in part; or

We will pay no more than $39,750. The remaining
$40,250 is not covered.
Example No. 2 {Adequate Insurance):
When: The value of the building
on the date of completion is
The Limit of Insurance for it is
The Deductible is

(b) Put to Its intended use.
G. DEFINfTIONS

$200,000
$200,000
$250

"Pollutants" means any solid, liquid, gaseous or thermal
irritant or contaminant, including smoke, vapor, soot,
fumes, acids, alkalis, chemicals, and waste. Waste
includes materials to be recycled, reconditioned or
reclaimed.

$80,000

The amount of loss is
Step 1: $200,000 / $200,000 =1.00
Step 2: $80,000 x 1.00 = $50,000
Step 3: $50,000 - $250 = $79,750

We will cover the $79,750 loss in excess of the
Deductible. No penalty applies.

INSURANCE RESERVE FUND

By
Director

PD23 (1/91)

Copyright, TSp Commercial RLsk Services, Inc.,1983,1987

PAGE: 4 OF 4
PAPR - 004481

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COMMON POLICY CONDITIONS
All Coverage Parts included in this policy are subject to the following conditions.
A. Cancellation and Non-Renewal
The first Named Insured shown in the Declaration may
cancel this policy by mailing to the Insurance Roserve
Fund a 90 day written advance notice stating when
thereafter the cancellation shall be effective, A political
subdivision may cancel all policies with the Insurance
Reserve Fund by mailing to the Fund a 90 day written
advance notice as provided In §15-78-140 of the South
Carolina Code of Laws.
The Insurance Reserve Fund may cancel This policy for
nonpayment of premium by mailing a notice of
cancellation giving not less than 30 days notice of the
cancellation as provided In §15.78-160 of the South
Carolina Code of Laws.
If this policy is cancelled In accordance with (1) or (2)
above, earned premium shall be computed in
accordance with the customary short rate table and
procedure. Premium adjustment may be made either 2t
the time cancellation is effected or as soon as
practicable after cancellation becomes effective, but
payment or lender of unearned premium Is not a
condition of cancellation.
For the purposes of this policy, the term non-renewal
shall mean cancellation if the Insured Is coasing all
coverages with the Insurance Reservo Fund and
conditions as provided in sections (1), (2) and (3) apply.

1. Are safe or healthful; or
2. Comply with laws, regulations, codes or standards.
This condit(on applies not only to us, but also to any
ratang, advisory, rate service or similar organ(zation,
which makes insurance inspecifons, surveys, reports or
recommendations.

The first named insured shown In the Declarations:
1, Is responsible for the payment of all premiums; and
2. Wail be the payee for any return premiums we pay.
Transfer of Your Rights And Duties Under This
Pailcy
Your rights and dutios under this policy may not be
transferred without our written consent except in the
case of death of an individual named insured.
if you die, your rights will be transferred to your legal
representative but only while acting with(n the scope of
duties as your legal representativo. Until your legal
representative is appointed, anyone having proper
temporary custody of your property will have your rights
and duties but only with respect to that property.

Changes
This policy contains all the agreements between you and
us concerrnng the Insurance afforded. The first Name
Insured shown in the Declarations is authorized to matte
changes in the terms of this policy with our consent.This
policy's terms can be amended or waived only by
endorsement Issued by us and made a part of this
policy.

INSURAN E RESERVE FUND

Examination of Your Books and Records
We may examine and audit your books and records as
they relate to this policy at any time during the policy
period and up to three years afterward.

Director

Inspections and Surveys
We have the right but are not obligated to:
1. Make inspections and surveys at any time;
2. Give you reports on the conditions we find; and
3. Recommend changes.
Any inspections, surveys, reports or recommendations
relate only to insurability and the premiums to be
charged, We do not matte safety Inspections. We do not
undertake to perform the duty of any person or
organization to provide for the health or safely of
workers or the public. And we do not warrant that
conditions:

PAPR - 004482

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COMMERCIAL PROPERTY CONDITIONS
This Coverage Part is subject to fhe following conditions, the Common Policy Conditions and applicable Loss Conditions and
Additional Conditions in Commercial Properly Coverage Fonns,

A. CONCEALMENT, MISREPRESENTATION, OR FRAUD

G. OTHER INSURANCE

This Coverage Part Is void in any case of fraud by you
as It relates fo Ihis Coverage Part at any time. It is also
void if you or any other insured, at any time, intentionally
conceal or misrepresent a material fact concerning.
1. Thfs Coverac~e Part;
2. The CovQred Property;
3. Your interest in the Covered Properly; or
4, A claim under this Coverage Parl.

1,

You may have other Insurance subject to the same
flan, terms, conditions and provisions as the
insurance under this Coverago Para. If you do, we
will pay our share of tho covered loss or damage,
Our share is the proponion that the applicable Limit
of Insurance under this Coverac~o Part dears to the
Limits of Insurance of ali Insurance covering on the
same basis.

2.

If there is other insurance covering tho same loss or
damage, other than that described in 1. above, we
will pay only for fhe amount of covered loss or
damage in excess of the amount due irom that other
Insurance, whether you can collect on it or not. But
we will not pay more that the applicable Limit of
Insurance.

B. CONTROL OF PROPERTY
Any act or neglect of any person other than you beyond
your direction or control will not affect this insurance.
The breach of any condition of this Cavorage Parf at any
one or more locations will not affect coverage at any
location where, at the time of loss or damage, the breach
of condition does not exist.

H. POLICY PERIOD, COVERAGE TERRITORY
Under this Coverage Part:

C. INSURANCE UNDER TWO OR MORE COVERAGES
1.
If two or morn 01 this policy's coverages apply to the
same loss or damage, wo will not pay more than the
actual amount of the loss or damage.
d. ILLEGAL ACTION AGAINST US
2.

No one may bring a legal action against us under This
Coverage Part unless:
1.

There has been full compliance with all of the terms
of this Coverage Part; and

2.

The action is brought within 2 years after the date
on which the direct physical loss or damage
occurred.
I.

E. LIBERALIZATION
If we adopt any revision that would broaden the
coverage under Ihls Coverage Part without additional
premium within 45 days prior to or during the policy
period, the broadened
coverage will immediately
apply to this Coverage Parl.
F.

NO BENEFIT TO BAILEE

We cover loss or damage commencing;
a.

During the policy
Declarations; and

period

b.

Within the coverage territory.

shown in

the

The coverage terr(tory is:
a.

The United States of America (including its
territories and possessions};

b.

Puerto Rico; and

c.

Canada,

TRANSFER OF RIGHTS O~ RECOVERY AGAINST
OTHLR 70 US
If any person or organizat(on to or for whom we make
payment under this Coverage Part has rights to recover
damages from another, those rights are transferred to us
to the extent of our paymenf.That person or organization
must do everything necessary to secure our rights and
must do nothing after loss to Impair them.

No person or organization, other than you, having
custody of Covered Property will benefit from this
insurance.

INSURANCE RESERVE FUND

By
Director

I'UUt (I/9?)

(_up~~ri~;lit, Itii) ('nuiuicrei:d Rill: ti rrrict~s, Inc., I')H1. I!)ti7

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PAPR - 004483

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GAUSES OF LOSS -EARTHQUAKE FORM

~

COMMERCIAL PROPERTY
THIS ENDORSEMENT GHANG~S THE POLICY. PLEASE READ IT CAREFULLY.
2.

A. COVERED CAUSES OF LOSS
When Earthquake is shown in the Declarations, Covered
Causes of Loss means the following:
1.
2.

b. Fire, explosion (other than volcanic explosion),
landslide, mine subsidence, tidal wave, flood,
mudslide or mudflow, even if attributable to an
Earthquake or Volcanic Eruption,

All Earthquake shocks or Volcanic Eruptions that occur
within any 168-hour period will constitute a single
Earthquake or Volcanic Eruption.The expiration of this policy
will not reduce the 168-hour period.

1.

a. Ordinance or Law

Any Earthquake or Volcanic Eruption that begins
before the inception of this insurance.

c.
3.

We will not pay for loss or damage caused directly or
Indirectly by any of the following, Such loss or damage
is excluded regardless of any other cause or event that
contributes concurrently or in any sequence to the loss.

Artificially generated electrical current, including
electric arcing,, that disturbs electrical devices,
appliances or wires,

a.

Earthquake.
Volcanic eruption, meaning (he eruption, explosion or
effusion of a volcano.

B. EXCLUSIONS

We will not pay for loss or damage caused by or
resulting from:

Special Exclusions
The followin9 Previsions aPPI Y onlY to the sPecified
Coverage Forms,
a.. Business Income (And Extra Expense) Coverage
Form, Business Income (Without Extra Expense)
Coverage Form, or Extra Expense Coverage Form

The enforcement of any ordinance or law:

We will not pay for:

(1) Regulating the construction, use or repair of
any property; or

(1) Any loss caused by or resulting from:
(a} Damage or destruction of "finished stock";
or

(2) Requiring the tearing down of any Property,
including ihie cost of removing its debns.

(b) The time required to reproduce "finished
stock ,

b. Governmental Action
Seizure or destruction of property by order of
governmental aUlhority.
c.

This exclusion does not apply to Extra
Expense.

Nuclear Hazard

Power Failure

(2) Any loss caused by or resulting from direct
physical loss or damage to radio or television
antennas, including their lead-in wiring, masts
or towers.

The failure of power or other utility service supplied
to the described premises, however caused, if the

(3) Any increase of loss caused by or resulting
from:

Nuclear reaction or radiation, or radioactive
contamination, however caused.
d.

failure occurs away from the described premises.

•

But if the loss or damage by a Covered Cause of
Loss results, we will pay for that resultfnc~ or
damage.

e. War and Military Action
(1) War; including undeclared or civil war
(2) WarNke action by a military force, including
action in hindering or defending against an
actual or expected attack, by any government,
sovereign or other authority using military
personnel or other agents; or
3)

1'U11111/)1)

Insurrection, rebellion revolution, usurped
power, or action taken by c~overnmenl
authority in hindering or det~ndmg against any
of these.

~

a DelaY ~in rebuiidin9~ repairin
O
~ ~J or rePlacin ~J
. the property or resuming Loperations9, due
to interference at the location of the
rebuilding; repair or replacement by
strikers or other persons; or
(b) Suspension, lapse or. cancellation of any
license, lease br contract. But ii lho
suspension, lapse or cancellation Is
directly caused by the suspension of
'operat~ons", we will cover such loss that
affects your Business Income during the
"period of restoration".

(4) Any Extra Cxpense caused by or resulting
from suspension, lapse or cancellation of any
Ileenso, IQase or contract boyoncl the "period
of restoration".

(;npy'rl~hl ISO C•outmctrful Ilisk Scr~4cc5, Inc.,19R:S~ 1987

1'A(:L: I C)f 2

PAPR - 004484

 (5) Any other consequential loss.
b.

The Deductible, if any, in this Coverage Part is replaced
by the following with respect to Earthquake and
Volcanic Eruption;

Leasehold Interest Coverage Form
(1) Paragraph B.1.a. Ordinance or Law, does not
apply to insurance under thfs.Coverage Farm.

We will subtract a sum from the amount of loss or
damage in any one occurrence.

(2) We will not pay for any loss caused by:

a.

The sum we subtract from each separate item will
be a percentage of its value. The applicable
percentage is shown in the Declarations.

b,

This Deductible applies separately to the following:

(a) Your canceling the lease;
(b) The suspension, lapse or cancellation of
any license; ar

(1) Each building ar structure;

(cj Any other consequential loss.
c.

(2) The contents of each building or structure; and

Legal Liability Coverage Form
(1) The following Exclusions do not apply to Insurance
under this Coverage Form.

(3) Personal property in the open.
Example:

(a) Paragraph B.1.a„ Ordinance or Law;
When:

The value of the property is $100,000

(b) Paragraph 6.1.b., Governmental Action;
(c) Paragraph B.i.c., Nuclear Hazard

The Earthquake Deductible Is 5%
The amount of loss is $20,000

(d) Paragraph B.i.d., Power Failure; and

Step (a): $100,000 x 5% _ $5,000

{e) Paragraph B.1.e, War and Military Action.

Step (b): $20,000 - $5,000 = $15,000
The most we will pay is $15,000. The remaining
$5,000 is not covered because of the Deductible.

(2) Contractual Liability
We will not defend any claim or "suit," or pay
damages that you are legally liable to pay, solely
by reason of your assumption of liability m a
contractor agreement.

2.

(1) Business Income (And Extra Expense) Coverage
Form;

(9) Nuclear Hazard

(2) Business Income
Coverage Form;

We will not defend any claim or "suit," or pay any
damages, loss, expense or obligation, resulting
from nuclear reaction or radiation, or radioactive
contamination, however caused.

2.

The Additional Condition, Coinsurance, applicable to
this Coverage Part.

This limitation does not apply if:

Extra

Expense)

We will only pay for loss you susta(n after the first 168
hours after direct physical loss or damage caused by or
resulting from Earthquake or Volcanic Eruption.

We will not pay for toss of or damage to exterior masonry
veneer (except stucco) on wood frame walls caused by or
resulting from Earthquake or Volcanic Eruption. The value of
such veneer will not be included En the value of Covered
Property or the amount of loss when applying:
The Deductible applicable to this form; or

(Without

(3) Extra Expense Coverage Form

C. LIMITATION

1.

Applicable to the following Coverage Forms:

This Deductible is applicable only to buildings over 4
stories in height.

INSURANCE RESERVE FUND

By

a.

The premises description in the Declarations
specifically states "Including Masonry Veneer"; or

b.

Less than 10% of the total outside wall area is
faced with masonry veneer (excluding stucco).

Director

D. DEDUCTIBLE
1.

The following is applicable to all Goverage Forms
except:

(1} Business Income (And Extra Expense) Coverage Form;
(2) Business Income (Without Extra Expense) Coverage
Form;
(3) Extra Expense Coverage Form,

PD10 (1/91)

C oyrlghl, IS0 Commercial Risk Services, Inc.,1983,1987

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PAPR - 004485

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CAUSES OF LOSS -SPECIAL FORM
Words and phrasos that appear in quotation mar!<s haue special meaning. Refer to Section F -Definitions.
A. COVERED CAUSES OF LOSS

(a) Airborne volcanic blast or airborne shock
waves;

When Special is shown In the Declarations, Covered Causes
of Loss means RISKS OF DIRECT PHYSICAL LOSS unless
the loss is:

B.

(b) Ash, dust or particulate matter or;

1. Excluded in Section B., Exclusions; or

(c) Lava flow.

2. Limited in Section C., Limitations; that follow.

All volcanic eruptions that occur within any
168-hour period will constitute a single
occurrence.

EXCLUSIONS
1.

Volcanic action does not includo the cost to
remove ash, dust or particulate matter that
does not cause direct physical loss or damage
to the described property,

We will not pay for loss or damage caused directly or
indirecliy by any of the follow(ng, Such loss or damaga
is excluded regardless of any other cause or event that
contributes concurrently or in any sequence to the loss,
a.

c.

Ordinance or Law

Saizure or destruction of property by order of
governmental authority.

The enforcement of any ordinance ar law:
(1) Regulating construction, use or repair of any
property; or

But wo will pay for loss or damage caused by or
rosuiting from acts of destruction ordered by
governmental authority and fatten at the time of a
(ire to prevent its spread, (f the fire would be
covered under this Coverage Part.

(2) Requiring the tearing down of any property,
including the cost of removing its debris.
This exclusion, Ordinance or Law, appNes whether
the loss results from:

d.

b.

e.

Utility Services

Earth Movement

The failure of power or other utility service supplied
to the described premises, However caused, if tho
failure occurs away from the described premises.

(1) Any earth movement (other than sinkholo
collapse}, such as an earthquake, landslide,
mine subsidence or earth sinking, rising or
shifting, But If earth movement results in fire
or explosion, we will pay for the toss or
damage caused by that Pere or explosion.

But ii lhs failure of power or other utility service
results in a Covered Cause of Loss, we w01 pay (or
the loss or damage caused by that Covered Cause
of Loss.

(2) Volcanic eruption, explosion or effusion. [iul if
volcanic eruption, explosion or eifuslon results
in fire, building glass breakage or Volcanic
Action, we will pay for the loss or damage
caused by that fire, build(ng glass breakage or
Volcanic Action.
Volcanic action means direct loss or damage
resulting from the eruption of a volcano when
the loss or damage is caused by:

PI)11~ 17!081

Nuclear Hazard
Nuclear reaction or radiation, or radioactive
contaminat(on, however caused. But if nuclear
reaction or radiation, or radioactive contamination
results in fire, we will pay for the loss or damage
caused by that fire.

(1) An ordinance or law that is enforced even if
the property has not been damaged; or
(2) The increased costs incurred to comply with
an ordinance or law in the course of
construction, repair, renovation, remodeling or
demolition of property, or removal of its debris,
following a physical loss to that property.

Governmental Action

This exclusion does not apply is the Business
Income coverago or to the Cxtra Exponso
coverage. Instead, the SpEciai exclusion in
paragraph B.4.a.(i) applies to lheso coverages.
f.

War and Military Action
(1} War, including undeclared or civil war;
(2) Warlike action by a military force, including
action in hindering or defending against an
actual or expected attack by any government,
sovereign or other authority using military
personnel or other agents; or

CuppPl~hl, Iti(.) Cununercl~d Nlsl: Serricex, inc., I'J94

1'AC:13: I OI+ 6

PAPR - 004486

 But if an excluded cause of loss chat is Usted in 2.d.
(1) through (7) results Ina "specified cause of
loss" or btiilding glass breakage, we will pay for the
loss or damage caused by that "specified cause of
loss" or building glass breakage

(3) Insurrection, rebellion, revoEutlon, usurped
power, or action taken by governmental
authority in hindering or defending against any
of these.
g. Water
(1) Flood, surface water, waves, tides, tidal
waves, overtlow of any body of water, or their
spray, all whether dr(ven by wind or not;
(2) Mudslide or mudflow;
(3) Water that backs up or overflows from a
sewer, dra(n or sump; or
(4) Water under the ~raund surface pressing on,
or flowing or seeping through:
(a) Foundations, walls, floors,
surfaces;

or paved

(b) Basements, whether paved or not; or
(c) Daors windows or other openings.
But if Water, as described in g.(1) through g.(4)
above, results in fire, explosion or sprinkler
leakage, we will pay for the loss or damage caused
by that fire, explosion or sprinkler leakage,

e. Explosion of steam boilers, steam pipes, steam
engines or steam turbines owned or leased by you
or operated under your control. But if explosion of
steam boilers, steam pipes, steam engines or
steam turbines results in fire or combustion
explosion, we will pay for the loss or damage
caused by that fire or combustion explosion. We
will also pay for loss or damage caused by or
resulting from the explosion of gases or fuel within
the furnace of any fired vessel or within the flues or
passages through which the gases of combustion
pass.
f.

g. Water, other liquids, powder or molten material that
teaks or flows from plumbing, heating, air
conditioning or other equfpment (except fire
protect(ve systems) caused by or resulting from
freezing; unless:
(1) You do your best to maintain heat in the
building or structure; or

2. We will not pay for loss or damage caused by or
resulting from any of the following:
a.

Artificially generated electrical current, including
electric arcing, that disturbs electrical devices,
appliances or wires.
But if artificially generated electrical current results
in fire, we will pay for the loss or damage caused
by that fire.

(2) You drain the equipment and shut aff the supply
if the heat is not maintained.
h. Dishonest or criminal act by you, any of your
partners, employees (including leased employees),
directors, trustees, authorized representatives or
anyone to whom you entrust the property for any
purpose:
(1) Acting alone or in collusion with others; or

b. Delay, loss of use or loss of market.
c.

(2) Whether or not occurring during the hours of
employment.

Smoke, vapor or gas from agricultural smudging or
industrial operations.

This exclusion does not apply to the acts of
destruction by your employees (including leased
employees); but theft by employees (including
leased employees) is not covered.

d. (1) Wear and Tear;
(2) Rust, corros(on, fungus, decay, deterioration,
hidden or latent defect or any quality in
property that causes ft to damage or destroy
itself;

i.

Voluntary parting with any property by you or
anyone else to whom you have entrusted the
property if induced to do so by any fraudulent
scheme, trick, device or false pretense

J.

Rains, snow, ice or sleet to personal property in the
open.

(3} Smog;
(4) Settling, cracking, shrinking or expansion;
(5) Nesting or infestation, or discharge or release
of waste products or secretions, by insects,
birds, rodents or other animals.
(6) Mechanical breakdown, including rupture or
bursting caused by a centrifugal force. But If
mechanical breakdown results in elevator
collision, we will pay for the loss or damage
caused by that elevator collision.
(7) The following causes of loss to personal
property:
(a) ..Dampness or dryness of atmosphere;
(b) Changes in or extremes of temperature;
or

Continuous or repeated seepage or Leakage of
water that occurs over a penod of 14 days or
more.

k. Collapse, except as provided below in the
Additional Coverage for Collapse. Bul if collapse
results in a Covered Cause of Loss at the
described premises, we will pay for the loss or
damage caused by that Covered Cause of Loss.
Discharge, dispersal, seepage, migration, release
or escape of "pollutants" unless the discharge,
dispersal, seepage, migration, release or escape is
itself caused by any of the "specified causes of
loss". But if the discharge, dispersal, seepage,
migration, release or escape of "pollutants" results
in a "specified cause of loss", we will pay for the
loss or damage caused by that "specified cause of
loss".

(c) Marring or scratching.

PD05 (7108)

Copytighl, ISO Commercial Rlsk Services, Tnc.,1994

PAGE: 2 OF 6

PAPR - 004487

 3. We will not pay for loss or damage caused by or
resulting from any of the following, 3.a. through 3.c. But
if an excluded cause of loss that is listed in 3.a. through
3.c. results in a Covered Cause of Loss, we will pay for
the loss or damage caused by that Covered Cause of
Loss.

due to interference at the location of the
rebullciing, repair or replacement by
strikers or other persons; or
(b) Suspension, lapse or cancellation of any
license, lease or contract. But if the
suspension, lapse or cancellation is
directly caused by the suspension of
"operations", we will cover such Ipss that
affect your Business' Income during the
"period of restoration".

a. Weather conditions. But this exclusion only applies
if weather conditions contribute in any way with a
cause or event excluded in paragraph 1. above to
produce the loss or damage.
b.

Acts or decisions, Including the failure to act or
decide, of any person, group, organization or
governmental body.

c.

Faulty, inadequate or defective:

(5) Any Extra Expense caused by or resulting
from suspension, lapse, cancellation of any
license, lease or contract beyond the "period
of restorat(on".
(6)

(1) Planning, zoning, development, survey(ng,
siting;

b. Leasehold Interest Coverage Form

(2} Design, specifications, workmanship, repair,
construction, renovation, remodeling, grading,
compaction;
(3) Materials used in repair,
renovation or remodeling; or

Any other consequential loss

(1) Paragraph B.i.a. Ordinance or Law, does not
apply to insurance under this Coverage Form.
(2) We will not pay for any loss caused by;

construct(on,

(a) Your canceling the lease;

(4) Maintenance;

(b) The suspension, lapse or cancellation of
any license; or

of part or all of any property on or aff the described
premises.

(c) Any other consequential loss.
c.

4. Special Exclusions

Legal Liability Coverage Form

The following provisions apply only to the specified
Coverage Forms.

(1) The following Exclusions do not apply to
insura►tce under this Coverage Form.

a. Business Income (And Extra Expense)
Covera e Form. Bus(ness Income (Without
Extra ~xpense) Coverage Form or Extra
Expense Coverage Form

(a) Paragraph B.i.a., Ordinance or Law;

We will not pay for:
(1) Any loss caused directly or indirectly by the
failure of power or other utility service supplied
to the described premises, however caused, if
the failure occurs outside of a covered
building.
But if the failure of power or other utility service
results In a Covered Cause of Loss, we will
pay for the loss resulting from that Covered
Cause of Loss.

(b) Paragraph S.1.c., Governmental Action;
(c) Paragraph B.i.d., Nuclear Hazard;
(d) Paragraph B.i.e., Utility Services; and
(e) Paragraph e.i.f., War and Military Action
(2) The following additional exclusions apply to
insurance under this Coverage Form:
(a) Contractual Liability
We will not defend any claim or "suit", or
pay damages that you are legally liable to
pay solely by reason of your assumption
of liability in a contract or agreement. But
this exclusion does not apply to a written
lease agreement in which you have
assumed liability for building damage
resulting from an actual or attempted
burglary or robbery, provided that:

(2) Any loss caused by or resulting from:
(a) Damage or destruction of "finished stock';
or
(b) The time required to reproduce "finished
stock",

(i) Your assumption of liability was
executed prior to the accident; and

This exclusion does not apply to Extra
Expense,
(3) Any loss caused by or resulting from direct
physical loss or damage to radio or television
antennas (including satellite dishes) and their
lead-in wiring, masis or towers.

(ii) The building is Covered Property under
this Coverage Form.
(bj Nuclear Hazard

(4) Any increase of loss caused by or resulting
from:
(a) Delay In rebuilding, repairing or replacing
the property or resuming "operations",

PDOS (7108)

Copyright, lSO Commercial Itlsk Services, Inc., 1994

We will not defend any claim or "suiP', or
pay any damages, loss, expense, or
obligation, resultmg from nuclear reaction
or radiation, or radioactive contamination,
however caused.

F'AGE; 3 OF 6

PAPR - 004488

 C.

LIMITATIONS
The following limitations apply to al! policy forms and
endorsements, unless otherwise stated.
1.

We will not pay for loss or damage to property, as
described and limited in this section. In addition, we will
not pay for any loss that is a consequence of loss or
damage as described and limited in this section.
a.

Hot water boilers or other water heating equipment
caused by or resulting from any condition or event
inside such boilers or equipment, other than an
explosion,

c.

The interior of any building or structure, or to
personal property in the building or structure,
caused by or resulting from rain, snow, sleet, ice,
sand or dust, whether driven by wind or not,
unless:
The building or structure first sustains damage
by a Covered Cause of Loss to its roof or walls
through which the ratn, snow, sleet, ice, sand
ar dust enters; or

c.

Fragile articles such as glassware, statusry,
marbles, chinaware and porcelains, if broken. This
restriction does not apply to:

(2) Containers of property held for sale; or
(3) Photographic or scientific instrument lenses.
d.

(1) If the property is located on or within 1,000 feet
of the described premises, unless the
premises is insured under the Builders Risk
Coverage Form; or
(2} 7o Business Income coverage or to Extra
Expense Coverage.
3. The special limit shown for each category, a. through d.
is the total limit for loss of or damage to all property in
that category. The special limit apptles to any one
occurrence of theft, regardless of the types or number
of articles that are lost or damaged in that occurrence.
The special limits are:

Building materials and supplies not attached as
part of the building or structure, caused by or
resulting from theft.

a.

$2,500 for furs, fur garments and garments
trimmed with fur.

b.

$2,500 for iewelry, watches, watch movements,
Jewels, pearls, precious and semiprecious stones,
bullion, gold, silver, platinum and other precious
alloys or metals. This limit does not apply to jewelry
and watches worth $104 or less per item.

c.

$2,500 for patterns, dies, mold, and forms.

d.

$2,500 for slamps, tickets, including lottery tickets
held for sale and letters of credit.

However, this limitation does not apply to;
(1) Building materials and supplies held for sale
by you, unless they are insured under the
Builders Risk Coverage Form; or
{2) Business Income coverage or Extra Expense
coverage,
e.

f.

Property that is missing, where the only evidence
of the loss or damage is a shortsge disclosed on
taking Inventory, other instances where there is no
physical evidence to show what happened io the
property.
Gutters and downspouts caused by or resulting
from weight of snow, ice or sleet.

g. Property that has been transferred to a person or to
a place outside the described premises on the
basis of unauthorized instructions.
2. We will not pay for loss or damage to the fallowing
types of property unless causod by the "specified
causes of loss" or building glass breakage.

Buflders0 machinery tools and equipment owned
by you or entrusted'to you, provided such property
is Covered Property.
However, this limitation does not apply:

(2) The loss or damage fs caused by or results
from thawing of snow, sleet or Ice on the
building or structure.
d.

Animals, and then only If they are killed or their
destruction is made necessary.

(1) Glass that is part of a building or structure;

Steam boilers, steam pipes, steam engines or
steam turbines caused by or resulting from any
condition or event inside such equipment. But we
will pay for loss of or damage to such equipment
caused by or resulting from an explosion of gases
or fuel within the furnace of any fired vessel or
within the flue or passages through which the
gases of combustion pass.

b.

b.

These special limits are part of, not in addition to, the
Limit of Insurance applicable to the Covered Property.
This limitailon, C.3., does not apply to Business Income
coverage or to Extra Expense.
4.

We will not pay the cost to repair any defect to a system
or appliance from which water, other liquid, powder or
molten material escapes. But we will pay the cost to
repair or repLace damaged parts of fire extinguishing
equipment ii the damage:
a.

Results in discharge of any substance from an
automatic fire protection system; or

b. Is directly caused by freezing.
However, this limitation does not apply to Business
Income coverage or to Extra Expense coverage.

a. Valuable papers and records, such as books of
account, manuscripts, abstracts, drawings, card
index systems, film, tape, disc, drum, cell or other
data processing, recording or storage media, and
other records.

PDOS (7/08)

Copyright, [SO Commerclol Risk Services, Cnc.,1994

PAGE: 4 OF 6

PAPR - 004489

 if the collapse is caused by a cause of loss listed in
D,i.b through D.i.f., we will pay for loss or damage to
that property only if:

D. ADC11710NAL COVERAGE -COLLAPSE
The term Covered Cause of Loss includes the Additional
Coverage -Collapse as described and limited in D.1.
through p.5, below.
1. We will pay for direct physEcal loss or damage to
Covered Property, caused by collapse of a building
insured under this Coverage Form, if the collapse is
caused by one or more of the foflow(ng:
a.

The "specffied causes of loss" or breakage of
building glass, all only as insured against in this
Coverage Part;

b. Hidden decay;

a.

Such or loss damage is a direct result of the
collapse of a building insured under this Coverage
Form; and

b.

The property is Covered Property under th(s
Coverage Form.

4. Collapse does not include settling, cracking, shrinkage,
bulging or expansion.
5.

This Additional Coverage -Collapse, will not increase
the Limits of Insurance provided in the Coverage Part.

E. ADDITIONAL COVERAGE EXTENSIONS

c.

Hidden insect or vermin damage;

d.

Weight of people or personal property;

e,

Weight of rain that collects on a roof;

f.

Use of defective material or methods in
construction, remodeling or renovation if the
collapse occurs during the course of the
construction, remodeling or renovation. However, if
the collapse occurs after construction, remodeling
or renovation is complete and is caused in part by
a cause of lass Ifsted in D.1.a. through D.1.e., we
will pay for the loss or damage even if use of
defective material or methods, in construction,
remodeling or renovation, contributes to the
collapse.

1. Property In Transit. Thfs extension applies only to
your personal property to which this form applies.
a.

You may extend the insurance provided by this
Coverage Part to apply to your personal property
(other than property in the care, custody and
control of your salespersons) In transit more than
1,000 feet from the described premises. Property
must be in or on a motor vehicle you own, lease or
operate while between points in the coverage
territory.

b.

Loss or damage must be caused by or result from
one of the following causes of loss:
(1) Fire; Ifghtning, explosion, windstorm or hail,
riot or civil commotion, or vandalism.

2. If the direct physical loss or damage does not involve
collapse of a building or any part of a building, we will
pay for loss or damage to Covered Property caused by
the collapse of personal property only If:

3.

PDOS (7/08)

a.

The personal property, which collapses, fs Inside a
building; and

b.

The collapse was caused by a cause of loss listed
in D.1,a through D.1.f. above.

(2) Vehicle collisions upset or overturn. Collision
means accidental contact of your vehicle with
another vehicle or object. It does not mean
your vehicles contact with the roadbed
(3) Theft of an entire bale, case or package by
forced entry into a secure locked body or
compartment of the vehicle. There must be
physical marks of the forced entry.

With respect to the following property:
a.

Outdoor radio or television antennas (including
satellite dishes) and thef~ lead-in wiring, masts or
towers.

b.

Awnings, gutters and downspouts;

c.

Yard fixtures;

d.

Outdoor swimming pools;

e.

Fences;

f.

Piers, wharves and docks;

g.

Beach or diving platforms or appurtenances;

h.

Retaining walls; and

i.

Walks roadways and other paved surfaces:

c.

The most we will pay for loss or damage under this
Extension is $5,000.

This Coverage Extension is additional insurance, The
Additional Condition, Coinsurance, does not apply to
this Extension.
2.

Water Damage, Other Liquids, Powder or Molten
Material pamage. If loss or damage caused by or
resulting from covered water or other liquid, powder or
molten material damage loss occurs, we wtll also pay
the cost to tear out and replace any part of the building
or structure to repair damage to the system or
appliance from which the water or other substance
escapes.

Copyright, ISO Commercial Risk Services, Inc., 1994

PAGE: 5 OF 6

PAPR - 004490

 F. DEFlNIT10NS

2.

"Specifled Causes of Loss" means the toilowin~: Fire;
lightning; explosion; windstorm or hail; smoke; aircraft or
vehicles; riot or civil commotion; vandalism; leakage from
fire extinguishing equipment; sinkhole collapse; volcanic
action; falling objects; weight of snow, ice or sleet; water
damage.
1. 5.inkhole collapse means the sudden sinking or Collapse
of land into underground empty spaces created by the
action of water on limestone or dolomite. This cause of
loss does not include:

3.

Falling objects does not include lass or damage to:
a.

Personal property in the open; or

b.

The Interior of a building or structure, or property
Inside a building or structure, unless the roof or an
outside wall of the building or structure is first
damaged by a falling object.

Water damage means accidental discharge or leakage
of water or steam as the direct result of the breaking
apart or cracking of any part of a system or appliance
(other than a sump system Including its related
equipment and parts) containing water or steam.

a. The cost of filling sinkholes; or
b.

Sinking or collapse of land Into man made
underground cavities
INSURANCE RESERVE FUND

By
Director

PDOS (7108}

Copydgby ISO Commercial Risk Serv(ces, [nc.,1994

PAGE: b OF 6
PAPR - 004491

 f~,~,~:

~ ~ ~l"~4`~~ FISCAL AGCC~l~1~TA'~IL!`~l( ~~TF~f~RC`~~f
INSURANCE RESERVE FUND
POS7~ OFFICE BOX ~ 106G
COLUMBIA,,SOUTH CAROLINA 29211

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I'OLICYNUMBER

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POLICY PEf~IOD

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phone: 803 737-0020
DATE PAINTED

TYPk QF INSURANCE

-07/01/2015 07/-01/2016

t3UILDING ANU l~ERSONAL PROPERTY

01 JUL 2015

COVERAGE PROVIDED UNDER THIS POUCYPART IS SUBJECT TO THE FOLI_QWING FOf~MS:

PD -01 PD-02 f'D-03 PD -04 PD-05 PD-08 PD -09 PD-10 PD -'11 PD-12 FD-15 ~'D-27

NAMER WSUREp AND ADDRESS '

•^

AGENCY NAME _1
AGENCY NAME 2

~

FORM ~l

P/~GL

AGENCY CONTACT NAME
803 737-002:0

PD=02

1 OF

_

2

ACTIVITY It

TYPE OF ACTIVITY"'

AGENCY ADDRESS

C'I TY, STZ I PCODE~

CONTACT' PERSON ANp f'FIONE

__ ENDORSCMCNT_,~l_OSS PAY(~BLE CLAUSE

002

EFFECT" I VE DATE - 07/01 /2015
NAME AND ADDRESS OF LOSS PAYEE: 0001
THIRD PARTY NAME
THIRD PARTY ADDRESS
CITY, STATE ZIPCQDE

LOSS, IF /1NY UNDER THIS POLICY SHALL BE PAYABLE TO ABOVE NAMED LOSS PAYEE
AS ITS INTEREST MAY APPEAR. IT IS UNDERSTOOD THAT THE LOSS PAYEE NOW NAS OR
WILL ACQUIRE FROM TIME TO TIME AN INSURABLE INTEREST IN THE PROPERTY LISTED
BELOW AND INSURED UNDER THIS POLICY AS C5T/~BLISHED BY WAREHOUSE RECEIPTS,
BILLS OF LADING, DOCUMENTARY OR OTHER WRITTEN EVIQENCE.
THIS INSURANCE, SOLELY AS TO THE INTEREST THEREIN OF THE LOSS PAYEE, SHALL
NOT BE IMPAIRED OR INVALIDATED BY ANY ACT OR NEGLECT OF THE. NAMED INSURED OF
THE WITHIN DESCRIBED PROPERTY EXCEPT AS PROVIDED IN THE LAST PARAGRAPH
HEREOF, NOR BY ANY CHANGE IN THE TITLE OR OWNERSHIP OF THE PROPERTY, NOR BY
THE OCCUPATION OF THE PREMISES WHEREIN SUCH PROPERTY IS LOCATED FOR PURPOSES
MORE HAZARDOUS THAN ARE PERMITTED BY THIS POLICY; PROVIDED THAT IN CASE THE
NAMED INSURED SHALL NEGLECT TO PAY ANY PREMIUM DUE UNDER THIS POLICY, THE
LOSS PAYEE SHALL, ON DEMANp, PAY THE SAME,
PROVIDED, ALSO, THAT THE LOSS PAYEE SHALL NOTIFY THIS FUND OF ANY CHANGE OF
OWNERSHIP OR OCCUPANCY OR INCREASE IN HAZARD WHICH SHALL COMA TO THE
{<NOWLEDGE OF SAID LOSS PAYEE,AND UNLESS PERMII'TLD BY THIS POLICY, IT SHALL
BE NOTED THEREON AND THE LOSS PAYEE SHALL, ON DEMAND, PAY THE PREMIUM FOR
SUCH INCREASED HAZARD FOR THE TERM OF THC USE THEREOF; OTHERWISE THIS POLICY
SHALL BE NULL AND VOID,
THIS FUND RESERVES THE RIGHT TO CANCEL THIS POLICY AT FlNYI'IME AS PROVIDED (3Y
ITS TERMS, BUT IN SUCH CASE THIS POLICY SHALL CONTINUE IN FORCE FOR THE
BENEFIT ONLY OF THE LOSS PAYEE FOR THIRTY (30) DAYS AFTER NOTICE TO THE
LOSS PAYEE OF SUCH CANCELLATION AND SFIALL THAN CEASE, AND THIS FUND SHALL
HAVE THE RIGHT ON LIKE NOTICE, TO CANCEL THIS AGREEMCNT.
CONTINUED ON PAGE 2. , .

PAPR - 004492

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.S~~'41 ~ Y- ~~4.ahA~. L'6lsla~JlJi'tl & ~E.7~LOTI

P"~7.8~~ifil~~Y

INSURANCE RESERVE FUND
POST OFFICE F30X 11066
COLUMBIA, SOUTH CAROLINA 29211

~'`~
tt ~- `~~;`,4 ~`~
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POLICY NUMBER

F11000001G

Fqo~~ POLICY PERIOD

T~

Phone: (IIo3 ~s~-oo20

TYPE OF fNSURANCE

BATE PRINTED

07/01/2015 07/01/2016 [3UILDING AND PERSONAL PROPERTY

01 JUL 2015

COVERACC PROVIDEQ UNDER THIS POLICY PART IS SUBJECT TO THE FOLLOWING 1=0RA4S;

PD-01 'PD-02 PD-~3 PD-O~ PD-05 PD-08 PD-09 f?D-10 PD=11 PD--:12 PD-75 f'D-27

NAMED INSURED AND ADDRESS

GQNTACT PERSQN AND PHONE

AGENCY NAME 1
AGENCY NAME 2
AGENCY ADDRESS
CITY ST ZIPCODE

PD-02
AGENCY CONTACT NAME
803 737-002:0
TVP~ or- ACTivn-v
ENDORSEMENT LOSS PAYABLE CLAUSE

FORM #

PAGE

2 OF

ACTivirY ~
002

WHENEVER THIS FUND SHALL PAY THE LASS PAYEE F1NY SUM FOR LOSS OR DAMAGE UNDER
THIS POLICY AND SH~1L1_ CL/~IM THAT, AS TO THE NAMED INSURED, NO LIABILITY
THEREFOR EXISTED, THIS FUND SHALL, TO THE EXTENT OF SUCH PAYMENT, [3E THEIZEUPON LEGALLY SURROGATED TO ALI_. THE R I GI-ITS OF THE P/1RTY TO WHOM SUCH PAYMENT
SNALL BE MADE, UNDER ALL SECURITIES NELQ AS COLLATERAL -I-O THE DEBT WITH
INTEREST, AND SHALL THEREUPON RECCIVL A FUEL ASSIGNMENT AND TRANSFER OF THE
QEBT AND OF THE MORTGAGE AND OF ALL SUCH OTHER SECURITICS OF THE INTEREST OF
THE LOSS PAYEE IN 1-HF WITHIN DESCRIBED PROPERTY; BUT NO SUBROGATION SHALL
IMPAIR 7HE RIGHT OF TI-iE LOSS PAYEE TO RECOVER THE FULL AMOUNT OF ITS CLAIM
AGAINST THE BORROWER, MORTGAGOR OR OWNLR,
ALL THE OTHER TERMS AND CONDITIONS OF THE POLICY TO WHICH THIS ENDORSEMEN-~
15 /1TTACHED AND OF WHICH IT IS A PART, REMAIN UNCHl1NGED, WHICH OTHER TERMS
AND CONDITIONS INCLUDE THE LIMITS) OF LIAf31 f_ITY NAMED IN THE POLICY AND 7HE
CONDITIONS OF ANY VALUE REPORTING, FULL REPORTING, TOTAL INSURANCE OR
CO-INSURANCE CLAUSES INCORPORATED 1"HEREIN OR ATTACHED THERETO.
PROPERTY COVERED:
SEGMENT
NUMBER
10

PROPERTY DESCRIPTION

PROPERTY LOCATION

ADMINISTRATIVE OFFICE/COLUMBIA 1 M~11N STREET
COPIER

INSURED
VALUE
7_0,000

THIS ENDORSEMENT S{-IOULD QE ATTACHED TO AND BECOME PART- OF POLICY F11~00001G

JULY 01, 2015
DATE

2

ANNE MACON SAnI7H
Direclor

PAPR - 004493

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INSURANCE RESERVE FUND
POST OFFICE BOX 11066
COLUMBIA, SOUTH CAROLINA 29211

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POLICY NUM[3FR

F:110~0001G

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PUucY PERIOU

Phonc: (Bo3 7s~-oozo
DATA PRINTED

TYPE OF INSURANCE

TO

07/01/2015 07/01/2016

BUILDING /AND PERSONAL PROPERTY

~1 JUL ZU15

COVERAGE,Rl3~VIDL=D UNDER THIS POLICY PART IS SUBJECT TO THL FOLLOWING FORMS:

PU-01 PD-02 PD=03 PD=04 PD-05'I'D-08 PD-09 PD-10 PD-11 PD-12 PD-15 PD-16 PD-27

NAMED INSURED AND ADDRESS

AGENCY NAME 1 '
-'
AGENCY NAME 2
AGENCY ADDRESS
CITY ST ZIPCODE

FORM It

PAGE

PD-16
AGENCY CONTACT NAME
803 737-002Q
TY~~ or- acTivirY
ENDORSCMENT MORTGAGE CLAUSE

1 OF

CONTACT. PERSON /AND PHONE

_

2

ncTiviTY rr
003

EFFECTIVE Q~TC - 07/01/2015
NAME AND ADDRESS OF MORTGAGEE (OR TRUSTEE): 0002
THIRD PARTY NAME
THIRD PARTY ADDRESS
CITY, STATE ZIPCODE

(APPLIES ONLY TO BUILDING ITEMS AND IS EFFECTIVE ONLY 4VHEN POLICY IS MADE
PAYABLE TO A NAMED MORTGAGEE OR TRUSTEE.)
LOSS OR DAMAGE, IF ANY, UNDER THIS POLICY, SHALL BE PAYABLE TO THE MORTGAGEE
(OR TRUSTEE) NAMED ABOVE, A5 INTEREST MAY APPEAR, UNDER ALL PRESENT OR
SUTURE MORTGAGES UPON THE PROPERTY HEREIN DESCRIBED IN WHICH THE AFFORESAID
MAY HAVE AN INTEREST AS MORTGAGEE (OR TRUSTEE) IN ORDER OF PRECEDENCE OF
SAID MORTGAGES, AND THIS INSURANCE, AS TO THE INTEREST OF THE MORTGAGEE (OR
TRUSTEE) ONLY THERCIN, SHALL NOT BE INVALIDA7CD BY ANY ACT OR NEGLECT OF THE
MORTGAGOR OR OWNER OF THE WITHIN DESCRIBED PROPERTY, NOR BY ANY FORECLOSURE
OR OTI-IER PROCCEDINGS OR NOTICE OF SALE RELATING TO PROPERTY, NOR BY ANY .
CHANGE IN THE TITLE OF OWNERSHIP OF THE PROPCRTY, NOh QY THE OCCUPATION OF
THE PREMISES FOR .PURPOSES MORE HAZARDOUS TNAN ARE PERMITTED BY THIS POLICY;
PROVIDED, THAT IN CASE THE MORTGAGOR ~OR OWNER SHALL NEGLCCT TO PAY ANY
PREMIUM DUC UNDER THIS POLICY, THE MORTGAGEE (OR TRUSTEE) SHALL, ON DEMAND,
PAY THE SAME.
PROVIDED, /ALSO, THAT THE MORTGAGEE (OR TRUSTCE) SMALL NOTIFY THIS FUND OF
ANY CHANGE OF OWNERSHIP OR OCCUPANCY OR INCREFlSE OF HAZARD WHICH SHALL COME
TO THE KNOWLEQGE OF SAID MORTGAGEC (OR TRUSTEE) AND, UNLESS PERMITED BY THIS
POLICY, IT SI-IALL BE NOTED THEREON AND THE MORTGAGEE (OR TRUSTEE) SHALL, ON
DEM/1ND, PAY THE PREMIUM FOR SUCH INCREASED N~ZARD FOR THE TERM OF USE THEREOF; OTHERWISE THIS POLICY SHALL QE NULL AND VOID.
THIS FUND RESERVES THE RIGHT TO CANCEL THIS POLICY AT ANY TIME AS PROVIDED
BY ITS TERMS, BU7 IN SUCH CASE THIS POLICY SNALL CONTINUE IN FORCE FOR THE
BENEFIT ONLY OF THE MORTGAGEE (OR TRUSTEE) 1=0R 10 QF1YS AFTER NOTICE TO THE
MORTGAGEE (OR TRUSTEE) OF SUCH CANCELLATION AND SHALL THEN CEASE, AND THIS
FUND SHALL HAVC THE RIGHT, ON LIKE NOTICE, ~f0 CANCEL THIS AGREEMENT.
CONTINUED ON PAGE 2. , .

PAPR - 004494

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INSURANCE DESERVE FUND
POST OFFICE BOX 11066
COLUMBIA; SOUTH CAROLINA 29211
~_~o,~ ~'~~icY. Pr~loa

POLICY NUMBER

F110000016

To

phone; ao31737-0020

npE OF INSURANCE

07/01/2015 07/01/2016

DATL PRINTED

BUILDING AND PERSONAL PROPERTY

01 JUL 2015

COVGRAG~ PROVIDED UNDER THIS POLICY PAf~T IS SUBJECT TO Tf-IE FOLLOWING FORA4S:

PD-01 PD-02 PD-03 PD-04 PD-05 PD-08 PD-OJ PD-70 f'D-11'{'D-12 PD-15 PD-16 PD-27
NAMED INSU(~Eb AND /~bDRL=SS

CONTACT PERSON AND PHONE

FORM ~~

PAGC

AGENCY NAME 1
AGENCY NAME 2

/AGENCY CONTACT NAME
803 737-0020

Pd-16

2 OF

TYPE OF ACTIVITY

AGENCY ADDRESS.

CITY, ST ZIPCODE

-

ACTIVITY#

CNDORS'EMENT MORTGAGE CLAUSE

003

EFFECTIVE DATE - 07/01/2015
WHENEVER THIS FUND SHALL PAY THE MORTGAGEE (OIZ TRUSTEE) ANY SUM FOR LOSS
UNDEI~ THIS POLICY AND SHALL CLAIM THAT, AS ~f0 THE MORTGAGOR OR OWNER, NO
I_ I /1[31 L I TY THEREFORE EXISTED, TI-I I S FUND SHALL, TO THE EXTENT OF SUCH PAYMENT,
BE THEREUPON LEGALLY SUf3ROGATED -~0 ALL THl-= RIGHTS OF THE PARTY TO WHOM SUCH
PAYMENT SHALL BE MADE, UNDER ALI_ SECURITIES HELD AS COLLATERAL TO THE
MOR~~GAGE DEQT, OR MAY, AS ITS OPTION, PAY TO THE MORTGAGEE (OR TRUSTEE) THE
WH01_E PRINCIPAL DUE OR TO GROW DUE ON THE MORTG/1GE WITH INTEREST. AND SHALL
THEREUPON RECEIVE A FULL ASSIGNMENT AND TRANSFER OF 1~HE MORTGAGE AND .OF ALL
SUG-I OTHER SECURITIES; BUT NO SUBROGATION SI-IALL IMPAIR THE RIGHT OF THE
MORTGAGEE (OR TRUSTEE) TO RECOVER THE FULL /MOUNT OF SAID MORTGAGEE'S (OR
TRUSTEE'S) CLAIM.
THE PRQPERTY LISTED BELOW Hf~S BEEN FlDDED TO THE /1BOVE N10RTGAGLE (OR TRUSTEE):
SEG/PROP
NUMBER
10

PROPERTY DESCRIPTIQN

I'ROPFRIY LOCATION

INSURED
V~iLUE

ADMINISTRATIVE OFFICE/COLUMBIA 1 MAIN STREET
OFFICE 6UILDING

1 MAIN ST

500,000

THIS ENDORSEMCNT SHOULD BE ~17TAC1-IED TO AND l3LCOME PAR~r 01= POLICY F7 1 000001 6

JULY 01, 2015
DATC

2

ANNA MAGON SMITH
Director'

PAPR - 004495

 . ctC~d

i~\:.

INSURANCE RESERVE FUND
POST OFFICE BOX 11. 66
COLUMBIA, SOUTH CAROLINA.29211

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POLICY NUMBER

F110000016

POLICY FEI~IOD
FRONt .

r~hoi~e: sos 737 0020
DATE PRINTED

'TYPE OF INSURANCE

TO

07101/2015 07/O1/201G

BU[LDING AN4 PERSONAL PROPERLY

01 JUL 2015

COVERI~G6 PROVIDED UNDEf~ THIS POLICY PART 1S SU[3JCCT'rO THE FOLLOWING FO~;MS:

PD-07 PD-02 PD-03 PD-04 PD-05 PD-C18 f~D-09 PD-10 PD-11 PD-12 PD-15 PD-1G PD-27
PD-33
NAMED IN5UFlED AND /~DDFiESS

CONT/~CT PERSON. AND PI-10N~

{'AGE

FORM ~f

PD-33
/1GENCY CONTACT NAME
X803)737=0020
TYn~ or- Acr~viTY
ENDOf~SEMENT CERTIFICATE OF INSURANCE

AGENCY NAME 7
AGENCY NAME,2
AGENCY ADDRESS
CITY. ST ZIPCODE

1 OF

acriuir~r ~~
004

EFFECTIVE DATE - 07/01/2015
NAME AND ADDRESS OF CERTIFICATE HOLDER: 0003
THIRD PARTY NAME
THIRQ PARTY ADDRESS
CITY, ST ZIPCODE

THIS GERTIFIC~ITE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO
RIGHTS UPON THE CERTIFICATE HOLDER, THIS CERTIFICATE DOfS NOT AMEND, EXTEND
OR ALTER THE COVERAGE AFFOROCD BY Tf-IE POLICIES LISTED BELOW.
THIS IS TO CERTIFY THAT A POLICY HAS BEEN ISSUED TO THE ABOVC NAMED INSURED
AND IS IN FARCE AT. THIS TIME. NOTWITHSTANDING ANY REQUIREMENT, TERM OR
CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PCRTAIN, THE INSURANCE AFFORDED BY THI5
POLICY DESCRIQED HEREIN IS SUBJECT TO ALL THE TERMS, CXCLUSIONS AND
CONDITIONS OF THIS POLICY.
CANCELLATION: SHOULD THIS POLICY BE CANCELLED BEFORE EXPIRATION DATE THEREOF
THE INSURANCE RCSERVF FUND WILL ENDEAVOR TO PROVIDE 30 DAYS
WRITTEN NOTICE TO ABOVE NAMED CERTIFICATE HOLDER, BUT FAILURE
TO PROVIDE SUCH NOTICE SHALL IMPOSE NO OBLIGATION Ofd LIABILITY
OF FlNY f<INQ UPON THE COMPANY,
THE PI~QPERTY LISTED BELOW HAS BEEN ADDED 70 THE ABOVE CERTIFICATE HOLDER;
SEG/Pf~OP
NUMl3~R
10

PROPERTY DESCRIPTION

PROPERTY LOCATION

INSURED
VALUE

ADMINISTRATIVE OFFICE/COLUMBIA 1 MAIN STREET

I H 1 S ENDORSEMENT SI IOULD BE /1TT~ICHED TO ANQ BECOME PART OF POLICY F110000016

JULY 01, 2015
DA'1'G

2

ANNE MACON SMITH
Direotor

PAPR - 004496

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FLOOD INSURANCE POLIGY
IN CONSIDERATION OF THE PAYMENT OF 7HE PREMIUM, IN RELIANCE UPON 7HE STATEMENTS IN THE APPLICATION AND
DECLARATIONS FROM MApE APART HEREOF ANb SUBJECT 70 ALL THE TERMS OF THIS POLICY, THE FUND DOES INSURE
the Insured and legal represenlalives, to the extent of the actual cash value of the property at the time of loss, but not exceeding tha
amount which it would cost to repair or rePlace the property with material of like i<ind and quality within a reasonable time after such loss,
withoui allowance of any increased cost of repair or reconstruction by reason of any ordinance or law regulating construct(on or repair, and
without compensation for loss resulting from interruption of business or manufacture, nor in any event for more than the interest if the
insured, against all DIRECT LOSS BY "FLOOD as def(ned herein, to the property described while located or contained as described in the
application and declarations form attached hereto, or pro rata for 45 days at each proper place to which any of the property shall
necessarily be removed for preservation from the peril of UFlood,~ but not elsewhere.
Assignment of this policy by the Insured is not allowed.
PERSONS INSURED
A. The named Insured and legal representatives.
B. Any mortgagee and loss payee named in the application and
declaration page in the order of precedence and to the extent of
their interest but for no more, in the aggregate, than the interest of
the named Insured.
DEFINITIONS
DEFINITIONS - AS USED IN THIS POLICY:
"Actual Cash Value" means the replacement cost of an insured
item of property ai the time of loss, less the value oP physical
depreciation as to the item damaged.
"Application" means the statement made and siflned by the
Insured, or the ~nsured's agent, and given the information on the
basis of which the Insured determines accessibility of the risk, the
policy to be Issued and the correct premium payment, which must
accompany the application for the policy to be issued.
"Building" means a walled and roofed structure, other than a gas
or liquid storage tank that is principally above ground and affixed
to a permanent site, including a walled or roofed building in the
course of construction, alteration or repair and a mobile home on a
foundation, subject to Paragraph "H" of the provision titled
"Property Not Covered."
"Cancellation" means that ending of the Insurance coverage
provided by this policy prior to the expiration date.
"Coastal High Hazard Area" means an area subject to high
velocity waters including hurricane wave wash and tsunamis,
"Declarations Page" is a computer generated summary of
information furnished by the Insured in the application for
Insurance.
"Doublewide Mobile Home" means a building which is fully
anchored and affixed to its' permanent site, and which is designed
and constructed as a modular or manufactured buiidin~ and which
has axles and wheels used solely for transportation to the tat or
construction site where it is to be assembled as a nonmovable,
permanent building; such a building is not considered to be a
mobile home for. purposes of this policy.
"Direct Physical Loss By Flood" means any loss in the nllure of
actual loss physical damage, evidenced by physical chances, to
the insured properly (building or personal property contents) which
is directly and proximate)y caused by a Ilflood~ (as defined in this
Agreement), while iho Insured property is located: 1. at the
properly address shown on the ~ppiication For this insurance,
which is a part of this Agreement; and 2, for forty-(ive days, at
another place above ground level or outside of .ihe special .flood
hazard area to which any of fife property shall necessarily be
PDII U/)I)

removed in order to protect and preserve it from a flood or from the
imminent danger of flood (provided, personal Property so removed
must be placed in a fully enclosed building or otherwise
reasonably protected from the elomonis to be insured against
loss).The term Direct Physical Loss by Floods shall not include
compensalion for loss of use, loss of access, loss of profits or loss
resulting from interruption of business, profession or manufacture,
allowance for any increased cost of repair or reconstruction as a
result of any ordinance or repair regulating reconstruction or
repair, or other economic loss,(This enumeration is not exclusive).
"Expiration Date" means the ending of the insurance coverage
provided by this policy on the expiration date shown on the
declaration page,
"FLOOD"; Wherever in this policy the term "flood" occurs, it shall
be held to mean:
A, A c~ener~l and temporary condition of partial or complete
inundat(on of normally dry land areas from:
1.

The overflow of inland or tidal waters.

2.

The unusual and rapid accumulation or runoff of surface
wafers from any source.

3.

Mudslides (i.e, mudflows) which are proximately caused
by flooding as defined in subparagraph A-2 above and
are a{cin to a river of liquid and flowing mud on lho
surfaces of normally dry land areas, as when earth is
carried by a current of wafer and deposited along the
path of the current.

e. The collapse or subsidence of land along the shore of a lake
or other body of water as a result of erasion or undermining
caused by waves or currents of water exceeding the cyclical levels
which resulC (n flooding as defined in A-1 above.
"Walled and Roofed" means the building has in place two or more
exterior, riqid wails and the roof is fully secured so that the building
w(II resist flotation, collapse and lateral movement.
PER►LS EXCLUDED
THE FUND SHALL NOT BE LIABLE FOR LOSS;
A, By (1) rain, snow, sleet, hail or water spray; (2) freezing,
ihawinc~ or by the pressure or weigiil of ice or water, except where
the property covered has been simullaneousfy damaged by flood;
(3) water, moisture or mudslide (f.e. mudflow) damage of any kind
resulOn~ primarily from conditions, causes or occurrences which
are solely related to the described premises or are within the
control of the Insured (including but not limited to design, structural
or mechanical defects, failures, stoppages or breakages of water
or sewer lines, drains, pumps, fixtures, or equipment) or any
condition which causes flooding which is substantially confined to
the described premises or properties
1'A(~15: I l)f S

PAPR - 004497

 immediately adjacent thereto; or (4) seepage, backup of water, or
hydrosiadc pressure not related to a condition of UfloodU as
defined;
B. Caused directly or indirectly by (1) hostile or warlike action in
time of peace or war, including action in hindering, combatin or
defending against an actual, impendin or expected attack, (a~ by
any government or sovereign power ~de jure or de facto), or by
any authority maintaining or using military naval or air forces, or
(b) by military, naval or air forces, or (c) bq an agent of any such
government, power, authority or forces, it being understood that
any discharge, explosion or use of any weapon of war employing
nuclear flsSion or fusion shall be conclusively presumed tv be such
a hostile or warlike action by such a government, power, authority
or forces; (2) insurrection, rebellion, revolution, civil war, usurped
power, or action taken by government authority in hindering,
combating or defending against such an occurrence;
C. By nuclear reaction or nuclear radiation or radioactive
contamination, all whether controlled or uncontrolled, or due to any
act or condition Incident to any of the foregoing, whether such loss
be direct or indirect, proximate or remote, or be in whole or in part
caused by, contributed to, or aggravated by the peril insured
against by this policy;
D, By theft or by fire, windstorm, explosion, earthquake, landslide
or any other earth movement except such mudslide or erosion as
is covered under the peril of food;
E. Caused by or resulting from power, heating or cooling failure,
unless such failure results from physical damage to power, heating
or cooling equipment situated on premises where the
property covered is located, caused by the peril insured against;
F, Caused directly or indirectly by neglect of the Insured to use
all reasonable means to save and preserve the property at the
time of and after an occurrence of the peril insured against by this
policy; but, for contents covered herein and subject to the terms of
the policy including the I(mits of liability, the Fund will reimburse
the Insured for reasonable expenses necessarily incurred by him
in complying with the requirements of this paragraph, including but
not limited to, reasonable expenses for removal or temporary
storage (not exceeding 45 days), or both, of insured contents, from
the described premises because of the imminent danger of flood;
G. Caused intentionally by the Insured;
H. Which is already in progress as of 12:01 a.m. of the first day
of the policy term;
I. From a flood which is confined to the premises on which the
insured property is located unless the flood is displaced over two
acres of the insured premises;
J. Caused by any mod(ticatlon by the Insured to the insured
property of the described premises on which the insured property
is located which materially increases the risk of flooding.
PROPERTY COVERED
A. BUILDING: When the insurance under this policy covers a
building, such insurance shall include additions and extensions
attached thereto; permanent fixtures, machinery and equipment
forming a part of and pertaining to the service of the bwlding;
personal property of the Insured as landlord used for the
maintenance or service of the building including Eire extinguishing
apparatus, floor coverings, refrigerating and ventilating equipment,
all while within the described budding; also, materials and supplies
while within an enclosed structure located on the described
premises or adjacent thereto, intended for use in construction,
•alteration or repa(r of such building or appurtenant private
structures on the described premises.
B. CONTENTS: When the insurance under this policy covers
contents, coverage shall be for either household contents or other
than household contents, but not for both.
1. When the insurance under this policy covers other than
household contents, such insurance shall cover merchandise and
stack, materials and stock supplies of every description; furniture,
PDL1 (1/91)

fixture, machinery and equipment of every description all owned by
the Insured; improvements and betterments (as hereinafter
defined) to the building if the Insured is not the owner of the
building and when not otherwise covered; all while within the
described enclosed building.
2. When the insurance under this policy covers household
contents, such insurance shall cover all household and personal
property usual or incidental to the occupancy of the premises as a
resident -except animals, birds, fish, business property, other
property not covered under the provisions of this policy, and any
property more specffically covered in whole or in part by other
insurance including the peril insured against in this policy;
belonging to the Insured or members of the InsuredOs famJly of the
same household, or for which the insured may be liable, or, at the
option of the Insured, belonglng to a servant or guest of the
Insured; all while within the described building.
The Insured, if not the owner of the described building, may apply
up to t0% of the amount of insurance appi(cable to the household
contents covered under this Item, not as an additional amount of
insurance, to cover loss to improvements and betterments (as
hereinaner defined) to the described building.
The Insured, if an individual condominium unit owner in the
described building, may apply up to 10°/a of the amount of
insurance on contents covered under this policy, not as an
additional amount of Insurance, to cover loss to the interior walls,
floors, and ceilings that are not otherwise covered under a
condominium association policy on the described building.
THE FUND SHALL NOT BE LIABLE FOR LOSS IN ANY ONE
OCCURRENCE FOR MORE THAN:
(a) $250.00 in the aggregate on paintings, etchings, pictures,
tapestries, art glass windows and other works of art (such
as but not limited to statuary, marbles, bronzes, antique
furniture, rare books, antique silver, porcelains, rare glass
or brie-a-brac);
(b) $250.00 in the aggregate on jewelry, watches, necklaces,
bracelets, gems,, precious and semi-precious stones,
art(cles of gold, silver or platinum and furs or any article
containing fur which represents its principal value.
3. When the Insurance under this policy covers improvements
and betterments, such Insurance shall cover the Insured's used
interest in improvements and betterments to the described
building.
(a) The term "improvements and betterments" wherever
used in this policy is defined as fixtures, alterations,
Installations, or additions comprising apart of the
described building and made, or acquired, at the expense
of the Insured exclusive of rent paid by the Insured, but
which are not legally subject to removal by the Insured.
(b) The word Dlease~ wherever used in this policy shall mean
the lease or rental agreement, whether written or oral, in
effect as of the time of loss.
(c} In the event improvements and betterments are damaged
or destroyed Buring the term of this policy by the peril
insured against, the Ilabil(ty of the Fund shall be
determined as follows:
{1) if repaired or replaced at the expense of the Insured
within a reasonable time alter such loss, the actual
cash value of the damaged or destroyed
improvements and betterments.
(2) If not repaired or replaced within a reasonable time
after such loss, that proportion of the original cost at
time of installation of the damaged or destroyed
improvements and betterments which the unexpired
term of the lease at the time of loss bears to the
period(s} from the dates) such improvements and
betterments were made to the expiration date of the
lease.
PAGE: 2 OF 5

PAPR - 004498

 (3) If repaired or replaced at the expense of others for
the use of the Insured, there shall be no liability
hereunder.
C. DEBRIS REIIROVAL: This insurance covers expense Incurred
in the removal of debris of or on the building or contents covered
hereunder, which may be occasioned by loss caused by the peril
insured against in this policy,
The total liability under this policy for both loss to properly and
debris removal expense shall not exceed the amount of
insurance applying under this policy to the property covered.
PROt'ERTY NOT COVERED
THiS POLICY SHALL NOT COVER
A. Accounts, bills, currency, deeds, evidences of debt, money,
coins, medals, postage stamps, securities, bullion, manuscripts,
or other valuable papers or records.
B. Fences, retafnin~ walls, seawalls, swimming pools,
bulkheads, wharves, piers, bridges, docks; other open structures
located on or over water, including boathouses or other similar
structures or buildings into which boats are floated; or personal
property fn the open, unless specifically insured and a premium
charged therefore.
C. Land values, lawn, trees, shrubs or plants, growing crops, or
livestock; underground structures and equipment including wells,
septic Tanks or septic systems; those portions of walks,
driveways and other paved or poured surtaces outside the
foundation walls of the building, unless specifically insured and a
premium charged therefore.
D. Aircraft, any self propelled vehicle or machine and motor
vehicles (other than motorized equipment pertaining to the
service of the premises of the Insured, and not licensed for
highway use) including their parts and equipment, trailers on
wheels and other recreational vehicles whether affixed to a
permanent foundation or on wheels; watercraft' including their
furnishings and equipment,
E. On and after June 1, 1982 with respect to any building
looted outside of a coastal high hazard area, solid, non-load
bearing walls, open, woad constructed lattice Obreakawayll wails,
insect screening or other ~breakaway~ walls any personal
property or other contents, and machinery or equipment
servicing the building when any of the foregoing Items:
(ij Are not contained within the foundation walls of the
described building (except for machinery and equipment
servicing the building); or
(ii) Are in the open (except for machinery and equipment
servicing the building); or
(iii) Are contained below the lowest floor used for rating the
building order to calculate the premium amount to be paid
for this policy; or
(iv) in case of a building rated with Emergency Program or
PreFiRM rates, were placed in the areas described in (i) pr
(ii) or {iii) above, on or after June 1, 1982.
The terms, "machinery or equipment," for purposes of this
paragraph "E", include, but are not limited to, heating equipment,
water heaters, air conditioning equipment and air ducts.
F. Buildings and their contents, including machinery and
equipment, which are part of the bu(Iding, where more than 49
percent of the actual cash value of such buildings is below
ground, unless the lowest level is at or above the base flood
elevation (in the Regular Program) or the adjacent ground level
(in the Emergency Program) by reason of earth having been
used as an insulation material in conjunction with energy efficient
building techniques.
G. On and after October 1, 1982, a mobile home located with a
FEMA designated Special Flood Hazard Area that is not affixed
roil ~v9i>

to a permanent site (anchored) to resist flotation, collapse or
lateral movement by providing over-the-top frame ties to ground
anchors or that otherwise meet the community's flood plan
management requirements.
H. Units which are primarily containers, rather than buildings
(such as gas and liquid tanks, chemical or reactor container
tanks or enclosures, brick kilns, and similar units) and their
contents (Silos and grain storage building including their
contents, may be Insured even though they may be of
container-type construction), unless specifically insured and a
premium c(~arged therefore.
I. A mobile home and its contents located with a FEMA
designated coastal high hazard area~Zones V1-V30 on a FEMA
Flood Insurance Rate Map) which is not located in a mobile
home park or subdivision in existence and open for business
prior to June 1, 1982.
DEDUCTIBLES
A. With respect to loss to the building, appurtenant structures,
and debris removal covered hereunder, the Fund shall be liable
for only that portion of the loss in any one occurrence which is in
excess of the deductible shown on the declaration page.
B. With respect to loss to contents or debris removal covered
hereunder or to expenses, incurred under paregraph "F" of
"Perils Excluded," the Fund shall be liab{e for only that portion of
the loss in any one occurrence which is in excess of the
deductible shown on the declaration page.
C. In the case of reasonable expenses incurred in the removal
of an insured mobile home or personal property from the insured
premises awey from the petit of flood, the amount of the
deductible shall be the amount shown on the declaration page.
GENERAL CONDITIONS AND PROVISIONS
A. PAIR AND SET CLAUSE: If there is loss of an article which
is part of a pair or set, the measure of loss shall be a reasonable
and fair proportion of the total value of the pair or set, giving
consideration to the Importance of said article, but such loss
shall not be construed to mean total loss of the pair or set.
B. CONCEALMENT FRAUD: This entire policy shall be void if,
whether before or after a loss, the Insured has willfully concealed
or misrepresented any material fact or c(rcumstance
concerning this insurance or the subject thereof, or the interest of
the Insured there(n, or in case of any fraud or false swearing by
the Insured relating thereto.
C. OTHER INSURANCE: The Fund shall not be liable for a
gteeter proportion of any loss, less the amount of deductible,
from the peril of flood than the amount of insurance under this
policy bears to the whole amount of flood insurance (excluding
therefrom any amount of "excess Insurance" as hereinafter
defined) covering the property, or which would have covered the
property except for the existence of this Insurance, whether
collectible or not. .
in the event that the whole amount of flood insurance (excluding
therefrom any amount of "excess insurance" as hereinafter
defined) covering the property exceeds the maximum amount of
insurance permitted under the provisions of the National Flood
Insurance Act of 1968, or any acts amendatory thereof , it is
hereby understood and agreed that the insurance under this
policy shall be limited to a proportionate share of the maximum
amount of insurance permitted on such property under said Aci,
and that a refund of any extra premium paid, computed on a pro
rata basis, shall be made by the Fund upon request In writing
submitted not later than 2 years after the expiratEon of the policy
term during which such extra amount of insurance was in effect.
"Excess insurance" as used herein shall be heltl to mean
insurance of such part of the actual cash value of the property as
is in excess of the maximum amount of insurance permitted
under said Act with respect to such property.
D. ADDED AND WAIVER PROVISIONS: The extent of the
application of insurance under this policy and of the contribution
PAGk; 3 OF 5

PAPR - 004499

 to be made by the Fund in case of loss, and any other provision
or agreement not inconsistent with the provisions of this policy,
may be provided for in writing added hereto, but no provision
may be waived except such as by the terms of this policy is
subject to change.
No permission affecting this insurance shall exist, or waiver of
any provision be valid, unless granted herein or expressed in
wntmg added hereto. No provision, stipulation or forteiture shall
be held to be waived by any requirement or proceeding on the
part of the Fund relating to appraisal or to any examination
provided to herein.
E. VOIDANCE, REDUCT{ON OR REFORMATION O~ THE
COVERAGE:
1.

VOIDANCE• This policy will be vo(d and of no legal
force and effect in the event that any one of the
following conditions occurs:
a.

The property listed on the application is not eligible
for coverage, in which case the policy is void from
its inception;

b.

The Insured or the Insured's agent has {i) sworn
falsely or (ii) fraudulently, or willfully concealed
misrepresented any material fact (including facts
relevant to the rating of this policy) In the
application for coverage, or in connection with the
submission of any claim brought under the policy,
In which case this entire policy shall be void as of
the date the wrongful act was committed and
coverage~ priot to the date of the wrongful act shall
not be affected, provided, refunds of premium, if
any, shall , be subject to, offsets for the Fund's
administrative expenses (including the payment of
agents commissions through prior policy years, if
any) in connection with the issuance of the policy;

RESTRICTING
SUSPENDING
OR
F.
CONDITIONS
INSURANCE: Unless otherwise provided in writing added
hereto, the Fund shall not be liable for loss occurring while the
hazard is Increased by any means within the control or kowledge
of the Insured, provided, however, this insurance shall not be
rejudiced by any act or neglect of any person (other than the
nsured), when such act or neglect is not within the control of the
Insured.

P

G. ALTERATIONS AND REPAIRS: Permission is granted to
make alterations, additions and repairs, and to complete
structures in course of construction. In the event of loss
hereunder, the Insured is permitted to make reasonable repairs
temporary or permanent, provided such repairs are contine~
solely to the protection of tfie property from further damage and
provided further that the Insured shall keep an accurate record of
such repair expenditures.The cost of any such repairs directly
attributable to damage by the peril insured against shall be
included in determining the amount of loss hereunder. Nothing
herein contained is intended to modify the policy requirements
applicable fn case loss occurs, and in particular the requirement
that in case loss occurs the Insured shall protect the property
from further damage.
H. PROPERTY OF OTHERS (SERVANTS AND GUE57S
ONLY): Unless otherwise provided in writing hereto,ioss to any
property of others covered under this policy shall be adjusted
with the insured for the account of the owners of said property,
except that the right to adjust such loss with said owners is
reserved to the insured. Any such insurance under this policy
shall not insure directly or indirectly to the benefit of any carrier
or other bailee for hire.
I. LOSS CLAUSE: Payment of any lass under this policy shall
not reduce the amount of insurance applicable to any other loss
during the policy term which arises out of a separate occurrence
of the pent insured against hereunder; provided, that all loss
arising out of a continuous or protracted occurrence shall be
deemed to constitute loss arising out of a single occurrence.
MpRTGAGE CLAUSE (APPLICABLE TQ BUILDING
J.
ITEMS ONLY AND EFFECTIVE ONLY WHEN POLICY IS
MADE PAYABLE 70 A MQRT(3AGEE (OR TRUSTEE_
NAMED IN THE APPLICATION ANO DECLARATIONS FORM
A7TACHEb TO THIS POLICI~:
PDII (I/91)

Loss, if any, under this policy, shall be payable to the aforesa(d
as mortgagee (or trustee) as interest may appear under ail
present or future mortgages upon the property described in
which the aforesaid may have an interest as mortgagee (or
trustee,) in order of precedence of said mort ages, and this
insurance, as to the interest of the mortgagee ~or trustee) only
therein, shall not be invalidated by any act or neglect of the
mortgagor or owner of the described property, nor by any
foreclosure or other proceedings, or notice of sale relating to the
property, nor by any change in the title or ownership of the
property, nor by the occupation of the premises for purposes
more hazardous than are permitted by this policy; provided, that
in case the mortgagor or owner shall neglect to pay any premium
due under this policy, the mortgagee (or trustee) shall, on
demand, pay the same.
Provided, also, that the mortgagee (or trustee) shall notify this
Fund of any change of ownership or occupancy or increase of
hazard which shall come to the knowledge of said mortgogee (or
trustee) and, unless permitted by this policy, it shall be noted
thereon and the mortgagee (or trustee) shall, on demand, pay
the premium for such Increased hazard for the term of the use
thereof; otherwise this policy shall be null and void.
If this policy is cancelled by the Fund, it shall continue in force for
the benefit only of the mortgagee (or trustee) for 10 days after
written notice to the mortgagee (or trustee) of such canceilalion
and shalt then cease, and the Fund shall have the right, on Ilke
notice, to cancel this agreement.
Whenever the Insured shall pay the mortgagee (or trustee) any
sum far loss under th(s policy and shall claim that, as to the
mortgagor or owner, no liability therefore existed, the Fund shall
to the extent of such payment, be thereupon legally subrogated
to all the rights of the party to whom such payment shall be
made, under alt securities held as collateral to the mort age
debt, or may, at (ts option, pay to the mortgagee (ar trustee the
whole prinapal due or to grew due on the mortgage with interest,
and shaA thereupon receive a full assignment and transfer of the
mortgage and of all such other securities; but no subrogation
shall impair the right of the mort ogee (or trustee) to recover the
full amount of said mortgagee's ~or trustee's} claim.
K. MORTGAGEE QBLIGATIONS: If the Insured fails to render
proof of loss,. the name mortgogee (or trustee), upon notice, shall
render proof of loss in the form herein specified within 60 days
thereafter and shall be subject to the provisions of this policy
relating to appraisal and time of payment and of bringing suit.
L. LOSS PAYABLE CLAUSE (APPLICABLE TO CONTENTS
ITEMS ONLY): Loss, If any,shall be adjusted with the Insured
and shall be payable to the Insured and loss payee as their
interests may appear.
M. REQUIREMENTS IN CASE OF LOSS: The Insured shall
give written notice, as soon as practicable, to the Fund of any
loss, protect the property from further damage, forthwith
separate the damages and undamaged proPerty and put it m the
best possible order. Within 60 days after the loss, unless such
time is extended in writing by the Fund, the Insured shall render
to the Fund a proof of loss, signed and sworn to by the Insured,
stating the knowledge and belief of the insured as to the
following: the time and origin of the loss, the interest of the
Insured and of all others in the property, actual cash value of
each item thereof and the amount of loss thereto, all
encumbrances thereon, all other contracts of Insurance, whether
valid or not, covering any of sold property, any changes in the
title, use occupation, location, possession or exposures of said
property since the issuing of this policy, by whom and for what
purpose any building herein described and the several pa►is
thereof were occupied at the time of loss. The Insured, at the
option of the Fund, .may be required to furnish a complete
Inventory of the destroyed, damages, and undamaged property,
showing in detail quantities, cost actual cash value and amount
of loss claimed, and verified plans and specificat(ans of any
building, fixtures or machinery destroyed or damaged.
The Insured, as often as may be reasonably reqwired, shall
exhibit to any person designated by the Fund all that remains of
any property herein described, and submit to examinations under
oath by any person named by the Fund, and subscribe
racE: a of s
PAPR - 004500

 the same, and, as often as may be reasonably required, shall
produce for examination all book of account, bills, invoices and
other vouchers or certified copied thereof if originals be lost, at
such reasonable time and place as may be designated by the
Insured or its representative, and shall permit extracts and
copies thereof to be made.
N. APPRAISAL: In case the Insured and the Fund shall fall to
agree as to the actual cash value or the amount of loss, then, on
the wrigen demand of either, each shall select a competent and
disinterested appraiser and notify the other of the appraiser
selected within 20 days of such demand.The appraisers shall
first select a competent and disinterested umpire; and failing for
15 days to agree upon such umpire, then, on request of the
Insured or the Insurer, such umpire shall be selected by a judge
of a court of record in the State m which the insured property is
located, The appraisers shall then appraise the loss to each
Item; and, failing to agree, shall submit their differences, only, to
the umpire. An award in writing, so itemized, of any two when
filed with the Insurer shall determine the amount of actual cash
value and loss. Each appraiser shall be paid by the party
selecting him and the expenses of appraisal and umpire shall be
paid the parties equally.
O. OPTIONS: It shall be optional with the Fund to take ail, or
any part, of the property at the agreed or appraised value, and
also to repair, rebuild or replace the property destroyed or

damaged with other of like kind and quality within a reasonable
time, on giving notice of its intention so to do within 30 days after
the receipt of the proof of loss herein required
P. ABANDOfVMENT: There shall be no abandonment to the
Fund of any property.
Q. WHEN LOSS PAYABLE: The amount of loss for which the
Insurer may be liable shall be payable 60 days after proof of
loss, as herein provided, is received by the Insurer and
ascertainment of the loss (s made either by agreement between
the Insured and the Fund expressed in writing or by the fling
with the fund of an award as herein provided.
R. ACTION AGAINST THE FUND: No suit or action on this
policy for the recovery of any claim shall be sustainable in any
court of law or equity unless all the requirements of this policy
shall have been compiled with, and unless.commenced within 12
months next after the date of mailing of notice of disallowance or
partial disallowance of the. claim.
S. SUBROGATION: In the event of any payment under Ihis
policy, the Fund shall be subrogated to all the InsuredUs rights of
recovery therefore against any party, and the Fund may require
from the Insured an assignment of all rights of recovery against
any party for loss to the extent that payment therefore is made
by the Fund. The Insured shall do nothing after loss to prejudice
such right.

INSURA CE RESERVE FUNQ

By
Director

PDII (1/91)

PAGE: 5 OP 5

PAPR - 004501

 dt`

-~~. .y.`n
L~ rAy~'6r~`T..~ k~y~i. ~.J~CG.:~~~.i ~'4. L~'l_y~A ~.~J ~ (~, ~'#,~~~1~E S ~j I~~I r~,:A 0.

t

'
`4r~

J X'l.~$r.P ` 7l

l;A'Si11t.1!~( I~ It~i~51 12~'I; l L'1VD
PU`+'C C}l~ I~ IGlf, liO':1I000
C'~1~L~\IiSI:1.5()IJI'ICC.~11LQl.,l~r~.3)211

,~ i~ ~;
„~c.4 ~
~~ ; ,~'

SOUTH CAROLINA CHANGES -VALUATION
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ 17 CAREFULLY
This endorsement modifies insurance provided under the following:
BUILDING AND PERSONAL PROPERTY COVERAGE FORM
BUILDERS RISK COVERAGE FORM
CONDOMINIUM ASSOCIATION COVERAGE FORM
STANDARp PROPERTY POLICY
SCHEDULE*
Prem.
No.

Bldg.
No.

Total Amount of Insurance
to be Carried

Agreed Vatue of Bulidings

A. When this endorsement is attached to the STANDARD PROPERTY POLICY PD 04 01 the term Coverage Part in this endorsement is
replaced by the term Policy.
B. The following is added to VALUATION Loss Condition:
1.

2.

For loss or damage to buildings caused by or resulting from (ire or lightning, you and we agree that:
a.

The value of the buildings described in this Coverage Part; and

b.

The total amount of insurance to be carried on the buildings, including this Coverage Para; are the amounts shown in the
Schedule.

The following applies to the Builders' Risk Coverage Form, or fhe Builders' Risl< Changes -Standard Property Policy, if applicable:
The Agreed Value of Buildings represents the value of the building when it is completed.

* Information required to complete this Schedule, If not shown on this endorsement, will be shown In the Declarations.

INSURANCE RESERVE FUND

By
Dir~ctoY

I'I)Ilti l I/1111

(:up}ri~;hL Insuruuc~eScreices (}Ili~•e, Inc., 191ia~ I'l87

f':1(:li: I UP

PAPR - 004502

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Clark, Brad <Brad.Clark@BBandT.com>
Wednesday, November 18, 2015 2:17 PM
Keith R. Powell; Robbie Ferris (RFerris@sfla.biz)
RE; HCS ~ Exhibit B

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Thank you Keith.
will review the coverage and inform Robbie / Firstfloor Energy Positive LLC ("PEEP") of any concerns.
If you would like, I will pursue a Builder's Risl< coverage option in the voltantary marketplace that will list HCS, FFEP, and
subcontractors as named insureds. HCS can compare this to the premium and coverage available through the IRE.
Do you knew what wind/named storm deductible the IRF uses?
Thanks,
Brad Claris, CIC
Vice President
BB&T Insurance Services
4309 Emperor alvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clarl<@bbandt.com
mailcode: 120-80-01-15
From: Keith R. Powell [mailto:kpowell@childs-halligan.net]
Sent: November 18, 2015 12:56 PM
To: Clark, Brad; Robbie Ferris (RFerris@sfla.biz)
Subject: FW: HCS ~ Exhibit B
Importance: High
Attached info for your use.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 25R-4035
NOTICE: This e-snail inay contain information that is personal and confidential, non-disclosabie and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

1

PAPR - 004503

 From: Ara Heinz [mailto:AHeinzCo7horrycountyschools.net]
Sent: Wednesday, November 18, 2015 12:40 PM
To: Keith R. Powell
Subject: RE: HCS ~ Exhibit B

i
,

Mr. Powell,
Sorry for the delay. In a mtg this morning and dr's appt right after. Let me know if you need anything else.
Regards,

~{ V'a~
Ara Heinz ~ Procurement Services ~P: 843/488-6930
Horry County Schools (335 Four Mile Rd. ~ Conway, SC 29526
Website: Procurement.horrycountyschools.net

N:n'Y CcvRY SGA!c1s

From: Keith R. Powell [mailto^kpowell@childs-halligan,net)
Sent: Tuesday, November 17, 2015 6:39 PM
To: Ara Heinz
Subject: Fwd: HCS ~ Exhibit B
Ara -can you get your irf policy to me? I know you sent two excerpts in the summer but the insurance agent
for ffep needs to see it all. Thanks.
Keith R. Powell

Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halli an.com
(803)254-4035
.

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected
by attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to
examine, copy or distribute the accompanying material. If you receive this message in error, please notify us by
telephone as listed above immediately.
Begin forwarded message:
From: "Clark, Brad" <Brad.Clarlc(a~BBandT.com>
Date: November 17, 2015 at 5:30:59 PM EST
To: "Keith R. Powell" <~owellnao,childs-halli~~n.net>, Robbie Ferris <RFerris e,sfla.biz>
Subject: RE: HCS ~ Exhibit B
Keith,
Can you please send me the Causes of Loss Form referenced in the Builders Risk Coverage Form and all
applicable endorsements/exclusions? I would like to review the excluded perils as the policy wording in
the attachments you send provides very limited coverage for the exposure.
Thank you,
2
PAPR - 004504

 Brad Clarlc, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Ce
brad.cla rl<@ bbandt.com
mailcode: 120-80-01-15
From: Keith R. Powell [mailto:kpowell(c~childs-halli_an.net]
Sent: November 17, 2015 1:22 PM
To: Robbie Ferris
Cc: Clark, Brad
Subject: RE: HCS ~ Exhibit B
Here are the forms. The BR policy talks about "your" property, buff the IRF won't let HCS name a
nongavernment entity as an insured or loss payee.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This email may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If
you have received this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive this message in error, please notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerrisC~sfla.biz]
Sent: Tuesday, November 17, 2015 12:22 PM
To: Keith R. Powell
Cc: Clark, Brad (Brad.ClarkCa~BBandT.com)
Subject: FW: HCS ~ Exhibit B

Keith,
Apparently our insurance company sent me an email about this a few days ago thatInever
sent you. Sorry!!
Feel .free to call Brad directly to discuss his concerns.
Robbie

Robbie/Mike,
After reviewing this updated draft, I still see the same potential problem areas as previously outlined.
There are some significant gaps in the protection of First Floor and subcontractors with the language
used for Builder's Risl< coverage, specifically:
•

Design-Builder and subcontractors of ail tiers should have insured status on the Builder's Risk
policy in order to ensure your interests are protected.
HCS should agree to waive subrogation against First Floor and subcontractors of all tiers for
losses covered by the Builder's Risk policy. This waiver will prevent HCS' insurer from seei<ing
3
PAPR - 004505

 •

•

subrogation against First Floor's or a subcontractor's GL coverage if a contractor caused damage
to the project.
The contract states that HCS has the responsibility to pay losses not covered by deductibles, but
the contract does not state anything regarding excluded perils, inadequate limits, or property
not covered. These can all be significant exposures.
Other areas as outlined in the attached "Builder's Risl< Considerations".

Additional Insured status is still referenced for Pollution Liability coverage even though that coverage is
not required by FiCS. I recommend striking this language since First Floor is not required to carry
Pollution Liability by HCS. As discussed previously, BB&T still recommends that you purchase Pollution
Liability coverage to protect First Floor.
Thanks,
Brad Clarl<, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678,612.7403 Cell
brad.clark@bbandt.com
m a ilco de: 120-80-01-15
From: Peeples, Kenneth'
Sent: November 17, 2015 10:30 AM
To: Blanchard, Kathy; Clark, Brad
Subject: Fwd: Hcs

Ken Peeples
919-281-4510 office

919-215-9779 cell
Via iPhone
Begin forwarded message:
From: Robbie Ferris <RFei~is(a~sfla.biz?
Date: November 17, 2015 at 9:55:52 AM EST
To: Nancy Zablud <NZablud(a~sfla.bi7?, Mike Wawrzyniak
<mwawrzyniak(a~sfla.biz>, "Kenneth J. Peeples" <kpeeples cr,bbandt.com>,
Aaron Thomas <athomas(a,metconus.com>, Mike Richter
<mrichter cr,talovin~.com>
Subject: Fwd: Hcs
Guys,
See attached exhibit B in the email from Keith Powell.
Robbie
Sent from my iPhone
4
PAPR - 004506

 Begin forwarded message:
From: "Keith R. Powell" <~Cpowell(a~clulds-lialligan.net>
Date: November 17, 2015 at 9:47:32 AM SST
To: "Robbie Ferris (RFei~ris ,sfla.biz)" <RFerris(a~sfla.biz>, Mark
Wolfe <MWo1fe002(a~liorrvcountvschools.net>, "Ara Heinz
(AHeinz(a~horr.ycountyschools.net}"
<AHeinz~a,honvcountvschools.net>, John Gardner
<JGardner e,horrycountyschools.net>, Kenneth Generette
<I{Genexette(a~horr,~countyschools.net>,
"rmaxey~a,horr,~countvschools.net"
yschools.net>
<rniaxev~a,hoi~r~c
Cc: "William F. Halligan" <bhalligan cr,childs-halligan.net>
Sabject: RE: Hcs
Robbie & HCS folks:
Ex B updated draft attached for review &comment. Waiting on
HCS comments on 141 and Ex A.
Keith R, Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.Childs-halli ga n.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and
confidential,, non-disclosable and protected by attorney-client
privilege. If you have received this e-mail in error, this does not
constitute permission to examine, copy or distribute the
accompanying material. Tf you receive this message in error, please
notify us by telephone as listed above immediately. '
On Nov 17, 2015, at 7:43 AM, Robbie Ferris <RFei~ris(a,sfla.biv
wrote:
Keith
Can you send the latest version of the contract for
review
Robbie
Sent from my iPhone

Tf~e it~fnrmc~tinrz in thi,~~ tt~crf~snai,s,S70T'1 I11L11- C0191C7(Yl j")i~n~r~iE~tc7r;~~ U»cl r~nit ~~zthlic infi~t•rftutiot~ of.
P~G'c(:T oi~ il,~~ uffili~rles urzcl irr~ay~ he ,ti~~il~jee;~l la ~~~~otee~aorr t~fTi/er• the lczi~r. Tl~c~ rrre,s,~~c~~;e is ir~lerrde~~
.fOY' ~ItL SOIL' llJ'C' U~I~TL %M(~li`Z[~16C11 UI" C'/It1/1- C<) 14'hi~h ir. i,S' [ICjG~Y't'S,S'('c~ jf )%O!.! Ctl'l.' MC)P 1~1f' 7{4[('MC,~C:41~
r•i:ci~~ic~rzt, vnz+ crre natifiee~ tltu! crr~y rrse, cli.str~ibcalio~•~ ~~r cnl.7yifz~; c~f~tl~e ri~e,s,scige i,s ,sli~ict/v

PAPR - 004507

 j.')f'(7~!((7!/('!(. /f y'(1N /'C'CG'll'r'~r I~TI.,ti' li1G.S.StI~~"L 1!1 BI'YOt', )_7~6'1'I.SC' C~(.'lC1C' /~7C' I7~C11C'J"lC(r,fT"(.7719 J'OL/7" Sy',S/C ]19
1 Pt.(~7[)l.l(' !'t'.LrG~/1"l~; 1~`1C' C:C117~E'~rl

un~l i~aiilj' the .senc~c>>"

lf191P7G'L~/Cl/t'C)% 0~ f~2G 11911C~1'i'Y/C'Jl/ /t"L(77J'1111,5',SIUF2.

6

PAPR - 004508

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Keith R. Powell
Wednesday, November 18, 2015 2:20 PM
Clark, Brad; Robbie Ferris (RFerris@sfla.biz)
RE: HCS ~ Exhibit B

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

I'm talking to them about a lot of last minute edits this afternoon and will include the builder-provided BR policy as a
topic on the list. The terms provide for FFEP to place coverages after execution so we have a few days, although of
course next week is truncated for business purposes.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

__

__ _

__ _

__ _

From: Clark, Brad [mailto:Brad.Clark@BBandT.com]
Sent: Wednesday, November 18, 2015 2:17 PM
To: Keith R. Powell; Robbie Ferris (RFerris@sfla.biz)
Subject: RE: HCS ~ Exhibit B
Thank you Keith.
will review the coverage and inform Robbie / Firstfloor Energy Positive LLC ("PEEP"} of any concerns.
If you would like, I will pursue a Builder's Risl< coverage option in the voluntary marketplace that will list HCS, FFEP, and
subcontractors as named insureds. HCS can compare this to the premium and coverage available through the IRF.
Do you know what wind/named storm deductible the ~RF uses?
Thanks,
Brad Clarl<, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919,281.4545 Direct
678.612.7403 Cell
brad.clark(~bbandt.com
mailcode: 120-80-01-15

PAPR - 004509

 From: Keith R. Powell [mailto:kpowellC~childs-halligan.net]
Sent: November 18, 2015 12:56 PM
To: Clark, Brad; Robbie Ferris (RFerrisCa~sfla.biz)
Subject: FW: HCS ~ Exhibit B
Importance: High
Attached info for your use.
Keith R. Powell
Childs &Halligan, PA.
Columbia, South Carolina
www.childs-haIIigan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. if you have received
this e-snail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

From: Ara Heinz [mailto;AHeinzCa~horrycountyschools.net]
Sent: Wednesday, November 18, 2015 12:40 PM
To: Keith R. Powell
Subject: RE: HCS ~ Exhibit B
Mr. Powell,
Sorry for the delay. In a mtg this morning and dr's appt right after. Let me Know if you need anything else.
Regards,
~~~
Ara Heinz ~ Procureme~tServices~ mP:843/48~-6930
Horry County Schools ~ 335 Four Mile Rd. ~ Conway, SC 29526
Website: Procurement.liorrycou~tyschools.net

~~mY CcvxY Stno~`~

From: Keith R. Powell [mailto:kpowell@childs-halli~an,net]
Sent: Tuesday, November 17, 2015 6:39 PM
To: Ara Heinz
Subject: Fwd: HCS ~ Exhibit B

Ara -can you get your irf policy to me? I know you sent two excerpts in the summer but the insurance agent
for ffep needs to see it all. Thanks.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Caxolina
www.childs-halls~a com
(803)254-4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected
by attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to

PAPR - 004510

 examine, copy or distribute the accompanying material. If you receive tlus message in error, please notify us by
telephone as listed above immediately.
Begin forwarded message:
From: "Clark, Brad" <Brad.Clarlcnu
e,BBandT.com>
Date: November 17, 2015 at 5:30:59 PM EST
To: "Keith R. Powell" <Icpowell(a~childs-halligan.net>, Robbie Ferris <RFerrisna~,sfla.biz>
Subject: RE: HCS ~ Exhibit B
Keith,
Can you please send me the Causes of Loss Form referenced in the Builders Risk Coverage Form and all
applicable endorsements/exclusions? I would like to review the excluded perils as the policy wording in
the attachments you send provides very limited coverage for the exposure.
Thank you,
Brad Clarlc, CIC
Vice President
BB&T Insurance Services
4309 Emperor Bivd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad~.clark@bbandt.com
ma ilco d e: 120-80-01-15
From: Keith R. Powell [mailto:kpowell@childs-halligan.net]
Sent: November 17, 2015 1:22 PM
To: Robbie Ferris
Cc: Clark, Brad
Subject: RE: HCS ~ Exhibit B
Here are the forms. The BR policy talks about "your" property, but the IRF won't let HCS name a
nongovernment entity as an insured or loss payee.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-haIligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable 2nd protected by attorney-client privilege. If
you have received thise-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive this message in error, please notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerrisCa~sfla.biz]
Sent: Tuesday, November 17, 2015 12:22 PM
To: Keith R. Powell
Cc: Clark, Brad (Brad.ClarkCa>BBandT.com)
Subject: FW: HCS ~ Exhibit B

3

PAPR - 004511

 Keith,
Apparently our insurance company sent mean email about this a few days ago that Y never
se«t you, Sarry!!
Feel free to cal{ Brad directly to discuss his concerns.
Robbie

Robbie/Mike,
After reviewing this updated draft, I still see the same potential problem areas as previously outlined.
There are some significant gaps in the protection of First Floor and subcontractors with the language
used for Builder's Risl< coverage, specifically:
•
•

•

~

Design-Builder and subcontractors of all tiers should have insured status on the Builder's Risl<
policy in order to ensure your interests are protected,
HCS should agree to waive subrogation against First Floor and subcontractors of all tiers for
losses covered by the Builder's Risk policy. This waiver will prevent HCS' insurer from seeking
subrogation against First Floor's or a subcontractor's GL coverage if a contractor caused damage
to the project.
The contract states that HCS has the responsibility to pay losses not covered by deductibles, but
the contract does not state anything regarding excluded perils, inadequate limits, or property
not.covered. These can all be significant exposures.
Other areas as outlined in the attached "Builder's Rislc Considerations".

Additional Insured status is still referenced for Pollution Liability coverage even though that coverage is
not required by HCS. I recommend striking this language since First Floor is not required to carry
Pollution Liability by HCS. As discussed previously, BB&T still recommends that you purchase Pollution
Liability coverage to protect First Floor.
Th a nI<s,
Brad Clark, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clarl<@bbandt.com
mailcode: 120-SO-01-15
From: Peeples, Kenneth
Sent: November 17, 2015 10.30 AM
To: Blanchard, Kathy; Clark, Brad
Subject: Fwd: Hcs

Ken Peeples

919-281-4510 office
919-215-9779 cell
Via iPhone
m

v

PAPR - 004512

 Begin forwarded message:
From: Robbie Ferris <RFerris(a~sfla.biz>
Date: November 17, 2015 at 9:55:52 AM EST
To: Nancy Zablud <NZablud cr,sfla.biv, Mike Wawrzyniak
<mwawrzyz~ialc cr,sfla.biz>, "Kenneth J. Peeples" <lcpeeples ~bbandt.eom>,
Aaron Thomas <athomas(c~inetconus.cotn>, Mike Richter
<nlrichter ,talovin~ com>
Subject: I+~vd: Hcs
Guys,
See attached exhibit B in the email from Keith Powell.
Robbie
Sent from my iPhone
Begin forwarded message:
From: "Keith R. Powell" <lcpowell(a,childs-halligan.net>
Date: November 17, 2015 at 9:47:32 AM EST
To: "Robbie Ferris (RFerris(c~sfla.biz)" <RFerris a ,sfla.biz?, Mark
Wolfe <MWo1fe002~u,horrvcountyschools.net>, "Ara Heinz
(AHeinz(c~hoi~rycountvschools.net)"
<AHeinz(a~horrvcountyschools.net>, John Gardner
<JGardner@,horrvcountyschools.net>, Kenneth Generette
<KGenerette(c~honvcountvschools.net>,
"i~naxey_(a),horr,~c untyschools.net"
<rmaxe~a,horrvcountvschools , net>
Cc: "William F. Halligan" <bhalli~an(a),childs-halli gan.net>
Subject: RE: Hcs
Robbie & HCS folks:
Ex B updated draft attached for review &comment. Waiting on
HCS comments on 141 and Ex A.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and
confidential, non-disclosable and protected by attorney-client
privilege. If you have received this e-mail in error, this does not
constitute permission to examine, copy or distribute the
accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.
On Nov 17, 2015, at 7:43 AM, Robbie Terris <RFerris(a~sfla.biv
wrote:
PAPR - 004513

 Keith
Can you send the latest version of the contract for
review
Robbie
Sent from my iPhone

The' ire/i~~791cY1!!)fl %12 tl~l,s• ~i~cnzsnrrs,sivn inuv cv~~tcrin~~f~v~~ric~t["/l;l- Cf19GIi1U11~-]_71lGIdc: IFifOlva~«tivr~ vf.
BGc~:7' ar its crffilicrte,s~ irrac/ miry hc~ .~~t~/?jec~t to I ra/eeliot~ a.irtcler~ ~hc~ lir~•r. Tlae rrae,s;s~ugc~ is ii~~ert~lecr'
.fof• Ilse .~~ole u,s~c~ c~1l1~~ rnclry ilr«r1 ~,r c~t~rly ro,.rizich it i,i~ c~ilitr•esser,! If.).r~ir L~r•e nc,i the lll~E'12G'~E'Cl
!''E'c•r~~ic~i~~. yc~is ur'~ 1901Jf1(.'GIr ~~ICI~ U77)' '1.6,tiG, [~l,Sll"7I)L/I70M UI" COj))'Zll,~ OJ`1)1E° ~Y1L',5S[l,~b' l5 S'/7'1Cl~V
>>rnlzbitecd. It j-vu rc~c:errel,~ 1~1l.S lll~S'.5'C/,f~<; 1M C'1'1'Ol', j'J~LC/S6' ClC~GC~ T~9C' rnc~teri~~cl,~rom J-oua' .ti)'.1'(B77?
i~~i!ltv~tr r•e:~adi»,sr tae cronlc~~zt ar~d nr~lifj1 lltc; ,sert~~er iritrF~~~c7icrlel~, of llte r»in~i~c~r~fertl Irc~rt.~~rj~i,~~srvrr..

PAPR - 004514

 -- __,

_. .

Sheri L. Wainscatt
From:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Wednesday, November 18, 2015 3:07 PM
Keith R. Powell
Horry

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Keith,
How are you feeling about signing contracts on Thursday, is Friday more realistic. I am trying to plan my day. I would hate
to push it out until Monday but I can also do it on Monday since I will be there anyway for the board meeting at 4 o'clock
Sent from my iPhone

PAPR - 004515

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Keith R. Powell
Wednesday, November 18, 2015 3:09 PM
Robbie Ferris
Re: Horry

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

I'll tell you after this call I'm about to start
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorneyclient privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy or distribute
the accompanying material. If you receive this message in error, please notify us by telephone as listed above
immediately.
> On Nov 18, 2015, at 3:06 PM, Robbie Ferris <RFerrisC~sfla,biz> wrote:
> Keith,
> How are you feeling about signing contracts on Thursday, is Friday more realistic. I am trying to plan my day. I would
hate to push it out until Monday but I can also do it on Monday since I will be there anyway for the board meeting at 4
o'clock
> Sent from my iPhone

1
PAPR - 004516

 Sheri L. Wairtiscott
Frorn:
Sent:
To:
Subject:

Keith R. Powell
Wednesday, November 18, 2015 5:04 PM
Robbie Ferris
Fwd: Horry

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Let's do Friday. I got assorted instructions today that will take another round of editing and review tomorrow.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.Childs-hal li pan.coin
(803)254-4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected
by attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to
exanune, copy or distribute the accompanying material. If you receive this message in error, please notify us by
telephone as listed above immediately.
Begin forwarded message:
From: Robbie Ferris <RFerris cr,sfla.biz>
Date: November 18, 2015 at 3:06:36 PM EST
To: "kpowell(a~childs-halligan.net" <lcpowell~,childs-halli~an.net>
Subject: Horry
Keith,
How are you feeling about signing contracts on Thursday, is Friday more realistic, I am trying to
plan my day. I would hate to push it out until Monday but I can also do it on Monday since I will
be there anyway for the board meeting at 4 o'clock
Sent from my iPhone

PAPR - 004517

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Wednesday, November 18, 2015 5:07 PM
Keith R. Powell
Re: Horry

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Will do
No worries
Please get me a final draft as soon as possible so I can run it by the bonding company
Sent from my iPhone
On Nov 18, 2015, at 5:04 PM, Keith R. Powell <kpowellna,childs-halli gan.net> wrote:
Let's do Friday: T got assorted instructions today that will take another round of editing and
review tomorrow.
Keith R. Powell

Childs &Halligan, P.A.
Columbia, South Carolina
ww~v.chi Ids-halli pan.com
(8Q3)254-4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable
and protected by attorney-client privilege. If you have received this e-mail in error, this does not
constitute permission to examine, copy or distribute the accompanying material. If you receive
this message in error, please notify us by telephone as listed above immediately.
Begin forwarded message:
From: Robbie Ferris <ILFerris cr,sfla.Ui~

Date: November 18, 2015 at 3:06:36 PM EST
To: "lcpowell ~childs-halli gan.net" <kpowell~a,childs-halli~an.net>
Subject: Horry
Keith,
How are you feeling about signing contracts on Thursday, is Friday more realistic.
I am trying to plan my day. I would hate to push it out until Monday but I can also
do it on Monday since I will be there anyway for the board meeting at 4 o'clock
Sent from my iPhone

PAPR - 004518

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Thursday, November 19, 2015 9:38 AM
Keith R. Powell
Re: Horry

Follow Up Flag:
Flag Status:

Follow up
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Keith,
just realized that the contract says we have to pay our subcontractors all of their retainage as the work progresses but
that we cannot bill for that retainage. That means we will have to front 3 1/2°/v of the contract which is millions of dollars Is
that really your intent, is there anyway we can get that relaxed
Sent from my iPhone
> On Nov 18, 2015, at 3:08 PM, Keith R. Powell <kpowell(c~childs-halligan.net> wrote:
> I'll tell you after this call I'm about to start
> Keith R. Powell
> Childs &Halligan, P.A.
> Columbia, South Carolina
www.childs-halligan.com
> (803) 254-4035
7

> NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy or
distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed above
immediately.
» On Nov 18, 2015, at 3:06 PM, Robbie Ferris <RFerris (cD,sfla.biz> wrote:
» Keith,
»How are you feeling about signing contracts on Thursday, is Friday
» more realistic. I am trying to plan my day. I would hate to push it
» out until Monday but I can also do it on Monday since I will be there
»anyway for the board meeting at 4 o'clock
» Sent from my iPhone

1
PAPR - 004519

 .: .

. __,

_ ,.

-

—

—_

~~ ''~i' ~ i ' ,~~ ~ ii . AIA Document A141T" -- 2 014
Exhibit A
Design-Build Amendment

~

This Amendment is incorporated into the acwmpanying AIA Document A141T^+-2014,
Standard Form of Agreement [iatwecn Owner and Design-Builder dated the a-twentieth
%day of t< vem er°» in the year tttN~o thousand'fifteen ,» (the "Agreement")
(/n words, indicate da}; month andyemtJ

(

forthefolloWlllg PROJECT:
(Nurne and location w~ address)

z'he author may also have
~za~i9ea cne ceXa oe eh~

~ I

~

for ginal AIA standard form.
fAn ~Additione and Deletions
fxe~orc tnact ~oees added
~SnEoimation~
ae)weii as
'm
~re~isions t~ the standard
(forin_toxt 1a available-£ram
ithe author and should be
'reviewed:.._
__~ _... _.
.. Thia document has important}
legal wneequences.-~"
i
Consultation with an , ., -~ ~ `attorney~"io encouraged with
rea~iect tq.its com~lation

T{~E OWNEf~:
(Name, Iegul .t4a/t1.r and ac/[/Yes'a~

(or.mo3ificaeion(
~
~

requirements in the
jurisdiction where the
projeci ie' located. „~

~

~

j

1 ~
~
~ ~,

~
r

The Owner and Design-Builder hereby amend the Agreement as follows.

~

~
~Consultation.,Witih ~n
attorney~~is also e$~ouraged
with respect to ,
-..
professional licensing

THE DESIG N-BUILDER:
(Nmne, legal status and uddi~essJ
FIltSTPI OOR ENERGY POSPfIVE LLC,
333 Fayetteville Sf., Suite 225
Raleigh, NC 27601

_... .. .
f

has; added inEozmation
needed £or ite completion.

~~
—

'Homy County Schools, South Carolina, a political subdivision oCtlte S1atc of South
Carolina:
335 Four Mile Rd.
Conway, SC.29528ci

_ ., .

,__.,

'rha; author oe chis aocument

New Carolina Forest Middle School per Owner's Request forProEiosals No. 1415-91a1id~
the Design-Builder's proposal to the Owner uursuant to O~vltc~ 5 Solicitation No. 1415-

i

~A1IDITION9 AND DELETION$ t

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~ ~~

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TABLE OF ARTICLES
. -•

~f,, ,

A.1

CONTRACT SUM

A.2

CONTRACT TIME

PI.

A.3

INFORMATION UPON WHICH AMENDMENT IS BASED

~

A.4

DESIGN•BUILDER'S PERSONNEL, CONTRACTORS AND SUPPLIERS

j

A.5

COST OF THE WORK

~'
,, -..-.._.._..._.. .

~~

~

~

#

_,

ELBCfRONIC COPYING of any

ARTICLE A.1 CONTRACT SUM
~ A.1.1 The Owner shall PaY the Desi Bn"Builder the Contract Sum in current funds for the
Design-Builder's performance of the Contract after the execution of this Amendment.
The Contract Sum shall be one of the following and shall not include compensation the
Owner paid the Design-Builder for Work performed prior to execution of this
Amendment:

portion of this nxA nocument
~O az'other electronic eiiA ~~
prohibited and constitutes a
..ioiseion oe copyright laws
ag set eortn in the tooter of
this ao~umenc.

.~Il~ DoewwnC 1111"' - 1011 6ah1bSG A, Copyilght " ]ooh and ]a14 by The Arterican Inetltute of AtchiteCCB. ]111 righttl re sued. NARNIMOt Thia
AIA Opcunvnt ie protected by 0.8. CnpyrlgRt Lew antl Intesna[Sonil Txeatfes. Unsathocized repzoducClon or dlserf~utioo of ehLs AIA
tivli end eriminnl {~enaltl ap, pnS will be pc4excvtatl to tLe m:/m~un extent yos xlMle
Ooeiwnntr o u~ty {+Crtlon of St, msy rCnul! to a
~ndar Che lev: This dre[t vas produced by RII~ soEtvaze a[ 19:33 ~~6 on 1]/02/]019 untle[ Ord¢r No.O5516a2066_L wM1ich expi[ec on Ofi/23/3015~
and is not Eoi ceaale.
(1]815]'/i061
Ueei Notes

1

PAPR - 004520

 (Check The appropriate box.J
[ <cX» ]Stipulated Sum, in accordance with Section A.1.2 below
§ A.1.2 Stipulated Sum
§ A.1.2.1 The Stipulated Sum shall be icforty-five million nine hu~i~l~ed thirty tliousan~l two hundred twenty-seven
dollars ($ «45,930,227,OQ), subject to authorized adjustments as provided in the Design-Build Documents.
~._ ... ..

t

,..-

i

,_ .,-.,._ .. - _ .. .
§ A.1.5 Payments
§ A.1.5.1 Progress Payments
j
§ A.1.5.1.1 Based upon Applications for Payment submitted to the Owner by the Design-Builder, the Owner shall
make progress payments on account of the Contract Sum to the Design-Builder as provided below and elsewhere in
the Design-Build Documents.
s
§ A.1.5.1.2 The period covered by each Application for Payment shall be one calendar month egding on the last day
~
i
of the month.
3

§ A,1,5,1.3 [F~iCS TO PROVIDE ASAP1Provided_that an Application for Payment is received not later than the a »day ..;__--- Formatted: Highlight
of the month, the Owner shall make payment of the certified amount to the Design-Builder not later than the « u day ~' •• Formatted: Highlight
—'. __ . '~
of the c< »month. If an Application for Payment is received by the Owner after the application date fixed above,'—
payment shall be made by the Owner not later than « » (« »)days after the Owner receives the Application for:.: -,.,._ .:
Payment.

--

§ A,1,5.1,5 With each Application for Payment the Design-Builder shall submit the most recent s,Chedule of values ~n
accordance with the Design-Build Documents. The schedule of values shall allocate the entire Contract Sum arhong
the various portions of the Work. Compensation for design services, if any, shalt be shown sepafately. The sch~du+e
of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Owner may
require. This schedule of values, unless objected to by the Owner, shall be used as a basis for reviewing.the Design-. „
Builder's Applications for Payment.
i
+.
§ A,1,5,1.6 In taking action on the Design-Builder's Applications for Payment, the Owner shall be entitled to rely on
the accuracy and completeness of the information famished by the Design-Builder and shall not be deemed to have
made a detailed examination, audit or arithmetic verification of the documentation submitted,in accordance•,with ;,, '~
Sections A,1.5.1.4 or A.1.5.1.5, or other supporting data; to have made exhaustive or wntinUouS on-site inspections; ,;:.
or to have made examinations to ascertain how or for what purposes the Design-Builder had used amount's E'~
previously paid. Such examinations, audits and verifications, if required by the Owner, wit[ be performed by the
~ t'
~ j
Owner's auditors acting in the sole interest of the Owner.
~ r
~ }
[
F
¢
§ A.1.5.1.7 Except with the Owner's prior approval, the Design-Builder shall not make advancel.Rayments to t_ ,,:, :,...._._ ... _,:
suppliers for materials or equipment which have not been delivered and stored at the site. i
y
§ A,1.5.2 Progress Payments~tipulated Sum
§ A,1.5,2.1 Applications for Payment where the Contract Sum is based upon a Stipulated Sum shall jndicate the
percentage of completion of each portion of the Work as of the end of the period covered by the-Application for
Payment.

~ `'•

i
t
§ A,1,5.2.2 Subject to other provisions of the Design-Build Documents, the amount of each ~irogiess payment shall be
;
~ j
computed as follows:
.I
Take that portion of the Contract Sum properly allocable to completed Work as determined by
multiplying the percentage completion of each portion of the Work by the share ~of the Contract Sum _, t
allocated to that portion of the Work in the schedule of values, less retainage of t~thtce and one/half'»
percent («3's5'2z %) on the Work, Pending final determination of cost to the Owner of Changes in the
Work, amounts not in dispute shall be included as provided in Section 6.3.9 of the Agreement;
veC. X11UIItic: 1'„Se
AIA Docwmt A1~1" - 2011 Exh1b1G A. tbpyrigh[ ^ Y0o9 aM 3014 by The American Institute of ArChlCec[e. All rights ra
AIA Doc~mant 1~ proteeteA by 0.9, Coyytight Lew and Zntev'~atiOnel Traetiea. OasuCho~izeQ t6prod~ction or dlOtYibution o[ thlu Aia~
cLv11 and criminal pevaltiau~ and x111 be Drosacuted to the ~anxlmum extant possible
Datwont, o any portion o[ 1!, mry r evil Sn o
vnde[ the lay. This deft w88 p[OtltlCetl by AU BOflNeie aC 14 ~23t96 Oh 12/02/]014 ~~da[ OitlGi N0.055164]a66_1 Mt1cT expl[ae on 06/22/2015,
enG SB no[ for cassia.
(1]8]52'/!06)
Dees Netee~

PAPR - 004521

~

 .2

,3
.4

Add that portion of the Contract Sum properly allocable to materials and equipment delivered and
suitably stored et the site for subsequent incorporation in the completed construction (or, if approved
in advance by the Owner, suitably stored off the site at a location agreed upon in writing), less
retainage of tithree and one-lialfi>, percent («3.5» %};
Subtract the aggregate of previous payments made by the Owner; and
Subtract amounts, if any, the Owner has withheld or nullified, as provided in Section 9.5 of the
{
Agreement.

§ A.1.5.2.3 The progress payment amount determined in accordance with Section A.1.5.2.2 shall be further modified
under the following circumstances:
.1
Add, upon Substantial Completion of the Work, a sum sufficient to increase the total payments to the
full amount of the Contract Sum, less such amounts as the Owner shall determine for incomplete
p '
Work, retainage applicable to such work and unsettled claims; and
(Section 9.8.6 of the Agreement discusses re%ase of app/rcable retatnage upon ~ubslantial
Completion of Work.J
.2
Add, if final completion of the Work is thereafter materially delayed through' nofault of the DesignBuilder, any additional amounts payable in accordance with Section 9.103 ofthe Agreement.
i
~ }
§ A.1,5,5 Final Payment
§ A.1.5.5.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by thg Owner to
the Design-Builder not later than 30 days after the Design-Builder has fully performed the ~onfract and'tlie ` ~-~- -requirements of Section 9.10 of the Agreement have been satisfied, except for the Design-Builder's responsibility to..
correct non-conforming Work discovered after final payment or to satisfy other requirements which extend beyond
final payment.

i
- -

~ '~
:_. .r

!
ARTICLE A.2 CONTRACT TIME
§ A.2.1 Contract Time, as defined in the Agreement at Section 1.4.13, is the period of time including authorize I Y
;
~ k
adjustments, for Substantial Completion of the Work.
..:.,
~_.,_ ___-- Formatted: Not Highlight
~A_2.2 The Design-Builder shall achieve Substantial Completion ofthe Work as follows: _______ _.~_;,_____
(Insert number of calendar days. Alternatively, a calendar date may be used when coordinated with the dale of ,
conaneencernent. If appropriate, insert r equrrenientsfor earlier Substantial Completion of certain portions of the
Work.)
"`
'"

:~10 later than May 1, 2017,--••---- - -------'=---

-=:-

---=- --------- --------- - --------- ------~---•--=-- -'_" 1 Formatted: Highlight

's '''
subject to adjustments of the Contract Time as provided in the Design-Build Documents. j t`
(/nser l provisions, jf any, for liquidated damages relating m failure 10 achieve Substantial Completion ontrine~drfor
p
bonus paymentsfor early completion of the Work.)
i
__.___. ,

«LiguidAted damages per A141-2014.
~
ARTICLE A.3 INFORMATION UPON WHICH AMENDMENT IS BASED
§ A.3.1 The Contract Sum and Contract Time set forth in this Amendment are based on the Owner's Design
Owner',s, ..
Requirements (including addenda to the RFP) and the Design-Builder's proposal to the Owner pursuant-to
.:
Solicitation No. 1415-91.:
•'

(`r ~~, ~.
§ A,3.1.5 Allowances and Contingencies:
(Identify any agreed upon allowances and contingencies, including a statement of their basjs.J ~
1

Allowances

~--------------------------------

~`

----------------------------------------------------~--t- ....._..
------------...
... .,_ . .

Own~rFurndureAllowance

$ 1.500.000 _ _ ____

. _... :.:

_ _ ____ __ _ ___ __ _

;~~
i
i

` --~ Formatted: Not Highlight

--r------.:.:..____._

:.---

j

!

. . . ....:___.._

t

.:..:_,.....__, t

__ __ _________ ___,__.-- Formatted: NotHlghlight

AIl1 Docun~nt Alll" - 301 exhibit A. Copyright n 300 and 301 by The Awerican Ina[1CUCe of 11IChlCac[e. .~11 rlg6te re rved. NAIWINC~ 2nle
AIJ1 Document Ss DYotecCeE by 0.8, Copyclght Lav and mtesmtionel TreeCian, OnautTorlaeA reproductron or tllu tYlbut3on of tCie AIr
Documaot, o any portion oP St, oay Penult Sn oovete civil sad criminal penaltles~ and will tw D~eeecut¢d Co !be maxSmum extort ponafble
undo% tba law. th38 d[GEC vae p[oduced by ASA eofiwa[e at 19 i1]i~6 on 1]/0]/1034 YndaY Oxtle[ No,0661641066_1 which expi[ee Oh 06/3R/RO15~
and le noC for xeexle.
(181537406)
Dees Notea:

PAPR - 004522

 -. _

_

_. .

_

:;
=_~

Owner ITardware Allowance
$ 350,000
O~w~er Contro]s Allowance
$ (50,000
Owner sire Alarm Allowance. $ 750,000
Owner Special Inspections All
$ 150,000
Owner Commissioning Allowance
$ 125,000
Owner Technology Allowance. $ 1 ,865,000
$200,000
Owner Landscaping Allowance _
.2

Contingencies
~•_, _ _ _ _ _ _ _ -- Formatted: Not Highlight

§ A.3,1,6 Design-Builder's assumptions and clatifications:
__,__ _ ____ "_ _.-- Formatted: Highlight
Pursuant fo the Proposal accented
r—~__.r._,~.
----~.b~ the I-Iorry County Board of Education on November 2, 2015._.____
- ---~-

ARTICLE A.4 DESIGN-BUILDER'S PERSONNEL, CONTRACTORS AND SUPPLIERS
§ A.4.1 The Design-Builder's key personnel are identified below:
(ldentifj~ pane, tit/e and contact ir{Jo~malion.J
Carolina Forest Middle School:
Superintendent: Mark Branch
Project Manager: Charlie Rollins
Assistant Superintendent: Gary Pipkin

j
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t,, _

-

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- '-`~ -- __ _ , ___, . ,. .,

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-'

§ A.4.2 The Design-Builder shall retain the following Consultants, Contractors and suppliers, identified below: ,.
(Lis! name, discipline, address and other ~nfa~nation.J
SfL+a Architects: Architect, Raleigh NC
Metcon/TA Loving joink venture: General Contractor, Pembroke NC

~,
.:;r-

ARTICLE A.5 COST OF THE WORK

;`

_ ,,,

~

~

§A.5.4 Other Agreements
§ A.5.4.2 Agreements between the Design-Builder and Contractors shall conform to the applicable payment
,. provisions of the Design-Build Documents.
§ A.5.4.3 The agreements between the Design-Builder and Architect and other Consultants identified in the ~'~ '.
Agreement shall be in writing. These agreements shall be promptly provided to the Owner upop the Own~r's written
request.
~
~
3
§ A.5.5 Accountfn
g
9 Records p
The Deli n-Builder shall kee .full and detailed records and accounts related to the cost of 4he Work and.

~

Bzer

ise
such controls as may be necessary for proper financial management under the Contract and`to substantiate all costs
incurred. 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, and shall be
permitted to audit and copy, the Design-Builder's records and accounts, including complete documentation
supporting accounting entries, books, correspondence, instructions, drawings, receipts, subcontracts, Contractor's
proposals, purchase orders, vouchers, memoranda and other data relating to the Contract. Thy Design=Builder shall •.
~!t
preserve these records for a period of three years after final payment, or for such longer period ys`may be required
by law.
t i
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§ A.5.6 Relationship of the Parties
9
The Design-Builder accepts the relationship of trust and confidence established by this Agraemyent and covenants
with the Owner to exercise the Design-Builder's skill and judgment in furthering the intere~ts of tfie Owne`i; to"'`- -. ,.
furnish efficient construction administration, management services and supervision; to fum~sh at all-times an-- ..aoo~ and Poi4 by zha American inc[Stute of Architec[e. ul ziphte r~ sued. WTRNIPO: TE1e
AIA nocumene x111^ - 701f axhibik A. Copyright
'
rx~" uocument is vrotecced by v.s, copyriBnt Lev ava Intcrneeional rzeaeiee, oneuohoriseC reyroduction or tliatrlliucioa of tale AIA
c1Vi1 aad criminal Danaltlaa~ end will be gzeaeeuted to Gha maslnum axtmt possible
Dacunent, a any DOttlon o[ it, may r putt in o
under the lay. Thia draft rae pxodueed by AIA eoftua[e et 14 ~]]~<6 on 1]/0]/1014 under Ordei No.o5516~Yo66_1 which eapSYee on 06/22/2015
and ie no[ Eor easels.
11381527906)
Oeei Notees

4

PAPR - 004523

 adequate supply of workers and materials; and to perform the Work in an expeditious and economical manner
consistent with the Owner's interests.
This Amendment to the Agreement entered into as of the day and year first written above.
} _.__
i
OWNER (SignahtreJ

DESIGN-BUILDER (Srgnatta•ej

«Jotiii Glydner, Chief Financial Officer »«
(Printed narne a~~d ti11e)

RoUert Perris, Authorized Member« »ct v
(Pri~tted nau~e acrd fillet
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ALA Document A1~1' - RO1~ =x~fblt A. CbpyYighe ~ 200 eM 3011 by The Prtcrlcan IOBCStute o[ AiChitec[e. All rlpht~ re cvnd. HARNIIiov TYSa
AIT Document Sv D~oGacted by D.e. COB1Tight Lav end InG<rnetional Treetiea, UnauehoriseG reproduction of ditltribution o[ Chia AIl1
eivil and crlmiaal panaltieo~ And will bB DYooecuted to Ehe mazlmwn exkent Daoaible
~ocvment, o any pectian o[ St, may r Dolt in a
under tha law. Thitl draft was pxotluced by TIA BOEtWare at 14 ~22t46 on 12/02/2a1G utlCer o[tleY Na,0551642486 1 whlCh expiiee on 06/22/Z015~
611d SB ItOC COY L88818.
11JB15t7~06)
Oant Notea~

c
i

5

PAPR - 004524

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Keith R. Powell
Thursday, November 19, 2015 12:06 PM
Robbie Ferris
RE: Horry

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

This is the statute -obviously the result of good lobbying by subcontractors: "SECTION 11-35-3034. Bond and
security. ... (4) Retention, (b) Release of Retained Funds. When tl~e work to be performed ... is to be performed by ... a
prime contractor and multiple subcontractors, the work contracted to be done by each individual contractor or
subcontractor is considered a separate division of the contract for the purpose of retention. As each division of the
contract is certified as having been completed, that portion of the retained funds which is allocable to the completed
division of the contract must be released forthwith to the prime contractor, who, within ten days of its receipt, shall
release to the subcontractor responsible for the completed wori< the full amount of retention previously withheld from
him by the prime contractor,"
In effect there are two pots of retainage that do not mix. The Owner's retainage on the DB is essentially treated as a
separate matter from the last 3.5% on each sub's amount in the Schedule of Values. HCS would have to give up its
retainage leverage over the DB if it allowed the DB retainage to be reduced as subs are paid in full. I sense they have no
interest in that. It would mainly be between the DB and the sub as to when that sub has completed its contract,
however.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halli~an.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.

-----Original Message---=From: Robbie Ferris [maiito:RFerrisC@sfla.biz]
Sent: Thursday, November 19, 2015 9:38 AM
To: Keith R. Powell
Subject: Re; Horry
Keith,
just realized that the contract says we have to pay our subcontractors ail of their retainage as the work progresses but
that we cannot bill for that retainage. That means we will have to front 3 1/2% of the contract which is millions of dollars
Is that really your intent, is there anyway we can get that relaxed
Sent from my iPhone
1
PAPR - 004525

 > On Nov 18, 2015, at 3:08 PM, Keith R. Powell <kpowell@childs-halligan.net> wrote:
> I'll tell you after this call I'm about to start
> Keith R. Powell
> Childs &Halligan, P.A.
> Columbia, South Carolina
> ww.w.childs-halligan.com
> (803) 254-4035

> NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.
» On Nov 18, 2015, at 3:06 PM, Robbie Ferris <RFerris@sfla.biz> wrote:
»Keith,
»How are you feeling about signing contracts on Thursday, is Friday
»more realistic. I am trying to plan my day. I would hate to push it
»out until Monday but I can also do it on Monday since I will be there
»anyway for the board meeting at 4 o'clock
»Sent from my iPhone

PAPR - 004526

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Thursday, November 19, 2015 12:16 PM
Keith R. Powell
Re: Horry

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Thank you, let me know status of things the same as you find out
Sent from my iPhone
On Nov 19, 2015, at 12:06 PM, Keith R. Powell <I<powell@chills-halli~an.net> wrote:
This is the statute - obviously the result of good lobbying by subcontractors: "SECTION Z1-35-3030.
Bond and security. ... (4) Retention. (b) Release of Retained Funds. When the work to be performed .,.
is to be performed by .., a prime contractor and multiple subcontractors, the work contracted to be
done by each individual contractor or subcontractor is considered a separate division of the contract for
the purpose of retention. As each division of the contract is certified as having been completed, that
portion of the retained funds which is allocable to the completed division of the contract must be
released forthwith to the prime contractor, who, within ten days of its receipt, shall release to the
subcontractor responsible for the completed work the full amount of retention previously withheld from
him by the prime contractor."
In effect there are two pots of retainage that do not mix. The Owner's retainage on the DB is essentially
treated as a separate matter from the last 3.5% on each sub's amount in the Schedule of Values. HCS
would have to give up its retainage leverage over the DB if it allowed the DB retainage to be reduced as
subs are paid in full. I sense they have no interest in that. It would mainly be between the DB and the
sub as to when that sub has completed its contract, however.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803)254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and
protected by attorney-client privilege. If you have received this e-mail in error, this does not constitute
permission to examine, copy or distribute the accompanying material. If you receive this message in
error, please notify us by telephone as listed above immediately.

-----Original Message----From: Robbie Ferris fmailto:RFerris@sfla.biz]
Sent: Thursday, November 19, 2015 9:38 AM
To: Keith R. Powell
Subject: Re: Horry

PAPR - 004527

 Keith,
just realized that the contract says we have to pay our subcontractors all of their retainage as the work
progresses but that we cannot bill for that retainage. That means we will have to front 3 1/2%a of the
contract which is millions of dollars Is that really your intent, is there anyway we can get that relaxed
Sent from my iPhone
> On Nov 18, 2015, at 3:08 PM, Keith R. Powell <kpowell@childs-halligan.net> wrote:
> I'll tell you after this call I'm about to start
> Keith R. Powell
> Childs &Halligan, P.A.
> Columbia, South Carolina
> www.childs-halligan.com
> (803) 254-4035

> NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and
protected by attorney-client privilege. If you have received this e-mail in error, this does not constitute
permission to examine, copy or distribute the accompanying material. If you receive this message in
error, please notify us by telephone as listed above immediately.
»On Nov 18, 2015, at 3:06 PM, Robbie Ferris <RFerris@sfla.biz> wrote:
»Keith,
»How are you feeling about signing contracts on Thursday, is Friday
»more realistic. I am trying to plan my day. I would hate to push it
»out until Monday but I can also do it on Monday since I will be there
»anyway for the board meeting at 4 o'clock
»Sent from my iPhone

PAPR - 004528

 0

Document A141TM - 2014 Exhibit B
Insurance and Bonds
for the Following PROJECT:

3

(Name and location o~• address)

--

-

-

--

;

.New Carolina Forest Middle Schpol
(per Owner's Request for Proposals No. 1415=91 and Design-Builder's Proposal iu
responseto the solicitation.)

-

ADDITION$ -AND DELETIONS.
The author of this document has

added Information needed for its
completion. The author may a~so
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

THE OWNER:
(Name, legal status and address)

'from the author:and should be
;reviewed, A veriica(line in the left -;
..margin of this document indicates

Horny County Schools, South Carolina; a political subdiyisioii of the State of South
Cat'olina,
335 Four Mile Rd.
Conway; SG29528

';

where the author has added
necessary information and where -~
the author has added to or deleted '

from the origin.aFAIA text.
This document.has irpportant legal

THE DESIGN-BUILDER;
(Nome, legal status and address)

~

consequences. ConsUltafion with an
'attorney Is encouraged with respect
to its completion or modification.

FIRSTFLOOR ENERGY POSITIVE LLG,
333 Fayetteville St., Suite 225
Raleigh, NG27601
THE AGREEMENT
This Insurance Exhibit is part of the accompanying agreement for the Project, between
the Owner and the Design-Builder (hereinafter, the Agreement), dated the ' nineteentl
day of November':. in the year'two thousand fift een (2015) .
(In ~~a-ds, indicate day, month and year.)
TABLE OF ARTICLES
B.1

GENERAL

B.2

DESIGN BUILDER'S INSURANCE AND BONDS

;
~

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~..__.

OWNER'S INSURANCE

B.4

SPECIAL TERMS AND CONDITIONS

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..._.~

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_ _

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GENERAL

The Owner and Design-Builder shall purchase and maintain insurance and provide bonds
as set forth in this Exhibit B. Where a provision in this E7chibit conflicts with a provision
in the Agreement into which this Exhibit is incorporated, the provision in this exhibit
will prevail. During the course of the Project, the Owner and Design-Builder may
substitute mutually-acceptable alternative insurance arrangements for those specified in §
B21

.:.. . ... .....,~

~

.__:

ARTICLE B.1

i

~ .-.: .-._~ _ .

}
7~

6,3

y
';
ry

ELECTRONIC COPYING of any

portion of this AIA~ Document to
another electronic file is prohibited and
constitutes a violation of copyright laws
as set forth in the footer of this
document.

AIA Document A141 T'^ — 2014 Exhibit B. Copyright 0 2004 and 2014 by The American Institute of Architects. All rights reserved. WRIZtJING: This AIA'''
Document is protected by U.S. Copyright Law and InEernational Treaiies. Unauthorized reproduction or distrilaution of this AIA+' Document, or any
portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the iiiaximuin extent possible linden the law. This draft was
produced by AIA software at 14:12:25 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, and is not for resale.
(1278235989)
Us¢rNotes:

PAPR - 004529

,~

 ARTICLE B.2 DESIGN BUILDER'S INSURANCE AND BONDS
§ 6.2.1 The Design-$udder shall purchase and maintain the following types and limits of insurance from a company's
or companies lawfWly authorized to do business iii the jurisdiction where the Project is located. The Design-Builder
shall maintain the required insurance tmtil the expiration of the period for correction oi' Work as sct forth in
'Section l 1.2.2.1 of the
(Parag~'aphs deleted)
;.
A~•eement.
§ B.2.1.1 Commercial General Liability with policy limits of not less than two million ($:2,000,000. ; )for each
occurrence and five million ($ '5,000,000.00 ) in the aggregate providing coverage for claims including
.1
damages because of bodily injury, sickness or disease, including occupational siclmess or disease;---•- --• -anddeath of any person;
.Z
personal injury;
.3
damages because of injury to or destruction of tangible property, and must cont 'n the subcontractor
exception to the "your work" exclusion;
.4
bodily injury or property damage arising out of completed operations; and ~ ~"s
.5
contractual liability applicable to the Design-Builder's obligations under Sectio~ 3.1.14 ofthe
Agreement.
§ 8,2.1.2 Automobile Liability covering vehicles owned by the ,Design-I3uilder and non-owned;vchicics u5ed'by the
Design-Builder with policy limits of not less than one million ~ ($1,000,000 ' )per clairri!;and one million ' ($
$1,000,000.00 ) in the aggregate for bodily injury, death of any person, and property damage'arising out of the ownership, maintenance and use of those motor vehicles specified in this Section B.2.1.2, along_~yith any:other , . .
statutorily required automobile coverage.

s

`
..,_,-~
....

~,
§ 8.2.1.3 The Design-Builder may achieve the required limits and coverage for Commercial General Liability apd `` ~
Automobile Liability through a combination of primary and excess liability insurance, provided such primary and , ; - ~'"'
excess insurance policies result in the same or greater coverage as those required under Sections B:2~1.1 and B2.1~2.
§ B.2.1.4 Workers' Compensation at statutory limits.
§ B.2.1.5 Employers' Liability with policy limits as provided below:
$1:00,000 per accident. ,:.

4
_. _,
:._._ ..
.,..
'`

1_

_

-

,-

§ 6.2,1.6 Professional Liability covering negligent acts, errors and omissions in the performance of professional
services, with policy limits of not less than two million. ; ($ 2,000,000 - )per claim and two million : ($ 2,000,000
in the aggregate.
C

~~

~

(Pa~•agraphs deleted)
~ j
§ B.2,1.8 The Design-Builder shall, provide written notification to the Owner of the cancellation or expiration of any
insurance required by this Article B,2. The Design-Builder shall provide such written notice within five (~) business
_,.,
days of the date the Design-Builder is first aware of the cancellation or expiration, or is first aware that the ~
~
cancellation or expiration is threatened or otherwise may occur, whichever comes first.
§ B,2,1.9 Additional Insured Obligations. The Owner and its consultants and contractors shall be additional insureds
on the Design-Builder's primary and excess insurance policies for Commercial General Liability, and,Automobile ._ .
Liability. The additional insured coverage shall be primary and non-contributory to any of the Owner's insurance
policies. The additional insured coverage shall apply to both ongoing operations and completed operations. The
policy limits applicable to the additional insureds shall be the same amount applicable to the named insured or, if the '`?,
policy provides otherwise, policy limits not less than the amounts required under this Agreement.
3

~=,
~p.
1

~

§ 6.2.1.10 Certificates of Insurance. The Design-Builder shall provide certificates of insurance acceptable to the
Owner evidencing compliance with the requirements in this Article B,2: (1) prior to commencement of the Work;
(2) upon renewal or replacement of each required policy of insurance; and (3) upon Owner's written request: An
additional certificate evidencing continuation of liabiliTy coverage, including coverage for ~ompleted. operations,
shall be submitted with the final Application for Payment as required by Section 9.10.2 of the Agreement and

—'

AIA Document A147'"' — 2014 Exhibit 8. Copyright (A 2004 and 2014 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 distrihution 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 taw. This draff was
produced by AIA software at 14:12:25 on 11/20/2015 under Order No.o239586208_1 which expires on 07/1412016, and is not for resale.
(1278235988)
User Notes:

PAPR - 004530

 thereafter upon renewal or replacement of such coverage until the expiration of the time required by Section B2:1.
The certificates will show the Owner and its consultants and contractors as additional insureds on the
Design-Builder's primuy and excess insurance policies for Commercial General Liability, and Automobile
Liability. Information concerning reduction of coverage on account of revised limits, claims paid under the General
Aggregate or both, shall be famished by the Design-Builder with reasonable promptness.
§ B,2.2 Performance Bond and Payment Bond
The Design-Builder shall provide surety bonds as follows:
(Specify type and penal sum of bonds.)

~

a

i

TYpe
A312 Performance Bond and A312 Payment Bond. 'The
'performance bond, may, but is notrequii•ed to secure the
'professional liability of design professionals to the extent
such liability is covered Uy tl~edesign professional's
professional liability insurance:

Penal Sum l$0.00) ~

~....... .... . ....._ _..._.__ ....,. , __. _ _..

100°/u of contract value
~

~

._ -~

§ B,2.2.1 Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering p~yment
of obligations arising under the Agreement, the Design-Builder shall promptly furnish a copy of the bonds or shall
permit a copy to be made.
i
....-__. .:. .. .,
. :- - .-.
ARTICLE B.3 OWNER'S INSURANCE
§ B.3.1 Owner's Liability Insurance
~- -- --_ -- -The Owner shall be responsible for purchasing and maintaining the Owner's usual liability insurance.
.~ 1
i

§ B.3,2 Property Insurance
§ 6.3.2.1 Unless otherwise provided, at the time of execution of the Design-Build Amendment, the Owner shall ;.. `'
purchase and maintain, in a company or companies lawfully authorized to do business in the jurisdiction where the
Project is located, property insurance written on South Carolina Insurance Reserve Form PD-23. Unless the parties
agree otherwise, upon issuance of a Certificate of Substantial Completion, the Owner shall replace•the_insuranCe
policy required under this Section B.3.2 with another property insurance policy written for thetotal value of:the
Project that shall remain in effect until expiration of the period for correction of the Work set forth iri'Section
~....:. 11.22 ..,,_.
of the Agreement.
- - _

.-, ~

-#
,..

(Par^agraph deleted)
`""m --§ 8.3.2.1.2 If the insurance required under Section B.3.21 requires deductibles, the Owner shall pay, costs not
'~, x ~r'
covered because of such deductibles.
~~''
a t
(Paragraph deleted)
§ 8.3.2.1.4 Partial occupancy or use in accordance with Section 9.9 of the Agreement shall not~commence~unt}I the
insurance company or companies providing the insurance required under Section B.3.2.1 have sconsented ~o s~ch
partial occupancy or use by endorsement or otherwise. The Owner and the Design-Builder ~halLtake xeasona6le:. -.-.-- -.-..: -_ ~
steps to obtain consent of the insurance company or companies and shall, without mutual v~ritten consent, take no
action with respect to partial occupancy or use that would cause cancellation, lapse or reduction of insurance
§ 8.3.2,2 Boiler and Machinery Insurance, The Owner shall purchase and maintain boiler and machinery insurance in..,
. _,_ _.
the form of S.C. Insurance Reserve Fund (°IRF") PD-01, PD-09, and PD-12.
;~''
,r~
,' ~'
•,
,i
s
(Paragraphs deleted)
4
§ 8.3.2.6 Before an exposure to loss may occur, the Owner shall file with the Design-Builder a~copy of each policy
that includes insurance coverages required by this Section B,3.2. Each policy shall contain X11 generally app~tcable
conditions, definitions, exclusions and endorsements related to this Project. T'he Owner shall provide written
notification to the Design-Builder of the cancellation or expiration of any insurance reyuire~d by this Article B,3. The-•=-Owner shall provide such written notice within five (5) business days of the date the Owner is first aware of the
AIA Document A141*" — 2014 Exhibit B. Copyright m 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"~
Document is protected by U.S. Copyright Law and Inte~iiational Treaties. Unauthorized reproduction or distriWution of this AIA~' Document, or any
poHion of it, may result in severo civil and criminal penalties, and will be prosecuted to the maximum extont possible antler the law. This draft was
produced by AIA software at 14:12:25 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, and Is not for resale.
(7278235989)
User Notes:

PAPR - 004531

 cancellation or expiration, or is first aware that the cancellation or expiration is threatened or otherwise may occur,
whichever comes first.

(Paragraph deleted)
§ 6.3.2.8 A loss insured under the Owner's property insurance shall be adjusted by the Owger ~s fiduciary and made
payable to the Owner as fiduciary for the insureds, as their interests may appear, subject to heq~irements of any
applicable mortgagee clause and of Section B.3.2.10. The Design-Builder shall pay the Architect, Consultants and
Contractors their just shares of insurance proceeds received by the Design-Builder, and by ~pp~opriate agreements,
written where legally required for validity, the Design-Builder shall require the Architect, consultants and `
- - -~-Contractors Eo make payments to their consultants and subcontractors in similar manner, n y - •• • -

---

§ 6.3.2.9 If required in writing by a party in interest, the Owner as fiduciary shall, upon occurrence of an insured
loss, give bond for proper performance of the Owner's duties. The cost of required bonds shall be charged against
proceeds received as fiduciary. The Owner shall deposit in a separate account proceeds so received, which the
Owner shall distribute in accordance with such agreement as the parties in interest may reach~`or as determined in
accordance with the method of binding dispute resolution selected in the Agreement betwe~n tl~e Owner end`
Design-Builder. If after such loss no other special agreement is made and unless the Owneq; terminates th~ Contract
for convenience, replacement of damaged property shall be performed by the Design-Builder aRer notification of a
Change in the Work in accordance with Article 6 of the Agreement.
§ B.3.2.10 The Owner as fiduciary shall have power to adjust and settle a loss with insurersunle5s"orie of the parties`-"' ~ °'"?
in interest shall object in writing within five days after occurrence of a Loss to the Owner's exercise. of this.power._If .,, _ _,__,_€
an objection is made, the dispute shall be resolved in the manner selected by the Owner and Design-Builder as the
-'`"
method of binding dispute resolution in the Agreement.

(Paragraphs deleted)

-=

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, -: _~-4

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AIA Document A141TM — 2014 Exhibit B. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNfNG: This AIAm
Document is pratectocl by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distrilnrtion of th(s AiA~' Document, or any
portion of it, may result in severe civil anti criminal penalties, and will be prosecuted Eo the maximum extent possible under file law. This draft was

produced by AIA software at 14:12:25 on 11/20/2015 under Order No.02395862oe_1 which expires on 07114/2016, and is not for resale.
User Notes:

(1278235989)

PAPR - 004532

~~i
6

 Additions anc~ Deletions Report for
AIA~ Document A741'"' — 2014 Exhibit 8

_.

This Additions and Deletions Report, as defined on page 1 of the associated document, reproduces below aU tent the author has
added to the standard form AIA document in order to complete it, as well as any text the author may have added to or deleted from
....
the original AIA text. Added text is shown underlined. Deleted text is indicated with a horizontal line througl~ the~'original AIA text

I

Note: This Additions and Deletions Report is provided for information purposes only and is not incorporatgd in(o oc constitute any ...~- .... . _-.. ...~
part of the associated AIA document. This Additions and Deletions Report and its associated document were generated
~ y
simultaneously by AIA software at 14:12:25 on 11/20/2015.
s
~.. .,. <+
PAGE 1
-

-

_

~ - -3
_, ..

...

New Carolina sorest Middle School
(per Owner's Request for Proposals No: 1415-91 and Design-Builder's Proposal inresponse to the solicitation.)

'

Hoi•ry County Schools, South Carolina, apolitical subdivision of the State of South Carolina:
335 Four Mile Rd.
Conway. SC 29528

FIRSTFLOOR ENERGY POSITNE LLC,
333 Fayetteville St., Suite 225.
Raleigh, NC 27601

This Insurance Exhibit is part of the accompanying agreement for the Project, between the Owner and the
Design-Builder (hereinafter, the Agreement), dated the nineteenth:.± day of ;November::; in the year two thousand
fii~een (201:51.
i'

-'e

..,
f

ty

'

r

F~

'The Owner and Design-Builder shall purchase and maintain insurance and provide bonds as set forth in this Exh'~it
B. Where a provision in this Exhibit conflicts with a provision in the Agreement into which th~s Exhibit is
incorporated, the provision in this Exhibit will prevail. During the course of the E;roject, the Owner and
Desien-Builder may substitute mutually-acceptable alternative insurance arrangements for those specified in
B.2.1.
_,...~,,,~, _ ...:s~..,.....

PAGE 2

§ 8.2.1 The Design-Builder shall purchase and maintain the following types and limits of insuratice,from`a company ~~•..
or companies lawfully authorized to do business in the jurisdiction where the Project is located`T'he'Design-Builder
shall maintain the required insurance until the expiration of the period for correction of Work ~s set forth in
;~
Section 11.2.2.1 of the

..

;A~reement.

_

_

_

~ ~
_ ; .

~

~''.,
'~
~
x

~v ~~
., ._ y

§ B.2.1.1 Commercial General Liability with policy limits of not less than tiwo million i ($ 2,000,000 ')for each
occurrence and ;;five million ($ 5.000;000.00: ') in the aggregate providing coverage for claims including
Additions and Deletions Report for AIA Document A141*"~ -- 2074 Exhlblt B. Copyright ~ 2004 and 2014 by The American Institute of Architecis. All rights
reserved. WARNING: This AIA4' Document i~ pro4ected by U.S. Copyright Law anti international Treaties. Unauthorized roproducEion or distribution
of this AIA~~ Oocwnont, or any portion of It, may result in severe civil and criminal penalties, and will he prosecuted to the maximum extent possible
under the law. This draft was produced by AIA software at 14:12:25 on 11/20/2D15 under Order No.0239586208_1 which e~iras on 07/14/2016, and is notfor
resale.
(1278235989)
User Notes:

PAPR - 004533

~

 .3

...

damages because of injury to or destruction of tangible ~epe~Ey—property, and must contain the
subcontractor exception to the "your work" exclusion;
~:. :

§ B.2.1.2 Automobile Liability covering vehicles owned by the Design-Buiider,and non-owned ye~icles used by the
Design-Builder with policy limits of not less than -one million " ($ 1,000,000 :)per claim and one million - ($ ...._:...
$1,000,000.00 : ) in the aggregate for bodily injury, death of any person, and property damage arising out of the
ownership, ►maintenance and use of those motor vehicles specified in this Section B.2.1.2, aloe g w~itli any other
~
statutorily required automobile coverage.

$100.000 peraccident.

_ __.;

-

§ B.2.1.6 Professional Liability covering negligent acts, errors and omissions in the perfo ►ance of professional
services, with policy limits of not less than two million_`` ($ 2000,000 )per claim and ✓o milliom ~ ($ 2,000,000
in the aggregate.

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§ 6.2.1.9 Additional Insured Obligations. The Owner and its consultants and contractors shall be additional insureds
on the Design-Builder's primary and excess insurance policies for Commercial General Liability, t~tier~ebi~e,,. ~....
nd Automobile Liability. The additional insured coverage shall be primary and
non-contributory to any of the Owner's insurance policies. The additional insured coverage shall apply to both
ongoing operations and completed operations. The policy limits applicable to the additional insureds shall be the
same amount applicable to the named insured or, if the policy provides otherwise, policy limits not-less than the
_ ~.
amounts required under this Agreement.
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§ 6.2.1.10 Certificates of Insurance. The Design-Builder shall provide certificates of insurance acceptable to tihe
Owner evidencing compliance with the requirements in, this Article B.2: (1) prior to commencement of the V~ork`'
(2) upon renewal or replacement of each required policy of insurance; and (3) upon Owner's ~j'~'itfen request.~An
additional certificate evidencing continuation of liability coverage, including coverage for corr~ple~,ted operations„
- - -shall be submitted•with the final Application for Payment as required by Section 9.10.2 of the%Agreement and
thereafter upon renewal or replacement of such coverage until the expiration of the time requ~r~ed by Section B.2.1.
The certificates will show the Owner and its consultants and contractors as additional insureds on the
,
Design-Builder's primary and excess insurance policies for Commercial General Liability,
4-errand
Automobile Liability. Information concerning reduction of coverage on account of revised limits;
aria
D~'
claims paid under the General Aggegate or both, shall be furnished by the Design-Builder with reasonable: : - - - .
promptness.
°'
PAGE 3

~
A312 Perfortnauce Bond and A312 Payment Bond. The
performance bond, may, but is not required to secure the
professional liability of design professionals to-the extent
such liability is covered by the design t rofessional's

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Additions and Deletions Report for AIA Document A141TM — 2014 Exhibit B. Copyright D 2004 and 2014 by The American Institute of Architects. All rights
reserved. WARNING. This AIA`~ Document is protectQd 6y U.S. Copyright Law and InEemational 7reati2s. UnAuthorized reproduction or distribution
of this AIA"' Document, or any portion of it, may residt in severQ civil and criminal penalties, and will be prosecuted to the maximum extent possible
under the law. This draft was produced by AIA software at 14:12:25 on 11/20/2015 under Order No.0239586208_1 which e~ires on 07!14/2016, and is not for
resale.
(1278235989)
User Notes:

PAPR - 004534

2

 professional liability insurance.

§ B.3.2.1 Unless otherwise provided, at the time of execution of the Design-Build Amendment, the Owner shall
purchase and maintain, in a company or companies lawfully authorized to do business in the jurisdiction where the

>.. . ..,._.... _....,.a

Unless the parties agree otherwise, upon issuance of a Certificate of Substantial Completion, the Owner shah replace
the insurance policy required under this Section B.3.2 with another property insurance policy written for the~total
value of the Project that shall remain in effect until expiration of the period for correction of the Worlc set forth iii
Section 11.2.2 of the Agreement.
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§ B.3.2.2 Boiler and Machinery Insurance. The Owner shall purchase and maintain boiler and machinery
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PD-09, and PD-12.
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Additions and Deletions Report for AIA Document A141T^' — 2014 Exhibit B. Copyright m 2004 and 2014 by The American Institute of Architects. All rights
reserved. WARNING: This AIA°' Document (s protected by U.S. Copyright Law and International Treaties. Unauthorized repracluction or distridution
of this AIA~' Document, or any porEion of it, may result in severe civil and criminal penalties, and will he prosecuted to the maximum extent possible
under the law. This draft was produced by AIA software at 14:12:25 on 11/20/2015 under Order No.0239586208_1 which e~ires on 07/14/2016, and Is not for
resale.
(1278235989)
User Notes:

PAPR - 004535

3

 PAGE4

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§ B.3.2.10 The Owner as fiduciary shall have power to adjust and settle a loss with insurers unless one of the parties
in interest shall object in writing within five days after occurrence of a loss to the Owner's exercise of this power,~If

an objection is made, the dispute shall be resolved in the manner selected by the Owner and Design-Builder-as_the
~~'~~`~a ~~":'~~«:~~ ~~
method of binding dispute resolution in the Agreement.

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Additions and Deletions Report for AIA Document A141TM — 2074 Exhibit B. Copyright 0 2004 and 2014 by Tha American Institute of Architects. All rights
reserved. WARNING: This AIA~' bocument is proFected by ll.S. Copyright Law and International Treaties. Unauthorizecl reproduction or distribution
of this AIA" Document, or any porEion of it, may result in severe civil and criminal penaltic+s, and will he prosecuted to the maximum extent possible
under the law. This draft was produced by AIA software at 14:12:25 on 11/20/2015 under Order No.0239586208_1 which e~ires on 07H4/2016, and is not for
resale.
(1278235969)
User Notes:

PAPR - 004536

 0

Document A~41TM - 2014 Exhibit A
Design-Build Amendment
This Amendment is incorporated into the accompanying AIA Document A141T"'-2014,
and Design-Builder dated the twenty-third
Standard form of Agreement I3etween_ Owner
.
day of November. ~ in the year two thousand fifteen ' (the "Agreement")

~

ADDITIONS AND DELETIONS:
Thel.author of this document has
added information needed for its

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

for the following PROJECT:
(Name and location or acld~~ess)

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

New Carolina Forest Middle School'per Owner's Reguestfor Proposals No. 1415-91and
the Design-Builder's proposal to the -Owner pursuant to Owner's Solicitation No.
1415-91=

;from the authoY and should be
';reviewed. A vertical line imthe left

THE OWNER:
(Name, legal status and address)
Horry County'Schools, South Carolina, a political subdivision of the State of South
Carolina.

;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

335 Four Mile:Rd.

consequences. Consultation with an
'attorney Is encouraged with respect
to ifs'completion or modification.

.Conway, SC 29526
THE DESIGN-BUILDER:
(Name, legal status and address).

The Owner and Design-Builder hereby amend the Agreement as follows.

Consultation with emattorney is also.,
encouraged with respect 40
professional licensing requirements ;j
in the jurisdiction where the Project
is located. ''-., ':,
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TABLE OF ARTICLES

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'FIRSTFLOOR ENERGY POSITNE LLC,
333 FaYetteVille St. Suite 225
Raleigh> NC-27601

A.1

CONTRACT SUM

A.2

CONTRACT TIME

A.3

INFORMATION UPON WHICH AMENDMENT IS BASED

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DESIGN-BUILDER'S PERSONNEL, CONTRACTORS AND SUPPLIERS

A.5

COST OF THE WORK

ARTICLE A.1 CONTRACT SUM
§ A.1.1 The Owner shall pay the Design-Builder the Contract Sum in current funds for
the Design-Builder's performance of the Contract after the execution of this Amendment.
The Contract Sum shall be one of the following and shall not include compensation the
Owner paid the Design-Builder for Work performed prior to execution of this
Amendment:

(Check the appropriate box.)

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ELECTRONIC COPYING of any'

portion of this AIA~ Document to
another electronic file is prohibited and
constitutes a violation of copyright laws
asset forth in the footer of this

document.

AIA Document A141T^' — 2014 Exhibit A. Copyright m 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNIh1G: This AIA"'
Document is protected Icy U.S. Co~iyriyht Law and International Treaties. Unauthorized reproduction or distribution of 4his AIA" Document, or any
portion of it, may result In sevore civil and criminal penalties, and will be prosecuted to the rnaximunt extent possible iuxier the law, Thls draft was
produced by AIA software at 14;12:59 on 11/20/207 5 under Order No.0239586208_1 which expires on 07/14/2016, and is not for resale.
(11965077 01)
User Notes:

PAPR - 004537

~

 [ +X;j ] Stipulated Sum, in accordance with Section A.1.2
(Paragraphs deleted)
below

§ A.1.2 Stipulated Sum
§ A.1.2.1 The Stipul~ited Sum shall be forty-five million nine hundred thirty thousand two hundred twenty-seven
dollars ($ 45,930,227.00), subject to authorized adjustments as provided in the Design-Build Documents.
4

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(Paragraphs deleted) ,
(Table deleted)
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(Paragraphs deleted)
(Table deleted)
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(Parag~•aphs deleted)
§ A.1.5 Payments
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§ A.1.5.1 Progress Payments
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§ A.1.5.1.1 Based upon Applications for Payment submitted to the Owner by the Design-B~ilder, the Owner shall
make progress payments on account of the Contract Sum to the Design-Builder as provide$ below and el~ewl ere in
the Design-Build Documents.
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§ A.1.5.1.2 The period covered by each Application for Payment shall be one calendar monxh endingon'the last day`-"' °'
,.. ._.. . .,..:.
of the month.
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§ A.1.5.1.3 An itemized payment request shall be submitted to the District by the 25"' day of each month that
payment is being requested and at completion of the project, using the form provided by the District. The payment
request shall not include a) any work anticipated to be completed but not completed by the end of each month
being requested; b) any materials not incorporated into the work to be performed except those properly.sto"r'~ed ~s
stated in the Contract Agreement; cj any damaged, used, inferior or substituted materialsynot meetlYig the ~ k
requirements and standards of the contract; nor dj any amounts the Contractor does not Intend'to pay to any
subcontractor or supplier, where performance or material quality is in question or any other dispute is pehding. If,
;.
upon review of the payment request and based upon the best determination of the District. the amount~requested- --:.._
does not accurately represent, in the District's opinion, the progress of the completed work to be performed ri'the_ _,:..
""'-~- Q
Scope of Work the District shall have the right to adjust the payment request to more accurately reflect the
•~`
percentage of completed work/services. The District shall approve and authorize payment to the, Contractor no
Payment by the District of undisputed amounts shall be made by the 15"' day : ~~'
more often than once monthly.
of the following month if request is received by Contractor by the 25"' of the month. If payment request is'not
received by the 25"'. the payment will be made within thirty (30) days from the date the ~istrct receive's the'
~ ,,.
payment request
(Paragraph deleted)
§ A.1.5.1.5 With each Application for Payment the Design-Builder shall submit the most re~en~ schedule of values in
accordance with the Design-Build Documents. The schedule of values shall allocate the entire Contract Sunn among
the various portions of the Work. Compensation for design services, if any, shall be shown separately: The-schedule --•
of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Owner may
require. This schedule of values, unless objected to by the Owner, shall be used as a basis for reviewing the -- - •r ,._ ,,
~"'
Design-Builder's Applications for Payment.

_

§ A.1.5.1.6 In taking action on the Design-Builder's Applications for Payment, the Owner shall ¢e entitled to rely on '' ~`~
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the accuracy and completeness of the information furnished by the Design-Builder and shall not be deemed to have
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made a detailed examination, audit or arithmetic verification of the documentation submitted ir~~ accordance with
~
Sections A.1.5.1.4 or A.1.5.1.5, or other supporting data; to have made exhaustive or contiguous on-site inspections;
~
or to have made examinations to ascertain how or fox what purposes the Design-Builder ha~ used amounts
previously paid. Such examinations, audits and verifications, if required by the Owner, will be performed liy fhe ' ' `m ~~ ~
Owner's auditors acting in the sole interest of the Owner.
AIA Document A141'" — 2014 Exhibit A. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA'"
Document (s protected by U.S. Copyright Law and Internatiunal Treaties. Unauthorized reproduction or distribution of this AIA``~ Document, or any
portion of it, may result In sevQro civil and criminal penalt(es, and will be prosecuted to tiie maximum extenE possible under the law. This draft was
produced by AIA software at 14:12:59on 11/20/2015 under Order No.0239586208_1 which expires on 07/14!2016, and is not for resale.
(1196507701)
User Notes:

PAPR - 004538

 § A.1.5.1.7 Except with the Owner's prior approval, the Design-Builder shall not make advance payments to
suppliers for materials or equipment which have not been delivered and stored at the site.
§ A.1,5.2 Progress Payments—Stipulated Sum
§ A.1.5.2.1 Applications for Payment where the Contract Sum is based upon a Stipulated Sum shall indicate the
percentage of completion of each portion of the Work as of the end of the period covered by the Application for
Payment.
~ }
§ A,1.5.2.2 Subject to other provisions of the Design-guild Docuanents, the amount of each''progress payment shall
be computed as follows:
~
- -- -~
.1
Take that portion of the Contract Sum property allocable to completed World as determined by
multiplying the percentage completion of each portion of the Work by the sl~are'of
_ the Contract._Sum
.
allocated to that portion of the Work in the schedule of values, less retainage of three and one/half
percent (3 5 ; %) on the Work. Pending final determination of cost to the Owned of Changes in the
Work, amounts not in dispute shall be included as provided in Section 6.3.9 of the Agreement;
.2
Add that portion of the Conhact Sum properly allocable to materials and egyipment delivered and
suitably stored at the site for subsequent incorporation in the completed construction (or, i~approved
in advance by the Owner, suitably stored offthe site at a location agreed upon in~writing), less$
retainage of three and one-half percent (3.$; %);
~ ~~~
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.3
Subtract the aggregate of previous payments made by the Owner; and
.4
Subtract amounts, if any, the Owner has withheld or nullified, as provided irk Se~tion 9.5 of the
~ ~ ,_,.:.-- --~ ~ . .. . .. .. . ........
Agreement.
§ A.1.5,2,3 The progress payment amount determined in accordance with Section A.1.5.2.2 shall be further modified
under the following circumstances:
.1
Add, upon Substantial Completion of the Work, a sum sufficient to increase the total payments to:the
fizll amount of the Contract Sum, less such amounts as the Owner shall determine for incompleEe
,;,. ~ {
Work, retainage applicable to such work and unsettled claims; and
(Section 9.8.6 of the Agreement discusses release of applicable retainage uppn Subs7antial
Completion of Work.)
.2
Add, if final completion of the Work is thereafter materially delayed through no.fault of the:,_,,
Design-Builder, any additional amounts payable in accordance with Section 9.10.3 of the Agreeme~t.,

~

_
(Paragraphs deleted)
§ A.1.5.5 Final Payment
,,. • § A.1.5.5.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be
~~ made by the:,Owner..to
the Design-Builder not later than 30 days after the Design-Builder has fully performed the Contract and°the ~~, ,;-'~
requirements of Section 9.10 of the Agreement have been satisfied, except for the Design-Builder's respo~sibtlity;to
correct non-conforming Work discovered after final payment or to satisfy other requirements '~ich extend beyond
final payment.
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(Pa~~agraph deleted)
,.__._-.-,,._,......___,... _~.,.,..__._~...-.:_.-:- _ ..
ARTICLE A.2 CONTRACT TIME
§ A.2.1 Contract Time, as defined in the Ageement at Section 1.4.13, is the period of time, including authorized
,,.,.:-•~-~-=°, - ,,..
adjustments, for Substantial Completion of the Work.
§ A,2.2 The Design-Builder shall achieve Substanrial Completion of the Work as follows;
May 1, 2017.
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(T'able deleted)
~
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subject to adjustments of the Contract Time as provided in the Design-Build Documents.
(Insert provisions, if any, for liquidated damages relating tofailure to achieve Suhstantial orrpletion on time a~for
bonus paymentsfor early completion of the Work.)
_._. ._.r.,,
LL..
.~iqui~tated damages per A141-2014.
AIq Document A141T"' — 2014 Exhibit A. Copyright m 2004 and 2D14 by The American Institute of Architects. All rights reserved. WARNING: This AIA"
Document is protected by U.S. Copyright haw and International Treaties. Unaufhorizoci reproduction or distribution of this AIA"' document, or any
portion of if, may result in severe civil and criminal penalties, and will be prosecuted t~ the maximum extent possible u~xler the law. This draft was
produced by AIA software at 14:12:59 on 11/20/2015 under Order No.0239588208_1 which expires on 07114/2016, and is not for resale.
(1196507701;
Uaer Notes:

PAPR - 004539

 ARTICLE A.3 INFORMATION UPON WHICH AMENDMENT IS BASED
§ A.3.1 The Contract Sum and Contract Time set forth in this Amendment are based on the Owner's Design
Requirements (including addenda to the RFP) and the Design-Builder's proposal to the Owner pursuant to Owner's
Solicitation No, 1415-91.:
~: .
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(Pa~•agraphs deleted)
(Table deleted)
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(Table deleted)
(Paragraphs deleted)
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(Table deleted)
(Paragraphs deleted)
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(Paragraph deleted)
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§ A.3.1.5 Allowances and Contingencies:
(Identify a»y agreed upon allowances and co~rtingencies, including a statement of their basis.) ~
.1

Allowances
OwnerPurnitw•eAllowance
Owner Hardware Allowance
Owner Controls.Allowance
Owner Fire Alarm Allowance
Owner Speciai Inspections All
Owner Commissioning Allowance
Owner Technology Allowance
Owner Landsca}~ing;Allowance

.2

$ 1 ,500,000
$ 350,000.
$ 650;000
$ 750,000
$ 150,OOQ
$ 125,000
$1 ,865000
$200,000

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Contingencies
Owner contingency is currently Not in Contract and amounts will be determined by Modificafion..
-

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§ A.3.1.6 Design-Builder's assumptions and clarifications:
Pursuant to the Pxoposal accepted' by the Horry County $oard of Educatiorr on November 2, 2015.
,`
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(Parag~~aphs deleted)
ARTICLE A.4 DESIGN-BUILDER'S PERSONNEL, CONTRACTORS AND SUPPLIERS
§ A.4.1 The Design-Builder's key personnel are identified below:
(Identify name, title and contact info~~mation.)
Carolina Forest Middle School:
Superintendent: Mark Branch
Project Manager: Charlie Rollins
(Pcn•agraphs deleted)
Assistant Superintendent: Gary Pipkin

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COST OF THE WORK

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§ A.4.2 The Design-Builder shall retain the following Consultants, Contractors and suppliers, identified below:
# ~
(List name, discipline, address and other information.)
SfT.+a Architects: Architect, Raleigh NC
Meteon/'TA Loving joint venture: General Contractor, Pembroke NC
ARTICLE A,5

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AIA Document A141T'" — 2014 Exhibit A. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"'
Document is protocfed by U.S. Copyright Law and International Treaties. Unauthorized reprod~iction or distrihiition of this AIA~ Document, or any
poKion of It, may result in severs civil encl criminal penaltirrs, and will ho prosecuted to tine maximum extent possiblo under the I~w. This draft was
produced by AIA software at 14:12:59 on 11/20/2015 under Ober No.02395862oe_1 which expires on 07/14/201B, and Is not for resale.
(1198507701)
User Notes:

PAPR - 004540

4

 (Paragraphs deleted)
(Table deleted)
(Parag~•aphs deleted)
§ A.5.4 Other Agreements
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(Parag~•aph deleted)
§ A.5.4,2 Agreements between the Design-Builder and Contractors shall conform to the applicable payment
provisions of the Design-Build Documents.
A.5.4,3 The a eements between the Desi Builder and Architect and other Consultants identified in th ^ ~
Agreement shall be in writing. These agreements shall be promptly provided to the Owner upon-the Owner's-written
request.
` F
§ A.5.5 Accounting Records
j
The Design-Builder shall keep full and detailed records and accounts related to the cost of the Work and exercise
such controls as nnay be necessary for proper financial management under the Contract and to substantiate all costs
incurred. The accounting and control systems shall be satisfactory to the Owner. The Owner and the Own`er's
auditors shall, during regular business hours and upon reasonable notice, be afforded access to,~and shall be
permitted to audit and copy, the Design-Builder's records and accounts, including completb documentation
supporting accounting entries, books, correspondence, instructions, drawings, receipts, subeonf,'racts, Contractor's
proposals, purchase orders, vouchers, memoranda and other data relating to the Contract. The Design-Builders shall
preserve these records for a period of three years after final payment, or for such longer period as tnaybe'~equired
bylaw.

~"
-~

-"

§ A.5.6 Relationship of the Parties
The Design-Builder accepts the relationship of trust and confidence established by this Ageement and covenants
with the Owner to exercise the Design-Builder's skill and judgment in furthering the interests of the Owner;'to
furnish efficient construction administration, management services and supervision; to furnish at all times an, k
adequate supply of workers and materials; and to perform the Work in an expeditious and economical manner ~ }
f
_ _
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consistent with the Owner's interests.
-....
'' s.
This Amendment to the Agreement entered into as of the day and year first written above.

.,-,

-• `•>
OWNER (Signatm~e)

DESIGN-BUILDER (Signatu~•e)

-'

.Joe Defeo, Chairuiau ~f the Boaed of Education
(Printed Hume and title)

Robert1erris Authorized Member
r'
(Printed name and title)

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AIA Document A141T"' — 2014 Exhibit A. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIAm
Document is ~~rotected by U.S. Copyright Law and Inteniational 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 Ehe maximum extent posslhle under the law. This draftwes
produced by AIA software at 14:12:59 on 11/20/2015 under Order No.0239586208_i which expires on D7/14/2016, and is not for resale.
(1196507701)
User Notes:

PAPR - 004541

3

 Additions and Deletions Report for
AIA~~ Documenf A141TM — 2074 Exhibif A
This Additions and Deletions Report, as defined on page 1 of the associated document, reproduces below all tent the author has
added to the standard form AIA document in order to complete it, as well as any tee the author may have added to or deleted from
the original AIA text. Added text is shown underlined. Deleted text is indicated with a horizontal line through the'original AlAtext.----... . - .-. - :,-... .
Note: This Additions and Deletions Report is provided for Information purposes only and is not incorporated into.or consYliute any-..---..-...-....---'+
part of the associated AIA document. Thfs Additions and Deletions Report and its associated document were generated
simultaneously by AIA software at 14:12:59 on 11/20/2015.
a
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PAGE 7

'

This Amendment is incorporated into the accompanying AIA Document A141T"'-2014 Standard
' ~orm of ~, _, I
ilgreement Between Owner and Design-Builder dated the twenty-third 'day of November in the year wt o
~ r
thousand fifteen' = (the "Agreement")
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New Carolina Forest Middle School per Ov✓ner's Request forProposals No. 1415-gland the Design,Buildcr's
.proposal to the Ownerpi~rsuant fo Owner's Solicitation No.1415=91

- °"

Hor~•y County Schools South Carolina; a nolifieal subdivision of the State of South Carolina.
.335 Four Mile Rd.
Conway: SC 29526

FIRSTFLOOR ENERGY POSITIVE LLC,
333 Fayetteville St., Suite225
Raleieh. NC27601
PAGE 2
[ ~ Stipulated Sum,in accordance with Section A.1.2 ~e~ev~

.:.,~ ~.....:,... w .' ." below

A.1.2.1 The Stipulated. Sum shall be
to authorized adjustments as provided in the
Documents.

Additions and Deletlons Report for AIA Document A141TM — 2074 Exhibit A. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights
reserved. WARNING: This AIA~' Document is protected by U.S. Copyrigh4 Law and International Treaties. Unauthorized reproduction or distribution
o(this AIAN Document, or any portion of it, tnay result in severe civil and crirrdnal penalties, and will ba prosecuted to the maximum e~ctQnt possible
under the law. This draft was produced by AIA software at 14:12:59 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, end is not for
resale.
(1196507701)
User Notes:

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Additions and Deletions Report for AIA Document A147 T"' — 2014 Exhibit A. Copyright ~ 2004 and 2014 by The Amer(can Institute of Architects. All sights
reserved. WARNING: This AIA~' Doeument is protected by U.S. Copyright Law and InternaEional Treaties. Uneuthorized reproduction or distribution
of this A~A~' Docinnent, or any portion of it, may res~dt in severe civil and criminal penalties, and will po prosoaited to the maximum extent possible
under the law. This draft was produced by AtA software at 14:12:59 on 11/20/2015 under Ober No.02395862oe_1 which e~ires on 07/14/2016, and is not for
resale.
User Notes:
(1196507701)

PAPR - 004543

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 § A.1.5.1.2 The period covered by each Application for Payment shall be one calendar month
ofthe,n,..,.~.
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on the last day

month.
§ A.1.5.1.3

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contract; nor d1 anv amounts the Contractor does not intend to pav to anv subcontractor or supplier, where
performance or material quality is in question or any other dispute is pending. If, upon review of the payment
request and based upon the best determination of the District. the amount requested does not accurately
_,:.-~'
represent, in the district's opinion, the prosress of the completed work to be performed in the Scope of'Work`the
District shall have the risht to adjust the payment request to more accurately reflect the percentage of completed
work/services. The District shall approve and authorize payment to the Contractor no more often than once
Payment by the District of undisputed amounts shall be made by the 15"' day ofi the followins month
monthiv.
if request is received by Contractor by the 25"' of the month. If payment request is not received bv.the 25"'': thes ~`
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payment will be made within thirty (30) days from the date the District receives the payment request~~''- -

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§ A.1.5.1.5 With each Application for Payment
the •"~-,....:*" ~ r'..~-~~*~~a *'~~•,:---.,w: D-:~~ +"~ Design-Builder shall submit the most recent±sch'eduleof ualues~ in.-- -----_--_---,•~
accordance with the Design-Build Documents. The schedule of values shall allocate the entire~Contract Sum among
the various portions of the Work, Compensation for design services, if any,
'
shall
be shown separately. The schedule of values shall be prepared in such form and supported by such datato"" "`~ "' ."
..
"~<.~
substantiate its accuracy as the Owner may require. This schedule of values, unless objected to by;-tt►e Owner, sha1L.,, .
4;l
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be used as a basis for reviewing the Design-Builder's Applications for Payment.
PAGE 3

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Take that portion of the Contract Sum properly allocable to completed Work as~ determined by
multiplying the percentage completion of each portion of the Work by the share of the Contract Swn.
allocated to that portion of the Work in the schedule of values, less retainage of;three and one/half

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Additions and Deletlons Report for AIA Document A741TM — 2014 Exhibit A. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights
reserved. WARNING: This AIA~ Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduct(on ar distribution
of this AIA~' Qocument, or any portion of it, may result in severe civil anti criminal penalties, and will 6e prosecuted to the maximum extent possible
under the law. This draft was produced by AIA software at 14:12:59 on 11/20/2015 under Order No.0239586208 1 which expires on D7/14I2016, and is not for
resale.
(1186507701)
User Notes:

PAPR - 004544

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percent (3:5 %) on the Work. Pending final determination of cost to the Owner of Changes in the
Work, amounts not in dispute shall be included as provided in Section 6.3.9 of the Agreement;
Add that portion of the Contract Sum properly allocable to materials and equipment delivered and
suitably stored at the site for subsequent incorporation in the completed construction (or, if approved
in advance by the Owncr, suitably stored offthe site at a location agreed upon in writing), less
retainage of three and one-half percent (3_5 %);
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Additions and Deletions Report for AlA Document A141 n" — 2014 Exhibit A. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights
reserved. WARNING: This AIA~~ Document is protected 6y U.S. Copyright Lew end International 7reatie~. Unauthorized reproduction or distrlhutfon
of Ehis AIA"' Document, or any portion of it, may rosidt in severe civil and criminal nenafties, end will be prosecuted to thQ maximum extent possible
under fhe law. This draft was produced by AIA soHware at 14:12:59 on 11/20/2015 under Order No.0239586208_1 which e~ires on 07/14/2016, and is not for
resale.
(1196507701)
User Notes:

PAPR - 004545

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§ A.1.5.5.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Ownej; to
}
the Design-Builder not later than 30 days after the Design-Builder has fully performed the Cotltract and the
requirements of Section 9.10 of the Agreement have been satisfied, except for the Design-Buil'der's responsibility'to ;
correct non-conforming Work discovered after final payment or to satisfy other r~~~•~r~m~~*~, ~~^"•°, requirements
which axtend beyond final payment.
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§ A.2.2 The Design-Builder shall achieve Substantial Completion of the Work

Additions and Deletions Report. for AIA Document A141T"' — 2014 Exhibit A Copyright 0 2004 and 2014 by The American Institute of Architects. All rights
reserved. WhRNING: This AIA°' Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or disfributfon
of Chia AIA°' Document, ar any portion of it, may residt in severe civil and criminal penalties, and will be prosecuted to the maximum extent possihle
under the law. This draft was produced by AIA software at 14:12:59 on 11/20/2015 under Order No.0239586208_1 which expires on 07114/201B, and Is not for
resale.
(1196507701)
User Notes:

PAPR - 004546

 :Liquidated dama~per A141-2Q14.

_

,

PAGE 4
§ A.3.1 The Contract Sum and Contract Time set forth in this Amendment are based on the #el~ew
~Owner's
Design Requirements (including addenda to the RFP) and the Design-Builder's proposal to the Ov~mer pursuan
Owner's Solicitation No. 1415-91.:
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Owner Furniture Allowance
$ 1 ,500.000,
Owner Hardware Allowance
$ 650,000
Owner Conttols Allowance
$ 750.000
Owner Fire Alarm Allowance
150 OOQ
Owner Special Inspections All
$ 125,000
Owner Commissionine Allowance
Owner'Technolo~yAllowance
$ l ,865,000
$200,000
Owner Landscaping Allowance

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Additions and Deletions Report for AIA Document A141T"' — 2014 Exhibit A. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights
reserved. WARNING: This AIA4~ Document is protected by U.S. Copyright Law end International Treaties. Unauthorized reproduction or distribution
of Ehis AIA~' Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possi►ile
under the law, This draft was produced by AIA software at 14:12:59 on 11/2012016 under Order No.0239586208_1 which e~ires on 07/14!2016, and Is not for
resale.
(1196507701)
User Notes:

PAPR - 004547

6

 Owner contingency is currentlyNot in Contract and amounts will be determined by Modification.

_
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.Pursuant to the Proposal accepted by the Tlorry County Board of Education on November 2,:2015.
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i P~ejes~ Pv~a:-~e~Project Manager: Charlie Rollins

--9tk~er-s
Assistant Superintendent: Gary Pipkin

_.
SfL+a Architects: Architect, Raleigh NC
Metcon/TA Loving.joint venture;: General Contractor, Pembroke: NC
PAGE 5
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Additions and Deletions Report for AIA Document A141n" — 2014 Exhibit A. Copyright 8 2004 and 2014 by The American Institute of Architects. All rights
reserved. WARNING: This AIA~~ Document is protected by U.S. Copyright Law anti International Treaties. Unauthorized reproduction or distribution
of this AIA~' Document, or any portion of iE, may result in severe civil anti criminal penalYles, and will be prosecuted fo the maximum extent possible
under the law, This draft was produced by AIA software at 14:12:59 on 11/20/2015 under Order Na.0239586208_1 which expires on 07/1A/2016, and is not for
resale.
(1196507701)
User Notes:

PAPR - 004548

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Additions and Deletions Report for AIA Document A141r'" — 2p14 Exhibit A. Copyright D 2004 and 2014 by The American Ins4tute of Architects, All rights
reserved. WARNING: This A.IA" Document is protected by U.S. Copyright Law and International Troaties. Unauthorized reproduction or distrihution
of this AIAy~ Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible
unciar the law. This draft was produced by AIA software at 14:12:59 on 11/20/2015 under Order No.0239586208_1 which e~ires on 07/14/2016, and Is not for
resale.
(1196507701)
User Notes:

PAPR - 004549

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Additions and Deletions Report for AIA Document A747 T~" — 2014 Exhibit A. Copyright 0 2004 and 2014 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 anti criminal penalties, and will he proscecutecl to tie maximum extent passible
under the law. This draft was produced by AIA software ai 14:12:59 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, and is not for
resale,
(1196507701)
User Notes:

PAPR - 004550

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§ A.5.4.2 Agreements between the Design-Builder and Contractors shall conform to the
,
provisions of the Design-Build

•

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`Joe Defeo, Chairman ofthe Board~of.Edncation '

Robert ~eiris, Authorized Member

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Add(tions and Deletions Report for AIA Document A141T" —2014 Exhibit A. Copyright m 2004 and 2014 by Tha American Institute of Architects. All rights
reserved. WARNING: This AIA"' Document is protecfod by U.S. Copyright Law and Internatf~nal Treaties. Unauthorized reproduction or distrihution
of this AIA`'' Document, or my portion of it, may result in severe civil and criminal penalties, and will 6e pr'osecuted to the maximum extent possl6le
under the law. This draft was produced by AIA software at 14:12:59 on 11/20/2015 under Order No.0239588208_1 which e~iras on 07/14/2016, and Is not for
resale.
(1196507701)
User Notes:

PAPR - 004551

,~Q

 Sheri L. Wainscott
From;
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Friday, November 20, 2015 3:12 PM
Keith R. Powell
RE: HCS drafts

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

have been very tied up today, I am still trying to get thru this. I am sorry I have not gotten back to you.
From: Keith R. Powell [mailto:kpowell@childs-halligan.net]
Sent: Friday, November 20, 2015 2:16 PM
To: Robbie Ferris
Subject: HCS drafts
Added language from HCS forms not included this morning. Still have 1 typo to fix that you noted. Changed signature to
Board Chair.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
($03) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

1

PAPR - 004552

 Sheri L. Wainscott
From:
Sent;
To:
Subject:

Keith R. Powell
Friday, November 20, 2015 3:20 PM
Robbie Ferris
RE: HCS drafts

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

That's OI<. I need to do some stuff over the weekend anyway so I'll have my laptop and be able to make the 5 sets
whenever we get the last wording settled.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-haliigan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerrisCQ~sfla.biz]
Sent: Friday, November 20, 2015 3:12 PM
To: Keith R. Powell
Subject: RE: HCS drafts
have been very tied up today, I am still trying to get thru this. I am sorry I have not gotten back to you.
From: Keith R. Powell [mailto:kpowell(c~childs-halli yannet]
Sent: Friday, November 20, 2015 2:16 PM
To: Robbie Ferris
Subject; HCS drafts
Added language from HCS forms not included this morning. Still have 1 typo to fix that you noted. Changed signature to
Board Chair.
Keith R'. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.chiids-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosabie and protected by attorney-client privilege. if you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

PAPR - 004553

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Robbie Ferris <RFerris@sfla.biz>
Friday, November 20, 2015 7:32 PM
Keith R. Powell
RF revisions to checked draft 11_20_2015
RF revisions to checked draft 11 20 2015.docx

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Keith,
Attached are what I believe are the last few changes. Call me any time, day or night, to discuss if you like.
Please remember there are differences in the allowances, also don't forget the allowance for socastee ms site. Of 2.5 mil
Also we added language that says we get time extension for them not having a site.

From: Aaron Thomas [mailto:athomasCc~metconus.com]
Sent: Friday, November 20, 2015 7:26 PM
To: Robbie Ferris
Subject: FW: RF revisions to checked draft 11_20_2015

Warm Regards,

Aaron Thomas, MCM, LEED-AP ~ President
Metcon, Tnc. ~ 763 Comtech Drive ~ PO Box 1149 ~ Pembroke, NC 28372
office 910,521.8013 ~ mobile 910.734.0537 ~ email~athomas@metconus.com
website ~ (inkedin ~ twitter ~ instagram

IMPORTANT: This e-mail message is intended solely for the individual or individuals to whom it is addressed. It may contain
confidential information. If the reader of this message is noY the intended recipient, you are requested not to read, copy or
distribute it or any of the information it contains. Please delete it immediately and notify us by return e-mail or by telephone
(910) 521-8013.

From: Aaron Thomas
Sent: Friday, November 20, 2015 6:56 PM
1
PAPR - 004554

 ~ '_-_

To: Robert W. Ferris <rferris sfla.biz>
Subject: RF revisions to checked draft 11_20_2015

PAPR - 004555

 A141 —Suggested Changes
2.1.1 Unless otherwise agreed, payments for Work performed prior to Execution of the Design-Build Amendment
shall be made monthly. For the Design-Builder's performance of Work prior to the execution of the Design-Build
Amendment, the Owner shall compensate the Design-Builder as follows:
(Insert amount of, or basisfor, coi~zpensation, including compensation for any Sustainability Services, or indicate
the exhibit in which the information is provided. If there will be a limit on the total amount of compensation for
Work performed prior to the execution of the Design-Build Amendment, state the amount of the limit.)
The Design-Builder may invoice. the
owner for $1,118,043. for its design work.
performed prior to the execution of the Design-Build Amendment. This amount is within and part of the price
agreed in the Design-Build Amendment.
_
_
;; 'f

§ 8.2 Delays and Extensions of Time
§ 8.2.1 If the Design-Builder is delayed at any time in the commencement or progress of the Work by an act or
neglect of the Owner ox of a consultant or separate contractor employed by the Owner; or by changes ordered in the
Work by the Owner; or delay in purchase of an~proiect ~~roperty or owner provided surve }+inq and tesfvib of such
property_(in no case shall the duration of the project be less than the duration outlined in the design builders original
proposal to the owner); or by labor disputes, fire, unusual delay in deliveries, unavoidable casualties or other causes
beyond the Design-Builder's control; or by delay authorized by the Owner pending mediation and binding dispute
resolution or by other causes that the Owner determines may justify delay, then the Contract Time shall be extended
by Change Order for such reasonable time as the Owner may determine.
§ 8.x.3 Weather Delays: When adverse weather conditions are the basis for a request for additional time, such
request shall be documented by weather data from the National Oceanic and -Atmospheric Adnninistration (NOAA)
for the locale of the project using a ten year average (2005-2014) of accumulated record mean values of
climatological data .~..w~..,.,«:.,«:.,,. «,,e ., ,,.,.ao_ ,...,,a:*:,..,., .,~ ..,a..o .,~..,,,,..~,,, f ,.., „ ,.,~ „f«;,,,o ,,,~,:,,w ,,,,,,ia ,,,,+

to
>

>

>
>
..~~'• ~r ^•~~~ ~,.^" ~^«:^~^, Such time extension request shall be in writing and submitted to the District with the
+~,
application for payment ~ ..,. ..,,., i .,.:~~.:., «o„ i, m a.,,,., a,..~ ~tio o.,a ,.F+~,o o.,o.,+ ,..,,,..;.,.~ Ewa :,,,..,,,.. ,,.,
-- --~c~is„
—,~
.,-..,.w
se~e~e~: The approved extension of time shall be incorporated in the next Change Order.
§ 8.2.4 Anticipated Weather Delays: A total of iwo (2) days per calendar month (non-cumulative) shall be
anticipated by the Contractor as "adverse weather," and such time shall not be considered, justification for an
extension of time.
'.~" ~^
~^* *~~ ~^~~~„~~~ . ~r~. ^~ *~-~ F~~^...;^^ .,~^r~--a~~_ If adverse weather days beyond the two (2) days
anticipated are substantiated by written (NOAA) data indicating precipitation greater than .10" occurred that day aid
an extension of time will. be
granted of
tie-e~t~~-e€ one (1) full day of extended time for each calendar day of adverse weather conditionsfrisk-~}evex~e~
. If the precipitation over .i0" is so great that it causes
subsequent days work to be lost those days may also be requested as a time extension and will be _granted -day for
day. basis for days lost in construction operations. A request for adverse weather extension shall not be allowed after
the date established for substantial completion.

PAPR - 004556

 Exhibit A —Suggested Changes
Under allowances- Don't forget that the value for some allowances differ on some schools. For example don't forget
that Socastee Middle School has a site allowance that needs to be listed for $2,500,000.00

Exhibit B —Suggested Changes
B.3.2- ARTICLE 8.1. GENERAL
The Owner and Design-Builder shall purchase and maintain insurance and provide bonds as set forth in this Exhibit
B. Where a provision in this Exhibit conflicts with a provision in the Agreement into which this E~chibit is
incor~sorated, the provision in this Exhibit will prevail. During the course of the Project, the Owner and DesignBuildermay substitute mutually-acceptable alternative insurance arrangements for those specified in § B.2.1. &
B3.2.:

PAPR - 004557

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Keith R. Powell
Friday, November 20, 2015 8:37 PM
Robbie Ferris
Re: RF revisions to checked draft 11_20_2015
image002.png

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Thanks. Currently in a "Madeline" the little French girl tv marathon with Cabernet for parents -will check out on my pc
tomorrow.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halli~an.corr~
(803)254-4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.
On Nov 20, 2015, at 7:32 PM, Robbie Ferris <RFerris@sfla.biz> wrote:
<e ith,
Attached are what i believe are the last few changes. Call me any time, day or night, to discuss if you like.
Please remember there are differences in the allowances, also don't forget the allowance for socastee
ms site. Of 2.5 mil
Also we added language that says we get time extension for them not having a site.

From: Aaron Thomas [mailto:athomasC~metconus.com]
Sent: Friday, November 20, 2015 7:26 PM
To: Robbie Ferris
Subject: FW: RF revisions to checked draft 11_20_2015

Warm Regards,
Aaron Thomas, MCM, LEED-AP ~ President
Metcon, Inc. ~ 763 Comtech Drive ~ PO Box 1149 ~ Pembroke, NC 28372
office 910.521.8013 ~ mobile 410.734.0537 ~ email:athomasC~metconus.com
i
PAPR - 004558

 website ~ linkedin ~ twitter ~ instagram
<image002,png>
IMPORTANT: This e-mail message is intended solely for the individual or individuals to whom it is addressed.
It may contain confidential information. If the reader of this message is not the intended recipient, you are
requested not to read, copy or distribute it or any of the information it contains. Please delete it immediately
and notify us by return e-mail or by telephone (910) 521-8013.

From: Aaron Thomas
Sent: Friday, November 20, 2015 6:56 PM
To: Robert W. Ferris <rferris(a~sfla,biz>
Subject: RF revisions to checked draft 11_20_2015

<RF revisions to checked draft 11 20 2015.docx~

z
PAPR - 004559

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Robbie Ferris <RFerris@sfla.biz>
Saturday, November 21, 2015 1:17 PM
Keith R. Powell
Fwd: RF revisions to checked draft 11_20_2015
image002.png; ATT00001.htm; RF revisions to checked draft 11_21_2015.docx;
ATT00002.htm

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Keith please see below, there are a few tweaks to what we sent you last night. It should simplify things a little and take
some of the?'s that could arise later out
Sent from my iPhone
Begin forwarded message:
From: Aaron Thomas <athomas(~metconus.com>
Date: November 21, 2015 at 1:15:16 PM EST
To: "Robert W. Ferris" <rferris@sfla.biz>
Subject: FW: RF revisions to checked draft 11_20_2015
Robbie- I just read this again and realized we had made a mistake that could cause confusion. The
attached revision made 2 minor changes to what we sent last night:
1.

On weather delays I deleted the reference tp the 10 year NOAA average being a baseline we
would compare to. I did this because if we are already using 2 days per month as the baseline
for adverse weather all we need NOAA for is to substantiate the days over 2 so it is not
subjective in nature with the staff. Example If we have 5 days of rain in December 2015 that is
over .10" then we would turn in the NOAA report for the project locale showing we had the 5
days over .10 and we would get an extension via change order for 3. <(5) days over .10" — (2)
days expected in contract = (3) days extension>

2.

I also added ACT OF GOD Language to the 8.2.1. We talked about it but forgot to add it. Must
have been tired.

Call me if you have any questions. I'm at the office.

Warm Regards,

Aaron Thomas, MCM, LEED-AP ~ President
Metcon, Inc. ~ 763 Comtech Drive ~ PO Box 1149 ~ Pembroke, NC 28372
ofifice 910.521.8013 (mobile 910.734.0537 ~ email:athomas@metconus.com
website ~ linkedin ~ twitter ~ inst4gram

PAPR - 004560

 A141 —Suggested Changes
2,1.1 Unless otherwise agreed, payments for Work performed prior to Execution of the Design-Build Amendment
shall be made monthly. For the Design-Builder's performance of Work prior to the execution of the Design-Build
Amendment, the Owner shall compensate the Design-Builder as follows:
(Insert amount of, or basis for, compensation, including compensation for any Sustainability Services, or indicate
the exhibit in which the information is provided. If the~•e will be a limit on the total amount of compensation for
Work performed prior to the execution of the Design-Build Amendment, state the amount of the limit.)
owner for $1,118,043. for its design work
The Design-Builder may invoice the
performed prior to the execution of the Design-Build Amendment. This amount is within and part of the price
agreed in the Design-Build Amendment. .<

§ 8.2 Delays and Extensions of Time
§ 8.2.1 If the Design-Builder is delayed at any time in the commencement or progress of the Work by an act or
neglect of the Owner or of a consultant or separate contractor employed by the Owner; or by changes ordered in the
Work by. the Owner; or delay in purchase of andproject property or ow»er provided surve~~ attd testing of such
pro~t~(in no case shall the duration of the proiect be less than the duration outlined in the design builders original
proposal to the owner); or by an act of god, tornado, fue, ,hurricane, Ulizzard, earthquake, typhoon, or flood that
dlmages completed work, stored material, or uupedes progress of the work; or by labor disputes, fire, unusual delay
in deliveries, unavoidable casualties or other causes beyond the Design-Builder's control; or by delay authorized by
the Owner pending mediation and binding dispute resolution or by other causes that the Owner determines may
justify delay, then the Contract Time shall be extended by Change Order for such reasonable time as the•Owner may
determine.
§ 8.2.3 Weather Delays: When adverse weather conditions are Lhe basis for a request. for additional time,, such
request shall be documented by weather data from the National Oceanic and Atmospheric Administration (NOAH)
for the locale of the project.

„~~~~ ^~ ^*w~~ ^„^~- ^^':^^^, Such time extension request shall be in writing and submitted to the District with.the
~, ~.T ~. +~,
a F+w
~n
~+ ~,,,..,.:.b w':~ .Y.Yw~~ ~~ ~'.:~
Tw•
application for payment F "~n"
net~ie
er-ie
sexsider~~ The approved extension of time shall be incorporated in the next Change Order.
§ 8.2.4 Anticipated Weather Delays: A total of two (2) days per calendar month (non-cumulative) shall be
anticipated by the Contractor as "adverse weather," and such time shall not be considered. justification fox an
extension of time.
. If adverse weather days beyond .the two (2) days
anticipated are substantiated by written (NOAA) data indicating precipitation greater than .10".occurred that. day.a~
an extension of time will be
granted of
sk eve~~
~e-e~ex~e€one (1) full day of extended time for each .calendar day of adverse weather conditions
If the precipitation over . i0" is so great that it causes
subsequent work days to be lost those days may also be requested as a time extension and will be granted day for
day basis for days lost in construction operations. A request for adverse weather extension shall not be allowed after
the date established for substantial completion.

PAPR - 004561

 -' r

Eachibit A —Suggested Changes

~
l

Under allowances- Don't forget that the value for some allowances differ on some schools. For example don't forget
that Socastee Middle School has a site allowance that needs to be listed for $2,500,000.00

E~chibit B — Su~eested Chanties
B.3.2- ARTICLE B.1 GENERAL
The Owner and Design-Builder shall purchase and maintain insurance and provide bonds as set forth in this Exhibit
B. Where a provision in this Exhibit conflicts with a provision in the Agreement into which this F,xhibit is
incorporated, the provision in this Exhibit will prevail. During the course of the Project, the Owner and DesignBuilder may substitute mutually-acceptable alternative insurance airangemen4s for those specified in § B.2.1. &
B.3.2

PAPR - 004562

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Thursday, November J.9, 2015 6:12 PM
Keith R. Powell
horry

Follow Up Flag:
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For the site they don't have yet we need to use calender days from a notice to proceed or something of the sort...unless
you have another idea...l just don't know where they are in buying that site.

_ ~~
.~
;~tr.r;~ : i f e: t
Robert W. Ferris, AIA, REFP, LEED AP
CEO/President
SfL+~ Architects
333 Fayetteville Street, Suite 225
Raleigh, NC 27fi01
CeIL 919.610.7.25'1
Fax: 919.573.6355
rferrisC~sfla.biz
www.sfta.biz

"I'd put my money on solar energy... i hope we don't have to wait till ail and coal run out before we tackle that." Thomas
Edison, in conversation with Henry Ford and Harvey Firestone, March 1931.

1
PAPR - 004563

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Keith R. Powell
Friday, November 20, 2015 2:16 PM
Robbie Ferris (RFerris@sfla.biz)
HCS drafts
EX B v2 -Checked Draft - (1)(1).pdf; 673449 EX A -Checked Draft - (1).pdf; 673757_2
141 main -Checked draft - (1)(2).pdf

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Added language from HCS forms not included this morning. Still have 1 typo to fix that you noted. Changed signature to
Board Chair.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(8~3) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this 8-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material, If you receive this message In error, please
notify us by telephone as listed above immediately.

i

PAPR - 004564

 HCS RFP REPORT

Single Project

Frst Floor Original Price

HCS BUDGET

Prices

First Floor price

*

T.T. original price

Thompson Turner
price

CFMS

$36,750,000.00

$48,706,497.00

$48,706,497.00

$45,077,000.00

$45,077,000.00

MBMS

$36,750,000.00
$36,750,000.00

$49,242,812.00

$49,294,912.00

$43,050,000.00

$43,OSO,000.OQ

$50,628,137.00
$45,058,439.00

$50,628,137.00

$43,933,000.00
$38,425,000.00

.$43,933,000.00

$30,696,000.00

$30,696,000.00
$201,181,000.00

SJIS

$39,548,000.00
$39,998,000.00

$41,852,000.00
$37,808,000.00

$40,465,000.00

$8.472M value and

solar &reduced owner

costs

contingency

contingencies seY by
MBK; does not include
WSHP and onsite solar.

$38,303,991.00

~

i
CFMS, MBMS & 5115

First Floor
Thompson Turner
MB Kahn

CFMS, MBMS, 5115, SMS

First Floor
Thompson Turner
MB Kahn
FrStFloor
Thompson Turner
MB Kahn

COMBOS

SES & SMS

~Thomspon Turner

SES & SJIS

;Thomspon Turner
MB Kan

CFMS & MBMS

WORKSHEET
Project
CFMS
MBMS

$40,934,000.00
$41,385,000.00

'not shown:

$45,058,439.00
$38,303,991.00.
$231,991,976.00

reductions

Others

k

also need to restore owner
contingency & offsite work

subtotal

COMBO a

M.B. Kahn price

$36,441,000.00
$29,319,000.00
$185,771,000.00
"` includes community

$31,100,000.00
$26,000,000.00
$167,350,000.00

SMS
SES

COMBO 3

$38,425,000.00

MBK original price

Award Price
current HCS BUDGET
536,750,000.00
$36,750,000.00

SJIS

$36,750,000.00

SMS

$31,100;000.00

$30,040,000.00

i
$140,916,040.00
$130,739,400.00
$116,420,000.00
. ..
$182,645,778.00
$168,353,777.00
$150,535,000.00
• ---- to budgetsubtotai:
(553,249,769.00)
$220,599,769.00
(531,546,777.00)
$198,896,777.00
($11,093,000.00)
$178,443,000.00
$68,775,395
$74,255,855
$78,256,000

Variance

$26,000,000.00

SES
subtotal
Owner
contingency.
Offsite Work:
TOTAL:

$167,350,000.00
$0.00
50.00
$167,350,000.00

PAPR - 004565

 HCS RFP REPORT

Single Project
Prices
fFMS
MBMS
5115
SMS
SES

,
HCS BUDGET

$36,750,000.00
$36,750,000.00
$36,750,000.00
$31,100,000.00
$26,000,000.00
5167,350,000.00
subtotal
•also need to restore owner
contingency & offsite work
costs

„
First Floor price

First Floor Original Price

$48,706,497.00
$49,242,812.00
$50,628,137.00

$48,706,497.Q0
$49,294,912.00
$50,628,137.00

$45,058,439.00
$38,303,991.00

$45,058,439.00
$38,303,991.00
$231,991,976.00
"not shown:
$8.472M value and
contingency
reductions

COMBO 3

CFMS, MBMS & SJIS

First Floor
ThompsonTumer
MB Kahn A
MB Kahn B

$140,916,040.00
$130,739,400.00
$116,420,000.00
$128,548,000.00

COM60 4

CFMS, MBMS, 5115, SMS

First Floor
Thompson Turner
MB Kahn A
MB Kahn B

5182,645,778.00
5168,353,777.00
$150,535,000.00
$166,531,000.00

Frst Floar
Thompson Turner
MB Kahn A
MB Kahn B

$220,599;769.00
$198,896,777.00
$178,443,000.00
$197,487,000.00

ThomsponTurner
Thomspon Tume~
MB Kahn A
MB Kahn B

568,775,395
$74,255,855
$78,256,000
586,232,000.00

Others

SES&SMS
SES & S11S
CFMS & MBMS
tFMS & MBMS

WORKSHEET
Award Price
Project
current HCS BUDGET
$36,750,000.00
CFMS
_
$36,750,000.00
MBMS
'536,750,000.00
5115
$31,1OQ000.00
SMS
$26,000,000.00
SES
$167,350,000.00
subtotal
Owner
contingency:
$0.~
$0.00
Offsite Work:
$167,350,000.00
TOTAL•

$45,077,000.00
$43,050,000.00
$43,933,000.00
$38,425,000.00
$30,696,000.00

Thompson Turner
p
rice

MBK original price A

$45,077,000.00
$43,050,000.00
$43,933,000.00

$40,934,000.00
$41,385,000.00
$41,852,000.00

$38,425,000.00
$30,696,000.00
5201,181,000.60

$37,808,000.00
$30,040,000.00

,
M.B. Kahn price A

MB Kahn price B'

$39,548,000.00

$43,506,000.00
$43,946,000.00
$44,373,000.00

$39,998,000.00
$40,465,000.00

$36,441,000.00
$40,003,000.00
$29,319,000.00
$32,234,000.00
$185,771,000.00
$204,062,000.00
'includes community
Price A plus: WSHP,
solar &reduced owner
geothermal allowance and
contingencies set by
on-site solar
MBK; does not include
WSHP, geothermal and
onsite solar.

~

i

COMBOS

T.T. original price

to budget subtotal:
{$53,29,769.00)
(S31,Sao,777.00)
(511,093,000.00)

Variance

i

PAPR - 004566

 HCS RFP REPORT

Single Project
Prices
CFMS
MBMS
5115
SMS
SES

HCS BUDGET'

$36,750,000.00
536,750,000.00
$36,750,000.00
$31,100,000.00
526,OOD,000.00
$167,350,000.00
subtotal
•also need to restore owner
mnUngency & offsite work
costs

First Floor price`

Frst Floor Original Price

$48,706,497.00
$49,242,812.00
$50,628,137.00
$45,058,439.00
$38,303,491.00

$48.706.497.00
$49,294,912.00
$50,628,137.00
$45,OSS,439.00
$38,303,991.00
5231,991,976.00
"not shown:
$8.472M value and
contingency
reductions

T.T. original price

$Q5,077,000.00
$43,050,000.00
$43,933,000.00
$38,425,000.00
$30,696,000.OD

Thoelp5on TUrtt¢~
PN~

M.B. Kahn price A'

MBK original price A

$45,077,000.00
$43,050,000.00
$43,933,000.00
$38.425.000.00
$30,696,000.00
$201,1S1,000.CO

$40,934,000.00
$41,385,000.00
$41,852,000.00
$37,808,000.00
$30,040,000.00

~

~

MB Kahn price B`

$39,548,000.00
$43,506,000.00
$39,998,000.00
$43,946,000.00
$40,465,000.00
$44,373,000.00
$36,441,000.00
$40,003,000.00
529,379,000.00
$32,234,000.00
$155,771,000.00
$204,062,000.00
'Includes community
Price A plus: 4VSHP,
geothermal allowance and
solar &reduced owner
contingencies set by
on-site solar
MBK; does not include
WSHP, geothermal and
onsite solar.

Examples below:
COM803

CFMS, MBMS&5115

Frst Floor
Thompson Turner
MB KahnA
MB Kahn B

COM804

CFMS, MBMS, S115,SM5

Flrrt Floor
Thompson Turner
MB KahnA
MB Kahn B

COMBOS

Others

SES&SMS
SES&5115
CFMS & MBMS
CFMS & MBMS

~

$140,936,040A0
$130,739,400.00
$116,420,000.00
$128,SG8,000.00

FF x3 plus
FFx3 plus
TT x3 plus
TT x3 plus

SFS TT
SES TT
SES FF
SES MBK B

$182,645,778.00
$168,353,777.00
$150,535,000.00
5166,531,000.00

fFx4 plus
FF x4 plus
7T x4 plus
TT x4plus

SES TT
SFS MBKB
. SES MBKB
SES Ff

First Floor
Thompson Turner
MB Kahn A
MB Kahn B

$220599,769.00
$198.896,777.00
5178,443,000.00
$197,487,000.00

Thomspon Turner
ThomsponTumer
MB Kahn A
MB Kahn B

$68,775,395
$74,255,855
$79,256,000
$86,232,000.00

WORKSHEET
kvr rr7 ?::~
current HCS BUDGET
Protect
$36,750,000.00
CFMS
$36,750,000.00
MBMS
$36,750,000.00
S1B
$31,100,000.00
SMS
S26,000,OOO.W
SES
$167,350,000.00
subtotal
Owner
56,75D,000.00
$0.00
wntingen~y:
TBD
- $0.00
Offsite Work
5167,350,000.00
TOTAL:

~SMS TT
SMS MBKB
SMS MBK B
SMS PP

r-

.. . (Sa2.31:i:1 5.001
(>~~ry,?03;030.001
`{>~1,ES53?i,00j1
f51~i.6S1,8iB:~~?I

$68,775,395.00
567,137,000.00
$78,306,991.00
$77,292,439.00

52D5,691,435.00
5203,053,040.00
$209,046,391.00
$205,037.,Bi9.U0

$30,696,000.00
$32,234,000.00
532,]34,000.00
$38,303,991.00

52L'.341,778.00
5?14,379,778.00
5200SE7,777.00 5206.657.76SA0

(5-5:991,7idlJ~i)
-($47.5?9.7?S.P~j~
:(533,237;;71.001
(.539,307,76E.00i

I
I

~~S'-~~~~~.%~"~~'"~~
(5?..Sa5..7Z00;
j :1,p93;CD0A0j
(S3G;137.0~!OOj~

~

j~:~.-.::-.~- ~,
~

PAPR - 004567

 ~oric~ of ir~-~~N~r ~ro ,~vv~►RD

-~ ~>
-,~

~
..
~; ~>

Hong County Schools

BID NUMBER:
1415-91

PROJECT NAME:
Design-Build Delivery of New School Facilities (New Carolina Forest Mlddle School)
INTENT TO AWARD A CONTRACT T0:
INVITATION FOR BIDS DATE:
Flrstfloor Energy Positive, LLC
June 24, 2015
333 Fayetteville Street, Ste, 225
PROTEST PERIOD END DATE:
NOTICE OF INTENT DATE:
Raleigh, NC 27601
November 18, 2015
November 3, 2015
TOTAL CONTRACT PRICE ACCEPTED BY 7H~ DISTRICT FOR AWARb;

$ 45,930,227.00

NOTICE TO AWARDEE:
Horry County Schools (the District) has considered the bld submitted by the Offeror listed above for the above described project In response to Its Request for
Proposals. That Offeror Is, hereby, notified that it is the Qistricl's intention to award a contract for the total contract price Indicated above provided that Offeror is
found by the District to meet all requirements of responsibility as Indlcaled in the Proposal Instructions and In accordance with the District's Procurement Code.
CAUTION: No work should begin nor costs Incurred associated with the contract prig to the commencement of the project indicated on the Noflce to Proceed Issued
after the Notice of In(ent fo Award period has ended. Horry County Schools assumes no liability for the expenses incurred prior to that commencement dale.
A pre-construction conference may be scheduled by the. District's Construction Management OKice prior to the commencement of the project provided no protests are
submitted to the District before the protest end date stated above, You are required to execute or have executed and returned to the Distrlct.lhe following documents
no later than the scheduled pre•consfruction conference or within ten (10) days from the date of the Notke oflnfent to Award unless otherxise stated:
(2 originals)
AIA Document A141— 2014
AIA Document A141— 2014 Exhl6lt A
(2 originals)
A(A Document A141— 2014 Exhibit B (2 originals)
(2 originals)
AIA Document A312 — 2010
Detailed Schedule of Values (CS! Breakdown)
Detailed Protect Schedule
Copy of the Contractors business license in the jurisdiction where the work is being performed (lf required),
Failure to execute and return the above documents no later than the scheduled pre-construction conference or wlthln ten (10) days from the date of the Not(ce of
Intent to Award shall indlcale your abandonment of all rights under this Notice of Intent to Award. The District shall be entitled to such other rights as may be granted
bylaw,

NOTICE TO ALL OTNER OFFERORS:
Any Bidder who feels aggrieved because of this Notice ofIntent to Award has a right to protest and to present an appeal in accordance with the DistrlcPs Procurement
Code, Any protest must be submitted to the bistrlcl's Procurement Officer listed In the Request for Proposals, in writing,
HORitY COUNTY SCHOOLS

John I . ardner
Chle Flnancial0ificer ~`'"
~.

PAPR - 004568

 '
y.
".

...
i

!(

r

NdT1C~ OF INTEND' ~'O Alli//~RC~
Homy County Schools

BID NUMBER:
PROJECT NAME:
1415-9i
Design-Build Delivery of New School Facilities (New Myrtle Beach Middle School)
INTENT TO AWARD A CaNTRACT T0:
INVITATION FOR BIDS DATE:
First(loor Energy Positive, l.lC
June 2d, 2015
333 Fayetteville Street, Ste. 225
NOT(CE OF INTENT DATE:
PROTEST PE~tIOD END DATE:
Raleigh, NC 27601
November T8, 2015
November 3, 2015
TOTAL CONTRACT PRICE ACCEPTED ~Y THE DISTRICT FOR AWARD:

$ 46,4x5,102.00

NOTICE TO AWARDEE:
Horry County Schools (the Distrlc() has considered the b(d submitted by the Offeror listed above (or the above described project in response to its Request for
Proposals. That Offeror Is, hereby, notified that ii is the District's intension to award a contract for the total contract price Indicated above provided that Offeror is
found by the District to meot all requirements of responsibility as indicated in the Proposal Insirucflons and In acco~dahce with the Districts Procurement Code.
CAUTION: No work should beg(n nor costs Incurred associated with the contract prior to the commencement of the protect indicated on the Notice to Proceed issued
after the Notice of ln(enf to Award period has ended. Horry County Schools assumes no liability for the expenses incurred prior to Ihaf commencement dale,
A pre-co~siruction conference may be scheduled by the DistricCs Construction. Management Office prior to the commencement of the protect provided no protesis.are
submitted to the Dfslnct before the prolasi end dale slated above. You are required to execute or have executed and returned to the District tho following documents
no later than the scheduled pre•constructionconference orwithin ten (10) days from the dale of the Notice o/lnfenf fo Award unless otherwise staled;
(2 originals)
AIA Document A14i — 2014
AIA Docwnent A141— 2014 ExMblt A (2 originals)
AIA Document A149 — 2014 Exhibit e (2 originals)
(2 originals)
AlA Document A312 — 2010
Detailed Schedule of Values (CS18reakdown)
Detailed Project Schedule
Copy of the Contractor's business license in (he Jurisdiction where the work is being pe~iormed (If required),
Failure to execute and return the above documents no later than the scheduled pre-construction conference nr within !en (10) days from the date of the Notke of
Intent 10 Award shall Indicate your abandonment of all rights under this Nofice ollnfent fn Award. The District shall be entitled to such other tights as may be granted
bylaw.
NOTICE TO ALL OTHER OFFERORS:
Any Bidder who feels aggrieved because o1 this Notice of Intent to Award has a fight to protest and to present an appeal in accordance with the DistricPs Procurement
Code. Any proses must be submitted to the District's Procurement Ofilcer listed In the Request (or Praposais, in writing.
HORRY COUNTY SCHOOLS
9

8y:

f
.
,

'"~..

Joh .Gardner
~C~ f Financial Office

PAPR - 004569

 ~..

NOTICE OF INTENT TO /AWARD

.K

x7

z~ _Horry County Schools

BID NUMBER:
PROJECT NAME:
1415-91
pesign-Build Delivery of New School Facilities (New Socaslee Elementary School)
INTENT TO AWARD A CONTRACT 70:
INVITATION FOR 81DS GATE:
Firsifloor Energy Positive, LLC
June 24, 2015
333 Fayetteville Slree[, Ste. 225
NOTICE OF INTENT DATE:
PROTEST PERIOD END DATE;
Raleigh, NC 27601
November 3, 2015
November 18, 2015
TOTAL CONTRACT PRICE ACCEPTED BY THE DISTRICT fOR AWARD:

~ 37,953,991.00

NOTICE TO AWARDEE:
Horry County Schools (the District) has considered the bid submitted by the ONeror listed above (or the above described project in response to its Request for
Proposals. That Offeror is, hereby, notified that it is the DislricCs intention to award a contract for the Total contract price indicated above provided that Offeror is
found by the District to meet all requirements ofresponsibility as indicated in the Proposal insln~ctions and in accordance with the Districts Procurement Code.
CAUTION: No work should begin nor costs incurred associated with the contract prior to the commencement of the project indicated on the Notice fo Proceed issued
after the Notice ol6Nent to Award period has ended. Horny County Schools assumes no liability for the expenses incurred prior to that commencement date.
A pre-construction conference may be scheduled by the District's Construc(lon Management Office prior to the commencement of the project provided no protests are
submiried io the District before the protest end date staled above. You are required to execute or have executed and returned to the District the following documents
no later than the scheduled pre-construction conference or within ten (10) days from the date of the Notice of Intent to Awaid unless otherwise stated;
a)
b)
c)
d)
e)
~
g)

AIA Document A141— 2014
(2 originals)
AIA Document A 141— 201~l Exhibit A
(2 originals)
A!A Document X11di — 2014 Exhibit e (2 originals)
(2 originals)
AIA Document A312 — 2010
Detailed Schedule of Values (CSI Breakdown)
Detailed Pro/ect Schedule
Copy of the Contractors business license in the jurisdiction where the work is being perionned (if required).

Failure to execute and return the above documents no later than the scheduled pre-conslruc~ion conference or within ten (10) days from the dale of the Notice o/
Intent to Award shall indlcale your abandonment of Alf rights under this Nollca of Intent fo Award. The District shall be entitled to such other rights as may be granted
bylaw.
NOTICE TO ALL OTHER OFFERORS:
Any Bidder who feels aggrieved because of this Notice of Intent to Awarcl has a right to protest and to present an appeal in accordance with the District's Procurement
Code. Any protest must be submitted to the DisfricPs Procurement O~cer listed in the Request for ProposAls, in writing.
NORRY COUNTY SCHOOLS
~~ i .
John <. Gardner
(
Ch' Financial0(ticer `,~,.

PAPR - 004570

 ~ ~
a:~
~'. ~ ,l
- ~ ~

N~`TIC~ of IN`T~NT T'O RWAF~IJ

!,

i
, r _ ;~

Horry Cnunfy Schools

Blp NUMBER:
1415-91

I PROJECT
I Design-Build Delivery of New School Facilities (New St. James Intermediate School)
INTENT TO AWARD A CONTRACT T0:
INVITATION POR eiDS BATE:
First(loor Energy Positive, LLC
June 24, 2015
333 Fayet(eville Slreel, Sie. 225
PROTEST PERIOD END DATE;
NOTICE OF INTENT DATE:
F2aleigh, NC 27601
November 18; 2015
November 3, 2015
TOTAL CONTRACT PI210E ACCEPTED BY THE DISTRICT FOR AWARD:

$ 47,742,333.00

NOTICE 70 AWARDEE;
Horry County Schools (ihe District) has considered the bid submitted by the Offeror listed above for the above described protect iri response to its Request for
Proposals. That Offeror is, hereby, notified that Il is the DisiricPs intention io award a confraci for the total contract price indicated above provided that Offeror is
found by the District to meet ail requirements of responsibility as indicated In the Proposal Instructions and in accordance with the DisiricCs Procurement Code.
CAUTION: No work should begin nor costs incurred assocEated with the contract prior to the commencement of the pro)eet Indicated on the Notice to Procsed Issued
after the Notice of Intent to Award period has e~lded, Horry County Schools assumes no Ilabilily for the expenses Incurred prior ~o that commencement date,
A pre-consUuclion conference may be scheduled by the DistrfcPs Construction Management Office prior to the commencement of the protect provided no protests are
submitted to the District before the protest end date slated above. You are required fo execute or have executed and relumed to the District the lollowfng documents
no later than the scheduled pre~constructian conference or within ten (10) days from the date of the Nonce of Intent fo Award unless otherxise stated:
(2 originals)
AIA Document Ai41— 2014
(2 originals)
A!A Document A141— 2014 Exhiblf A
AIA Document A141— 2014 Exhfblt B (2 originals)
(2 originals)
AIA Document A312 — 2010
DetaUed Schedule of Values (CS! Breakdown)
Defarled Project Schedule
Copy of the Contractor's business license in the jurisdiction where the work is being performed (if required),
Failure to execute and return !ho above documents no later than the scheduled pre-consiruct(on conference or within ten (10) days from the date of the 'Notice of
lritent to Award shall indicate your abandonment of all rights under this Notice oflnfent to Award. The District shall be entitled to such other rights as may be granted
by law.
NOTICE TO ALL 07H~R OFFERORS:
Any Bidder who feels aggrieved because of this Notice of Intent to Award has a right to protest and to present an appeal in accordance with the District's Procurement
Code, Any protest must be submitted to the I]IstricYs Procuremen(Officer listed In the Request for Proposals, fn writing.
NORRY COUNTY SCHOOLS
~

ey,

A

sy

~-

~

ardner
Joh
Chi F Financial Officer..

PAPR - 004571

 NOTICE OF INTEiVT TO AWARD

~I

~'~'
Horny County Schools

BID NUMBER:
PROJECT NAME:
1415-91
Design-Build Delivery of Ne~v School Facilities (New Socastee Middle School)
INVITATION FOR BIDS DATE:
INTENT TO AWARD A CONTRACT T0:
June 2Q, 2015
Firstiloor Energy Positive, LLC
333 Fayetteville Slreel, Ste. 225
NOTICE OF INTENT DATE:
Raleigh, NC 27601
November 3, 2015
TOTAL CONTRACT PRICE ACCEPTED BY THE DISTRICT FOR AWARD:

PROTEST PERI00 END DATE:
November 18, 2015

5 42,4x8,116:00

NOTICE TO AWARDEE:
Horry County Schools (the Dislrict~ has considered (he bid submitted by the Offeror listed above for the above described project in response to its Request for
Proposals. Thal Offeror is, hereby, notified that it is the District's intention to award a contract for the total contract price indicated above provided that Offeror is
found by the District to meet all requirements of responsibility as indicated in the Proposal InstructJons and iri accordance with the DistricCs Procurement Code.
CAUTION: No work should begin nor costs incurred associated with the contract prior to the commencement of the project indicated on the Notice to Proceed issued
after the Notice of In~enf fo Aviard period has ended. Horry County Schools assumes no liability for the expenses Incurred prior to that commencement date.
A pre-construction conference may be scheduled by the District's Construction Management Once prior to the commencement of the project provided no protests are
submitted to the District before the protest end date staled above, You are required to execute or have executed and returned to the District the following documents
na later than the scheduled pre-construction conference or within ten (10) days from the date of the Notice of lnienf to Award unless otherwise staled:
(Z originals)
AtA Document A 141— 2014
AtA Docurnent A 141— 2014 Exhibit A (2 originals)
AIA bocumenl A141— 2014 Exhibi! 8 (2 originals)
AIA Documanf A312 — 2010
(2 originals)
Detailed Schedule of Values (CSI Breakdown)
Defalled Projact Schedule
Copy of the Contractor's business license in the jutisdiclion where the work is being performed (if required.
Failure to execute and return the above documents no later than Ilse scheduled pre-construction conference or within ten (10) days from the date of the Plolice of
Intent to Award shall Indicate your abandonment of all rights undor this hlotice o/lnlen~ to Award. The District shall be entitled to such other rights as may be granted
bylaw.
NOTICE TO ALL OTHER OFFERORS;
Any Bidder who feels aggrieved because of Ihis Notice ollntent to Award has a right to protest and to present an appeal in accordance with the District's Procurement
Code. Any protest must be submitted to the District's Procurement Officer listed in the Request for Proposals, in writing.
HOI2RY COUNTY SCHOOLS
By:

t✓~_
John K. Gardner
Chi FinancialOf(icer

PAPR - 004572

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Thursday, December 03, 2015 4:08 PM
Keifih R. Powell
horry

Follow Up Flag:
Flag Status:

Follow up
Flagged

We had a great meeting with HCS yesterday...The staff was amazing and Mark is on it.

Robert W. Ferris, AIA, REFP, LEED AP
CFO/President
5fL+a Architects
333 Fayetteville Street, Suite 225
Raleigh, NC 27641
Cell: 919.610.2251
Fax: 914.573.6355
rferrisC~sfla.biz
www.sfla.biz

"I'd put my money on solar energy... I hope we don't have to wait till oil and coal run out before we tackle that." Thomas
Edison, in conversation with Henry Ford and Harvey Firestone, March 1931.

i
PAPR - 004573

 Sheri L. Wainscott
From:
Sent:
To:
Cc:
Subject:

Keith R. Powell
Tuesday, December 22, 2015 12:43 PM
Clark, Brad
rferris@sfla.biz
RE: IRF Builder's Risk Policy for HCS project

Follow Up Flag:
Flag Status:

Follow up
Flagged

will hunt in my e-mail archives today. If I don't have what you need, the district will have to help us when they re-open.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosabie and protected by attorneyclient privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy or distribute
the accompanying material. If you receive this message in error, please notify us by telephone as listed above
immediately.

-----Original Message----From: Clark, Brad [mailto:Brad.Clark(a,BBandT.com]
Sent: Tuesday, December 22, 2015 9:14 AM
To: Keith R. Powell
Cc: rferris(a.sfia.biz
Subject: IRF Builder's Risk Policy for HCS project
Keith,
Do you have the policy yet from the IRF that specifically covers the five schools that will be built by Firstfloor Energy
Positive? I need the actual policy, not the overview of coverage or specimen form.
need the policy in order to obtain formal terms on the Difference in Conditions policy that we need to place in order to
address the gaps on the IRF policy.
Thank you,
Brad Clark
919.281.4545 direct
678.612.7403 mobile

The information in this transmission may contain proprietary and non-public information of BB&T or its affiliates and may
be subject to protection under the law. The message is intended for the sole use of the individual or entity to which it is
addressed. If you are not the intended recipient, you are notified that any use, distribution or copying of the message is
strictly prohibited. If you received this message in error, please delete the material from your system without reading the
content and notify the sender immediately of the inadvertent transmission.

PAPR - 004574

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Keith R. Powell
Wednesday, December 23, 2015 1:24 PM
Clark, Brad; Robbie Ferris (RFerris@sfla.biz); greg.a Jones@wellsfarga.com
FW: HCS ~ Exhibit B
Architect Fees Limitations,pdfi Builder's Risk Policy Info.pdf; Causes of Loss Earthquake.pdf; Causes of Loss.pdf; Endorsement Clauses - Certificates.pdf; Flood
Insurance.pdf; SC Changes - Valuation.pdf

Follow Up Flag:
Flag Status:

Follow up
Flagged

Brad —Per your inquiry, this is what I have. I hope it contains what you are looking for. I imagine that Greg Jones has
the best answers to any questions you have about the HCS's IRF policies.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-hallfgan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-dlsclosable and protected by attorneyclient privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us bytelephone as listed above immediately.

1
PAPR - 004575

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1'()S'1' OIL!! I( 1~; C3U4 7706(
C<)LU1~tI3fA, SOU't'13 Ci1RC)[,1[vA 92(1
Phonc: (SU3) 737-0020

ARCHITECT FEES LIMITATIONS
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY
This endorsement modifies insurance provided under the (ollowinc~:
BUILDING AND PERSONAL. COVERAGE FORM
BUILDERS RISK COVERAGE FORM
With respect to PD 05 01 01 Section C. Limitations, the following Is added:
6. The payment of architecCs fees to include plans and specifications, enginoerfng studies and supervision of construction is
limited to losses greater than $100,000 in total project cost.

INSURANCE RESERVE FUND

By

`

__!.~G~~~~
Director

i~un i uot>

P~~ctL; I c)F 1

PAPR - 004576

 POLICYHC?LDER'S MANUAL
ALL LINES

STATE FISCAL ACCOUNTABILITY AUTHORITY
INSURANCE RESERVE FUND
POST OFFLCE BOX 11066
1201 MAIN STREET -SUITE 500
COLUMBIA, SOUTH CAROLINA 29201
PHONE NUMBER (MAIN)
803-737-0020

FAX NUMBERS
803-737 0393 -Underwriting
803-737-3757 -Medical Professional Liability
803-737-0042 -Claims
July 2015 (REV.)

July 2015

PAPR - 004577

 i.

"Business income" means net income that would have been earned or
incurred or continuing normal operating expenses.

ii. "E~ctra expense" means the additional expenses that are necessary to avoid
or minimize the interruption of business.
b. ADDITIONAL COVERAGES INCLUDE:
"Civil authority" applies to the extra expense caused by a civil authority
prohibiting access to the damaged property.
"Alterations and new buildings" applies to new structures or alterations and
begins on the date that operations would have begun except for the occurrence
of the loss.
"Extended business income" applies to additional loss of business income after
property is actually repaired and operations are resumed, until the business can
be restored, with reasonable speed, to the condition that would have existed had
no loss occurred.
6. BUILDER'S RISK (Form PD23 01-91)
a. COVERAGE: The Fund will pay for direct physical loss of or damage to covered
roe unless excluded or limited. Coverage is written on a replacement cost
basis with a 100% coinsurance clause. A standard $1,000 deductible applies to
each occurrence.
i.

"Covered property" includes the structure under construction, foundations,
and, if intended to become a permanent part of the structure, fixtures,
machinery, equipment, building materials and supplies within 100 feet of the
premises.

ii. uProperty not covered" includes land, lawns, trees, shrubs and plants, radio
and television antennas, and signs not attached to buildings.
b. ADDITIONAL COVERAGES INCLUDE:
"Debris removal" applies to the expenses incurred in cleaning up covered
property after a covered cause of loss, up to 25% of the direct physical loss.
"Preservation of property" applies to property moved from an insured location for
protection from loss by a covered peril.
NF1re department service charge" applies to service charges accessed by a fire
department, up to $1,000.
uPollutant clean up and removal" applies to expenses incurred to extract
pollutants from land or water at a covered location, if the discharge is caused by
or results from a covered cause of loss, up to $10,400.

D
July 2015

PAPR - 004578

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5~'~'~'~+; I'~~~1~~ t-~.~C~~iJl~1~'1-~~l~1i'~'~ h.~J'I'lE~~l[~'I'°~'
lf~,S~iiR:~I~C i~, I21;SP~,R'4'T; C~'i1NT?
t'QS`l'(?l~i'tCM~; 130k~11UGC
E:OLL)~1~I131A, 5OL7'II t.'AId(?I,11~7r1:29~T l

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]'iitmc: (3O3j 737-0030

BUILDERS RISK COVERAGE FORM
Various provisions in this policy restrict coverage. Road the entire policy carefully to determine rights, duties and what is and is nol
covered.
Throughout this policy, the words, "you" and "your" refer to Named Insured shown in the Declarations. The words "we", "us" and "our"
refer to the Insurance Resorve Fund,
Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION G -DEFINITIONS.
a 'Covered Cause of Loss that occurs during
A. COVERAGE
the policy period, The expenses will be paid
only if they are reported to us In writing within
We will pay (or direct physical loss or damage to Covered
18~ days of the earlier of:
Property at the premises described in the Declarations caused
by or resulting from any Covered Cause of Loss.
of direct physical loss or
1. Covered Property
(a~ damagetor
Covered Property, as used in this Coverage Part,
means the following type of property for which a Limit of
Insurance is shown In iho Declarations;
Building Under Construction, meaning lho building or
structure described in the Declarations while In the
course of construction, including:
a.

Foundations;

b. If intended to become a permanent part of the
building or structure described in the Declarations,
the following property located in or on the building
or structure or within 100 feet of Its premises:
(1) Fixtures, machinery and equipment used to
service the building; and
(2) Your building materials and supplies used for
construction;
c.

2.

If not covered by other Insurance, temporary
structures built or assembled on site, including
cribbing, scaffolding and construction forms.

a.

Land (including land on which the property is
located) or water;

b.

The following property when outside of buildings:
(1) Lawns, trees, shrubs or plants:
(2) Radio or television antennas, including their
lead-in wiring, masts or towers; or
(3) Signs (other ihai7 signs attached to buildings).

Covered Causes of Loss
See applicable Causes of Loss Form as shown iii the
Declarations.

4.

1' I )? 3 1 I /9 i)

(2) The most we will pay under this Additional
Coverage is 25% of:
(a) The amount we pay for the direct physical
loss of or damage to Covered Property;
plus
(b) The deductible in this policy applicable to
that loss or damage.
But this limitation does not apply to any
additional debris removal limit provided in the
Limits of Insurance section.
(3) This Additional Coverage does not apply to
cosis to:
(a) Extracts "pollutants" from land or water; or
(b) Remove, restore or replace polluted land
or water.
b. Preservation of Property

Property Not Covered
Covered Property does not include:

3.

(b) Tlie end of the policy period.

If it is necessary to move Covered Property from
the described premises to preserve it from loss or
damage bX a Covered Cause of Loss, we will pay
for any direct physical loss or damage to that
properly:
(1) While fl (s being moved or while temporarily
stored at another location; and
(2) Oniy of the loss or damage occurs within 10
days after the properly is first moved.
c. Fire Department Service Charge
When the fire department is called to save or
protect Covered Property from a Covered Cause of
Loss, we will pay up to $1,000 for your liability for
fire department service charges:

Additional Coverages

(1) Assumed by contract or agreement prior to
loss; or

a.

Debris Removal

(2) Required by local ordinance.

(1) We will pay your expense to remove debris of
Covered Properly caused by or resulting from

No deductible applies to this Additional Coverage.

Copprighl, ISQ Comurerci.il Rixl< Scr~9ccti, Dic., 11N3, 19$7

I'~1G L: I OIL A

PAPR - 004579

 d. Pollutant Clean Up and Removal
We will pay your expense to extract "pollutants"
from land or water at the described premises if
the release, discharge or dispersal of the
pollutants" Is caused by or results from a
Covered Cause of Loss that occurs during the
policy period. The expenses will be paid only if
they are reported to us in writing within 180
days of the earlier of:

b.

we will pay up to an Additional $5,000 for each
location (n an}~ one occurrence under the Debris
Removal Additional Coverage.
D. DERUCTIBLE
We will not pay for loss or damage In any one
occurrence until the amount of loss or damage
exceeds the Deductible shown En the Declarations.
We will then pay the amount of loss or damage In
excess of the Deductible, up to the applicable Limit
of Insurance.

(1) The date of direct physical foss or damage;
or
(2) 7'he end of the policy period.
The most we will pay for each location under
this Additional Coverage is $10,000 for the sum
of all such expenses arising out of Covered
Causes of Loss occurring during each separate
72 month period of this policy.
5.

Building Materials and Supplies of Others

E.

LOSS CONDITIONS
The follawing conditions apply in addition to the
Common Policy Conditions and the Commercial
Property Conditions.
1.

a.

You may extend the insurance provided by this
Goverage Form to apply to building materials
and supplies that are:

(2) In your care, custody or control;

Appraisal
If we and you disagree on the value of the
praperty or the amount of loss, either may
make written demand for an appraisal of the
loss. In this event, each party will select a
competent and impartial appraiser. The two
appraisers will select an umpire, If they cannot
agree, either may request that selection be
made by a judge of a court having jurisdiction.
The appraisers will state separately the value of
the property and amount of loss. If they fail to
agree, they will submit their differences to the
umpire. A decision agreed to by any two will be
binding. Each party will:

(3) Located in or on the building described in
the Declarations, or within 100 feet of its
premises; and
(4) Intended to become a permanent part of
the building.
b.

Abandonment
There can be no abandonment of any property
to us.

2.

(1) Owned by others;

The debris removal expense exceeds the
amount payable under the 25% limitation in the
Debris Removal Additional Coverage;

The most we will pay for loss or damage under
this Extension is X2,500 at each described
premises. Our payment for loss of or damage to
property of others will only be for the account of
the owner of the property.

This Extension is additEonal Insurance.

a.

Pay its chosen appraiser; and

b.

Bear the other expenses of the appraisal
and the umpire equally.

B. EJCCLUSIONS

If there is an appraisal, we will still retain our
right to deny the claim.

See applicable Cause of Loss Form as shown in the
Declarations
3.

C. LIMITS OF INSURANCE
The most we will pay for loss or damage in any one
occurrence is the applicable Limit of Insurance shown in
the Declarations.

Dunes In The Event oT Loss or Damage
You must see that the following are done in the
event of loss or damage to Covered Property:
a.

Notify the police if a law may have been
broken.

b.

lYie limits applicable to the Coverage Extension and the
Fire Department Service Charge and Pollutant C(ean Up
and Removal Additional Coverages are in addition to the
limits of Insurance.

Give us prompt not(ce of the loss or
damage. Include a description of the
property involved.

c.

As soon as possible, give us a description
of how, when and where the loss or
damage occurred.

Payments under the following Additional Coverages will
not increase the applicable Limit of Insurance:

d.

lake all reasonable steps to protect the
Covered Property from further damage by
a Covered Cause of Loss. If feasible, set
the damaged property aside and in the
best possible order for examination, Also
keep a record of your expenses for
emergency and temporary repairs, for
consideration in the settlement of the
claim. This will not increase the Limit of
Insurance.

The most we will pay for loss or damage to outdoor
signs attached to buildings is $1,000 per sign in any one
occurrence.

1.

Preservation of Property; or

2.

Debris Removal; but if:
a.

PD23 (1/91)

The sum of d(rect physical loss or damage and
debris removal expense exceeds the Lim(t of
Insurance; or

Copyright, iS0 Commercial Rfsk Services, Inc., 1983, 1987

PAGE: 2 OF 4

PAPR - 004580

 e.

f.

5. Recovered Property

At our request, give us complete inventories of
the damaged and undamaged property. Include
quantities, costs, values and amount of loss
claimed.

If either you or we recover any property after loss
settlement, that party must give the other prompt
notice. At your option, the property wlli be returned
to you. You must then return to us the amount we
paid to you for the property, We will Pay recovery
expenses and the expenses to repair the recovered
property, subject to the Limit of Insurance.

Permit us to inspect the property and records
proving the loss or damage.
Also permit us to take samples of damaged
property for inspection, testing and analys(s.

g.

h.

i.

If requested, permit us to question you under
oath at such times as may be reasonably
required about any matter relating to this
insurance or your claim, including your books
and records. In such event, your answers must
be signed.
Send us a signed, sworn statement of loss
containing the information we request to
investigate the claim. You must do this within
60 days after our request. We will supply ypu
with the necessary forms.
Cooperate with us in the investigation or
settlement of the claim,

6.

Valuation
We will determine the value of Covered Property at
actual cash value as of the time of loss or damage.

F.

ADDITIONAL CONDITIONS
The following conditions apply in addition to the
Common Policy Conditions and the Commercial
Property Conditions.
1.

Mortgage Holders
a.

The term "mortgage holder" includes trustee.

b.

We will pay for covered loss of or damage to
buildings or structures to each mortgage holder
shown in the Declarations in their order of
precedence, as interests may be appear.

c.

The mortgage holder has the right to receive
loss payment even if the mortgage holder has
started foreclosure or similar action on the
building or structure.

d.

If we deny your claim because of your acts or
because you have failed to comply with the
terms of this Coverage Part, the mortgage
holder will still have the right to receive loss
payment if the mortgage holder:

4. Loss Payment
a.

In the event of loss or damage covered by this
Coverage Form, at our option, we will either:
(1) Pay the value of lost or damaged property;
(2) Pay the cost of repairing or replacing the
lost or damaged property;
(8) Take all or any part of the property at an
agreed or appraised value; or
(4) Repair, rebuild or replace the property with
other property of like kind and quality.

b.

We will give notice of our Intentions within 30
days after we receive the sworn statement of
loss.

c.

We will not pay you more than your financial
interest in the Covered Property.

d.

We may adjust losses with the owners of lost or
damaged property if other than you. !f we pay
the owners, such payments will satisfy your
claims against us for the owners' property. We
will not pay the owners more than their financial
interests in the Covered Property.

e.

We may elect to defend you against suits
arising from claims of owners of property. We
will do this at our expense.

f.

We will pay for covered loss or damage within
30 days after we receive the sworn statement
of loss, if:
(1) You have compIled with all of the terms of
this Coverage Parl; and
(2) (a) We have reached agreement with
you on the amount of loss; or
(b) An appraisal award has been made.

PD23 (1/91)

(1) Pays any premium due under this
Coverage Part at our request if you have
failed to do so;
(2) Submits a signed, sworn statement of loss
within 60 days after receiving notice from
us of your failure to do so; and
(3) Has notified us of any change in
ownership, occupancy ar substantial
change in risk known to the mortgage
holder.
Ail of the terms of this Coverage Part will then
apply directly to the mortgage holder.
e.

If we pay the mortgage holder for any loss ar
damage and deny payment to you because of
your acts or because you have failed to comply
with the terms of this Coverage Part:
(1) The mortgage holder's rights under the
mortgage will be transferred to us to the
extent of the amount we pay; and
(2) The mortgage holder's right to recover the
full amount of the mortgage holder's claim
will not be Impaired.
At our option, we may pay to the mortgage
holder the whole principal on the mortgage plus
any accrued interest. In this event your
mortgage and note will be transferred to us and
you will pay your remaining mortgage debt to
us.

Copyright, ISO Commerclul RLsk Services, Inc., 1983, 1987

PAGE: 3 OF 4

PAPR - 004581

 f.

If we cancel this policy, we will give written
notice to the mortgage holder at least:

3.

If the Additional Coverage -Collapse is included in
the Causes of Loss Forrn applicable to this
coverage form, paragraph 6 of that Additional
Coverage does not apply to this coverage form.

(1) 10 days before the effective date of
cancellation if we cancel for your
non-payment of premium; or
(2} 30 days before the effective date of
cancellation if we cancel for any other
reason.
g.

2.

4.

Need For Adequate Insurance

5. When Coverage Ceases
The insurance provided by this Coverage Form will
end when one of the following first occurs:

Example No. 1 (Underinsurance):
When: The value of the building
on the date of completion is
The Limit of Insurance for it is
The Deductible is
The amount of loss is

a.

This policy expires or is cancelled;

$200,000

b.

The property is accepted by the purchaser;

$100,000

c.

Your interest in the property ceases;

$250

d.

You abandon the construction with no intention
to complete it;

e.

Unless we specify otherwise in writing:

$80,000

Step 1: $100,000 / $200,000 = .50

(i) 90 days after construction is complete; or

Step 2: $50,000 x .50 = $40,000

(2) When any building described In the
Declarations is:

Step 3: $40,000 - $250 = $39,750

(a) Occupied in whole or in part; or

We will pay no more than $39,75Q. The remaining
$A0,250 is not covered.
Example No. 2 (Adequate Insurance):
When: The value of the building
on the date of completion is
The Limit of Insurance for It is

The amount of loss is

(b) Put to its intended use.
G. DEFINITIONS

$200,000
$200,000
$250

The Deductible is

Waiver of Rights of Recovery Against Others
You may not waive your rights to recover damages
from an architect, engineer yr building trades
contractor or subcontractor with respect to the
described premises except as agreed to In writing
by us. This provision supersedes any provisions to
the contrary m the TRANSFER OF RIGHTS OF
RECOVERY AGAINST OTHERS TO US
Commercial Property Condition.

If we elect not to renew this policy, we will give
written notice to the mortgage holder at least 10
days before the expiration date of this policy.

We will not pay a greater share of any loss than the
proportion that the Limit of Insurance bears to the
value on the date of Completion of the building
described in the Declarations.

Restriction of Additional Coverage -Collapse

"Pollutants" means any solid, liquid, gaseous or thermal
irritant or contaminant, Including smoke, vapor, soot,
fumes, acids, alkalis, chemicals, and waste. Waste
includes materials to be recycled, reconditioned or
reclaimed.

$SO,000

Step 1: $200,000 / $200,000 = 1.00
Step 2: $80,000 x 1.00 = $80,000
Step 3: $80,000 - $250 = $79,750
We will cover the $79,750 loss in excess of the
Deductible. No penalty applies.

►NSURANCE RESERVE FUND

By
Director

PD23 (U91)

Copyright' T50 Commerc{al RLck Services, Inc.,1983,1987

PAGE: 4 OF 4

PAPR - 004582

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COMMON P~L.ICY CONDMTIDNS
All Coverage Parts included in this policy are subject to the following condiilons.
1. Are safe or healthful; or

A. Cancellation and Non-Renewal
1.

The first Named Insured shown In the Declaration may
cancel this policy by ma(Iing to the Insurance Reserve
Fund a 90 day written advance notice stating when
thereafter the cancellation shall be effective. A political
subdivision may cancel all policies with the Insurance
Reserve Fund by mailing to the Fund a 90 day written
advance notice as provided in §15-78-140 of the South
Carolina Code of Laws.

2, Comply with laws, regulations, codes or standards.
Th(s condition applies not only to us, but also to any
rating advisory, rate service or similar organization,
which makes insurance inspections, surveys, reports or
recommendations.
E. Premiums

2. The Insurance Reserve Fund may cancel this policy for
nonpayment of premium by maiUng a not(ce of
cancellation giving not less than 30 days notice of the
cancellation as provided In §15-78-160 of the South
Carolina Code of Laws.
3. If this policy is cancelled in accordance with (i) or (2)
above, earned premium shall be computed in
accordance with the customary short rate table and
procedure. Premium adjustment may bo made either at
the time cancellation is effected or as soon as
practicable after cancellation becomes effective, but
payment or tender ofunearned premium is not a
condition of cancellation,

The first named insured shown In the Declarations:
1. Is responsible for the payment of all premiums; and
2. Will be the payee for any return premiums we pay.
F. Transfer of Your Rights And Duties Under This

Policy

Yaur rights and duties under this policy may not be
transferred without our written consent except In the
case of death of an Individual named insured.
If you die, your rights will be transferred to your legal
representative but only while acting within the scope of
duties as your legal representative. Until your legal
representative is appointed, anyono hav(ng proper
temporary custody of your property will have your rights
and duties but only with respect to that property.

4. For 'the purposes of this pol(cy, the term non-renewal
shall mean cancellation it the Insured is ceasing all
coverages with the Insurance Reserve Fund and
conditions as provided in sections (1), (2) and (3) apply,
B, Changes
This policy contains all the agreements belwee~ you and
us concerning the insurance afforded, The first Name
insured shown (n the Declarations is authorized to make
changes in the terms of this policy with our consent.Thls
policy's terms can be amended or waived only by
endorsement issued by us and made a part of this
policy.
C. Examination of Your Books and Records

INSURAN E RESERVE FUND

By

We may examine and audit your books and records as
they relate to this policy at any time during the policy
period and up to three years afterward.

Director

D. Inspections and Surveys
We have the right but are not obligated to:
1. Make Inspections and surveys at any time;
2. Give you reports an the conditions we find; and
3. Recommend changes.
Any inspections, surveys, reports or recommendations
relate only to insurability and the premiums to be
charged. We do not make safety Inspections. We do not
undertake to perform the duty of any person or
organ(zatfon to provide for the health or safety of
workers or the public. And we do not warrant that
conditions:

root cun>>

Cuprrl}~h6 Cnxuraucc `urt~ircy Ufllcc, Inc 19R?J'J83

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PAPR - 004583

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C'Itunc: ~tiO3) 737~11p?0

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COMMERCIAL PROPERTY CONDITIONS
This Coverage Part is subject to the following conditions, the Common Policy Conditions and appi(cable Loss Conditions and
Additional Conditions in Commercial Property Coverage Forms.

A. CONCEALMENT, MISREPRESENTATION, Ofi FRAUD

G. OTHER INSURANCE

This Coverage Part Is void in any case of fraud by you
as it relates to this Coverage Part at any time. It is also
void if you or any other insured, at any time, intentionally
conceal or misrepresent a material fact concerning.
1. This Coverage Pari;
2. The Covered Property;
3. Your interest in the Covered Property; or
4. A claim under this Coverage Part.

1.

You may have other insurance subject to the same
flan, berms, conditions and previsions as the
insurance under this Coverage Part. If you do, we
will pay our share of the covered Toss or damage.
Qur share Is the proportion that the applicable Limit
of Insurance under this Coverage Part bears to the
Limits of Insurance of all Insurance covering on the
same basis.

2.

If there is other insurance covering the same loss or
damage, other than that described in 1. above, we
will pay only for the amount of covered loss or
damage in excess of the amount due from that other
insurance, whether you can collect an it or not. But
we will not pay mare that the applicable Limit of
Insurance.

B. CONTROL OF PROPERTY
Any act or neglect of any person other than you beyond
your direction or control will not affect this insurance.
The breach of any condition of this Coverage Part at any
one or more locations will not affect coverage at any
location where, al the time of loss or damage, the breach
of condition does not exist.

H. POLICY PERIOD, COVERAGE TERRITORY
Under this Coverage Part:

C. INSURANCE UNDER TWO OR MORE COVERAGES

1.

if two or more of this policy's coverages apply io the
same loss or damage, we will not pay more than the
actual amount of the loss or damage.
p. ILI..EGAL ACTION AGAINST US
2.

No one may bring a legal action against us under this
Coverage Part unless:
1.

There has been full compliance with all of the terms
of this Coverage Part; and

2,

The action is brought within 2 years after the date
on which the direct physical loss or damage
occurred.
I.

E. LIBERALIZATION
I( we adopt any revision that would broaden the
coverage under this Coverage Part without additional
premium within 45 days prior to or during the policy
period, the broadened
coverage will immediately
apply to this Coverage Part.
F.

NO BENHFIT TO BAILEE

We cover loss or damage commencing;
a.

During the policy period
Declarations; and

b.

Within the coverage territory.

shown in the

The coverage territory is:
a.

The United Stales of America (including its
torritor(es and possessions);

b.

Puerto Rico; and

c,

Canada.

TRANSFER OF RIGHTS QF RECOVERY AGAINST
OTHER TO US
if any person or organization to or for whom we male
payment under this Coverage Part has rights to recover
damages from another, those rights are transferred to us
to the extent of our payment.That person or organization
must do everything necessary to secure our rights and
must do nothing after loss to impair them.

No person or organization, other than you, having
custody of Covered Property will benefit from this
insurance.

INSURANCE RESERVE FUND

By
Director

I'I)U:i (ll!1„)

<.:op~'ri~,hl, ltiU Cnnw~erci;d 12is1: ti er~9ces, Inc., 19Ki. 19li7

D:1CIi: I UI~

PAPR - 004584

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CAUSES OF LOSS -EARTHQUAKE FORM
COMMERCIAL PROPERTY
TNIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
2. We will not pay for loss or damage caused by or
resulting from:

A. COVERED CAUSES OF LOSS
When Earthquake is shown in the Declarations, Covered
Causos of Loss means the following:
1.
2.
i

a.

Earthquake.
Volcanic eruption, meaning the eruption, explos(on or
effusion of a volcano.

b. Fire, explosion (other than volcanic explosion),
landslide, mine subsidence, tidal wave, flood,
mudslide or mudfiow, even if attributable to an
Earthquake or Volcanic Eruption.

All Earthquake shocks or Volcanic Eruptions that occur
within any 168-hour period will constitute a sin le
Earthquake or Volcanic Eruption.The expiration of this poi~cy
will not reduce the 168-hour period.
B. EXCLUSIONS
1,

c.
3,

We will not pay for loss or damage caused directly or
indirectly by any of the following. Such loss or damage
is excluded regardless of any other cause or event that
contributes concurrently or in any sequence to the loss.
a. Ordinance or Law
The enforcement of any ordinance or law:

(2) Requiring the tearing down of any property,
including the cost of removing its debris.

Seizure or destruction of properly by order of
governmental authority.

Power Failure
The failure of power or other utility service supplied
to the described premises, however caused, if the
failure occurs away from the described premisos.
Bul if the loss or damage by a Covered Cause of
Loss results, we will pay for that resulting or
damage.
War and Military Action
(1)

War, including undeclared or civil war

(2) Warlf{<e action by a military force, including
action in hindering or defending against an
actual or expected attack, by any c~overnmeni,
soveroic~n or other authority using military

personnel or other agents; or

3) Insurrection, rebellion revolution, usurped
power, ar action taken b~+ c~overnmcnl
authority in hindering or defending against any
otthese.
Pula (1/')1)

Tho following provisions apply only to the specified
Coverage Forms.
a.

Business Income (And Extra Expense) Coverage
Form, Business Income (Without Extra Expense)
Coverage Form, or Extra Expense Coverage Form

(1) Any loss caused by or resulting from:
(a) Damage or destruction of "fin(shed stock";
or

Thfs exclusion does not apply to Extra
Expense.

Nuclear I-Lazard
Nuclear reaction or radiation, or radioactive
contamination, however caused.

e.

Special Exclusions

(b) The time required to reproduce "finished
stock".

b. Governmental Action

d.

Any Earthquake or Volcanic Eruption that begins
beforo the Inception of this insurance.

We will not pay for:

(1) Regulating the construction, use or repair of
any property; or

c.

Artificially generated electrical current, including
electric arcing, that disturbs electrical devices,
appliances or wires.

Copy~ri~h~ ISO ~;1/1L1111'1'CILI~

IZItiIi Sl`I'\'Iccy~

(2) Any loss caused by or resulting from diroct
physical loss or damage to •radio or television
antennas, including their lead-in wiring, masts
or towers.
(3) Any. increase of loss caused by or resulting
from:
(a) Delay In rebuilding, repairing or replacing
the property or resuming Uoperations4, due
to interference at the location of the
rebuilding, repair or replacement by
strikers or other persons; or
(b) Suspension, lapse or cancellation of any
license, lease or contract. But if the
suspension, lase or cancellation is
directly caused by the suspension of
operations' , we will cover such loss that
affects your Business Income during the
"period of restoration".
(4) Any Extra Expense caused by or resulting
from suspension, Iapse or cancellation of any
license, lease or contract beyond the "period
of restoration".
Inc.,l'J83~ 1<)87

P.1CL; I (.)(~ 2

PAPR - 004585

 (5) Any other consequential loss.

The Deductible, if any, in this Coverage Part is replaced
by the following with respect to Earthquake and
Volcanic Eruption;

b. Leasehold Interest Coverage Form
(1) Paragraph B.1.a. Ordinance or Law, does not
apply to insurance under this Coverage Form.

We will subtract a sum from the amount of foss or
damage in any one occurrence.

(2) We will not pay for any loss caused by:

a.

The sum we subtract from each separate item will
be a percentage of its value, The applicable
percentage is shown in the Declarations.

b.

This Deductible applies separately to the totlowing:

(a) Your canceling the lease;
(b) The suspension, lapse or cancellation of
any license; or

(1) Each building or structure;

(c) Any other consequential loss.
c.

(2) The contents of each building or structure; and

Legal Liability Coverage Form
(1} The following Exctuslons do not apply to insurance
under this Coverage Form.

(3) Personal property in the open.
Example:

(a) Paragraph B.i.a,, Ordinance or Law;

When: The value of the property Js $100,000

(b) Paragraph B.i.b., Governmental Action;
(c) Paragraph B.1.c., Nuclear Hazard

The Earthquake Deductible is 5%
The amount of loss is $20,000

(d) Paragraph B.i.d., Power Failure; and

Step (a): $100,000 x 5% _ $5,000

(e} Paragraph 8.1.e, War and Military Action.

Step (b): $20,000 - $5,000 = $15,000
The most we will pay is $15,000. The remaining
$5,000 is not covered because of the Deductible.

(2) Contractual Liability
We will not defend any claim or "suit," or pay
damages that you are legally liable to pay, solely
by reason of your assumption of liability m a
contract or agreement.

2.

(1) Business Income (And Extra Expense) Coverage
Form;

(3) Nuclear Hazard

(2) Business Income
Coverage Form;

We will not defend any claim or "suit," or pay any
damages, loss, expense or obligation, resulting
from nuclear reaction or radiation, or radioactive
contamination, however caused.

2,

The Additional Condition, Coinsurance, applicable to
this Coverage Pari.

Extra

Expense)

We will only pay for loss you sustain after the first 168
hours after direct physical loss or damage caused by or
resulting from Earthquake or Volcanic Eruption,

We will not pay for loss of or damage to exterior masonry
veneer (except stucco) on wood frame walls caused by or
resulting from Earthquake or Volcanic Eruption. The value of
such veneer will not be included in the value of Covered
Property or the amount of loss when applying:
The Deductible applicable to this form; or

{Without

(3) Extra Expense Coverage Form

C. LIMITATION

1.

Applicable to the following Coverage Forms:

This Deductible is applicable only to buildings over 4
stories in height.

INSURANCE RESERVE FUND

By

This limitation does not apply if:
a.

The Premises description in the Declarations
spectficaily states "Including Masonry Veneer"; or

b.

Less than 10% of the total outside wall area is
faced with masonry veneer (excluding stucco).

Director

D. DEDUCTIBLE
1.

The following is applicable to all Coverage Forms
except:

(1) Business Income (And Extra Expense) Coverage Form;
(2) Business Income (Without Extra Expense) Coverage
Form;
(3) Extra Expense Coverage Form,

PD10 (1191)

C oyr(gt~t, IS0 Commercial R1skServices, Inc., 1983, 1987

PACE: Z OT 2

PAPR - 004586

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I➢hone: (5113j 737-0020

CAUSES OF LOSS ~ SPECIAL FORM
',

Words and phrases that appear in quotation marls have special meaning. Refer to Section F -Definitions.
A. COVERED CAUSES OF LOSS
(a) Airborne volcanic blast or airborne shock
waves;

When Special fs shown In the Declarations, Covered Causes
of Loss moans RISKS OF DIRECT PHYSICAL LOSS unless
the loss Is:

B.

(b)

Ash, dust or particulate matter or;

1. Excluded in Section B., Exclusions; or

(c) Lava flow.

2. Limited in Section C., Limitations; that follow.

All volcanic eruptions that occur within any
168-hour period will constitute a single
occurrence.

EXCLUSIONS
1.

Volcanic action does nat include the cost fo
remove ash, dust or particulate matter that
does not cause direct physical loss or damage
to the described property.

We will not pay for loss or damage caused diroctly or
indirectly by any of the following. Such loss or damage
is excluded regardless of any other cause or event that
contributes eoncurrenlly or fn any sequence.to the loss.
a.

c.

Ordinance or Law

Seizure or destruction of property by order of
governmental authority.

The enforcement.of any ordinance or law:
(1) Regulating construction, use or repair of any
property; or

But we will pay for loss or damage caused by or
resulting from .acts of destruction ordered by
governmental authority and taken at the time of a
(ire to prevent Its spread, if the fire would be
covered under this Coverage Part.

(2) Requiring the tearing down of any property,
including the cost of removing its debris.
This exclusion, Ordinance or Law, appfles whether
the loss results from:

d.

b.

e.

Utility Services

Earth Movement

The failure of power or other utility service supplied
to the described premises, however caused, if the
failure occurs away from the described promises.

(1) Any earth movement (other than sinkholo
collapse), such as an earth9uake, landslide,
mine subsidence or earth sink(ng, rising or
shifting. But if earth movement results in fire
or explosion, we will pay for the loss or
damage caused by that fire or explosion.

but if the failure of power or other ulilitY service
results in a Covered Cause of Loss, we wUl pay for
the loss or damage caused by that Covered Cause
of Loss.

(2) Volcanic eruption, explosion or effusion. But if
volcanic eruption, explosion or o(fusion resuils
in fire, bu(Iding glass breakage or Volcanic
Action, we will pay for the loss or damago
caused by that fire, building glass breal<age or
Volcanic Action.
Volcanic action means direct loss or damage
resulting from the eruption of a volcano when
the loss or damage is caused by:

PpOj f7/I)S1

Nuclear Hazard
Nuclear reaction or radiation, or radioactive
contamination, however caused. But if nuclear
reaction or radiation, or rad(oactive contamination
results in fire, we will pay for the loss or damage
caused by that fire.

(1) An ordinance or law that is enforced even Ii
the property has not been damaged; or
(2) The increased costs incurred to comply with
an ordinance or law in the course of
construction, repair, renovation, remodeling or
demolition of property, or removal of its debris,
following a physical loss to that property.

Governmental Action

This exclusion does not apply to the Business
Income coverago or, to the Extra Expenso
coverage. Instead, the Special Exclusion In
paragraph B.4.a.(1) applies to theso coverages.
f.

War and Military Action
(7) War, including undeclared or civil war;
(2) Warlike action by a military force, including
action in hindering or defending against an
actual or expected attack by any goveiYiment,
sovereign or other authority using military
personnel or other agents; or

Cop}'right, ItiQ Cnmmerc3nl Rlsl. Services, inc., I)')A

1'hGL: l U4

PAPR - 004587

 But if an excluded cause of loss that is listed in 2.d.
(1) through (7) results in a "specified cause of
loss" or building glass breakage, we will pay for the
loss or damage caused by that "specified cause of
loss" or building glass breakage

(3) Insurrection, rebellion, revolution, usurped
power, or action taken by governmental
authority in hindering or defending against any
of these,
g. Water
(1) Flood, surface water, waves, tides, tidal
waves, overflow of any body of water, or their
spray, all whether driven by wind or not;
(2) Mudslide or mudflow;
(3) Water that backs up or overflows from a
sewer, drain or sump; or
(4) Water under the ground surtace pressing on,
or flowing or seeping through:
(a) Foundations, walls, floors, or paved
surfaces;
(b) Basements, whether paved or not; or
(c) Doors windows or other openings.
But if Water, as described in g.(1) through g.(4)
above, results fn fire, explosion or sprinkler
leakage, we will pay for the loss or damage caused
by that fire, explosion or sprinkler leakage,
2.

e. Explos(on of steam boilers, steam pipes, steam
engines or steam turbines owned or leased by you
ar operated under your control. But if explosion of
steam boilers, steam pipes, steam engines or
steam tu~ines results (n fire or combustion
explosion, we will pay for the loss or damage
caused by that fire or combustion explosion. We
will also pay for foss or damage caused by or
resulting from the explosion of gases or fuel within
the furnace of any fired vessel or within the flues or
passages through which the gases of combustion
pass.
f.

g. Water, other liquids, powder or molten material that
leaks or flows from plumbing, heating, air
conditioning or other equipment (except fire
protective systems) caused by or resulting from
freezing; unless:
(1) You do your best to maintain heat in the
building or structure; or

We will not pay for foss or damage caused by or
resulting from any of the following:
a.

Artificially generated electrical current, including
electric arcing, that disturbs electrical devices,
appliances or wires.

(2) You drain the equipment and shut off the supply
if the heat is not maintained.
h.

But if artificially generated electrical current results
in ire, we will pay far the loss or damage caused
by that fire.

(2) Whether or not occurring during the hours of
employment.

Smoke, vapor or gas from agricultural smudging or
industrial operations.

This exclusion does not apply to the acts of
destruction by your employees (including leased
employees); but theft by employees (including
(eased employees) is not covered.

d. (1) Wear and Tear;
(2) Rust, corros(on, fungus, decay, deterioration,
hidden or latent defect or any quality in
property that causes it to damage or destroy
dselF;

I.

Voluntary parting with any property by you or
anyone else to whom you have entrusted the
property if induced to do so by any fraudulent
scheme, trick, device or false pretense

j.

Rains, snow, ice or sleet to personal property in the
open.

(3) Smog;
(4) Settling, cracking, shrinking or expansion;
(5) Nesting or infestation, or discharge or release
of waste products or secretions, by insects,
birds, rodents or other animals.
(6) Mechanical breakdown, Including rupture or
bursting caused by a centrifugal force. But if
mechanical breakdown results in elevator
collision, we will pay for the loss or damage
caused by that elevator cvllis(on.
(7) The fallowing causes of loss to personal
property:
(a) Dampness or dryness of atmosphere;
(b) Changes in or extremes of temperature;
or

Dishonest or criminal act by you, any of your
partners, employees (including leased employees),
directors, trustees, authorized representatives or
anyone to whom you entrust the property far any
purpose:
(1) Acting alone or in collusion with others; or

b. Delay, loss of use or loss of market.
c.

Continuous or repeated seepage or leakage of
water that occurs over a period of 14 days or
more.

k. Collapse, except as provided below in the
Additional Goverage for Collapse. But if collapse
results in a Covered Cause of Loss at the
described premises, we will pay for the loss or
damage caused by that Covered Cause of Loss.
I.

Discharge, dispersal, seepage, migration, release
or escape of "pollutants" unless the discharge,
dispersal, seepage, migration, release or escape is
itself caused by any of the "specified causes of
loss". But if the discharge, dispersal, seepage,
migration, release or escape of "pollutants" results
in a "specified cause of loss", we will pay for the
loss or damage caused by that "specified cause of
loss".

(c) Marring or scratching.

PDOS (7/OB)

Copyright, ISO Commercial Risk ServEces, Tnc.,1994

PAGE: 2 OF 6

PAPR - 004588

 3.

We wi{I not pay for loss or damage caused by or
resulting from any of the following, 3.a, through 3.c. But
if an excluded cause of loss that is listed in 3,a, through
3.c. results in a Covered Cause of Loss, we will pay for
the loss or damage caused by that Covered Cause of
Loss.

due to interference at the location of the
rebuilding, repair or replacement by
strikers or other persons; ar
(b) Suspension, lapse or cancellation of any
license, lease or contract. But if the
suspension, lapse or cancellation is
directly caused by the suspension of
"opstations", we will cover such foss that
affect your Business Income during the
"period of restoration".

a. Weather conditions. But this exclusion oNy applies
if weather condltlons contribute in any way with a
cause or event excluded in paragraph 1. above to
produce the loss or damage.
b.

Acts or decisions, including the failure to act or
decide, of any person, group, organization or
governmental body.

c.

Faulty, inadequate or defective:

(6)

(1) Planning, zoning, development, surveying,
siting;
(2) Design, specifications, workmanship, repair,
construction, renovation, remodeling, grading,
compaction;
(3) Materials used in repair,
renovation or remodeling; or

(5} Any Extra Expense caused by or resulting
from suspension, lapse, cancellation of any
license, lease or contract beyond the "period
of restoration".

construction,

(4) Maintenance;
of part or all of any property on or off the described
premises.
4. Special Exclusions

Any other consequential loss

b. Leasehold Interest Coverage Form
(1) Paragraph B.y.a. Ordinance or Law, does not
apply to Insurance under this Coverage Form.
(2) We will not pay far any loss caused hy:
(a) Your canceling the lease;
(b) The suspension, lapse or cancellation of
any license; or
(c) Any other consequential loss.
c. Legal Liability Coverage Form

The following provisions apply only to the specified
Coverage Forms.

(1) The following Exclusions do not apply to
insurance under this Coverage Form.

a. Business Income (And Extra Expense)
Coverage Form. Business Income (Without
Extra Expense) Covewage Form or Extra
Expense Coverage Form

(a) Paragraph B.1.a., Ordinance or Law;

We will not pay for:
(1) Any loss caused directly or indirectly by the
failure of power or other utUity service supplied
to the described premises, however caused, if
the failure occurs outside of a covered
building.
But if the failure of power or other utility service
results in a Covered Cause of Loss, we will
pay far the loss resulting from that Covered
Cause of Loss.

(b) Paragraph B.i.c., Governmental Action;
(c) Paragraph B.1.d., Nuclear Hazard;
(d) Paragraph B.1.e., Utility Services; and
(e) Paragraph B.1.f., War and Military Action
(2J The following additional exclusions apply to
insurance under this Coverage Form:
(a) Contractual l.lablllty
We will not defend any claim or "suit", or
pay damages that you are legally liable to
pay solely by reason of your assumption
of liability in a contract or agreement. But
this exclusion does not apply to a written
lease agreement in which you have
assumed liability for building damage
resulting from an actual or attempted
burglary or robbery, provided that:

(2j Any loss caused by or resulting from:
(a) Damage or destruction of "finished stock";
or
(b) The time required to reproduce "finished
stock".

(i) Your assumption of liability was
executed prior to the accident; and

This exclusion does not apply to Extra
Expense.
(3) Any loss caused by or resulting from direct
physical loss or damage to radio or television
antennas (including satellite dishes) and their
lead-in wiring, masts or towers.

(ii) The building is Covered Property under
this Coverage Form.
(b) Nuclear Hazard

(4) Any increase of loss caused by or resulting
from:
{a) Delay In rebuilding, repairing or replacing
the property or resuming "operations",

PDOS (7lOS)

Copyright, ISO Commerctal ItJsk Services, Inc., (994

We will not defend any claim or "suiP', or
pay any damages, loss, expense, or
obligation, resulting from nuclear reaction
or radiation, or radioactive contamination,
however caused.

YAGC: 3 OF 6

PAPR - 004589

 C.

LIMITATIONS
The following limitations apply to alt policy forms and
endorsements, unless otherwise stated.
1.

We will not pay for loss or damage to property, as
described and limited in this section. In addition, we will
not pay for any loss that is a consequence of Ioss or
damage as described and limited in this section.
a.

b.

c.

Animals, and then only if they are killed or their
destruction is made necessary.

c.

Fragile articles such as glassware, statuary,
marbles, chinaware and porcelains, if broken. This
restriction does not apply to:
(1) Glass that is part of a building or structure;
(2) Containers of property held for sale; or

Steam boilers, steam pipes, steam engines or
steam turbines caused by or resulting from any
condition or event inside such equipment. But we
will pay for loss of or damage to such equipment
caused by or resulting from an explosion of gases
or fuel within the furnace of any fired vessel or
within the flue or passages through which the
gases of combustion pass.

(3) Photographic ar scientific instrument lenses.
d.

The interior of any building or structure, or to
personal property m the building or structure,
caused by or resulting from rain, snow, sleet, ice,
sand or dust, whether driven by wind or not,
unless:

(1) If the property is located on or within 1,000 feet
of the described premises, unless the
premises is insured under the Builders Risk
Coverage Form; or
(2) To Business Income coverage or to Extra
Expense Coverage.
3. The special limit shown for each category, a. through d.
is the total limit for loss of or damage to all property in
that category. The special limit applies to any one
occurrence of theft, regardless of the types or number
of articles that are lost or damaged in that occurrence.
The special limits are:

{2) The loss or damage is caused by or results
from thawing of snow, sleet or ice on the
building or structure.
Buiiding materials and supplies not attached as
part of the building or structure, caused by or
resulting from theft.

a.

$2,500 for furs, fur garments and garments
trimmed with fur.

b.

$2,500 for J'ewelry, watches, watch movements,
ewels, pearls, Precious and semiprecious stones,
ullion, gold, silver, platinum and other precious
alloys or metals. This Ilmit does not apply to jewelry
and watches worth $100 or less per item.

~

However, this limitation does not apply to:
(1) Building materials and supplies held for sale
by you, unless they are insured under the
Builders Rlsk Coverage Form; or
(2) Business Income coverage or Extra Expense
coverage.
e.

f.

Property that is missing, where the only evidence
of the loss or damage is a shortage disclosed on
taking inventory, other instances where there is no
physical evidence to show what happened to the
property.
Gutters and downspouts caused by or resulting
from weight of snow, ice or sleet.

g. Property that has been transferred to a person or to
a place outside the described premises on the
basis of unauthorized instructions.
2.

We will not pay for loss or damage to the fallowing
types of ~roperty unless caused by the "specified
causes of loss" or building glass breakage.

Builders machinery, tools and equipment owned
by you or entrusted to you, provided such property
is Covered Property.
However, this limitation does not apply:

Hot water boilers or other water heating equipment
caused by or resulting from any condition or event
inside such boilers or equipment, other than an
explosion,

(1) 'fhe buiid(ng or structure first sustains damage
by a Covered Cause of Lass to its roof or walls
through which the rain, snow, sleet, Ice, sand
or dust enters; or

d.

b.

c.

$2,500 for patterns, dies, mold, and forms.

d.

$2,500 for stamps, tickets, including lottery tickets
held for sale and letters of credit.

These special limits are part of, not in addition to, the
Limit of Insurance applicable to the Covered Property.
This limitation, C.3., does not apply to Business Income
coverage or to Extra Expense.
4.

We will not pay the cost to repair any defect to a system
or appliance from which water, other liquid, powder or
molten material escapes. But we will pay the cost to
repair or replace damaged parts of fire extinguishing
equipment it the damage:
a.

Results in discharge of any substance from an
automatic fire protection system; or

b.

Is directly caused by freezing.

However, this limitation does not apply to Business
Income coverage or to Extra Expense coverage.

a. Valuable papers and records, such as books of
account, manuscripts, abstracts, drawings, card
index systems, film, tape, disc, drum, cell or other
data processing, recording or storage media, and
other records.

PDOS (7lOS)

Capyrlghy ISO Commerelal Risk Services, Tne.,199d

PAGE: 4 OF 6

PAPR - 004590

 if the collapse is caused by a cause of loss listed in
D.1.b through D.1.t„ we will pay for loss or damage to
that property only If:

D. ADDITIONAL COVERAGE -COLLAPSE
The term Covered Cause of Loss includes the Additional
Coverage -Collapse as described and limited in D.1.
through D.S, below.
1. We will pay for direct physical loss or damage to
Covered Propert~r, caused by collapse of a building
insured under this Coverage Form, if the collapse fs
caused by one or more of the following:
a.

The "specified causes of loss" or breakage of
building glass, all only as insured against in this
Coverage Part;

b. Hidden decay;

4.

a.

Such or loss damage is a direct result of the
collapse of a building insured under this Coverage
Form; and

b.

The property is Covered Property under this
Coverage Form.

Collapse does not include settling, cracking, shrinkage,
bulging or expansion.

5. This Additional Coverage -Collapse, will not increase
the Limits of Insurance provided in the Coverage Part.
E. AI3DITIONAL COVERAGE EXTENSIONS

c.

Hidden insect or vermin damage;

d.

Weight of people or personal property;

e,

Weight of rain that collects on a roof;

f.

Use of defective material or methods in
construction, remodeling or renovation if the
collapse occurs during the course of the
construction, remodeling or renovation. However, If
the collapse occurs after construction, remodeling
or renovation is complete and is caused in part by
a cause of loss 1lsted in D.1.a. through D.1.e., we
will pay for the loss or damage even If use of
defective material or methods, in construction,
remodeling or renovation, contributes to the
collapse.

1. Property in Transit. This extension applies only to
your personal property to which this form applies.
a.

You may extend the insurance provided by this
Coverage Part to apply to your personal property
(other than property in the care, custody and
control of your salespersons) in transit more than
1,000 feet from the described premises. Property
must be in or on a motor vehicle you own, lease or
operate while between points in the coverage
territory.

b.

Loss or damage must be caused by or result from
one of the following causes of toss:
(1) Fire, lightning, explosion, windstorm or hail,
riot or civil commohon, or vandalism.

2. If the direct physical loss or damage does not involve
collapse of a building or any part of a bu(idfng, we will
pay for loss or damage to Covered Property caused by
the collapse of personal property only if;

3.

PDOS (7/08)

a.

The personal property, which collapses, is inside a
building; and

b.

The collapse was caused by a cause of loss listed
in D.i.a through D.i.f. above.

With respect to the following property:
a.

outdoor radio or television antennas (including
satellite dishes) and their lead-in wiring, masts or
towers.

b.

Awnings, gutters and downspouts;

c.

Yard fixtures;

d.

Outdoor swimming pools;

e.

Fences;

f.

Piers, wharves and docks;

g.

Beach or diving platforms or appurtenances;

h.

Retaining walls; and

1.

Walks roadways and other paved surfaces:

(2) Vehicle collisions upset or overturn. Collision
means accidental contact of your vehicle with
another vehicle or object. It does not mean
your vehicleQs contact with the roadbed
(3) Theft of an entire bale, case or package by
forced entry into a secure locked body or
compartment of the vehicle. There must be
physical marks of the forced entry,
c.

The most we will pay for loss or damage under this
Extension is $5,000.

This Coverage Extension is additional insurance. The
Additional Condition, Coinsurance, does not apply to
this Extension.
2. Water Damage, Other Liquids, Powder or Molten
Material Damage. If loss or damage caused by or
resulting from covered water or other liquid, powder or
molten material damage loss occurs, we will also pay
the cost to tear out and replace any part of the building
or structure to repair damage to the system or
appliance from which the water or other substance
escapes.

Copprlght, ISO Commercial RLsk Services, Inc., 1944

PAGE: 5 OF 6

PAPR - 004591

 F.

2.

DEFINITIONS
"SPecified Causes of Loss" means the following: Fire;
lightning; explosion; windstorm or hail; smoke; aircraft or
vehicles; riot or civil commotion; vandalism; leakage from
fire extinguishing equipment; sinkhole collapse; volcanic
action; falling objects; weight of snow, ice or sleet; water
damage.
1. Sinkhole collapse means the sudden sink(ng or collapse
of land into underground empty spaces created by the
action of water on limestone or dolomite. This~cause of
loss does not include:

3.

Fall(ng objects does not include loss or damage to:
a.

Personal property in the open; or

b.

The interior of a building or structure, or property
inside a buildlng or structure, unless the roof ar an
outside wall of the building or structure is first
damaged by a falling object.

Water damage means accidental discharge or leakage
of water or steam as the direct result of the breaking
apart or cracking of any part of a system or appliance
(other than a sump system Including its related
equipment and parts) containing water or steam.

a. The cost of filling sinkholes; or
b.

Sinking or collapse of land into man made
underground cavities
INSURANCE RESERVE FUND

ey
Director

PDOS (7/08)

Copyright, ISO Commercial Rlsk ScrvEces, In¢.,1994

PAGE: 6 OF 6 ~
PAPR - 004592

 ~ y`

_~.._

~T'A`f~~ F~~~~.~. 11~~C7U~~A~~~.11'Y ~~1THf~RIT'Y

,~~~~,~.~1,,~~~

INSURANCE RESERVE FUND
POST OFFICE BOX 11066
COLUMBIA, SOUTH. CAROLINA 29211

~~., ~` ~~
~~~~~~~
~`~~'~
'~
~E,~,~:~~'
POLICY NUMBER

FROM

nOUCY ~ERIoo~To

Pnon~: aos 7si-oozo
DATC Pf~INTED

TYPE OF INSURANCE

01 JUL 2015
E3U1 LD I NG AND PERSONAL PROPERTY
- --'PD-01 PD-02 PD-03 PD-04 PD-05 PQ-08 PD-09 f'D-10 PD-~"I PD-12 PD-'15 PD-27

f=11000001'6

07/01 /2015 07/01 /201G

COVEf~AGE PROVIDED UNDER THIS POLICY PART IS SUBJECT TO TI-I[ f~OLLOWING FORMS:

NAMED INSURED AND ADDRESS

CONTACT PERSON AND PHONE

FORM ~t

PAGG

AGENCY N/~ME 1
AGENCY NAME 2

AGENCY CONTACT NAME
803 7:37-0020.

PD-02

1 OF

.AGENCY ADDRESS

TYPE OF ACTIVITY

C_I TY~T ~Z I PCODE

2

ACTIVITY ~~

ENDORSEM[~NT~,I,~OSS~PAYAf3LE CL/~USE _ _,_

002

EFFECTIVE DATE - 07/01/2015
NAME AND ADDRESS OF LOSS PAYEE: 0001
THIRD PARTY NAME
THIRD PARTY ADDRESS
CITY, STATE ZIPCODE

LOSS, IF ANY UNDER THIS POLICY SHALL BE PAYABLE TO ABOVE NAMED LOSS PAYEE
AS ITS INTEREST MAY APPEAR. IT IS UNDERSTOOD THAT THE LOSS PAYEE NOW HAS OR
WILL ACQUIRE FROM TIME TO TIME AN INSURABLE INTEREST IN THE PROPERTY LISTED
BELOW AND IN5URED UNDER THIS POLICY AS E5TABLISHED BY WAREHOUSE RECEIPTS,
BILLS OF LADING, DOCUMENTARY OR OTHER WRITTEN EVIDENCE.
THIS INSURFINCE, SOLELY ~1S TO THE INTEREST THEREIN OF THE LOSS PAYEE, SHALL
NOT BE IMPAIRED OR INVALIDATED BY ANY ACT OR NEGLECT OF THE NAMED INSURED OF
THE WITHIN DESCRIBED PROPERTY EXCEPT AS PROVIDED IN THE LAST PARAGRAPH
HEREOF, NOR BY ANY CHANGE IN THE TITLE OR OWNERSHIP OF THE PROPERTY, NOR BY
THE OCCUPATION OF THE PREMISES WHEREIN SUCH PROPERTY IS LOCATEQ FOR PURPOSES
MORE HAZARDOUS THAN ARE PERMITTED BY THIS POLICY; PROVIDEb THAT IN CASE THE
NAMED INSURED SHALL NEGLECT TO PAY ANY PREMIUM DUE UNDER THIS POLICY, THE
LOSS PAYEE SHALL, ON DEMAND, PAY THE SAME,
PROVIDED,. ~1LS0, THAT THE LOSS PAYEE SHALL NOTIFY THIS FUND OF ANY CHANGE OF
OWNERSHIP OR OCCUPANCY OR INCREASE IN HAZARD WHICH SHALL COME TO THE
KNOWLEDGE OF SAID LOSS PAYEE,AND UNLESS PERMIT"TED BY THIS POLICY, IT ~HAL.L
BE NOTED THEREON AND THE LOSS PAYEE SHALL, ON DEMAND, PAY THE PRCMIUM FOR
SUCH INCREASED HA7ARD FOR THE TERM OF THC USE THEREOF; OTHERWISE THIS POLICY
SHALL BE NULL FEND VOID ,
THIS FUND RESERVES THE RIGHT TO CANCEL THIS POLICY AT ANYTIME AS PROVIDED f3Y
ITS TERMS, BUT IN SUCH CASE THIS P01_ICY SHALL CONTINUE IN FOIZCE FOR THE
EENEFIT ONLY OF THE LOSS PAYEE FOR THIRTY (30) DAYS AFTER NOTICE TO THE
LOSS PAYEE OF SUCH CANCELL/~T I ON /AND Sf-I/~LL, THEN CEASE, AND TH I S FUND SHALL
HAVE THE RIGHT ON LIKE NOTICE, TO CANCEL THIS AGREEMENT.
CONTINUED ON PAGE Z. , .

PAPR - 004593

 ~~~ ~ t4~,

S~'~47'~ ~6S~~L ~CC0~1t~~'~~31L6T'Y ~UTH~~ITY

~~~,~,~;~ ~~
tt = y'`~~ j
~'~=~~~`~.~'

_

INSURANCE RESE~iUE FUND
POST OFFICE 80X 11.066
COLUMBIA, SOUTH CAROLINA 29211

POLICY NUMBER

F110000016

r-Bonn

~~~~-~~JY PERIoo

To

.Phone:(803 737-0020
DATE Pf~INTLD

TYf~E OF 1NSUf~ANGG

07/01/2015 07/01/2016

BUILDING AND PERSONAL PROPElZTY

01 JUL 2015

CQVEfiAGE PROVIDED,UtJDER Tl-IiS POLICY FARTIS SUBJECI~ TO THE FOLLOWING'FORMS:

PD-01 Pp_02 PD=03 PQ-0~} PD-05 PD-08 f'D-09 ('Q-10 PD-11 PD -1'2 PD-15 PQ -27

NAMED I~lSURED AND ADDRESS.

CONTACT PERSON AND PHONE

AGCNCY NAME 1
AGENCY NAME 2
AGENCY ADQRESS
CITY, ST Z i PCODE

AGENCY CONT/~CT NAME
F?D-02
803 737-0020
TY~e of AcriviTY
ENDQRSEMENT.,,_LOSS PAYABLE` CLAUSE`

~~,~~

FORM # _

PAGE

2 0~

ACTivir~r ~
002

WHENEVER THIS FUND SHALL PAY TFIE LOSS PAYEE ANY SUM F01~ LOSS OR DAMAGE UNDER
THIS POLICY AND SH/1L~ CLAIM THAT, I1S ~(~0 THE NAMED INSURED , NO LIABILITY
THEREFOR EXISTED, THIS FUND SHALL, TO THE EXTENT OF SUCH PAYMENT, BE THEREUPON LEGALLY SURROGATED TO ALL THE RIGHTS OF THE PARTY TO WHOM SUCH PAYMENT
SHALL QE MAQE, UNDER ALL SECURITIES HELD f1S COLLATERAL TO THE DEBT WITH
INTEREST, AND SHALL ~THFREUPON RECEIVE A FULL ASSIGNMENT AND TRANSFER Of= THE
DEBT AND OF THE MORTGAGE AND OF ALL SUCH OTHER SECURITIES OF THE INTEREST OF
THE LOSS PAYEE IN THE WITHIN DCSCRIBED PI~OPFR7Y; BUT NO SUBROGATION SHALL
IMPAIR THE R I GH l~ OF TI-IL LOSS PAYC~ TO R~COVLR THE FULL AMOUNT OF I'I-S CLA I M
AGAINST TNT BORROWER, MORTGAGOR OR OWNER.
ALL "rHE OTHER TERMS ~1ND CONDITIONS OF THE POLICY TO WHICH THIS ENDORSEMENT
IS ATTACHED AND OF WHICH IT 1S A PART, REMAIN UNCHANGED, WHICH OTHER TERMS
AND CONDITIONS INCLUDf~ THE LIMITS) OF LIAQILITY NAMED IN THE POLICY AND THE
CONDITIONS OF ANY VALUE REPORTING, FULL REPORTING, TO1-AL INSURANCE OR
CO-INSURANCE CLAUSES INCORPORATED THEREIN OR ATTACHED THERETO.
PROPERTY COVERED:
SEGMENT
NUMBER
10

PROPERTY DESCRIPTION

PROPERTY LOCATION

ADMINISTRATIVE OFFICE/COLUM(31/1 1 MAIN STREET
COPIER

INSURED
VALUr
20,000

THIS ENDORSENIENT SI-IOULD BE ATTACHED TO ANQ BECOME PART OF POLICY F11000001G

JULY 01, 2015
DATC

2.

ANNE M~CON SMITH
Director

PAPR - 004594

 "w~~ ,:,_

~

~1`~~'~' F~S~~1L. ACGOt1fV7'~.~3iLITY AU7'E-IC~~O~"lf
INSURANCE RESERVE 1=UND
POST OFFICC [30X 11.065
- COLUMl31A, SQUTH CAROLINA 29211

{~~ '''h `+'4 ~~~ ~~
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`~e .Ey'

~

r ~~o,~ ~'O~icY r~Er~ioo

POLICY NUM~El~

F11Q00001G

~_o

Phone: (no3) 737-0020
DATE PRINTED

n~pE OFiNSURANCL=

07/Q1/2015 07/01/2016

BUILDING' AND PL=R50NAL PROPERTY

01 -JAL 2015`

COVERAGE Pf;OUIDCQ UNL)ER THIS POLICY PART IS SUf3JEGT TO NHL= FOLL.OWIIJG POfiMS:

PD-01 1'D-02 PD-03 PD-04 PD-05 PD-08 PD-09 PD-10 PD-11 PD=12 PD-15 PD-1G 1'D-27'
NAMED INSURED AND Af~i~F~~SS

CONTACT PERSON AND P1-10NE

AGENCY' NAME' 1
/~GLNCY N/~ME_ 2

AGENCY CONTACT N/~MC
803 737-00.20.

AGENCY ADDRESS

TYPE OP ACTIVITY

CITY , ST Z I PCODC

PAGE

FORM 11

PD-16

1 OF

ACTIVITY 11

J

;GNDORSLMkNT_ MORTG/~GE._ CLAUSE

2

_____ _I~003_~

EFFECTIVE DATE - 07/01/2015
NAME ANQ ApDRESS OF MORTGAGEE (OR TRUSTEE): 0002
THIRD PARTY NA~AE
THIRD PARTY ADDRESS
CITY, STATE ZI I'CODE

(APPI~I~ES ONLY TO BUILDING ITEMS AND IS EFFECTIVE ONLY WHEN POLICY IS MADE
PAYABLE TO A NAMED MORTGAGEE OR TRUSTEE.)
LOSS OR DAM/~GE, IF ANY, UNDER THIS POLICY, SHALL BE PAYABLE TO THE MORTGAGEE
(OR TRUSTEE) NAMED ABOVE, AS INTEREST M/1Y APPE/1R, UNDER ALL PRESENT OR
FUTURE MORTGAGES UPON THE PROPERTY HEREIN DESCRIBED IN WHICH THE AFFORESAID
MAY HAVE AN INTEREST AS MORTGAGEE (OR TRUSTEE) IN ORDER OF PRECEDENCE OF
SAIQ MORTGAGES, ANb THIS INSURANCE, A5 TO THE INl"EREST OF THE MORTGAGEE (OR
TRUSTEE) ONLY THEREIN, SHALL NOT BE INVALIDATED BY ANY ACT OR NEGLECT OF THE
MORTG/•1GOR OR OWNER OF THE WITHIN DESCR1 13ED PRQPERTY, NOR BY ANY FORECLOSURE
OR OTHCR PROCEEDINGS OR NOTICE OF SALE RELATING TO PROPERTY, NOR gY ANY
CHANGE IN THE TITLE OF QWNERSHIP 0~ Tf-IE PR01'ERTY, NOR BY THE OCCUPATION OF
THE PREMISES FOR PURPOSES MORE HAZARDOUS 1~HAN ARE PERMITTED BY THIS POLICY;
PROVIDED, THAT IN CASE THE MORTGAGOI~ ~OR OWNCR SHALL NEGLECT TO PAY ANY
PREMIUM DUE UNDER THIS POLICY, THE MORTGAGEE (OR TRUSTEE) SHALL, ON DEMAND,
PAY THE SAME.
PROVIDEb, ALSO, THAT THE MORTGAGEE (OR TRUSTEE) SI~ALL NOTIFY THIS FUND OF
ANY CHANGE OF OWNERSHIP OR OCCUPANCY OR INCREASE OF HAZARD WHICH SHALL COME
TO THE KNOWLFDGC OF SAID MORTGAGEE (OR TRUSTEE) AND, UNLESS PERMITED BY THIS
POLICY , I T SI-I/-1LL BE NOTED THEREON /1ND THE MORTGAGEE (OR TRUSTEE) SHALL , ON
DEMAND, PAY THE PREMIUM FOR SUCN INCRCASED FIAZARD FOR- THE TERM OF USE THEREOF; OTHERWISE THIS POLICY SHALL CIE NULL AND VOID.
THIS FUND RESERVES THE RIGHT TQ CANCEL THIS POLICY AT ANY TIME AS PROVIDED
BY ITS TERMS, BUT IN SUCH CASE THIS POLICY SHALL CONTINUE IN FORCE FOR THE
BENEFIT ONLY 0~ THE MORTGAGEE (OR TRUSTEE) 1=0R 10 DAYS AFTER NOTICE TO THE
MORTG~GCC (OR TRUS7~E) OF SUCH CANCELLATION AND SHALL THEN CEASE, AND THIS
FUND-SHALL HAVE THE RIGHT, ON LIKE NOTICE, TO CANCEL THIS AGREEMENT.
CONT I NU1.=D ON PAGE 2 . . .

PAPR - 004595

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INSURANCE FiESEf~VE FUND
POST Of=FiCE sOX 110G6
COLUMBIA, SOUTH CAROLINA 29211
~_~aM POLICY PERIOD

PQLICY NUfv1B'tP,

F110000016

~_p

Phone: (t~os) ~3~-0020

TyPE OF INSUI~F~NGE

07/01/2015 07/01/2016

DATE RRIIJT[Q

BUILDING /AND PERSONAL PROPERTY

01 JUL 2015

COVERAGE PROVIDEp UNDEf~ THIS POLICY PART IS SUBJECT TO THE ~OLLOWINGFOi~(v1S:

PD=01 PD-02 f'D-03. PD-04 PD-05 `PD-08 PD -`09 f'p-10 PD-11 PD -12 PU-15 PD -1G PD-27

NAMED INSURED AND ADDRESS

AGENCY NAME 1
.AGENCY NAME 2

'CONTACT PERSON AND RHnNE

/AGENCY CON~fACT NAME
803 737-:0020-

TYPE OF ACTIVITY

AGENCY ADDRESS

CITY

FORM ~~

PD-16

( 003

EFFrCTIVE DATE - 07/01/2015
WHENEVER THIS FUND SHALL PAY THE MORTGAGEE (01~ TRUSTEE) ANY SUM FOR LOSS
UNDER THIS POLICY AND SHALL CLF~IM THAT, AS TO THE MORTGAGOR OR OWNER, NO
LIA131LITY THEREFORE EXISTED, THIS FUND SI-i~LL, TO THE EXTENT OF SUCH PAYMENT,
BE THEREUPON LEGALLY SUBROGATED -~0 ALL THE RIGHTS OF THE PARTY TO WI-IOM SUCH
PAYMkNT SHALL SE MADE, UNDER ALL SECURITIES HELD AS COLLATERAL TO THE
MORTGAGE DEBT, OR MAY, AS ITS OPTION, PAY TO THE MORTGAGEE (OR TRUSTEE) THE
WHOLC PRINCIPAL DUE OR TO GROW DUE ON THE MORTGAGE WITH INTEREST, AND SHALL
THEREUPON RECEIVE A FULL ASSIGNMENT AND TRANSFER OF THE MORTGAGE AND OF ALL
SUCH OTHER SECURITIES; BUT NO SUBROGATION SHALL IMPAIR THE RIGHT OF THE
MORTGAGEE (OR TRUSTEE) TO RECOVER THE FULL AMOUNT OF SAID MORTGAGEE'S (OR
TRUSTEE'S) CLAIM,
THE PROPERTY LISTED BELOW HAS BEEN AQDED TO THE ABOUE MORTGAGEE (QR TRUSTEE):
SCG/PROP
NUMBER
10

PROPERTY DESCRIPTION

PROPERTY LOCATION

INSURED
VALUE

ADMINISTRATIVE OFFICE/COLUML'IA 1 MAIN S7"BEET
OFFICE BUILDING

1 MAIN ST

500,000

THIS ENDORSEMENT SHOULD BE ATTACHED TO AND BECOME PART 01= POLICY F11000001G

JULY Q1, 2015
QA7C

2

ACTIVITY ii

ENDORSEMENT MORTGAGE CLAUSE

ST ZIPCODE

PAGE

2 OF

'~~.ANNC MACON SMITH
Dlreclol'

PAPR - 004596

 ~~",4 ~E ~p~C,~L ~~C(~Ut~T~~ILfT~f ~~JT~J~7~IT~(

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INSURANCE 13ESERVL FUND
PC7ST OFFICE BOX 110GG
COLUMBIl-1,- SOUTH CAROLINA 29211

~i ' ~;~;~'$~`~ ~;~
~'~, ~ ~ ~
`~ J-'

POLICY PERIOD

POLICY NUMBER

F11'000001G

T~

Phone: E303) 737-0021
DATE PRINTED

TYPE-0 E INSURANCE

FROM

07/01/2015 07/01/20`IG

BUILDING AND PERSON/~L PROPERTY

01 JUL 2015

COVERAGE PROVIDE"D lJNDEfi TI-IIS POLICY PARTIS SUf3JGCT TO THC FOLLOWING FOt~MS:

PD-01 PQ-02 PD-03 PD-d4 PD-05 PD-08 PD-OJ PD-1D PO-11 PD-12 PD-15 PD-16 PD-27
PD_33

NAMED INSURED AND ADURGSS

COi~TACT PERSONAIJD PHONE

FORM #

PAGE

AGENCY NAME 1
AGENCY NAME 2
AGENCY ADDRESS

AGENCY CONTACT NAME
803 737.-Ob20
TY~F or- ~criviTY

PD=33

1 OF

n i -ry

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EFFECTIVE DATE - 07/01/2015
NAME AND ADDRESS OF CERTIFICATE HOLDER: 0003
THIRD PARTY NAME
TNIRD PARTY ADDRESS
CITY, Sl- Z I PCODE

THIS CCRTIFIC/1TE IS ISSUED AS ~ MATTER OF INFORMATION ONLY AND CONFERS NO
RIGHTS UPON THE CERTIFICATE HOLDER, THIS CERTIFICATE DOES NOT AMEND, CXTEND
OR ALTER THE COVERAGE AFFORDED BY ~fl-IE POLICIES LISTED QELOW.
THIS IS TO CERTIFY THAT A POLICY H61S BEEN ISSUED TO THE ABOVE NAMED INSURED
AND IS IN FORCE AT THIS TIME, NOTWITHSTANDING ANY REQUIREMENT, -BERM OR
CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY P[=RTAIN, l-HE INSURANCE AFFORDED BY THIS
POLICY DESCRIaCD HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND
CONDITIONS OF THIS POLICY.
CANCELLATION: SHOULb THIS POLICY E3E CANCELLED BEFORE EXPIRATION DATE THEREOF
THE INSURANCE RESEf:VE FUND WILL FND~AVOR TO PROVIDE 30 DAYS
WRITTEN NOTICE TO AQOVE NAMED CERTIFICATE HOLD~i~, BUT FAILURE
TO PROVIDE SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIA6ILITY
OF F~NY I< I ND UPON THL COMPANY ,
1~NE PROPERTY LISTED BELOW HAS 13EEN ADDED 1-0 7HE ABOVE CERTIFICITE HOLDER;
SEG/PI:OP
NUMBER
10

PROPERTY DESCRIPTION

PROPERTY LOCATION

I NSURED
VALUE

ADMINISTRATIVE OF(=ICE/COLUMf31A 1 MAIN STREET
1 ,000,000

THIS ENDORSEMENT SHOULD BE ATT~ICHED TO AND [3ECOME PART OF POLICY F110000016

JULY 01 2015
❑ATE

ANNE MACON SMITH
Director

PAPR - 004597

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71`~rl'L ''ll~~IJ~~J!fit `1.~~~iJ.lY r~'f3.~~~~~rf, S'~ ~~. RJ d'~~~~Ji~d A. '9

FLOOD INSURANCE POLICY
IN CONSIDERATION OF THE PAYMENT OF THE PREMIUM, IN RELIANCE UPON THE STATEMENTS IN THE APPLICATION AND
DECLARATIONS FROM MADE APART HEREOF AND SUBJECT TO ALL THE TERMS OF THIS POLICY, THE FUND DOES INSURE
the Insured and legal representatives, to the extent of the actual cash value of the property at the time of loss, but not exceeding the
amount which it would cost to repair or replace the property with material of ail<e kind and quality within a reasonable time after such loss,
without allowance of any increased cost of repair or reconstruction by reason of any ordinance or taw regulating construction ar repair, and
without compensation for loss resulting from interruption of business or manufacture, nor in any event for more than the Interest if the
insured, against all DIRECT LOSS BY "FLOOD" as defined herein, to the property described while located or contained as described in the
application and declarations form attached hereto, or pro rata for 45 days at each proper place to which any of the property shall
necessarily be removed for preservation from the peril of llFlood,~ but not elsewhere.
Assignment of this policy by the Insured is not allowed,
PERSONSINSUR~D
A. Tlie named Insured and legal representatives.
e. Any mortgagee and loss payee named in the application and
declaration page in the order of precedence and to the extent of
their Interest but For no more, in the aggregate, than the Interest of
the named Insured.
DEFINI710NS
DEFINITIONS - A5 USED IN TH15 POLICY:
"Actual Cash Value" means the replacement cost of an insured
item of property at the Ifine of loss, less the value of physical
depreciation as io the item damaged,
"Application" means the statement made and signed by the
Insured, or the Insured's agent, and given the information on the
basis of which the Insured determines accessibility of the risk, the
policy to be issued and the correot premium payment, which must
accompany the application for the policy io be issued.
"Building" means a walled and roofed structure, other than a gas
or liquid storage tank That is principally above ground and affixed
to a permanent site, including a walled or roofed building In the
course of construction, alteration or repair and a mobile home on a
foundation, .subject to Paragraph "F1" of the provision titled
"Properly Not Covered."
"Cancellation" means that ending of the Insurance coverage
provided by this policy prior to the expiration date,
"Coastal High Hazard Area" means an area subject io high
velocity waters including hurricane wave wash and tsunamis.
"Declarations Page" is a computer generated summary of
information furnished by the Insured in the application for
Insurance.
"Doublewide Mobile Home" means a building which is fully
anchored and affixed to its' permanent site, and which is designed
and constructed as a modular or manufactured building and which
has axles and wheels used solely for transportation to the lot or
construction site where it is to be assembled as a nonmovable,
permanent building; such a building is not considered to be a
mobile home for purposes of this policy.
"Direct Physical Loss ey Flood" means any loss in the nature of
actual loss physical damage, evidenced by physical changes, to
the Insured property (building or personal properly contents) which
is directly and proximately caused by a II(lood~ (as defined in this
Atiroemeni), while the Insured property is located: 1. at the
properly address shown on the application for this insurance,
which is a part of this Agreement; and 2. for forty-five days, at
another place above ground level or outside of the special flood
hazard area to which any of iho property shall necessarily be
PI)!I (I/JI)

removed in order to protect and preserve it from a flood or from the
imminent danger of flood (provided, personal ~roperty so removed
must be placed in a fully enclosed building or otherwise
reasonably protected from the elements to be insured against
loss).The term Direct Physical Loss by Floods shall not include
compensation for loss of use, loss of access, loss of profits or loss
resulting from interruption of business, profession or manufacture,
allowance for any Increased cost of repair or reconsiructian as a
result of any ordinance or repair regulating reconstruction or
repair, or other economic loss.(This enumeration is not exclusive).
"Expiration Date" means the ending of the insurance coverage
provided by this policy on the expiration date shown on the
dedarat(on page.
"FLOOD"; Wherever in this. policy the term "flood" occurs, it shall
be held to mean:
A. A c~eneral and temporary condition of partial or complete
inundation of normally dry land areas from:
1.

The overflow of inland or tidal waters.

2,

The unusual and rapid accumulation or runoff of surface
waters from any source.

3.

Mudslides (i,e. mudflows) which are proximately caused
by flooding as defined in subparagraph A-2 above and
are akin to a river of 11qu(d and flowing mud on the
surfaces of normally dry land areas, as when earth is
carried by a current of water and deposited along khe
path of the current.

B, The collapse or subsidence of land along the shore of a lake
or other body of water as a result of erosion or undermining
caused by waves or currents of water exceeding the cyclical levels
which result in flooding as defined in A-1 above.
"Walled and Roofed" means the building has in place two or more
exterior, rl id walls and the roof is fully secured so that the building
will resist fQotatlon, collapse and lateral movement.
PERILS EXCLUDED
THE FUND SHALL NOT BE LIABLE FOR LOSS:
A. ey (1) rain, snow, sleet, hail or water spray; (2) freezing,
ihawmfl or by the pressure or weight of ice or water, except where
the properly covered has been simultaneously damaged by flood;
(3) water, moisture or mudsiido (I.e. mudilow} damage of any kind
resulting primarily from conditions, causes or occurrences which
are solely related to the described premises or are within the
control of the Insured (including but not limited to design, structural
or mechanical defects, failures, stoppages or breakages of water
or sewer lines, drains, pumps, fixtures, or equipment) or any
condition which causes flooding which is substantially confined to
the described promises or properties
PAG1:: l QFS

PAPR - 004598

 immediately adjacent thereto; or (4) seepage, backup of water, or
hydrostatic pressure not related to a condition of ~IoodO as
defined;
B. Caused directly or indirectly by (1) hostile orwari(ke action in
time of peace or war, including action in hindering, combatin or
defending against an actual, impendin or expected attack, (a~ by
any government or sovereign power ~de jure or de facto), or by
any authority maintaining or using military naval or alr forces, or
(b) by military, naval or air forces, or (c) b'q an agent of any such
government, power, authority or forces, it being understood that
any discharge, explosion or use of any weapon of war employing
nuclear fission or fusion shall be conclusively presumed [a be such
a hostile or warlike action by such a government, power, authority
or forces; (2) insurrection, rebellion, revolution, civil war, usurped
power, or action taken by government authority in hindering,
combating or defending against such an occurrence;
C. By nuclear reaction or nuclear radiation or radioactive
contamination, all whether controlled or uncontrolled, or due to any
act or condition incident to any of the foregoing, whether such loss
be director indirect, proximate or remote, or be in whole or in part
caused by, contributed to, or aggravated by the peril insured
against by this policy;
D, By theft or by fire, windstorm, explosion, earthquake, landslide
or any other earth movement except such mudslide or erosion as
(s covered under the peril of flood;
E. Caused by ar resulting from power, heating or cooling failure,
unless such failure results from physical damage to power, heating
or cooling equipment situated on prem(ses where the
property covered is located, caused by the peril insured against;
F. Caused directly or indirectly by neglect of the Insured to use
all reasonable means to save and preserve the property at the
time of and after an occurrence of the peril insured against by this
policy; but, for contents covered herein and subject to the terms of
the policy including the limits of liability, the Fund will reimburse
the Insured for reasonable expenses necessarily incurred by him
in complying with the requirements of this paragraph, including but
not limited to, reasonable expenses for removal or temporary
storage (not exceeding 45 days), or both, of insured contents, from
the described premises because of the imminent danger of flood;
G. Caused intentionally by the Insured;
H. Which is already in progress as of 12:01 a.m. of the first day
of the policy term;
I. From a flood which is confined to the premises on which the
insured property is located unless the flood is displaced over two
acres of the insured premises;
J. Caused by any modification by the Insured to the insured
property of the described premises on which the insured property
is located which materially increases the risk of flooding.
PROPERTY COVERED
A. BUILDING: When the insurance under this policy covers a
building, such insurance shall include additions and extensions
attached thereto; permanent fixtures, machinery and equipment
forming a part of and pertaining to the service of the building;
personal property of the Insured as landlord used for the
maintenance or service of the building including fire extinguishing
apparatus, floor coverings, refrigerating and ventilating equipment,
all while within the described building; also, materials and supp8es
while within an enclosed structure located on the described
premises or adjacent thereto, intended for use in construction,
alteration or repair of such building or appurtenant private
structures.on the described premises.
B. CONTENTS: When the insurance under this policy covers
contents, coverage shall be for either household contents or other
than household contents, but not for both.
1. When the insurance under this policy covers other than
household contents, such insurance shall cover merchandise and
stock, materials and stock supplies of every description; furniture,
PDII (1/91)

fixture, machinery and equipment of every description all owned by
the Insured; improvements and betterments (as hereinafter
defined) to tha building if the Insured is not the owner of the
building and when not otherwise covered; all while within the
described enclosed building.
2. When the insurance under this policy covers household
contents, such insurance shall cover all household and personal
property usual or incidental to the occupancy of the premises as a
resident -except animals, birds, fish, business property, other
property not covered under the provisions of this policy, and any
Qroperty more specifically covered in whole or in part by other
insurance including the peril insured against in this policy;
belong(ng to the Insured or members of the InsuredOs family of the
same household, or far which the insured may be liable, or, at the
option of the Insured, belonging to a servant or guest of the
Insured; all while within the described building.
The Insured, if not the owner of the described building, may apply
up to 10% of the amount of insurance applicable to the household
contents covered under this Item, not as an additional amount of
insurance, to cover loss to imProvements and betterments (as
hereinafter defined) to the described building.
The Insured, if an individual condominium unit owner in the
described building, may apply up to 10'/a of the amount of
insurance on .contents covered under this policy, not ~s an
additional amount of Insurance, to cover loss to the interior walls,
floors, and ceilings that are not otherwise covered under a
condominium association policy on the described building.
THE FUND SHALL NOT BE LIABLE FOR LOSS IN ANY ONE
QCCURRENCE FOR MORE THAN:
(a) $250.00 in the aggregate on paintings, etchings, pictures,
tapestries, art glass windows and other works of art (such
as but not limited to statuary, marbles, bronzes, antique
furniture, rare books, ant(que silver, porcelains, rare glass
or brie-a-brac);
(b) $250.00 in the aggregate on Jewelry, watches, necklaces,
bracelets, gems, precious and semi-precious stones,
articles of gold, silver or platinum and furs or any article
containing fur which represents its principal value.
3. When the insurance under th(s policy covers improvements
and betterments, such insurance shall cover the Insured's used
interest in improvements and betterments to the described
building.
(a) The term "improvements and betterments" wherever
used in this policy is defined as fixtures, alterations,
installations, or addit(ons comprising a part of the
described building and made, or acquired, at the expense
of the Insured exclusive of rent paid by the Insured, but
which are nat legally subject to removal by the Insured.
(b) The word OleaseU wherever used in this pol(cy shall mean
the lease or rental agreement, whether written or oral, in
effect as of the time of loss.
{c) In the event improvements and betterments are damaged
or destroyed during the term of This policy by the peril
insured aga(nst, the liability of the Fund shall be
determined as follows:
(1) If repaired or replaced at the expense of the Insured
within a reasonable time after such loss, the actual
cash value of the damaged or destroyed
improvemenis and betterments.
(2) If not repaired ar replaced within a reasonable time
after such Ioss, that proportion of the original cost at
time of installation of the damaged or destroyed
improvements and begerments which the unexpired
term of the lease at the time of toss bears !o the
period(s} from the date{s) such improvements and
betterments were made to the expiration date of the
lease.
PAGE: 2 OF 5

PAPR - 004599

 {3) If repaired or replaced at the expense of others for
the use of the Insured, there shall be no liability
hereunder.
C. DEBRIS REMOVAL: This insurance covers expense incurred
(n the removal of debris of or on the building or contents oaVered
hereunder, which may be occasioned by loss caused by the peril
insured against in this policy,
The total liability under this policy for both loss to properly and
debris removal expense shall not exceed the amount of
Insurance applying under this policy to the property covered.
PROPERTY NOT COVERED
THIS POLICY SHALL NOT COVER
A. Accounts, bills, currency, deeds, evidences of debt, money,
coins, medals, postage stamps, securities, bullion, manuscripts,
or other valuable papers or records.
B, Fences, retaining walls, seawalls, swimming pools,
bulkheads, wharves, piers, bridges, docks; other open structures
located on or over water, including boathouses or other similar
structures or buildings into which boats are floated; or personal
property in the open, unless specifically insured and a premium
charged therefore.
C. Land values, lawn, trees, shrubs or plants, growing crops, or
livestock; underground structures and equipment including webs,
septic tanks or septic systems; those portions of walks,
driveways and other paved or poured surtaces outside the
foundation walls of the building, unless specifically insured and a
premium charged therefore.
D. Aircraft, any self propelled vehicle or machine and motor
vehicles (other than motorized equipment pertaining to the
service of the premises of the Insured, and not licensed for
highway use) including their parts and equipment, trailers on
wheels and other recreational vehicles whether affixed to a
permanent foundation or on wheels; watercraft including their
furnishings and equipment.
E. On and after June 1, 1982 with respect to any building
located outside of a coastal high hazard area, solid, non-load
bearing walls, open, wood constructed lattice ~breakawayll walls,
insect screening or other Obreakawayll walls any personal
property or other contents, and machinery or equipment
servicing the building when any of the foregoing items:
(i) Are not contained within the foundation walls of the
described building (except for machinery and equipment
servicing the building); or
lily Are in the open (except for machinery and equ(pment
servicing the building); or
lilt) Are contained below the lowest floor used for rating the
building order to calculate the premium amount to be paid
for this policy; or
(iv) In case of a building rated with Emergency Program or
f'reFiRM rates, were placed in the areas described in {i) or
(li) or (iii) above, on or after June 1, 1982.
The terms, "machinery or equipment," for purposes of this
paragraph "E", include, but are not limited to, heating equipment,
water heaters,.air conditioning equipment and air ducts.
F. Buildings and their contents, including machinery and
equipment, which are part of the building, where more than 49
percent of the actual cash value of such buildings is below
ground, unless the lowest level is at or above the base flood
elevation (in the Regular Program) or the adjacent ground bevel
(In the Emergency Program) by reason of earth having been
used as an insulation material in conjunction with energy efficient
building techniques.
G. On and after October 1, 1982, a mobile home located with a
FEMA designated 5peclal Flood Hazard Area that is not affixed
PDlI (ll91)

to a perrnanent site (anchored) to resist flotation, collapse or
lateral movement by providing over-the-top frame ties to ground
anchors or that otherwise meet the community's flood plan
management requirements.
H. Units which are primarily containers, rather than buildings
(such as gas and Ilquid tanks, chemical or reactor container
tanks ar enclosures, brick kilns, and similar units) and their
contents (6ilos and grain storage building including their
contents, may be Ensured even though they may be of
container-type construction), unless speafically insured and a
premium cfiarged therefore.
1. A mobile home and its contents located with a FEMA
designated coastal high hazard area(Zones V1-V30 on a FEMA
Flood Insurance Rate Map) which is not located (n a mobile
home park or subdivision in existence and open for business
prior to June 1, 1982.
DEDUCTIBLES
A. With respect to loss to the building, appurtenant structures,
and debris removal covered hereunder, the Fund shall be liable
for only that portion of the loss in any one occurrence which is (n
excess of the deductible shown on the declaration page.
B. With respect to loss to contents or debris removal covered
hereunder or to expenses, incurred under paragraph "F" of
"Perils Excluded," the Fund shall be liable Far only that portion of
the loss in any one occurrence which is in excess of the
deductible shown on the declaration page.
C. In the case of reasonable expenses incurred in the removal
of an insured mobile home or personal property from the insured
premises away from the peril of flood, the amount of the
deductible shall be the amount shown on the declaration page.
GENERAL CONDITIONS AND PROVISIONS
A. PA{R AND SET CLAUSE: If there is loss of an article which
is part of a pair or set, the measure of loss shall be a reasonable
and fair proportion of the total value of the pa(r or set, giving
consideration to the importance of said article, but such loss
shall not be construed to mean total loss of the pair or set.
B. CONCEALMENT FRAUD: This entire policy shall be void if,
whether before or after a loss, the Insured has willfully concealed
or misrepresented any material fact or circumstance
concerning this insurance or the subject thereof, or the interest of
the Insured therein, or in case of any fraud or false swearing by
the Insured relating thereto.
C. OTHER INSURANCE: The Fund shall not be Hable for a
greater proportion of any loss, less the amount of deductible,
from the peal of flood than the amount of insurance under this
policy bears to the whole amount of flood insurance (excluding
therefrom any amount of "excess insurance" as hereinafter
defined) covering the property, or which would have covered the
property except for the existence of this insurance, whether
collectible ar not.
In the event that the whole amount of flood insurance (excluding
therefrom any amount of "excess insurance" as hereinafter
defined) covering the property exceeds the maximum amount of
Insurance permitted under the provisions of the National Flood
Insurance Act of 1968, or any acts amendatory thereof , it is
hereby understood and agreed that the insurance under this
policy shall be limited to a proportionate share of the maximum
amount of insurance permitted on such property under said Act,
and that a refund of any extra premium paid, computed on a pro
rata basis, shall be made by the Fund upon request in writing
submitted riot later than 2 years after the expiration of the policy
term during which such extra amount of insurance was in effect.
"Excess Insurance" as used herein shall be held to mean
insurance of such part of the actual cash value of the property as
is in excess of the maximum amount of insurance permitted
under said Act with respect to such property.
D. ADDED AND WAIVER PROVISIONS: The extent of the
application of insurance under this policy and of the contribution
PAGE; 3 OF 5

PAPR - 004600

 to be made by the Fund in case of loss, and any other provision
or agreement not inconsistent with the provisions of this policy,
may be provided for En writing added hereto, but no provision
may be waived except such as by the terms of this policy is
subject to change.
No permission affecting this insurance shall exist, or waiver of
any provision be valid, unless granted herein or expressed in
wnting added hereto. No provision, stipulation or forfeiture shall
be held to be waived by any requirement or proceeding on the
part of the Fund relating to appraisal or to any examinaiion
provided to herein.
E. VOIDANCE, REDUCTION QR REFORMATIUN OF THE
COVERAGE:
1.

VOIDANCE• This policy will be void and of no legal
force and effect in the event that any one of the
following conditions occurs:
a.

The property listed on the application is not eligible
for coverage, fn which case the policy is vo(d from
its inception;

b.

'fhe Insured or the Insured's agent has (i) sworn
falsely or (ii) fraudulently or willfully concealed
misrepresented any material fact (including facts
relevant to the rating of this policy) in the
application for coverage, or fn connect(on with the
submission of any claim brought under the policy,
in which case this entire policy shall be void as of
the date the wrongful act was committed and
coverage~ priot to the date of the wrongful act shall
not be affected, provided, refunds of premium, if
any,, shall , be subject to, offsets for the Fund's
administrative expenses (including the payment of
agents commissions through prior policy years, if
any) in connection with the issuance of the poUcy;

RESTRICTING
OR
SUSPENDING
F.
CONDITIONS
INSURANCE: Unless otherwise provided in writing added
shall
for
loss occurring while the
hereto the Fund
not be liable
hazard is increased by any means within the control or kowledge
of the Insured, provided, however, this insurance shall not be
prejudiced by any act or neglect of any person (other than the
Insured), when such act or neglect is not within the control of the
Insured.
G. ALTERATIONS AND REPAIRS: Permission is granted to
make a{terations, additions and repairs, and to complete
structures in course of construction. In the event of loss
hereunder, the Insured is permitted to make reasonable repairs
temporary or permanent, provided such repairs are confine
solely to the protection of the property from further damage and
provided further that the Insured shall keep an accurate record of
such repair expenditures.The cost of any such repairs directly
attributable to damage by the peril insured against shall be
included in determining the amount of loss hereunder. Nothing
herein contained is Intended to modify the policy requirements
applicable in case loss occurs, and in particular the requirement
that in case loss occurs the Insured shall protect the property
from fuhher damage.
H. PROPERTY OF OTHERS (SERVANTS AND GUESTS
ONLY): Unless otherwise provided in writing hereto,loss to any
property of others covered under this policy shall be adjusted
with the insured for the account of the owners of said property,
except that the right to adjust such doss with said owners is
reserved to the insured.. Any such insurance under this policy
shall not Insure directly or Indirectly to the benefit of any corner
or other bailee for hire.
I. LOSS CLAUSE: Payment of any loss under this policy shat{
not reduce the amount of insurance applicable to any other loss
during the policy term which arises out of a separate occurrence
of the peril insured against hereunder; provided, that all loss
arising out of a continuous or protracted occurrence shall be
deemed to constitute loss arising out of a single occurrence.
[MORTGAGE CLAUSE (APPLICABLE 70 BUILDING
J.
ITEMS ONLY AND EFFECTIVE ONLY WHEN POLICY IS
MADE PAYABLE TO A MORTGAGEE (OFi TRUSTEE)
NAMED IN THE APPLICATION AND b~CLAi~ATIONS FORr~i
ATTACHED TO THIS POLICI():
PDll (1/91)

Loss, if any, under this policy, shall be payable to the aforesaid
as mortgagee (or trustee) as interest may appear under all
present or future mortgages upon the property described in
which the aforesaid may have an interest as mortgagee (or
trustee,) in order of precedence of sa(d mort ages, and this
insurance, as to the interest of the mortgagee ~or trustee) only
therein, shall not be Invalidated by any act or neglect of the
mortgagor or owner of the described property, nor by any
foreclosure or other proceedings, or notice of sale relating to the
property, nor by any change in the title or ownership of the
property, nor by the occupat(on of the premises for Purposes
more hazardous than are permitted by this policy; provided, that
in case the mortgagor or owner shall neglect to pay any premium
due under this policy, the mortgagee (or trustee) shall, on
demand, pay the same.
Provided, also, that the mortgagee (or trustee) shall notify this
Fund of any change of ownership or occupancy or increase of
hazard which shall come to the knowledge of said mortgages (or
trustee) and, unless permitted by this policy, it shall be noted
thereon and the mortgagee (or trustee) shall, on demand, pay
the premium for such Increased hazard for the term of the use
thereof; otherwise this policy shall be null and void.
If this policy is cancelled by the Fund, it shall continue in force for
the benefit only of the mortgagee (or trustee) for 10 days after
written notice to the mortgagee (or trustee) of such cancellation
and shall then cease, and the Fund shall have the right, on Ifke
notice, to cancel th(s agreement.
Whenever the Insured shall pay the mortgagee (or trustee) any
sum for loss under this policy and shall claim that, as to the
mortgagor or owner, no liability therefore existed, the Fund shalt
to the extent of such payment, be thereupon legally subrogated
to all the rights of the party to whom such payment shall be
made, under all securities held as collateral to the mort age
debt, or mad+, at its option, pay to the mortgagee (or trustee} the
whole principal due or to grow due on the mortgage with interest,
and shall thereupon receive a full assignment and transfer of the
mortgage and of all such other securities; but na subrogation
shall impair the rlght of the mort ages (or trustee) to recover the
FuII amount of said mortgagee's ~or trustee's) claim.
K. MORTGAGEE OBLIGATIONS: If the Insured fails to render
proof of loss, the name mortgagee (or trustee), upon notice, shall
render proof of loss in the foRn herein specified within 60 days
thereafter and shall be subject to the provisions of this policy
relating to appraisal and time of payment and of bringing suit.
L. LOSS PAYABLE CLAUSE (APPLICABLE TO CONTENTS
ITEMS QNLI~: Loss, If any,shall be adjusted with the Insured
and shall be payable to the Insured and loss payee as their
interests may appear.
M. REQUIREMENTS IN CASE OF LOSS: The Insured shall
give written notice, as soon as practicable, to the Fund of any
loss, protect the property from further damage, forthwith
separate the damages and undamaged property and put it in the
best possible order. Within 60 days after. the loss, unless such
time is extended in writing by the Fund, the Insured shall render
io the Fund a proof of loss, signed and sworn to by the Insured,
stating the knowledge and belief of the Insured as to the
following: the time and origin of the loss, the interest of the
Insured and of alt others in the property, actual cash value of
each item thereof and the amount of loss thereto, all
encumbrances thereon, all other contracts of Insurance, whether
valid or not, covering any of sold property, any changes in the
title, use occupation, location, possession or exposures of said
property since the issuing of this policy, by whom and for what
purpose any building herein described and the several parts
thereof were occupied at the time of loss. The Insured, at the
option of the Fund, may be required to furnish a complete
inventory of the destroyed, damages, and undamaged property,
showing in detail quantities, cost actual cash value and amount
of loss claimed, and verified plays and speci(ications of any
building, fixtures or machinery destroyed or damaged.
The Insured, as often as may be reasonably required, shall
exhibit to any person designated by the Fund all that remains of
any property herein described, and submit to examinations under
oath by any person named by the Fund, and subscribe
PAGE: 4 OF 5

PAPR - 004601

 the same, and, as often as may be reasonably required, shall
produce for examination all book of account, bibs, invoices and
other vouchers or certified copied thereof if originals be lost, at
such reasonable time and place as may be designated by the
Insured or its representative, and shall permit extracts and
copies thereof to be made.
N. APPRAISAL: In case the Insured and the Fund shall fall to
agree as to the actual cash value or the amount of loss, then, on
the written demand of either, each shall select a competent and
disinterested appraiser and notify the other of the appraiser
selected within 20 days of such demand.The appraisers shall
first select a competent and disinterested umpire; and failing for
15 days to agree upon such umpire, then, on request of the
Insured or the Insurer, such umpire shall be selected by a judge
of a court of record in the State in which the insured property is
located. The appraisers shall then appraise the loss to each
item; and, failing to agree, shall submit their differences, only, to
the ump(re. An award in writing, so itemized, of any two when
filed with the Insurer shall determine the amount of actual cash
value and loss. Each appraiser shall be paid by the party
selecting him and the expenses of appraisal and umpire shall be
paid the parties equally.
O. OPTIONS: It shall be optional with the Fund to take all, or
any part, of the property at the agreed or appraised value, and
also to repair, rebuild or replace the property destroyed or

damaged wish other of Uke kind artd quality within a reasonable
time, an giving notice of fts intention sa to da within 30 days after
the receipt of the proof of loss herein required
P. ABANDONMENT: There shall be no abandonment to the
Fund of any property.
Q. WHEN LOSS PAYABLE: The amount of loss for which the
Insurer may be liable shall be payable 60 days after proof of
toss, as herein provided, is received by the Insurer and
ascertainment of the loss (s made either by agreement between
the Insured and the Fund expressed in writing or by the filing
with the fund of an award as herein provided.
R. ACTION AGAINST THE FUND: No suit or action on this
policy for the recovery of any claim shall be sustainable in any
court of law or equity unless ail the requirements of this policy
shall have been compiled with, and unless commenced within 12
months next after the date of mailing of notice of disallowance or
partial disallowance of the claim,
S. SUBROGATION: In the event of any payment under this
policy, the Fund shall be subrogated to ail the Insured(Is rights of
recovery therefore against any party, and the Fund may require
From the Insured an assignment of all rights of recovery against
any party for loss to the extent that payment therefore is made
by the Fund. The Insured shall do nothing after loss to prejudice
such right.

INSURA CE RESERVE FUND

ey
Director

rnii ~vvi>

PAGE: 5 OF 5

PAPR - 004602

 ~`~~,«
--~a5'.~
a ~i n ~ r,
~ ~~ ~
1
,~4

~''

't~
~~
~y~

~rI'!`~.'I'~', ~!'~~C.A.~1 t9.i~:'C1~~~J1°~'1'h~II~~`I"~i` f~l.(~~'k~~~~$..~`l~'~'
~

lNb~)1:1nC 1~. Rr~~L12V(?.rC1NI)
POSTOI~I~ICC 13ptiX10GG
C'O.I~U~i13ir1, S(3U'I'1`C C~11tt)I,INA. 39211

SOUTH CAROLINA CHANGES —VALUATION
THIS ENDpRSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY
This endorsement modifies insurance provided under the following;
BUILDING ANA PERSONAL PRpPERTY COVERAGE FORM
BUILDERS RISK COVERAGE FORM
CONDOMINIUM ASSOCIATION OVERAGE FORM
STANDARD PROPERTY POLICY
SCHEDULE*

Prem.
No.

A.

Bidg.
No.

Total Amount of Insurance
to be Carried

Agreed Value of Buildings

When this endorsement is attached to the STANDARD PROPERTY POLICY PD 04 01 tho term Coverage Part (n this endorsement is
replaced by the term Policy.

B. The following is added (o VALUATION Loss Condition:
1.

2.

For loss or damage to buildings caused by or resuilin~ from fire or lightning, you and we agree that:
a..

The value of tho buildings described in this Coverage Part; and

b.

The total amount of insurance to be carried on ilia buildings, including this Coverage Part; are the amounts shown in the
Schedule.

The following applies to the Builders' Risk Coverage Form, or the Builders' Risk Changes -Standard Property Policy, if applicable:
The Agreed Value of Buildings represents the value of the building when it is campleied.

Information required to complete this Schedule, if not shown on this endorsement, will be shown fn the Declarations.

INSURANCE RESERVE FUND

By
Director

I'UIISli/111

(:upyri~;l~l.luynrswrc tii~rrfcesUfficc, inc., I)R~t. 19$7

P:1Gt?: I O1'

PAPR - 004603

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Clark, Brad <Brad.Clark@BBandT.com>
Wednesday, December 23, 2015 1:34 PM
Keith R, Poweli; Robbie Ferris (RFerris@sfla.biz); greg.aJones@wellsfargo.com
RE: HCS ~ Exhibit B

Follow Up Flag:
Flag Status:

Follow up
Flagged

Keith,
Thanks for sending. This attached is just the overview of the coverage, but it is not the actual policy that applies
specifically to the HCS project. I need the actual policy (declarations pages) so that I can provide to the underwriter
specifically regarding this project to build the DIC policy.
I'll communicate with Greg about it moving forward,
Thanks,
Brad Clark, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clarkC~bbandt.com
mailcode: 120-80-01-15
From: Keith R. Powell [mailto:kpowellC~childs-halligan.net]
Sent: December 23, 2015 1:24 PM
To: Clark, Brad; Robbie Ferris (RFerrisC~sfla.biz); greg.a.jones(a~wellsfargo.com
Subject: FW: HCS ~ Exhibit B
Brad —Per your inquiry, this is what I have. I hope it contains what you are looking for. I imagine that Greg Jones has
the best answers to any questions you have about the HCS's IRF policies.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.chiIds-halligan.com
(803) 254-4035
NOTICE: This e-mall may contain information that is personal and confidential, non-disclosable and protected byattorney-client privilege, If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

of'13I3c4~T vi" ]l,S
r the ,S'O~b' YISC' Of 1•'~?C'

~~lf.-', 117~01•'lllU/lUF1 lrl /71,1' IY'flYl,$71J1,5'.57C17t JY1Cl1- C('1711Cl111 r)1'Of.JT'l~llll)'!(7'lll~ 1?(7Yl I??1j)~7C 71/fU]''rrzcrlic»~
C1ffdIlC11.L'S Gl17C1~ tl1ClJ~ ~P ,S'U~7J~C/ k0 jl1"UlG'C~%OIl 4l77C~L•'Y ~~ir''

lcr~r, the mess'CISJ6'

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%19011'%cI/lG/I O]" E'i2llf'1•' (l) }.6'J?~c::h %l' l.S l'7Cl(lF't',1'.SBC'~, ~f '01.1 !ll'(' l~Ot /~1C' Tt2l(?7?G~['.G1~T'('t'!j)lC'YI.~; Vr.)1l c7l"L' 110f1f%l'G~ /~2C1/. C!J'))' 1.LSl.'.

PAPR - 004604

 r~r.~,Irr/7t.rliort nr• ct~J~l'll'I~i (.)~

/~7E'. P1'2(.',1'~S(%,~7l' lS' ,S(PIC'/~l']71•c~ltbilc>c~,

If ~-or,~ ~~c>cc?i~'(?!~ /1175' //l(.';,S,1C(~~(

IJ? C'T7'O7'~ ]?~['.l'hSF.' /.~t'~G'~('.

lI]F; 179.C11~'/"%Gl~ (1'0112 )'OUI" Sy'SfE'!fi 1•Pif1101.!( /"E'[/C~i!!4; /~?N C(.?Il/C'14.1 C%77CI !'!D(l~y' 1'I?tl S'C'f2(.~C'(' 17121]'lE'<'llC'!/E'~)' Of f~?.b' tllUf,~Pe:i'1NIil

PAPR - 004605

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Keith R. Powell
Wednesday, December 23, 2015 1:42 PM
Clark, Brad; Robbie Ferris (RFerris@sfla.biz); greg.ajones@wellsfargo.com
RE: HCS ~ Exhibit B

Follow Up Flag:
Flag Status:

Follow up
Flagged

Thanks. I believe (but do not know for certain) that being a member of IRF means having a single agreement between
the local client and the State incorporating an elastic, amoeba-like bundle of coverages, so that separate policies are not
issued for separate projects —but there may be a reporting of new value (or expected new value) by the local
government entity back to IRF when a new project is underway and an adjustment in the premiums. I think their regular
property insurance works that way and BR may be the same. This sounds like a Greg question.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halliga n.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute uermission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

From: Clark, Brad [mailto:Brad.ClarkCa~BBandT.com]
Sent: Wednesday, December 23, 2015 1:34 PM
To: Keith R. Powell; Robbie Ferris (RFerris@sfla.biz); greq.a.jonesC~wellsfargo.com
Subject: RE: HCS ~ Exhibit B
Keith,
Thanks for sending. This attached is just the overview of the coverage, but it is not the actual policy that applies
specifically to Che HCS project. I need the actual policy (declarations pages) so that I can provide to the underwriter
specifically regarding this project to build the DIC policy.
I'll communicafie with Greg about it moving forward.
Thanks,
Brad Clark, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281,4545 direct
678.612.7403 Cell
brad.clarkC«~bbandt.com
ma iIcode: 120-80-01-15

PAPR - 004606

 ..,.

. ._

_ ..

-_

.: .

From: Keith R. Powell [mailto:kpowellCa~childs-halligan.net]
Sent: December Z3, 2015 1:24 PM
To: Clark, Brad; Robbie Ferris (RFerrisC~sfla.biz); greg.a.iones(~wellsfargo.com
Subject: FW: HCS ~ Exhibit B
brad —Per your inquiry, this is what I have. I hope it contains what you are looking for. i imagine that Greg Jones has
the best answers to any questions you have about the HCS's IRF policies.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-haIIiga n.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-dlsclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
~~otify us bytelephone as listed above immediately.

'll~e i»fr.»"/tlUfl~O!? 117 1I)l5' /1°«r~,~•rrli,s~,5~ic~tr. r~~cr~- coralur:~i~n°vpi-i~:ta~y cr~rcl ~~un~-~~rrl~lic infri°iizc7tion gf'.73~cS:rT car il,s~
crf/iliate.y cri~cl nxa~- l.~e .s~t~bjecT to ~~r•r.~teclior~ uncler• tl~c~ /~r~-v. The t~~c~s,sa~,>e is r.nte»c~ec1,fi.~r the ,s•nle ~r,~~e r.f'>/rc~
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(.~l,S'~f'%~~U~IC)/7 f)1" CU~)V!/?~r 0~ t~]t.' 192E.',S'S'C/,S:rC' l~s

strii'l`~l%~71'U~l•%~71fPC~.

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i~iud~~er'fPYt~

t 7'i!1 l.c n11,5'5' I O l1.

PAPR - 004607

 Sheri L. Wainscott
From:
Sent:
70:
Cc:
Subject:

greg.a Jones@wellsfargo,com
Tuesday, December 29, 2015 9:53 AM
Brad.Clark@BBandT.com
pam.williams@wellsfargo.com; Keith R. Powell
RE: HCS I Exhibit B

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

:.•

First, the SC IRF does NOT issue a "master policy". They are very unsophisticated and would write a
separate builders risk policy for each school for the full contract amount beginning at notice to
proceed until substantial completion. You would not be able to get a Dec. Page from HCS/SC IRF
until they order the policy.
have no idea where you and your contractor are regarding the actual construction process, but HCS
would typically (I assume) order the policy from IRF once you have the firm price and notice to
proceed in place.
Greg Jones, CIC, CPCU, CRIS
Senior Vice President
Wells Fargo Insurance Services USA, Inc. ~ 176 Croghan Spur Road (29407) ~ PO Box II97 ~ Charleston, SC 29402-0897
MAC D3611-020
Direct 843.573.3560 ~ Fax 866-358-87.52 ~ Cell 843.729.7661
greq.a.jonesC~wellsfarqo.com
This transmission may contain inFormatlon that is confidential and/or proprietary. If you are not the indivldua~ or enClty to which it is addressed,
noCe that any review, disclosure, copying, retransmission, or other use Is strfcl'ly prohibited. IP you received this transmission in error, please
notify Che sender immediately and delete Che material from your system. This transmission is for Informational purposes only and is not intended
as an offer or solicitation for the purchase or sale of any financial instruinenl' or as an official confirmation of any transaction. Any information
regarding specific investments or other products Is not warranted for completeness or accuracy and is subject to change without notice.

From: Clark, Brad [mailto:Brad.Clark@BBandT.com]
Sent: Tuesday, December 29, 2015 9:27 AM
To: Jones, Gregory A
Subject: Re: HCS ~ Exhibit B
Greg,
Do I have any chance of obtaining a copy oi.'the master reporting form from. HCS? My underwriters are wary of
writing a DIC policy without proof of coverage.
Thanks,
Brad Clark
919.281.4545 direct

678.612.7403 mobile
PAPR - 004608

 On Dec 23, 2015, at 1:42 PM, Keith R. Powell <kpowell ,childs-halli an.net> wrote:
Thanks. I believe (but do not Know for certain) that being a member of IRF means having a single
agreement between the local client and the State incorporating an elastic, amoeba-like bundle of
coverages, so that separate policies are not issued for separate projects —but there may be a reporting
of new value (or expected new value) by the local government entity back to IRF when a new project is
underway and an adjustment in the premiums. 1 think their regular property insurance works that way
and BR may be the same. This sounds like a Greg question.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. if
you have received this e-mail in en~or, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive this message in error, please notify us by telephone as listed above immediately.

From: Clark, Brad [mailto:Brad.ClarkCa~BBandT.com]
Sent: Wednesday, December 23, 2015 1:34 PM
To: Keith R. Powell; Robbie Ferris (RFerrisCa~sfla.biz); greq.a.jones@welisfargo.com
Subject: RE: HCS ~ Exhibit B
Keith,
Thanks for sending. This attached is just the overview of the coverage, but it is not the actual policy that
applies specifically to the HCS project. I need the actual policy (declarations pages) so that I can provide
to the underwriter specifically regarding this project to build the DIC policy.
I'll communicate with Greg about it moving forward.
Thanks,
Brad Clark, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clark@bbandt.com
m ailco de: 120-80-01-15
From: Keith R. Powell [mailto:k~owellC~childs-halligan.net]
Sent: December 23, 2015 1:24 PM
To: Clark, Brad; Robbie Ferris (RFerrisC~sfla.biz); greg.a.jones@wellsfargo.com
Subject: FW: HCS ~ Exhibit B
Brad —Per your inquiry, this is what I have. I hope it contains what you are looking for. 1 imagine that
Greg Jones has the best answers to any questions you have about the HCS's IRF policies,

PAPR - 004609

 Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected byattorney-client privilege. If
you leave received this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive khis message in error, please notify us by telephone as listed above immediately.

'1"he Infm'797C"lJT077 lfl 1111,5' ~]"4lT7Sh7%.ti'STC)M 779(ly' C'[)11~4l%M J77'('I)717L'IIIT.V ~rr~zi.~~zur~ ~~t.~l~lic' TTIfOF'I'19C'111071 Uf.
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.fnr tl~~e .5~nle rise c~~'the incliric~~r.Ul nr• er~til~~ to ►i-hich it' i.s crc~~lres•,st~d .If;rc».c ai•e ~aot the irrtencic~cl
r~c~c•rpi<n~~, yat~ urEf ~9~~li~ic'~/ !1~<ri ctny t~s'~~, c/islrzlia.~Iior~. nr c~nr~yr.'»,~r cif thc~ rsies~.sc~yc~ r,s sir~icvly
~n•oltir~itecl. If.pou rc~c~ei>>c~d phis r~~c<sscr~,TY (Yf E'Yl'OP, ~jlea,sc~ ~relete the irtcrter~iitl.frojn,}-otn• s~~,stena
i.s~i~hozrt ;•c~ctclirr,~r Ilzc~ ci~nir:.~•~t anal iaotifj~ the ser~~~Je~~ i~77r~~c~cliutely o~'t17e aFac~ili-er•tc~i~~ tra~s~~~i,5•srnr~,

PAPR - 004610

 Sheri L. Wainscott
From:
Sent:
To:
Cc:
Subject:

Clark, Brad <Brad.Clark@BBandT.com>
Tuesday, December 29, 2015 9:57 AM
greg.a.jones@wellsfargo.com
pam.williams@wellsfargo.com; Keith R. Powell
Re: HCS ~ Exhibit B

Follow Up Flag:
Flag Status:

Follow up
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Categories:

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Greg,
Thanks for the info. ~1 notice to proceed has been issued and contracts have been signed with the contract
amounts for each school.
Keith -who should I/Robbie speak with at HCS to obtain declarations pages for these five builder's risk
policies?
'Thank you,
Brad Clark
919.281.4545 direct
678.612.7403 mobile

On Dec 29, 2015, at 9:52 AM, "~g.a.jones(a,wellsfar go com" <greg.a.iones(c)wellsfar o.com> wrote:
:.~

First, the SC IRF does NOT issue a "master policy". They are very unsophisticated and
would write a separate builders risk policy for each school for the full contract amount
beginning at notice to proceed until substantial comple#ion. You would not be able to
get a Dec. Page from HCS/SC IRF until they order the policy.
have no idea where you and your contracfior are regarding the actual construction
process, but HCS would typically (I assume) order the policy from IRF once you have
the firm price and notice to proceed in place.
Greg .Jones, CIC, CPCU, CRIS
Senior Vice President
Wells Fargo Insurance Services USA, Inc. ~ 176 Croghan Spur Road (29407) ~ PO Box 897 ~ Charleston, SC
29402-0897
MAC D3611-020
Direct 843.573.3560 ~ Fax 86G-358-8252 ~ Cell 843.729.7661
greq.a.iones(a~wellsfarqo.com
This transmission may contain information that is confidential andlor proprietary. If you are not the individual or entity to
which it is addressed, note Chat any review, disclosure, copying, retransmission, or other use is strictly prohibited. If you
1

PAPR - 004611

 received this transmission In error, plea&e notify the sender immediately and delete the mater(al from your system. This
transmission is for informational purposes only and Is not intended as an offeror solicitation for the purchase or sale of any
financial instrument or as an official confirmation of any transaction. Any information regarding specific Investments or other
products is not warranted for completeness or accuracy and is subJect to change without notice.

From: Clark, Brad [mailto:Brad.Clark@BBandT.com]
Sent: Tuesday, December 29, 2015 9:27 AM
To: Jones, Gregory A
Subject: Re: HCS ~ Exhibit B
Greg,
Do I have any chance of obtaining a copy of the master reporting form from HCS? My
underwriters are wary of writing a DIC policy without proof of coverage.
Thanks,
Brad Clark
919.281.4545 direct
678.612.7403 mobile

On Dec 23, 2015, at 1:42 PM, Keith R. Powell <kpowell(~`hilds-halli an.net> wrote:
Thanks. I believe (but do not know for certain) that being a member of IRF means
having a single agreement between the local client and the State incorporating an
elastic, amoeba-like bundle of coverages, so that separate policies are not issued for
separate projects —but there may be a reporting of new value (or expected new value}
by the local government entity back to IRF when a new project is underway and an
adjustment in the premiums. I think their regular property insurance works that way
and BR may be the same. This sounds like a Greg question.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail inay contain information that is personal and confidential, non-disClosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not Constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.

From: Clark, Brad [mailto:Brad.Clark(c~BBandT.com]
Sent: Wednesday, December 23, 2015 1:34 PM
To: Keith R. Powell; Robbie Ferris (RFerris@sfla.biz); greg.a.jones@wellsfar o.com
Subject: RE: HCS ~ Exhibit B
Keith,
Thanks for sending. This attached is just the overview of the coverage, but it is not the
actual policy that applies specifically to the HCS project. I need the actual policy
(declarations pages) so that I can provide to the underwriter specifically regarding this
project to build the DIC policy.

PAPR - 004612

 I'll communicate with Greg about it moving forward,
Thanks,
Brad Clarlc, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612,7403 Ceil
brad.clark@bbandt.com
maiIcode: 120-80-01-15
From: Keith R. Powell [mailto:kpowell@childs-halligan.net]
Sent: December 23, 2015 1:24 PM
To: Clark, Brad; Robbie Ferris (RFerris@sFla.biz); greq.a.;on~ es@weilsfarao.com
Subject: FW: HCS ~ Exhibit B
Brad —Per your inquiry, this is what I have. I hope it contains what you are looking for.
imagine that Greg Jones has the best answers to any questions you have about the
HCS's IRF policies.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.chiIds-halligan.com
(803) 254-4035
NOTICE; This e-mail may contain information that is personal and confidential, non-disclosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.

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171C'.,S15'Cl~'C' 111 G'Yl'(,')1"', IJ~C?Glb'G Q~G•'~!'.f'P. 1'~7P lt1Gt(?Y%Q~ f1'<')li! .J101./Y SJ%.S'tL•'lYl 14'ltYl0lll 1'L'CIGIII~~f; 1I1c?
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Ill)ih!(',l~ll'/lC'~}- of l~l(? 1l1CtGIl'P./7G'711 /7''l.~19,S1i11S.)7012.

PAPR - 004613

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Keith R. Powell
Friday, November 20, 2015 12:17 PM
Robbie Ferris
RE: HCS contracts forms
EX B v2 -Working Draft - (1).docx; 673757_2 141 main -Working Draft - (1).docx

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Roubie —I've got a block of time from now to about 3:30 where I can't work on this. The A141 is attached with changes
related to your points below. I am going to have to tale this to the Board on Monday night for a motion, and will
probably change the signatory from John Gardner to the board chair. Joe is aware of this.
have put in the more generous time claims provisions that you think will get you the time you need, and I have updated
the prototype language and increased the initial invoice per your chart. On SMS we will probably leave in the 5/1 date
as with the others, but can put in a clause allowing time for delays in acquiring asite —same principle.
The insurance idea is worth considering but we don't have time to fully vet it, so I have added a note in Exhibit B that the
insurance can be changed by agreement at any time.

i still need to fix 2.1.1 and to copy over the HCS's exhibits e and f, but wanted to get this to you before I get distracted
for a few hours.

What do you think? I will run you avariance-checked version of everything a little later today when I think we have all
settled.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerris@sfla.biz]
Sent: Thursday, November 19, 2015 4.24 PM
To: Keith R. Powell
Subject: RE: HCS contracts forms
Here is where I think we are, call me anytime to discuss if you have questions:
1. On the schedule I have talked with our subs and they can't accelerate the schedule with an increase in cost.
wish this answer were different so I guess we will have to go get the board to address the issue.
2. We consider the following a very big concession. We will grant HCS use of the drawings as you outlined in 12.3
but I prefer to strike "to the extent permitted by law" in the second to last line. My logic is that if they use my
i

PAPR - 004614

 drawings and I am sued at the very least they should guarantee that they will pay my cost of defense and time
associated with such defense. Also, in 12,3.1- in the first line change "shall" to "will endeavor to". I don't even
know who all of the designers are at this point plus I can't guarantee that they will agree. I will work very hard to
get this done.
In addition, in exchange for this right to use the drawings we would ask the following three things be added to
the contract.
a. We be paid for our up front work as previously discussed within 2 weeks of signing the contract.
b. We be given the right to approve the owners selection of and scope for the commissioning agent. The
owner will not hire the commissioning agent without our approval.
If the owner is interested we have found that we can buy a $15,000,000 professional liability insurance policy
with an 8 year tail that covers all known designers at the time we bind the policy. That policy will cost us about
$1,300,000.00 but if the owner is willing to limit our liability to the limits of our professional liability insurance
we will spend the extra money on that policy. This would be a great benefit because the owner would have
significantly more coverage (7 times) more than they would otherwise have. Plus it protects the owner over the
8 years. It costs us more money but I think it would protect us all.
4. Typos:
a. 2.1.1- the design builder is repeated
b. 9.8.3- review the .....i think you left the word work out?
c. Were fine with exhibit e and f that you sent over. We would ask that you consider the following. Under
section 5.7 Key Personnel, Contractors and Suppliers: If the Owner has objection to personnel,
Contractors, or suppliers and require that another personnel, Contractor, or supplier be used, they
should pay for the difference in price.
From: Keith R. Powell [mailta~.kpoweilCc~chiids-halligan.net]
Sent: Thursday, November 19, 2015 12:30 PM
To: Robbie Ferris
Subject: FW: HCS contracts forms
Importance: High
Getting down to home stretch I hope:
The staff does not believe it has authority to extend beyond the May 1S` date. It is clear to me that I'm not going
to be able to do anything about that in the absence of a board action. However, FFEP has a monthly report
directly to the Board, so certainly you will have many opportunities to explain the reasonableness and basis of
the proposed durations to the Board and seek the necessary extensions — so much was made of this in the
informal statements and press, though, that it may not be in anyone's interest to breach the May 1date while
so much public attention is focused on this. When the SMS site is pinned down, for example, might be a time to
address it.
2,

Marl< has a simpler outline of the prototype issue. As far as I can tell this is the main clause to bear down upon
today and tomorrow.

3. I can't male any progress on the proposal costs reimbursement.
4. I can't male any progress on the retainage issue.
5. Everyone is relieved there has been no protest.
think we ought to plan to do this execution meeting on Monday. I would like to get all the terms settled by
mid-day tomorrow and then be able to create and circulate the final sets of all S projects on Friday afternoon.

Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com

PAPR - 004615

 ;',
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege, If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

REDACTED

PAPR - 004616

 AIA~ Document A141~r" -- 2 014
~~;
Exhibit B
f _...i

Insurance and Bonds
for the following PROJECT:
(Name and location or address)

~
ADDLTION6 AND DSLETIONB~ The
jauGhor of this document has
!ad~ed information needed for

:.

New Carolina Forest Middle School<t
(per Owner'sRcquest forPropos~ls No. 7415-91 and Desi~-Builder's Proposal in
-

-

~

iCSn0115C lQ l}1C SO~iCltdll0i7.~
--

-

..

_.

i i e , compieeion. Tne auehor
'may also have revised cne

~
--;

-

3teXt of the original AIA
etandard'foim. ~An Additions
~anc~ Deletto a Report that
{notes added~in~ormation as

~wel~l as revisi~ns co the
standard foFm text is
~available.E~!om the.author.an~t

THE OWNER:
(Name, lebal alalus and addrests)

~ahould be reviewed.
H~7ry COII❑ ty ~SC~IOO~S,
Cfll'OIII]a.
-

Thia ~ aocumene

South Caroli»a, n nolitical subdivision of Ihe.State of South'
~

33$ FOui N111e Rd.
Conway, SC 29528

-

5

i
1

has important
~.~"~
legal coneequeneea.
consultation with:an" - ~
.,.;

attorney is ,encouraged with
respect to its comp etion or

modification~~` - ~

THE DESIGN•BUILDER:
(Name, legnl .siaius~ and address)
FIRSTFLOOR ~NGRGY POSITIVE LLC,
333 Fayetteville St., Suite 225
Raleigh, NC 27601
,_

~
i

;3
~

1
~.

,...

'~~_,:
.
~ ,.:
~ ''/, .. ,".J~
~

r`
THE AGREEMENT
This Insurance Exhibit is part of the accompanying agreement for the Project, between the
Owner and the Design-Builder (hereinafter, the Agreement), dated the «nineteenth if day
of ct November >i in the year two thousand fifteen (2015] .
(In words, indicate dad+, month and year.)

'~,
~
s

1

~ ' """' ~

-

' '"`

TABLE OF ARTICLES
.:-~
B.1

GENERAL

8.2

DESIGN BUILDER'S INSURANCE AND BONDS

B.3

OWNER'S INSURANCE

B.4

SPECIAL TERMS AND CONDITIONS

[1RTICLE 8.1 GENERAL
__________________.__.._____
The Owner and Design-Builder shall purchase and maintain insurance and provide bonds
asset forth in this Exhibit B. Where a provision in this Exhibit conflicts with a provision in
the A~Bement into which this Exhibit is incorPorated, the provision in this Exhibit will
prevail. Auring the course of the Project, the Owner and Design-Builder may substitute
mutually-acceptable alternative insurance arrangements for those specified in § B.2,1.
ARTICLE B.2

_. ,-, ,

~. /

''~
~
z

i_
_.__._____--•-' Formatted: Highlight

~ECTRONTC COPYING of any
Portion of this AIA~ Document to
another electronic file is
prohibited and conatitutae a
violation oe copyright lewd a9

aet fo=th to the tooter of tr,ia
document.

-

DESIGN BUILDER'S INSURANCE AND BONDS

AIa Docwnaut ]111" - 1014 Hxhlbit H. copyright ° Zoo4 end ]014 by The American ZnetStvte of Architects. All slphtc xeaerved. wIRN[No~ Thic AIA
DOCu1nBAt le prntece¢E by U.9. CapyclgGt Law nntl IfIt4C~IIt100d1 S[lLCS?9. OnauChOYisBd L6D~OtlUCG10~ O[ di8tC1but10n Of th18 AIA DOCUB~eTC~ OL
any ~w~tlon of it, my rneult Sn ce~ere civil and crimival pnnnl Elea, and will ba pcunecutnd to Use mnxiswn extent imas3Lle under the lna, Thia
draft was produced by AU eof Cvaze at 19:06:17 oa 11/16/4015 under Order No.01395B6ROB_1 which expires on O'!/14/RO]6~ and is not for [seals.
(iR621~3226)
OBex Notea~

PAPR - 004617

 § B.2,1 Tl~e Design-I3uildcr shall ~>urchase and maintain the following types and limits of insurance from a canpany'
or companies ]awfully authorized to du Uusiness iii thejurisdiction where the Projcet is located. fihe Design-Builder
shall maintain the required insurance with tl~e expiration of the period for correctiai of Work as set forth in
Section ll .2.2: l of tl~e Agreeii~enk
§ 8.2,1.1 Commercial General Liability with policy limits of not less than «two million'.» ($ «2,000,000 >5;) for each
occurrence and a five million.» ($ t<5;000,000.00 ») in the aggregate providing coverage for claims including
damages because of bodily injury, sickness or disease, including occupational sickness or disease, and
.1
death of any person;
j x
.2
personal injury;
j
.3
damages because of injury to or destruction of tangible property, and must contain•the subcontractoa---•
exception to the "your work" exclusion;
,4
bodily injury or propeKy damage arising out of completed operations; and '+,
.5
wntractual liability applicable to the Design-Builder's obligations under Secjtiorj 3.1.14 of the
Agreement.

t

~:
§ B.2.1.2 Automobile Liability covering vehicles owned by the Design-Builder and non-o~Jned~vehicic.s used by the
Design-Builder with policy limits of not less than «one million ii ($ t<1,000,000)) per claim and none million », ($
«$1;000,000,00' i>) in the aggregate for bodily injury, death of any person, and property damage arising out of the
ownership, maintenance and use of those motor vehicles specified in this Section B.2.1.2, along with any+oth4r
statutorily required automobile coverage.
~
~ ~
_ ... :. t 3 __... ... .

,_.

§ 8.2,1,3'Che Design-Builder may achieve the required limits and coverage for Commercial,General Liability and ..
Automobile Liability through a combination of primary and excess liability insurance, provided such primary and
excess insurance policies result in the same or greater coverage as those required under Sections B.2.1.1 and B.2.1.2. ..

{

i

§ 8.2,1,4 Workers' Compensation at statutory limits.

f
§ 8,2.1.5 employers' Liability with policy limits as provided below:
«$100,000 per accident,»
§ B.2.1.6 Professional Liability covering negligent acts, errors and omissions in the performance of profetisional
services, with policy limits ofnot less then e<two million », ($ «2,ODO,OQO >i) per claim and ~<two million;», ($
«2,000,000 i>) in the aggregate.
_

`..

.

,.;f

'' F

§ B.21.8'Phe Design-Builder shall provide written notification to the Owner ofthe cancellation or expiration of any""
insurance required by this Article B.2. The Design-Builder shall provide such written notica'`within five (5) business
days of the date the Design-Bu ilder is first aware of the cancellation or expiration, or is first awaXe that the'aanc211atlori
r
j
or expiration is threatened or otherwise may occur, whichever comes first.
§ B.2.1.9 Additional Insured Obl(gatlons. The Owner and its consultants and contractors shall be additional ~nsui~eds on
the Design-Builder's primary and excess insurance policies for Commercial General Liabil~ty, and:Automobile__ _ , _ _:
Liability. The additional insured coverage shall be primary and non-contributory to any of the Owner's insurance
policies. The additional insured coverage shall apply to both ongoing operations and completed operations.-Ttie policy
limits applicable to the additional insureds shall be the same amount applicable to the named insured or, if the policy
,. • -~ ° - - ...
provides otherwise, policy limits not less than the amounts required under this Agreement.
§ B.2.1,10 Certificates of Insurance. The Design-Builder shall provide certificates of insurance'acceptable to the
~ ~, ~-.
Owner evidencing compliance with the requirements in this Article B.2: (1) prior to comme}Scement of the Work;
(2) upon renewal or replacement of each required policy of insurance; and (3) upon Owner is vv~itten request. An
~ S
additional certificate evidencing wntinuation of liability coverage, including coverage for completed operations, shall
~ f
be submitted with the final Application for Payment as required by Section 9.10.2 of the Agreement and thereafter
upon renewal or replacement of such coverage until the expiration of the time required by Section B.2. ] .The
r?
certificates will show the Owner and its consultants and contractors as additional insureds on thebcsign-Builder's
~
primary and excess insurance policies for Commercial General Liability, and Automobile Liability, Information
AIT Docmnant Alfl" - 3D11 tx6lbik B. Copy[ight ~ 2004 aM 301 by The Merican lnatitute of archltacCe. All tlght~ tseervad. HrRNItla~ Thl~ dIA
ant Sa proCeMed by D.O. Cvpyzight Lav and intermtionel 'ereatiae. Onauthozi:eA reproAneCion or dLctribuC3on oL Chia AU' Oocuaent, oY
any portion oI it, nay renal« Sn s axe civil anA criminal penaltlas, and w111 be prosecuteG to tna maximmn extent p000lble under CTe law. Thie
AraGt wee pzodueed by AIA wftHareVat 14~06~1'J on 11/16/2015 u~Mer Ordez No.a2]9586Rae_1 v~hich expiree on O]/1~/2016~ and Ss trot toz raeale.
(12821'1]]]6)
Veex Noteei

2

PAPR - 004618

 concerning reduction of coverage on account of revised limits, claims paid under the General Aggregate or both, shall
be furnished by the Design-Builder with reasonable promptness.
§ 8,2.2 Performance Bond and Payment Bond
The Design-Builder shall provide surety bonds as follows:
(Specify type and penal sum of bonds,)

€-°
~ I

Type
Penal Sum ($0.00
1
A312 Performance Bond and A312 Payment Bond. The 1
performance bond; may, buds notrequired to secure the
professional liability ofdesign professionals to the extent'
100% of contractroalue.
such liability is covered by the design professionaPs
professional liability insurance,
i
E
i
§ B,2.2.1 Upon the reyuest of any person or entity appearing to be a potential beneficiary of bonds covering payment
of obligations arising under the Agreement, the Design-Builder shall promptly furnish a copy of the bonds.or,shall
permit a copy to be made.
i ~

~ ~

ARTICLE 8.3 OWNER'S INSURANCE
F
§ B,3.1 Owner's Liability Insurance
~ s
The Owner shall be responsible for purchasing and maintaining the Owner's usual liability~ins4rance.

'~'

i =
sF

~

_.i

~--..-••--•-.--.~._.._.____:...,... __.
§ B,3.2 Property Insurance
§ B.3.2.1 Unless otherwise provided, at the time of execution of the Design-Build Amendment, the Owner shall
purchase and maintain, in a company or companies lawfully authorized to do business in the jurisdiction where the
Project is located, property insurance written on South Carolina Insurance Reserve Form PD-23. Unless the parties
agree otherwise, upon issuance of a Certificate of Substantial Completion, the Owner shall replace the,jnsu'rance .-'"'
policy requirod under this Section B3.2 with another property insurance policy written for the.~otal'Value of:ttie
Project that shall remain in effect until expiration of the period for correction of the Work set forth in Section 11 `2.2~of
the Agreement.
{, "` '---:,,.
~ !
•,....
_,~
t
§ B.3,2,1.2 If the insurance required under Section 8.3.2.1 requires deductibles, the Owner shall pay costs not covered
because of such deductibles.

~

' "'

§ B,3,2,1,4 Partial occupancy or use in accordance with Section 9.9 of the Agreement shall not commence until the
to:such ,.•''' ~ ~ ,='
_
insurance company or companies providing the insurance required under Section 6.3.2.1 have consented
.. .
partial occupancy or use by endorsement or otherwise. The Owner and the Design-Builder shall~take reasQnal~le'steps;,<•
to obtain consent of the insurance company or companies and shall, without mutual written~co~sent, take ho actign"
`~
with respect to partial occupancy or use that would cause cancellation, lapse or reduction o~ insurance. ~
F

§ B,3,2,2 Boiler and Machinery Insurance, The Owner shall purchase and maintain boiler and machinery insur~ce in
..... _::.. - - .,..;
~.- . --- ~
the form of S.C. Insurance Reserve Fund ("IRF") PD-0 l, PD-09, and PD-12.
i

§ 8.3.2.6 Before an exposure to loss may occur, the Owner shalt file with the Design-Builder a copy.ofeachpolioy that.
includes insurance coverages required by this Section 8.3.2. Each policy shall contain all generally applicable,_,
- :...
conditions,•definitions, exclusions and endorsements related to this Project. The Owner shallprovide written
notification to the Design-Builder of the cancellation or expiration of any insurance required by.this Article B.3. The `Owner shall provide such written notice within eve (5) business days of the date the Ownet~ is first aware of the
cancellation or expiration, or is first aware that the cancellation or expiration is threatened or otherwise may occur,
whichever comes first

a
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J

§ B.3.2.8 A loss insured under the Owner's property insurance shall be adjusted by the Owrler as fiduciary and'made -"
payable to the Owner as fiduciary for the insureds, as their interests may appear, subject to requirements of any

S

AIL boeumenk A141^ - RO1M Itxhibit H. Copyright ° 2004 and 2019 by The Ameriten inetStute oL Arch1[acte. 1111 riyLte reserved. HARlii2i4t Tble ASA'
Document in pcoCected by II.G. Copyright Law end internaeional Treetieo. Vneuthorised saproduction or dlatribution oP this Au Oocument~ oY
any porClon of it, may Yevult Sn sevBre civil end CYiminal penalties, and will be prosaCvend Go tAe maximwo extent ponuible undaY tM lax, Th18
dCLf[ M e p[oducad by AIA 60f CMei2 8C 14:06:17 OA 11/162015 U~deL Ozd¢t N0.02395B62DB_1 wh1Ch e%p~Iee OA 07~19/~016~ elld 1B IIOC LOL L¢Bd18.
(138217]]26)
9e ar Noteai

3

PAPR - 004619

 applicable mortgagee clause and of Section B.3.2.10. The Design-Builder shall pay tho Architect, Consultants and
Contractors their just shares of insurance proceeds received by the Design-Builder, and by appropriate agreements,
written where legally required far validity, the Design-Builder shall require the Architect, Consultants and Contractors
to make payments to their consultants and subcontractors in similar manner.
§ 8.3,2.9 If required in writing by a party in interest, the Owner as fiduciary shall, upon occurrence of an insured loss,
give bond for proper performance of the Owner's duties. The cost of required bonds shall be charged against proceeds
received as fiduciary. The Owner shall deposit in a separate acwunt proceeds so received, v~+hi~h the Owner shall
distribute in accordance with such agreement as the parties in interest may reach, or as determined in accordance with
£
the method of binding dispute resolution selected in the Agreement between the Owner anc~ Design-Builder: If after
such loss no other special agreement is made and unless the Owner terminates the Con[ract~for convenience,_ ---• --~-- - - replacement ofdamaged property shall be performed by the Design-Builder after notificatio~i of~a Change in the Work
in accordance with Article 6 of the Agreement.
j
§ 6,3,2,10 The Owner as fiduciary shall have power to adjust and settle a loss with insurers unless one of the parties in
interest shall object in writing within five days after occurrence of a loss to the Owner's exercise of this power. If an
objection is made, the dispute shall be resolved in the manner selected by the Owner and Design-Builder as~the method
~
~
of binding dispute resolution in the Agreement.

~ ~

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AI11 Docunant A1{1~ - 201 exhibit B, Copyright ^ II00< and 2010 by The Mcerican Inetltute of Aich1[acCe. All zlgLte zeaecved. MAPMNO~ TFie AZ.I
Doeunent is BroGnCG<d by o.s. CoyyriyLt bev and Intesnatfonal 9Yaatieu. veauthorised ceprodacCion et diet+iDutSon o[ this AIA Document, or
any portion of iC, may revolt Sn a ere cAvil an0 criminal genaltie~, and H11 be Droancuted to the maximum extent poaoiblo under Che law. Tble
dre[t was pcoduroC by AIn software Vat 14 ~06~1'I on 11/16/2015 ~~tl¢i Otdee No.aZ]95B6]OB 1 Nh1Ch 0%pSCee OA 07/14/3016, antl Sa ~o[ loi[ eale.
(1202172]26)
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PAPR - 004620

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AIA Document A141T" - 2014

~

Standard Form of Agreement Between Owner and Design-Builder
AGREEMENT made as of the ~lt~rhventy-third day of «Novembers% in the year two thousand'Cileen (2075).._ >t
(In irordr, indicate day, mnnih and yemtJ
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}
{ADDITIONS

BETWEEN the Owner:
(Nome, (egal.rlah~.~•, address and other infoi~ma~inn)
~ ~-

~

-- - ~

Homy County Sc5ools, Sou11i Carolina,;a political subdivision of the Slate o1' South~)8C011114,

~

'' !tent of the original nzn
'standard fokm.;An nddiCions
`and Deiectons Report that

335 Four Mile Rd '. ~ PO Dox 260005 '
Conway, SC 29528
District Office Phone 843;4S8.G700

;notes addedi in~ormaCion ae
'welil as rev}signs to the
istandard foi~n ~exL is
available from Eheautlior and
f
;should be reviewed.

and (he DeSibn-BUII(~ei:
MGll7L, (Cf',4I ~SIG/U.S, p[I[II'B.Y.t' GI7G'OIIiL'Y 1J7J01771UIIOYI~

'hie document has important

FIRSTFLOOR~NERGY POSITING LLC,
333 rayetteville St., Suite 225
Raleig6,N~'276Q1

legal consequences.

-i

cons~itation wick .an'

j

attorney is,encourayed-with
re ~pect-to its comp}eCion or
modification:"
i

for the following Project:
(Nome, localron and detailed description)
,.
_. _.
_
N6W'CBLO~IIII F'DTCSY IVIIdd~C$CI100~1( -

I.

TND D6LSTIONB ~ The
iauLhor of this document has
~ad~ed information needed for
~~tg completion. The author
-may also have revised the

_ i
consultation with an

__. . _
~

(perOwnePsReyuestforProposalsNo:1415-91)`
.

'i
I

attorney ~is aleQ erjcouraged
with ieepect to~professional
licensing sequirement~ in.,
cne juz~sat~cton where Chef
Project is located.
- - 'f

Note:... references;o Owaer's Request for ProposaisNo. 1415-91 include;its addenda.
The Owner and Design-Builder agree as follows.

f

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i._ __... , , ... _ ,_. .. ...-......

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BLECTAON=C COPYING of any
portion of this AIA llocument to
another electronic file is
prohibited and constitutes a
violation of copyright laws as
set forth in the footer of this
document.

2o0a and ]014 by The Nnerican Institute o[ Architects. All riyhte [naeived. HARNitlGi Th15 AIA Dorturtnt
AIA Document A141^ - 7019. copyright
'
is precocfed by V,s. .:npyright Law and 2n texna kional 'fxeacic e. u~autlioif xcd _oproduccton of diet ~lb~itlon uf. cl~la ASA` uucument, oe nny Po~cion
oC St, mny x xvit lip a v
r.tvll and ccimLnel p~nultiex, end will he pioxecvteA I:n the ~roziinwn extent P~~atllble ~~n0er [h~ lnv, Thie draft was
produced by AIA 60ftvate at 1]:4I:J'! oit 11/]6/]U15 UndCz D[tlez No. D2J95B610B,1 Mhich expl[es on 07/14/2014, antl is dot Eo[[ Hale.
(1]96)8115)
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1

PAPR - 004621

 TABLE OF ARTICLES
1

GENERAL PROVISIONS

2

COMPENSATION AND PROGRESS PAYMENTS

3

GENERAL REQUIREMENTS OF THE WORK OF THE DESIGN•BUILD CONTRACT

4

WORK PRIOR TO EXECUTION OF THE DESIGN-BUILD AMENDMENT

1

~t . :.::..... :.:.:...:..:w.___._ . _... .

5

WORK FOLLOWING EXECUTION OF THE DESIGN•BUILD AMENDMENT

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~

6

CHANGES IN THE WORK

7

OWNER'S RESPONSIBILITIES

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'" `~

8

TIME

j

9

PAYMENT APPLICATIONS AND PROJECT COMPLETION

10

PROTECTION OF PERSONS AND PROPERTY

11

UNCOVERING AND CORRECTION OF WORK

12

COPYRIGHTS AND LICENSES

13

TERMINATION OR SUSPENSION

14

CLAIMS AND DISPUTE RESOLUTION

15

MISCELLANEOUS PROVISIONS

16

SCOPE OF THE AGREEMENT

- . ~ -~--:—~:.~--:---. • --~

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'

TABLE OF EXHIBITS

`,
%' S

A

DESIGN-BUILD AMENDMENT

B

INSURANCE AND BONDS

r,%~

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ARTICLE 1 GENERAL PROVISIONS
~ i
3 ~_ _
§ 1.1 Owner's Criteria
~
~
}
_ -"Phis Agreement is based on the Owner's Criteria set forth in this Section ].I.
(Node the disposition for the following ilen7s by inserting the requesled information nr a slale~nenJ such as "not
applicable" or "unlntown at lane of erecuNon, "If the Owner intends to proi~lde a .ref of design docupie~~ls;-atad the,_,
requested informatio~z is contained in the design documents, identify tl~e design doc~m~ents and insert "see Owner's
__ _ .
design documents" where appropriate.)
§ 1.1.1 The Owner's program for the Project:
''
~
(.Set forth the progrmn, identify documentaNnn in which the p~•ogra~n is setforth, or stale tti~e ~npnner rn mhich the
p~•og~•arri i>>ill be developed.)
i
«Per "Design Requiremenks" published for Solicitation No. 1415-9fand .Design-Builder's Proposal to Owner
pursuant to Solicitation No,1415-91 selected by the Horny County;Board of Education on November 2, 20]5:

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AU Oocunent A111~ - 1011. Copy[ighG ° 200 antl 2014 by 1'he Amezlcan Inati Cute o[ prchi[ecta. All zighta seaerved. xAWiIxC~ •rhls AIA pocwnant
in pcotectad by 9.6. Copyright Law and Intarnetional Treatieo, unaythosizod raproduetSon or dintribuCion of thin AU Documun<, or any Portion
oe St, ray r volt Ln e
civil end criminal Denalties, and will be piooecuteC to the maximum extene Poaaibla under tit¢ law. Th1.s tlraE[ waa
p[otluced by AIA soE[Naie at 13~91i J'! on 11/I6/2a15 untlec Ostler No.0219586]OB_1 which expl[ee ot1 D]/3</2016~ and ie no[ fo[ r sale.
(1]46')84345
Oee[ Notee:

2

PAPR - 004622

 § 1.1.2 The Owner's design requirements for the Project and related documentation:
(Ident~~ below, or in an attached exhibit the documentation that contains the O~~mer's design requirements,
including and+ pe~for•mance specificalionsfor the Project.)
i<'Pcr'DesignRcquirements" published for'Solicitation No. 1415-9]'`andDesign-Builder's Proposal to Owner
pursuant to ;Solicitation No.147 5-9 sciccted by the Horiy County Board of Education on No~~ertiber 2, 20 ] 5. ],
§ 1.1,3 The Project's physical characteristics:
(Iden~{fy or describe, rf appropriate, sire, locaflon, dfinensfons, or other pertinent Ir~/ormation, 'such as geotechnical
reports; site, boundary and topographic surveys; ha~c and:tfilrty studies; availability ofpu6)ic rn~dprinble ufi'J lies
and services; legal description of the site; etc.)
~ -c Pcr "Design Kequirements" published forS~licitatioiiNo:,1415-91 and llesign-Builder's Proposal to Owner
pursuacitto Solicitation No.1415-91 selected by the Horry County Board of Education on November 2, 2015..

—

,

§ 1.1.4 The Owner's anticipated Sustainable Objective for the Projeet, if any:
(Identify the Owner's Suslalnable Obfectrve for 1He Pi•ojecf such as Sustah~ability Cer~if7cation benefit to:the
envlronntent, enhm~centent to the health and i~~ell-being of building occupants, or rurprovenienJ ofenergy ~fJic~ency. if
the Oi~mer identifies a Suslai~wble Objective, incoiporale AIA Document A14/T"t-2014, Fa~hi~t C, SustalnaG/e
Projects, into this Agreement to define the terms, conditions and Wa•k related to the Otitme~ 's ~rslainab(eyObjeclive.)
<t Yer "llesi n R uiremenls" ublisfied for Solicitation No. 1415-91 an$ Dcsi Builder's Pro osal to Owner
`pursuant to Soliei~tation No.14p5-91 selected by the Horry County-Board of Education on Novnber 2, 2015..

'"
!

~

§ 1.1.5
it Number not used:
§ 1,1.G The Owner's budget for the Work to be provided by the Design-Builder is set forth below: _
1
(Provide totalfor Owner's budget, and ifk»oNm, a Jine ile»~ breakdotivn ofcosts.)
>.
z
.. _
Pcr "Design Requirements" published for'Solicitation No. 1415-91 as amended through the Boazd of Education's, ',
,,
.,.
actign November 2; 2015.»
.,_ "' ..i
§ 1.1.7 The Owner's design and construction milestone dates: Per "Design Requirements" published for Solicitation
No. 1415-91
,;
.~:
§ 1.1.8 The Owner requires the Design-Builder to retain the following Architect, Consultants end Contractors atfhe
Design-Builder's cost:
{ ~~
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Architect

.2

.3

«SFL+A Architects, P.A. 333 Fayetteville Street Suite 225, Raleigh, NC 27601., »,
t
Consultants
.•
_
__
«Per Design-Builder's Proposal to Owner pursuankto Solicitation No.1415-91.»

.~
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. .e

_
-•- --

ConUactors

«Per Design-Builder's Proposal to Owner pursuant to Solicitation No.1415-91,»
i
§ 1.1.9 Additional Owner's Criteria upon which the Agreement is based:
{
(Identify special characteristics or needs of the Project not identifted elsetivhere, such as historic preservation
requirements.)

,.
~'i
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11IA DocWAent 111 3^ - 3014. CO[~ytlght ~ 2001 and 2014 by The Iweiican Institute of AYehitectB. All i1ghGY zea red. 1UP1RN6f Tb1A A]ll~ DOeUAent
is Drotected by D.6. topyrSPht Law and International Trentiee. onauthorixed reprodu<Cion or diuttlbution of EMa AU Document, or any portion
of St, may zeoult !n eevexo civil anA cY3m1na1 panaltian~ anp will be OYonecuteC Co the neximum extent pooPible under the law. This draft was
piodUCed by A7A 6oftwaie at 13i<li3] OA 11/16/2015 ~~tleY Ozdez No.0239586208_1 Which expiiee on 01/19/2016, and Se not Eor r sale.
~1346'lB0345)
Da~Y Not~a:

3

PAPR - 004623

 ti Per "Design 12equircmeuts" publisfied for Solicitatio~i No. 1415-91 (Sttmniary of ServicesAeguired, Article 3)
including all post-occupancy requirements published in the solicitation as amended by acidepda.
§ 1.1.10 The Design-Builder shall confirm that the information included in the Owner's Criteria complies with
applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities.
~..._.:
§ 1.1.10.1 [f the Owner's Criteria conflicts with applicable laws, statutes, ordinances, codes, rues and regulations, or
lawful orders of public authorities, the Design-Builder shall notify the Owner of the conflic~.
§ l.l.l l If there is a change in the Owner's Criteria, the Owner and the Design-Builder shall~execute a Ivlodification in
:.~..._..,__,_. . _ ....... ... ,.
accordance with Article 6.
i
}

§ 1.1.12 If the Owner and Design=Builder intend to transmit Instruments of Service or any other information or
documentation in digital form, they shall endeavor to establish necessary protocols governing such transmissions.
Unless otherwise agreed, the parties will use AIA Document E203T^L2013 to establish the protocols for the
development, use, transmission, and exchange of digital data and building information modeling.
,,
.. _,§ 1.2 PrajectTeam
§ 1.2.1 The Owner identifies the following representative in accordance with Section 7.1.1::

~

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executive Director of Pacifitics (or a designee identified in writing by the owner.)
Horry County Schools
Facilities Deparpnent, 1160 E Siighway 50
Comvay, SG 29526
<c843.488.6965: »
„'
§ 1.2.2 The persons or entities, in addition to the Owner's representative, who are required to review the
Design-Builder's Submittals are as follows:
(List name, address ui~d other infnrnaalion.)

~
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<cOwiter may utilize third;party project management whicl ,w~il also receive submittals.. » ' ,

,
`.

§ 1,2.3 The Owner will retain the following consultants and separate contractors:
(Lis( discipline, scope of work, and, if/mown, fdentrfy by ttante and address.)
uTo be determined by Owner. If retained, such consultants will be identified=promptly..
§ 1,2.4 The Design-Builder identifies the following representative in accordance with Section 3x 1.2;
(Lisr,rame, address and other ~nfor•inatron.)
~ ~

4,~`<
~`~

Robbie Ferris; S:C. AR:6106
P'IRS'I'PLOOR ~NLRGY POSITIVE LLC,
-333 Fayetteville St.,'Suite 225,12aleigh, NC 27601
,°
919-573-6350

'.

§ 1.2.5 Neither the Owner's nor the Design-Builder's representative shall be changed without ten days' written notice
to the other party.
-'
_..,,,. .
~~
§ 1.3 Binding Dispute Resolution
For any Claim subject to, but not resolved by, mediation pursuant to Section 143, the method of binding dispute
i ~
resolution shall be the following:
1

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Horry County,
SC.
[ <t X» ]Litigation in a court of competent jurisdiction, nonjw y before a circuit ju~lge jn. _..
... . ..
_. . .

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~

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AIA Docuwmt Alfl' - 701 . copyright n loos and 201 by The Aneri can Institute of ArehltecCa. G11 sSgLte rep tveE. HAPttINa~ this AIA nxument
So proCeelad by 9.8, CoOY~ig4t Gav and SMernatlonal Trestles, vnavthorixed reproAuction or AlOtriDutiw of this AIA Document, or any portron
oC 1[, may reuult Sn a
civil eiM criminal penalties. and ulll be pYoeecu CeA CD tLe maximum extent pouulDlo under Che lax. Th1a draft was
piodUcad by AIR aoftNaie at 1~i91~]7 a~ 11/16/2015 untlec Order No,UY39566208_1 Which expi[a0 OP 07/14/2016, And le noC Eo[ [eeale.
(1346'!e4]45)
Ora[ Notee~

4

PAPR - 004624

 § 1.4 Definitions
§ 1.4.1 Design-Build Documents. The Design-Build Documents consist of this Agreement between Owner and
Design-Builder and ils attached Exhibits (hereinafter, the "Agreement"); other documents listed in this Agreement;
and Modifications issued after execution of this Agreement. A Modification is (t) a written amendment to the
Contract signed by both parties, including the Design-Build Amendment, (2) a Change Order, or (3) a Change
Directive.
~'
§ 1.4.2 The ContrAct The Design-Build Documents form the Contract. The ConVact represents the entire and
integrated agreement between the parties and supersedes prior negotiations, representations' or agreements, either
written or oral. The Contract maybe amended or modified only by a Modification. The Design-Build Documents shall
not be construed to create a contractual relationship of any kind between any persons or entities;other than the-Owner•-. .
and the Design-Builder.
§ 1.4,3 The Worlc The term "Work" means the design, construction and related services required to fulfill the
Design-Builder's obligations under the Design-Build Documents, whether completed or partially completed, and
includes all labor, materials, equipment and services provided or to be provided by the Design=Builder. The Work may
constitute the whole or a part of the Project.
~
3 y
'

4

§ 1.4,4 The Project. The Project is the total design and construction of which the Work performed under'the ~
Design-Build Documents may be the whole or a part, and may include design and constructiontby the Ovmer-and by
separate contractors.
~ i
~
§ 1,4.5 Instruments of Service. Instruments of Service are representations, in any medium o~expre$sionnow.known
or later developed, of the tangible and intangible creative work performed by the Design-Builder, Contractor(s),
Architect, and Consultants) under their respective agreements. Instruments of Service may include, without
limitation, studies, surveys, models, sketches, drawings, specifications, digital models and other similar materials: '"
§ I.M1.6 Submittal. A Submittal is any submission to the Owner for review and approval demonstrating how thQ :
Design-Builder proposes to conform to the Design-Build Documents for those portions of the'Work,for Which the i
Design-Build Documents require Submittals. Submittals include, but are not limited to, shop drawings, produc~ da~a,
-.
~ f
and samples. Submittals are not Design-Build Documents unless incorporated into a Modification
§ 1.4.7 Owner. The OHnier is the entity identified as such in the Agreement and is referred to throughout th8 ~ _, .
Design-Build Documents as if singular in number. The term "Owner" means the Owner or the Owner's authorized `'-representative. The Owner may have employees that are design professionals or otherwise skilled in construction or
construction management, and such employees may, from time to time, perform various tasks oc duties for or on
behalf of the Owner under this Agreement. However, it is specifically understood that the Owner (including these.••"'
agents and employees) has no obligation or duty to apply specialty or professional knowledge and"skill; and'~h~lf not
beheld to have undertaken to provide or perform any aspect of the Owner's performance of tf~is Agreemen~~ as 5 design +
professional or specially Skilled and knowledgeable construction indushy member or const5uct~on manager, and-this
principle applies regardless ofthe Owner's position titles or office division titles as may be}applicable to sucht~
employees.
+
y
§ 1.4.8 Design-Builder. The Design-Builder is the person or entity identified as such in the Agreement and is referred
to throughout the Design-Build Documents as if singular in number. The term "Design-Builder"-means-the - -Design-Builder or the Design-Builder's authorized representative.
,...,
§ 1.4.9 Consultank A Consultant is a person or entity providing professional services for the Design-Builder for all or ..
`~
a portion of the Work, and is referred to throughout the Design-Build Documents as if singula in number. To~t6e"'~._
5, ~:
extent required by the relevant jurisdiction, the Consultant shall be lawfully licensed to provide jl5e required
professional services.
o~ ~~
~ ~
§ 1.4.10 Architect. The Architect is a person or entity providing design services for the Design'Builder for all or a
portion of the Work, and is lawfully licensed to practice architecture in the applicable jurisdictipn. The Architect is
~ "" "
referred to throughout the Design-Build Documents as if singular in number.
._.. ._..,_
_ .. . .
_. 1
aIa uocument Alfl~ - 2011. copyright ° 200 and 201 by The Meciesn Institute of Architects. !11 riphe~ zeoexvad. Wnw~uao: xhla aIr- uocument
is proteeteA by O.s. CopyrlgLt LaV and Ioternetioual Treaties. onauChocisad raptoducGion or dla GribuCSon of [hie ALA Document, or any portion
o[ St, may result in Bavere civil and etim3nel yeneltien. and will be proaeCutnG to the mazinum extent ponalble mdaY Ehe lax, Th1B draft wa6
p[Otlu<ad by AIA BOCCware at 13~91~17 on 11/16/1015 under OYdei No. o2395862De_1 which expires on 0'!/19/2016 antl 18 not Eor regale.
(1346'IB<3i5)
Oant NOGee~

5

PAPR - 004625

 .:.

§ 1.4.11 Contractor. A Contractor is a person or entity performing all or a portion of the construction, required in
connection with the Work, for tha Design-Builder. The Contractor shall be lawfully licensed, if required in the
jurisdiction where the Project is located. The Contractor is referred to throughout the Design-Build Documents as if
singular in nwnber and means a Contractor or an authorized representative of the Contractor.
§ 1.4.I2 Confidential Information. Confidential Information is information containing confidential or business
proprietary information that is clearly marked as "confidential."
_ ,
§ 1.4.13 Contract Time. Unless otherwise provided, Contract Time is the period of time, including authorized
adjustments, as set forth in the Design-Build Amendment for Substantial Completion of the Work.

___

§ 1.4.14 Day. The term "day" as used in die Design-build Documents shall mean calendar day Unless otherwise
specifically defined.
§ 1.4.15 Contract Sum. The Contract Sum is the amount to be paid to the Design-Builder for performance of the
Work after execution of the Design-guild Amendment, as identified in Article A.1 of the Design-Build Amendment.
ARTICLE 2 COMPENSATION AND PROGRCSS PAYMENTS
§ 2.1 Compensation for Work Performed Prior To Execution of Design-Build Amendment
§ 2,1.1 Unless otherwise agreed, payments for Work performed prior to Execution of the Design-Build ACnegdment
shall be made monthly. For the Design-Builder's performance of Work prior to the execution of the Design-Build
~ ~
` '
""' ' '
Amendment, the Owner shall compensate the Design-Builder as follows:
(/nser7 arnoun[ of, or basisfor, cwnpensallon, inch~ding coarpensation for any SuslainabiN'ry.Sereices, or.~ndicale.lhe_ .,
exhibit in fvhich the information rs provided. /f there will be a limit on the total amot~nl of compensation for Work
performed p~•lor to the execution of the Design-Build A»rendntent, state the amount of the limit.)
:The Design-Builder may invoice the Design-Builder may invoice the owner for $1,118,043. for its design work
performed prior to the execution of the Design-Build Amendment. This amount is within and part of the price agreed;
in the Design-Build Amendment.
§ 2.1 number not used
-- .
~
""" ~,:...
§ 2.1.4 Payments to the Design-Builder Prior To Execution of Design-Auild Amendment
§ 2.1.4.1 Payments are due and payable upon presentation of the Design-Builder's invoice. The Owner will not pay
interest on unpaid sums. This is n specific waiver of requirements of S.C. Code Ann. §§ 29-6-30 and 29-6-50.
§ 2.2 Contract Sum and Payment for Work Perfm~med After Execution of Design-Build Amendment
For the Design-Builder's performance of the Work aRer execution of the Design-Build Amendment, the Owner shall'
~,
pay to the Design-Builder the Contract Sum in current funds as agreed in the Design-Build ~mendment;. -~ ,,~''

i

ARTICLE 3 GENERAL REQUIREMENTS OF THE WORK OF THE DESIGN-Bi~ILD CONTRACT"~
§ 3.1 General
~ ~
~
§ 3.1.1 The Design-Builder shall comply with any applicable licensing requirements in the juri'~sdiction w4ere~the
Project is located.
~ j_._., , , . „~ ~: _,_
Building Permit and Other Permits and Fees: No general building permit is required ~ in•accordance with §
6-9-110 of the South Carolina Code of Laws; however, the Contractor shall be required to provide mechanical,
electrical, plumbing and other such permits which may be required for purposes of inspection at no,additional
cost to the District. Except for permits and fees which are the responsibility of the Contractor'in the Contract
Documents, the District shall secure and pay for necessary approvals, easements, assessment;iriility'impact fees,
pennits, and such charges required for the successful completion of the work. For each day (not counting
Saturdays and Sundays, and not counting the day the Design-Builder submits its completed application to the
authority) beyond five (S) days that a jurisdictional authority takes to respond to a pertnittapplication or similar
permit request that is on the project's critical path, the Design Builder may claim one (1) additional day for the
achievement of Substantial Completion.
.._- _.____...

~;

..._ .s

i

§ 3.1.2 The Design-Builder shall designate in writing e representative who is authorized to actorotheDesign-Builder'sbehalfwith respect to the Project.
AIA Document rl~l" - 301 . Copyright ~ ]004 atKl 1019 Dy The Mexican ITaGit~te of A[ehLtects. All riy4ke reaezved. NAIUiiNC: TAia AIA Document
s protected by o,e. Copyright Law anA International xreaCina, oeautDorizad reproduction or diutzibution of thin AU' Document, or any poetion
aP iC, may r¢ault ins nrm civil pn9 CYSminal Denaltieu~ anG will be DioaecUkaO Co kba maxLnun exEenC po0oible unCes Cne tar. xhie Cznft Hea
pYoducetl by AIA eoftwaa at ]3 911'! on 11/16/3015 wMer O[det No.02395B6ZOB_1 whSch azp1x88 on 0'!/19/2016, and Sa dot fox t agile.
(1]<6784395)
Oar Notea~

6

PAPR - 004626

 § 3.1.3 The Design-Builder shall perform the Work in accordance with the Design-Build Documents. The
Design-Builder shall not be relieved of the obligation to perform the Work in accordance with the Design-Build
Documents by the activities, tests, inspections or approvals of the Owner.
§ 3.1,3.1 The Design-Builder shall perform the Work in compliance with applicable laws, statutes, ordinances, codes,
rules and regulations, or lawful orders of public authorities. If the Design-Builder performsWoik cottlrary to
applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities, the
Design-Builder shall assume responsibility for such Work and shall bear the costs attributable fo correction.
§ 3.1.3.2 Neither the Design-Builder nor any Contractor, Consultant, or Architect shall beobligated-to perform any-act --which they believe will violate any applicable laws, statutes, ordinances, codes, rules end regulations, or lawful orders
of public authorities. If the Design-Builder determines that implementation of any instruction received from the
Owner, including those in the Owner's Criteria, would cause a violation of any applicable laws; statutes, ordinances,
codes, rules and regulations, or lawful orders of public authorities, the Design-Builder shall notify the Owner in
writing. Upon. verification by the Owner that a change to the Owner's Criteria is required to eetnedy the violation, the
~
Owner and the Design-Builder shall execute a Modification in accordance with Article 6. i
j {
§ 3.1.4 The Design-Builder shall be responsible to the Owner for acts, errors, and omission$ of'ihe Design-Builder's
employees, Architect, Consultants, Contractors, and their agents and employees, and other persons or entilics°
j
performing portions of the Work.
§ 3.1.5 General Consultation. The Design-Builder shall schedule and conduct periodic meetings with. the.Qwne~.to. _
review matters such as procedures, progress, coordination, and scheduling of the Work.
§ 3.1,6 When the Owner's Design Requirements or applicable law requires that services be perfornied by licensed""'
professionals, the Design-Builder shall provide those services through qualified, licensed professionals. The Owner..- "'
understands and agrees that the services of the Design-Builder's Architect and the Design-Builder's other Conspltants
are performed in the sole interest of, and for the exclusive benefit of, the Design-Builder.

,'

s
§ 3.1.7 The Design-Builder, with the assistance of the Owner, shall prepare and file documenu required to.obtfin j
~
necessary approvals of governmental authorities having jurisdiction over the Project.
'The Office of School Facilities (OSF) in conjunction with the State Fire Marshal shall determine the enforcement - ..,
and interpretation of all the applicable wdes and referenced standards on state buildings, including the Districts
school facilities.
'`
,. `
'~ .f'
§ 3.1.8 Progress Reports
§ 3.1.8.1 The Design-Builder shall keep the Owner informed of the progress and quality of jhe Work. Asstated in the
Design Requirements, the Design-Builder shall submitwritten progress reports, photographs ofiWork in progress; and
other data to the Owner electronically, or through the Owner's option, project managementsotiware, sho~ing
estimated percentages of completion and other information identified below:
{
`' ~
.1
Work completed for the period;
}
e
.2 Project schedule status;
;
~
- -.3
Submittal schedule and status report, including a summary ofoutstanding Submittals;
.4
Responses to requests for information to be provided by the Owner;
-.5
Approved Change Orders and Change Directives;
"~
"" ,
.6
Pending Change Order and Change Directive status reports;
.7
Tests and inspection reports;
zj~
't
.S
Status report of Work rejected by the Owner;
~R
~~y ~
.9
Status of Claims previously submitted in accordance with Article 14;
j
.10 Cumulative total of the Cost of the Work to date including the Design-Builder'scompensation and
Reimbursable Expenses, if any;
~
G
.I1 Current Project cash-flow and forecast reports; and
.12 Additional information as designated by the Owner through its project management software data '" `""` ` E k
requirements.
3
azl. nocumene rl~l~ - 301e. copyYt9ht ° sooa and 2o1a by The rnezican ineciwte of rrchi[ecte. A11 rights zeeerveA. wAnNiN¢i ~nis Axr uocument
is pcotaeted by O.e. CopycighG LaH Bnd Internetlanal TtealSae. onxuthocized reproduction or 91ntrSbutlon of thin AU K uoeumBnt, oc any gortion
oC it, may reoult is s ero elvll and criminal Denaltrea~ and will be proDeCuteA to the maximum eat<at po0uible undeY the law. Thle draft waB
piOdUC¢tl by AIA BOPCw9ee 8C 13141:37 on 11/16/2015 under Ortle[ No.03J9506108_1 rrich expl rat on 0]/11/1016, end is not for reeGle.
(1346784345)
Ueet Notea~

7

PAPR - 004627

 § 3.1.8.2
In addition to the requirements of ~ 3.1.8.1, the Design-Builder shall provide similar information
through in-person progress report presentations to the Horry County Board of Education each month during one oPthe
Board's public meetings.
§ 3.1.9 Design-Builder's Schedules
§ 3.1.9.1 The Design-Builder, promptly after execution of this Agreement, shall prepare an{l submit for the Owner's
information a schedule for the Work. The schedule, including the time required for design and constniction, shall not
exceed time limits current under the Design-Build Documents, shall be revised at appropriate intervals as required by
the conditions of the Work and Project, shall be related to the entire Project to the extent req}~irel by the Design-Build
Documents, shall provide For expeditious and practicable execution of the Work, and shall ~ncludeallowancesfor
periods of time required for the Owner's review and for approval of submissions by authortties~having jurisdiction-:----: -over the Project.
~
§ 3.1,9.2 The Design-Builder shall perform the Work in general accordance with the most recent schedules submitted
to the Owner,
'_ ~
§ 3.1.10 Certifications. Design-Builder shall include in each Application for Payment a certification fromEeach of the
Architect, Consultants, and Contractors, and furnish to the Owner, these certifications with res~ect to the documents
and services provided by the Architect, Consultants, and Contractors (a) that, to the best of`,their knowledge,
information and belief, the documents or services to which the certifications relate (i) are c~nsi~tent with the
Design-Build Documents, except to the extent specifically identified in the certificate, and (ii) c~mply witli applicable
laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authontiea goveroing th'e design of
the Project; and (b) that the Owner and its consultants shall be entitled to rely upon the accuraoy of the representations
and statements contained in the certifications. The Design-Builder's Architect, Consultants, and Contractors shall not
be required to execute certificates or consents that would require knowledge, services or responsibilities beyond the
scope of their services.
§ 3.1.11 Design-Builder's Submittals
...- '
_r—j
§ 3.1.11.1 Prior to submission of any Submittals, the Design-Builder shall prepare a 5ubmi~tal"schedule;'and s~all
submit the schedule for the Owner's approval. The Owner's approval shall not unreasonably be delayed or wit held.
The Submittal schedule shall Q) be coordinated with the Design-Builder's schedule provided in,Sectiot~ 3.1,9. ,
(2) allow the Owner reasonable time to review Submittals, and (3) be periodically updated to reflect the.progrers o'f ;,
the Work. If the Design-Builder fails to submit a Submittal schedule, the Design-Builder shall not be entitled to.any
increase in Contract Sum or extension of Contract Time based on the time required for review of Submittals.

t

§ 3.1.11.2 By providing Submittals the Design-Builder represents to the Owner that it has (1) reviewed..and approved
them, (2) determined and verified materials, field measurements and field construction criteria ielated thereto, or v,~till`~
do so and (3) checked and coordinated the information contained within such Submittals with the°r"equire{nents,of the ,.
1j ~f
`~~ ~' `..,
Work and of the Design-Build Documents.
j;
§ 3.1.11.3 The Design-Builder shall perform no portion of the Work for which the Design-Buil4d Docume¢ts require
~
~ z
Submittals until the Owner or its designee has approved the respective Submittal.
j
g `_; _. _._.... ..
§ 3.1.11.4 The Work shall be in accordance with approved Submittals except that the Design-Builder shall not be
relieved of its responsibility to perform the Work consistent with the requirements of the Design-Build•Documents; ••
The Work may deviate from the Design-Build Documents only if the Design-Builder has notified the Owner in writing
.
of a deviation from the Design-Build Documents at the time of the Submittal and a Modification is executed-authorizing the identified deviation. The Design-Builder shall not be relieved of responsibility
` for errors
: ,-... or omissions
'
`
in Submittals by the Owner's approval of the Submittals.
§ 3.1.11.5 All professional design services or certifications to be provided by the Design-Bpilder, including all
drawings, calculations, specifications, certi£cations, shop drawings and other Submittals, shall contain the signature
and seal of the licensed design professional preparing them. Submittals related to the Work designed or certified by the
licensed design professionals, ifprepared by others, shall bear the licensed design profession'aPswritten approval. The
Owner and its consultants shall be entitled to rely upon the adequacy, accuracy and completeness of the seivice's;' -"
----. --- --- -.. . .. --. .. ,.. .
certifications or approvals performed by such design professionals.

~

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AIA Ooctwent AI{1~ - 2011. Copyilgll[ ~ 2004 aTd 3019 by Tha IuneYltall I~BCS WCe of ~[Ch1[eeCe. 1111 rlghk~ sa~ezved. NARNIIiG~ Th1e AIa Docww~t
is D=olected by 9.6. CODYi'~9ht Lav and International Treatleo, unauthorized repcopucclon er dlotribution of tMo 11iA DocvmeM, or any portion
oC St, may renult in a ere civil end Crininal Denaltiev~ onE trill ba pYooecuEeE to the maximum eXYent p000lblg under tie law. Th18 draft wee
piotluce9 by AIA Bof[Ware eC 13~91~37 on 11/16/3x15 undei Ortle[ No.01]9586aoB_1 which e~irea Dn 47/14/2016, antl io not Eor r eele.
(13d6'/89J~5)
Oser Notee~

8

PAPR - 004628

 § 3.1.12 Warranty. The Design-Builder warrants to the Owner that materials and equipment furnished under the
Contract will be of good quality and new unless the Design-Build Documents require or permit otherwise, The
Design-Builder further warrants that the Work will conform to the requirements of the Design-Build Documents and
will be free from defects, except for those inherent in the quality of the Work or otherwise expressly pennitted by the
Design-Build Documents. Work, materials, or equipment not conforming to these requirements may be considered
defective. The Design-Builder's warranty excludes remedy for damage or defect caused by}abuse, alterations to the
Work not executed by the Design-Builder, improper or insufficient maintenance, improper operation, or normal wear
and tear and normal usage, If required by the Owner, the Design-Builder shall furnish satisfact~ry evidence as to the
kind and quality of materials and equipment.
§ 3.1,13 Royalties, Patents and Copyrights
§ 3.1.13.1 The Design-Builder shall pay all royalties and license fees.

~
~

,_--

§ 3.1.13.2 The Design-Builder shall defend suits or claims for infringement of copyrights aid patent rights and shall
hold the Owner and its separate contractors and consultants harmless from loss on account thereof, but shall not be
responsible for such defense or loss when a particular design, process or product of a particul'ai;manufacturcr or
manufacturers is required by the Owner, or where the copyright violations are required in the Owner's Criteria.
However, if the Design-Builder has reason to believe that the design, process or product re~juired in the Owner's
Criteria is an infringement of a copyright or a patent, the Design-Builder shall be responsiblC for such loss unless such
information is promptly furnished to the Owner. If the Owner receives notice from a patent or copyright dwn~r of an
alleged violation of a patent or wpyright, attributable to the Design-Builder, the Owner shall give prompti written
''""' "
K
notice to the Design-Builder.

f

§ 3.1.14 Indemnification
' '~
§ 3.1.14.1 To the fullest extent permitted bylaw, the Design-Builder shall indemnify and hold harmless the Owner,
including the Owner's agents and employees, from and against claims, damages, losses and expenses, including but'
not limited to attorneys' fees, arising out of or resulting from performance of the Work, but only to the extenEcaused ~ "
by the negligent acts or omissions of the Design-Builder, Architect, a Consultant, a Contractor, or.anyone directly or
indirectly employed by them or anyone for whose acts they may be liable. Such obligation ~haly not„be constru~d t~
negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist as to a,party or perso~
.~
described in this Section 3.1.14.
~.
§ 3.1.14.2 The indemnification obligation under this Section 3.1.14 shall not be limited by a limitation on~ainount or
'~
type of damages, compensation, or benefits payable by or for Design-Builder, Architect, a Consultant a Contractor, or . .
anyone directly or indirectly employed by them, under workers' compensation acts, disability benefit acts or other
--• .
,:•• j
employee benefit acts.
t
§3.1.15CantingentAssignmentofAgreementc
~
§ 3.1.15.1 Each agreement for a portion of the Work is assigned by the Design-Builder to tlfe Qwner, proY~de''d that``
.1
assignment is effective only after termination of the Contract by the Owner for cause, pursuant to
Sections 13.1.4 or 13.2.2, and only for those agreements that the Owner accepts y written ~loti~cation
to the Design-Builder and the Architect, Consultants, and Contractors whose agreements a~'e accepted
for assignment; and
! ~..__ _,_. . ,_„~ ,____
.2
assignment is subject to the prior rights of the surety, if any, obligated underbond relating to the
Contract.
When the Owner accepts the assignment of an agreement, the Owner assumes the Design-Builder's rights and - -- _ ~,
obligations under the agreement.
__
,,''
- _
§ 3.1.15.2 Upon such assignment; if the Work has been suspended for more than 30 days, thet~compensation under the '"
'~
assigned agreement shall be equitably adjusted for increases in cost resulting from the susp~nsi6n.
§ 3.1.15.3 Upon such assignment to the Owner under this Section 3.1.1 S, the Owner may fu~the~ assign the agreement
to a successor design-builder or other entity. If the Owner assigns the agreement to a successor design-builder or other y
entity, the Owner shall nevertheless remain legally responsible for all of the successor design-builder's or other
~--:-....- .:.-:--.. .-. . - -..
entity's obligations under the agreement.
aia noeunent L1~1' - ]01~. Copyright ° 2004 a~W 201 by The Anezican Inacituee o[ Archicecta. A11 ngLts reserved. HAUIING~ Thi! AIA Docvms~t
Sn D=oteeted by tl.e. Copyright Law and International Tr<etlev. OnautDorized reproduceion or dintribution o£ thin AIA~ DocwaenC, or any portion
aG 1G, maY raeult in s vxYo civil and criminal penalties, 9nd will be proeacute0 to the naximwn ez[ent p000ible un8es the luw. This draft was
pxoducad by AIA eoPtrare at 13:41t37 on it/16/YOlb under OLAei No.02]9586206_1 MlllCh 8Xp1r8B on o9/14/2016~ end Se net Eor resale.
(1)96'IBgl45)
OOOt NOCeat

PAPR - 004629

 § 3.1,16 llesign-Builder's Insurance and Bonds. The Design-Builder shall purchase and maintain insurance and
provide bonds as set forth in Exhibit B.
ARTICLE 4 WORK PRIOR TO EXEC[1T10N OF THE DESIGN-BUILD AMENDMENT
§ 4.l General
§ 4.1.1 Any information submitted by the Design-Builder, and any interim decisions made by the Owner, shall be for
the purpose of facilitating the design process and shall not modify the Owner's Criteria unless ~e Owner and
Design-Builder execute a Modification.
Numbers §4.2 & §Q.3 intentionally not used)

?

'

i

§ 4.A Deslgn-Builder's Construction Proposal
~ ~
§ 4.4.1 The Design-Builder's Construction Proposal shall include the following:
.1
A list of the documents and other information, including the Design-Builder~s~oYiginal Proposal
Development Aocuments as proposed in the Owner's procurement leading tothis Agreement, upon
t' '~
which the Design-Builder's Proposal is based;
.2
'i ;
7 ~~.
The proposed Contract Sum, including the compensation method;
.3
The proposed date the Design-Builder shall achieve Substantial Completion; 1
.4
An enumeration of any qualifications and exclusions, if applicable;
.5
A list of the Design-Builder's key personnel, Contractors and suppliers; and?
.6
The date on which the Design-Builder's Construction Proposal expires.
[ 1.
§ 4.4.2 Submission of the Design-Builder's Construction Proposal shall constitute a representation by fhe,,,,. . ,.._ ,,
Design-Builder that it has visited the site and become familiar with local conditions under which the Work is to be
completed.

i

~-

§ 4.4.3 If the Owner and Design-Builder agree on a proposal, the Owner and Design-Builder shall execute the
Design-Build Amendment setting forth the terms of their agreement.
ARTICLE 5 WORK FOLLOWING EXECUTION OF THE DESIGN-BUILD AMENDMENT
§ 5,1 Construction Documents
'' --.,
" --.
~_,,
§ 5.1.1 Upon the execution of the Design-Build Amendment, the Design-Builder shall prepare Construction
Documents. The Construction Documents shall establish the quality levels of materials and systems required. The
Construction Documents shall be consistent with the Design-Build Documents.
§ 5.1.2 The Design-Builder shall provide the Construction Documents to the Owner for the Owner's information. If
the Owner discovers any deviations between the Construction Documents and the Design-Build Documents the - '``~~
Owner shall promptly notify the Design-Builder of such deviations in writing. The Consfiac,4ion Documentsr hall not .• '"
modify the Design-Build Documents unless the Owner and Design-Builder execute a Modification. The failu~e ofthe f
Owner to discover any such deviations shall not relieve the Design-Builder of the obligation toperform the Work in
accordance with the Design-Build Documents.
1
i'~

s
}
F

§ 5.1.2.1 The Design-Builder shall submit three copies of all Construction Documents prep~re~and submittec~to_ _.
Regulatory Agencies as a portion ofthe permitting and approval process for this work.
§ 5.2 Construction
§ 5.2.1 Commencement. Except as permitted in Section 5.2.2, construction shall not commence prio[.to execution.of
the Design-Build Amendment.
§ 5.2.2 If the Owner and Design-Builder agree in writing, construction may proceed prior t4~the execution of the
Design-Build Amendment. Eiowever, such authorization shall not waive the Owner's right }~o reject the
1 .~
Design-Builder's Proposal.
j
+
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§ 5.2.3 The Design-Builder shall supervise and direct the Work, using the Design-Builder's best skill and attention.
The Design-Builder shall be solely responsible for, and have wnlrol over, construction means, methods; tec6niqueS
r
sequences and procedures, and for coordinating all portions of the Work under the Contract, unless the-Design-Build...
Documents give other specific instructions concerning these matters.
11IA Docwnent A1~1~ - 3011. CopyYlght ° 2009 and 2019 by The Ametieen ]netituCe of Atchitacte. All ri9bta reserved. HARNINO~ Thiv TIA- Deaument
la proeactad by V. s. CogyrighC Low and InGrnational Ttaetien, onauthoclzed cepzoduCtlan oe die trllfution of [hio AIA~ Doeamant, or eny Dortion
oe ~e, may ieouie In oaVare civil ena Crlminel DBbalCieo~ and Nill be pzoeocu[ad to the maxLnwn octant paooible undez ehu laM. This drat ~+as
piotlucetl by AIA soE[~ae[e a[ 1]igl~]'! on 11/lfi/2015 11Adet Oitlei No,02 9586108_1 which e%picee On 07/1~/]016~ and ie not Eoc xe8ale.
(1]967893~5~
Oaee Notee~

to

PAPR - 004630

 § 5.2.4 The Design-Builder shall be responsible for inspection of portions of Work already performed to determine
that such portions are in proper condition to receive subsequent Work.
Maintenance oP Record Drawings: The Contractor shall maintain at the worksite one (1) record copy of the
Contract Documents including approved changes in good order and marked currently to record changes and
selections made during performance of tha work. A copy of submittals accepted by they Disfict shall also be
maintained at the worksite. These items shall be available to the Architect and Dislrick when present at the
worksite. When required by the Contract Documents, the Contractor shall provide record drawings on all
increments of the work such as, by way of illustration and not I imitation, plumbing, electrical, mecfianical, and all'
systems, such as fire and security systems, incorporated into the work. The Contractor shah famish-an electronic ---and paper copy of record drawings of "as-built" detail to the Architect at final completion bf all work, excluding
punch list items as required by_the Contract Documents.
s
Professional Certific~Nons: When professional certification of performance criteria for materials, systems, or
equipment is required by the Contract Documents, the District shall be entitled to rely -upon the accuracy and
1
completeness of such calculations and certifications.
S

~
3

Contractor's Quality Control Program: The Contractor shall institute and maintain throughput the co~traot term
a quality control program, designed to ensure the work performed is in accordance with t~e Contract Dpcuments,
including any changes, at afl times and in all respects. The program shall include providing daily supervision and
conducting frequent inspections by the Worksite Superintendent(s).
i __....____:_.:...___._....... __. _._. .... ._.. .

1. Complixncc with Employment Laws: By entering into a Contract Agreement, the Contractor agrees to abide
by all applicable laws pertaining to employment including, by way of illustration and not limitation, the following:"
,...
- -A. Title VII of the Civil Rights Act of 1964, as maybe amended.
E
B. Age Discrimination in Employment Act of 1964, as may be amended.
_
{
C. Title I of the Americans Disabilities Act of 1990, as may be amended.
f
j
0. Equal Pay Act of 1963, as may be amended.
~-•
~ -E. Fair Labor Standards Ack as may be amended.
F. South Carolina Wages Act, Code 37-10-10 et seq., as may be amended.
G. South Carolina Worker's Compensation Act, Code 42-1-10 et seq., as may be amended.
~ _
The Contractor~shall not discriminate against any employee or applicant for employment because of race,
religion, color, sex, age, handicap, or national origin except when such condition is a bona fide occupational
qualification reasonably necessary for nonnal operations of the Contractor. The Contractor, in all
solicitations or advertisements for employees, shall state the Contractor is an "Equal Opportt}nity employer.° ~,
The Contractor agrees to post in conspicuous places, visible to employees and applicants for ~mployme~t, ~%
notices setting forth the provisions oP this nondiscrimination clause and shall include the provision of this
j
~ ~'~,
paragraph in every subcontract or purchase agreement of more than
$10,000.
~
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+,
i
Employment Taxes and Benefits: Unless under order from the Internal Revenue Service or Soutfi Carolina"state"~
government, the District does not withhold from the contract payments any Federal or State incane taxes,-or.any :.,
employment-related taxes normally withheld on the District's employees. Further, the District shall not provide any
employment related insurances or other benefits such as worker's compensation for the benefit of any...Contractor,
subcontractor or supplier employees.
;.-'
~` .,.
Project Key Staff —Project Manager: The Contractor shall assign a skilled, experienced, an d dedicated Project' ~; ~~
Manager to the project and identified in Exhibit A. The Project Manager shall secure the mate ials of proper quality `. ~~t
1
and quantity to meet the Confract Documents and manage the appropriate timing of all~ma~erials, sub-contracted
work, and Contractor provided labor to ensure the continual progress of the work to meet ~he substantial completion
date. The Contractor shall not change the Project Manager or the duties and status of the Prdject Manager during
~ ` ~ ' ' ' " "' ' °_'
the course of the project without approval of the District.
's
Project Key Staff -- Worksite Superintendent(s): The Contractor shall employ at least one (1) fall-time,
AIA Docweat A111" - RO1~. Copyright d 2009 eM ]014 by The Amer3wn IOeC3[ute of AtChlCec[e. All rlyhta rasarvaQ. 19AR111Na~ Th19 rIA Doconant
Ss ptotectaC by v. s. Copyzight Lev end IMernetional Tteetlea. voautl~oiised raproCu<tlon or tlltltziDution o4 CLlo AU Document, or any portion
of it, mey r oult in a
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pioduceC by AIA poftwaie e[ 13~41i37 OA 11/16/2015 untleY Oider No.OR79586108_1 WhSCh expireB on 07/14/2016, and 16 nOt foY YeBe10.
(1J46'l69315)
990E NOt095

PAPR - 004631

 competent Worksite Superintendent and, if required by the Contract Docwnents, an additional part-time or full-time,
competent secondary Worksite Superintendent if expedient for the size and scope of the project. Exhibit A identifies
the Worksi[e Superintendent(s). No less than one (I) Worksite Superintendent shall be in aliendancc at the worksite
at all times during performance of any work by the ConVactor's own forces or subcontractors and during delivery of
any materials: The Worksite Superintendent shall not perform the work of any trade or other duties; however, the
secondary Worksite Superintendent may perform part-time work of a trade or the duties of OSHA Compliance
Officer or fireguard, if approved by the District. The Contractor shall not change any Work'site~Superintendent or the
duties or status of same during the course of the project without approval of the Djstrict. The Worksite
Superintendents) shall enforce strict discipline and good order among the Contractor's representatives, agents,
employees, subcontractors and suppliers.
~
Worlcsite Communications: The Project Manager and Worksite Superintendents) are represgntatives ~of the Design
Builder and communications given to them, either orally or in writing, shall be as binding ~s if~given to the Principal
of the Design Builder,
i
§ 5.3 Labor xnd Materials
}"-'
§ 5.3.1 Unless otherwise provided in the Design-Build Documents, the Design-Builder shatl provide and ~iay'f'or
labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities; transpo~tion, and
other facilities and services, necessary for proper execution and completion of the Work, w~et}%er temporary or
; S
1~
~
permanent, and whether or not incorporated or to be incorporated in the Work.
4

1

Z

§ 5.3.2 When a material or system is specified in the Design-Build Documents, the Design Buildar may make
substitutions only in accordance with Article 6.
~....___ . .
__..:.. ._.-_.._-,.
§ 5.3.3 The Design-Builder shall enforce strict discipline and good order among the Design-Builder's employees and
other persons carrying out the Work. The Design-Builder shall not permit employment of unfit persons or persons not
properly skilled in tasks assigned to them.

.,

'~

, ..
g s.4 Taxes
The Design-Builder shall pay safes, consumer, use and similar taxes, for the Work provide by tNe Design-Bui~der
that are legally enacted when the Design-Build Amendment is executed, whether or not yet effective or merely
scheduled to go into effect.
§ 5.5 Permits, Fees, Notices and Compliance with Laws
§ 5.5.1 Unless otherwise provided in the Design-Build Documents, the Design-Builder shall secure and pay for the
permits, fees, licenses, and inspections by government agencies, necessary for proper execution of-the Work and
Substantial Completion of the Project,
-'`
r %~ ;:,' -,,. , ,'~
§ 5.5.2 The Design-Builder shall comply with and give notices required by applicable laws,~statutes, ord nanFks, ,-.codes, rules and regulations, and lawful orders of public authorities, applicable to performartce~of the Wo~k. ~? `
i i
§ 5.5.3 Concealed or Unknown Conditions. If the Design-Builder encounters conditions at the site that are j
(1) subsurface or otherwise concealed physical conditions that differ materially from those ►ndlcated in the
,.. ~ _ _ __
Design-Build Documents or (2) unknown physical conditions of an unusual nature that differ materially from those
ordinarily Found to exist and generally recognized as inherent in construction activities of the characterprovided for in
the Design-Build Documents, the Design-Builder shall promptly provide notice to the Owner before conditions are
disturbed and in no event later than 21 days after first observance of the conditions. The Owner shall:promptly -- •..... ,
investigate such conditions and, if the Owner determines that they differ materially and cause an increase or decreasa`' .
in the Design-Builder's cost of, or time required for, performance of any part ofthe Work, sl~el] recorrimend an ``
equitable adjustment in the Contract Sum or Contract Time, or both. If the Owner determines~tha tie conditions at the '~-~
,
site are not materially different from those indicated in the Design-Build Documents and that no ~hange in the terms of
'~
the Contract is justified, the Owner shall promptly notify the Design-Builder in writing, stating':.the reasons. If the
Design-Builder disputes the Owner's determination or recommendation, the Design-Builder ma"~y proceed as provided
`"
in Article l4.
§ 5.5.4 [f, in the course of the Work, the Design-Builder encounters human remains, or recognizes the existence of-- .burial markers, archaeological sites, or wetlands, not indicated in the Design-Build Documents, the Design-Builder

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AIA Document A1~1" - =Olf. Copy[1ghC ~ 3001 LAM 3019 by The Am¢Yican IngtltUta of AlChiteete. All cightM ieee~vad. NARNING~ ThS~ A]T Doc~unent
is Drotoctad by V.o. CopyrSgM1t 4aw snp IntOrneEional Tieatlea. OnauCLorized teptOAuctiotl o[ d10tr1Cution o[ thlo AU Document, or flny pohion
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civil and crlminel yenaltieo, anC w111 be nsoneeucaa to ene maximum eutent paaeibla unAOY the law. 1T11B Eiaft aae 1z
produced by AIA sOCCMaCe at 1]:4113] on 11/16/2015 under ortler No.aa]95l6200_1 tihScT expL[ee on o]/14/3016~ and 1e not EOc r aele.
(1396786345)
OOei Notei~

PAPR - 004632

 shall immediately suspend any operations that would affect them and shall notify the Owner. Upon receipt of such
notice, the Owner shall promptly take any action necessary to obtain governmental authorization required to resume
the operations. The Design-Builder shall continue to suspend such operations until otherwise instructed by the Owner
but shall continue with all other operations that do not affect those remains or features. Requests for adjustments in the
Contract Sum and Contract Time arising from the existence oFsuch remains or features may be made as provided in
Article 14.
_ i
§ 5.6 Allowances
§ S.G.1 The Design-Builder shall include in the Contract Sum all allowances stated in the Design-Build Documents.
Items covered by allowances shall be supplied for such amounts, and by such persons or entities as theOwner may
direct, but the Design-Builder shall not be required to employ persons or entities to whom fhe Design-Builder• has ---reasonableobjection.
r
§ 5.6.2 Unless otherwise provided in the Design-Build Documents,
.1
allowances shall cover the cost to the Design-Builder of materials and equiptneiit delivered at the site
t"' I
and all required taxes, less applicable trade discounts;
.2
the Design-Builder's costs for unloading and handling at the site, labor, inst~llat~on vests, ~verhead,
profit, and other expenses contemplated for stated allowance amounts, shalt be included in the Contract
Sum but not in the allowances; and
~ 1
} 1
.3
whenever costs are more than or less than allowances, the Contract Sum shad be adjusted ~ccoFdingly
by Change Order. The amount of the Change Order shall reflect (1) the differencg between actual costs
and the allowances under Section 5.6.2.1 and (2) changes in Design-Builder{s costs under' ~ `""
Section 5.6.2.2.
'_,_...:-__ _ _ .
§ 5.6.3 The Owner shall make selections of materials and equipment with reasonable promptness for allowances
requiring Owner selection.
. --~
( ¢
§ 5.7 Kcy Personnel, Contractors and Suppliers
§ 5.7.1 'Che Design-Builder shall not employ personnel, or contract with Contractors or supplies to Whom the ~wner
has made reasonable and timely objection. The Design-Builder shall not be required to contract with, anyone to wham
~ ~
the Design-Builder has made reasonable and timely objection.
§ 5.7.2 If the Design-Builder desires to change any of the personnel, Contractors or suppliers identified in the-..,
i
Design-Build Amendment, including but not limited to any contractor or design professional identified by the ~ "" Design-Builder in its Request for Qualifications response, tha Design-Builder shall notify the Owner and provide the
~"
name and qualifications of the proposed yew personnel, design professional, Contractor or supplier: The.Owner may
reply within 14 days to the Design-Builder in writing, stating (1) whether the Owner has reasonable objection to the
proposed new personnel, design professional, Contractor or supplier or (2) that the Owner rCquires additional time to
review. Failure of the Owner to reply within the l4-day period shall constitute notice of no ~ea~onable objection.
j
t
§ 5.7.3 Except for those persons or entities already identified or required in the Design-Build Amendments the
Design-Builder, as soon as practicable after execution of the Design-Build Amendment, shall fiirnish in writing to the
Owner the names of persons or entities (including those who are to furoish materials or equipment_ fabricatedjo a. _, _. ,. ,,.
special design) proposed for each principal portion of the Work. The Owner may reply witljin 14 days to the
Design-Builder in writing stating (1) whether the Owner has reasonable objection to any such proposed person or-- - — ~
entity or (2) that the Owner requires additional time for review, Failure of the Owner to reply within the 14-day period
- - —~ ~ -•.-. ,
shall constitute notice of no reasonable objection.
§ 5.7.3.1 If the Owner has reasonable objection to a person or entity proposed by the Design,Builder; tfie
Design-Builder shall propose another to whom the Owner has no reasonable objection.
f

~ ~r
§ 5.8 Aocuments and Submittals at fhe Site
In addition to any Owner requirements to keep electronic project data up to date, the Design-Builder shall maintain at
the site for the Owner one copy of the Design-Build Documents and a current set of the Construction Docmnents, in
good order and marked currently to indicate field changes and selections made during construction, and one copy of
approved Submittals. The Design-Builder shall deliver these items to the Owner in accordance with Section 9.10.2 as _ -a record of the Work as constructed.

~~i

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AIA Uacuvent J11/1~ - 20}x, Copyright ~ ]00~ aiW 3011 by The Merlcen Inati[u[e of Aichltecte. All zighG zeaerved. NARNIHO: Th19 AIA Uocwnent
1a DzoEected by 0.6. CODYrlght Law and Iutarn~tlonal Yreatias. unauthorised repiod~oGian or diutcibutron of khia AIA~ Document, oY any portion
civil pnd Criminal yenaltioe, end wLll be pxovaeuted to the maximwn extent poo aSble vnAer the lave. ThSe draEC MaB 13
oL Sk, may retlule in ee
pLOC~Ced by AIA Boftwa Ye et 13:41 ]7 On 11/16/1015 U~CBL O[A¢i No.03395B620 B_1 which exPltee on 07/19/3016, and ie not for i8961G.
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Oeet Notcei

PAPR - 004633

 § 5.9 Use of Site
The Design-Builder shall confine operations at the site to areas permitted by applicable laws, statutes, ordinances,
codes, rules and regulations, lawful orders of public authorities, and the Design-Build Documents, and shall not
unreasonably encumber the site with materials or equipment.
§ 5.(0 Cutting and Patching
The Design-Builder shall not cut, patch or otherwise alter fully or partially completed constFuction by the Owner or a
separate contractor except with written consent of the Owner and of such separate contractor; such consent shatI_. not be
unreasonably withheld. The Design-Builder shall not unreasonably withhold from the Owner ora separate contractor
~
-~-- --• - -•--the Design-Builder's consent to cutting or otherwise altering the Work.
§ 5.11 Cleaning Up
x '
§ 5.11.1 The Design-Builder shall keep the premises and surrounding area free from accumulatjon of waste materials
or rubbish caused by operations under the Contract. At completion of the Work, the Design'-Builder shall remove
waste materials, rubbish, the Design-Builder's tools, construction equipment, machinery and ~Urplus materials from
$'' i
and about the Project.
.
! .;~
§ 5.11.2 If the Design-Builder fails to clean up as provided in the Design-Build Documents,thefOwner m y do so and
Owner shall be entitled to reimbursement from the Design-Builder.
i 's
4
§ 5.12 Access to Worlc
The Design-Builder shall provide the Owner and its separate contractors and consultants access.ta.the.Work. in . . . .
preparation and progress wherever located. The Design-Builder shall notify the Owner regarding Project safety
criteria and programs, which the Owner, and its contractors and consultants, shall comply with while at the site.
§ 5.13 Construction by Owner or by Separate Contractors
§ 5.13.1 Owner's Right to Perform Construction and to Award Separate Contracts
§ 5.13.1.1 The Owner reserves the right to perform construction or operations related to the Project,With tha 0~vne~'s
own forces; and to award separate contracts in connection with other portions of the Project, or other construction br
operations on the site, under terms and conditions identical or substantially similar to this Contract, including thos~
terms and conditions related to insurance and waiver of subrogation. The Owner shall notify the Design-Builder t.
promptly after execution ofany separate contract. IftheDesign-Builder claims that delay or additional cost is'inv~lved
because of such action by the Owner, the Design-Builder shall make a Claim as provided in Article 14.
§ 5.13.1.2 When separate contracts are awarded for different portions of the Project or other construction.or operations -.
on the site, the term "Design-Builder" in the Design-Build Documents in each case shall mean the individual or entity'
~
`~
~
~~
that executes each separate agreement with the Owner.
'1 ~~~~ , ,.
f
~
§ 5.13.1.3 The Owner shall provide for coordination of the activities of the Owner's own fo~ceS,. and of each separate
contractor, with the Work of thaDesign-Builder, who shall cooperate with them. The Design-B~ilder shall~participate
with other separate contractors and the Owner in reviewing their construction schedules. Tl~e Design-Builder shall
make any revisions to the construction schedule deemed necessary after ejoint review and mutual agreem~ent~The_ _ __,
wnstruction schedules shall then constitute the schedules to be used by the Design-Builder; separate contractors and
~
~
the Owner until subsequently revised.

_
'

§ 5,13,1.4 Unless otherwise provided in the Design-Build Documents, when the Owner performs construction or ,...
operations related to the Project with the Owner's own forces or separate contractors, the Owner shall be deemed to be "^.,
subject to the same obligations, and to have the same rights, that apply to the Design-Builder,~nde~-the Contract:"' ~:..

1 '~
§ 5.14 Mutual Responsibility
~ ~
§ 5,14.1 The Design-Builder shall afford the Owner and separate contractors reasonable opQort nity for introduction
and storage of their materials and equipment and perfonnance of their activities, and shall connect and coordinate the
Design-Builder's construction and operations with theirs as required by the Design-Build Documents.

i
's
{

§ 5.14.2 If part of the Design-Builder's Work depends upon construction or operations by the Owner or aseparate ------ -~
contractor, the Design-Builder shall, prior to proceeding with that portion of the Work, prepare a written report to the
AIA DpeWent A711^ - 1011. CopyYlghC ~ 10 9 and 201< by 'Me lwerican msticute of lfrchiteccs. 111 zivnea reserved. NrPIiING: Tp18 AIA- Doc~manC
la protected by V.D. Copyright LnN snd Intematlonal Traatiee. Onauthorize8 zeproduet3on or diottibuelm of thip AU K DocumnwG, oc any portion 14
of St, may r Dolt Sn iwoze c1v11 and cciainal geoaltros, auA v111 be prouecuteA to CDe naxinun ex[nnt possible under the law. Thie dzxft sae
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(1346'I84~45)
Oa eY Natal

PAPR - 004634

 Owner, identifying apparent discrepancies or defects in the construction or operations by the Owner or separate
contractor that would render it unsuitable for proper execution and results of the Design-Builder's• Work. Failure of the
Design-Builder to report shall constitute an acknowledgment that the Owner's or separate contractor's completed or
partially completed constriction is fit and proper to receive the Design-Builder's Work, except as to defects not then
reasonably discoverable.
§ 5.14.3 The Design-Builder shall reimburse the Owner and other contractors) for costs the 0~4ner and other
contractor(s), respectively, incur because of the Design-Builder's delays, improperly timed ~acti~vities ar defective
construction.
i j. .. ..__ :_,.__ ,. ...
§ 5.14.4 The Design-Builder shall promptly remedy damage the Design-Builder wrongfull}~ causes to completed or
partially completed construction or to property of the Owner or separate contractors as pro~!ide m Section 10.2.5.
§ 5.14.5 THe Owner and each separate contractor shall have the same responsibilities for cyttin~ and patching the
Work as the Design-Builder has with respect to the construction of the Owner or separate contr8clors in Section 5.10.
§ 5.15 Owner's Right to Clean Up
[f a dispute arises among the Design-Builder, separate contractors and the Owner as to the respgnsibility y~nd~r their
respective contracts for maintaining the premises and surrounding area Y ee from waste maYeria)s and rubbish] the
3 Z
Owner may clean up and will allocate the cost among those responsible.
ARTICLE 6 CHANGES IN THE WORK

e

"`""

"'" `'
:

_,
§ 6.1.1 Changes in the Work may be accomplished after execution of the Contract, and without invalidating the
Contract, by Change Order or Change Directive, subject to the limitations stated in this Article 6 and elsewhere in the
Design-Build Documents.
§ 6.1.2 A Change Order shall be based upon agreement between the Owner and Design-Builder. The Owner tray issue
~''" ...:.. ,,:, "
~ ~i
a Change Directive without agreement by the Design-Builder.
i
~ t
§ 6.1.3 Changes in the Work shall be performed under applicable provisions of the Design-Build,Documentg, and the
E ,
Design-Builder shall proceed promptly, unless otherwise provided in the Change Order or Change'Directive.

§ 6.2 Change Orders
"'
A Change Order is a written instrument signed by the Owner and Design-Builder stating their agreement upon all of
.•;
1
the ollowing:
.--..
.1
The change in the Work;
.2
The amount of the adjushnent, if any, in the Contract Sum or, if prior to executio offhe'Design-Build ., •"
~ ~
~
Amendment, the adjustrnent in the Design-Builder's compensation; and
~
t
,•.3
T7ie extent of the adjustment, if any, in the Contract Time.
a j
~ e
§ 6.3 Change Directives
§ 6.3.1 A Change Directive is a written order signed by the Owner directing a change in the Work prior to;agreement
on adjustment, if any, in the Contract Sum or, if prior to execution of the Design-Build Amendment, the adjustment in
the Design-Builder's compensation, or Contract Time. The Owner may by Change Directiveswithout invalidatingthe
Contract, order changes in the Work within the general scope of the Contract consisting of additions, deletions or other
revisions, the Contract Sum or, if prior to execution of the Design-Build Amendment, the adjustment.in-the — -,;~"`~
~•,~
Design-Builder's compensation, and Contract Time being adjusted accordingly.
§ 6.3.2 A Change Directive shall be used in the absence of total agreement on the terms of ~'Ch~hge Order.
i

r

`~
'j

§ 6.3.3 If the Change Directive provides for an adjustment to the Contract Sum or, if prior to e ecution of the
Design-Build Amendment, an adjustment in the Design-Builder's compensation, the adjushnen~ shall be based on one
of the following methods:
t
~
.1
Mutual acceptance of a lump sum properly itemized and supported by sufficient subsfaritiating data to:.:. ..........--- , - ., _,.. :--- --:.._ . ..
permit evaluation;
.2
Unit prices stated in the Design-Build Documents or subsequently agreed upon;

~',
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AIA Document AUI^ - 301. Copyilght ~ ]ODD end ]019 by The American inetltute of AiChl[eCCB. All slghte ze6ezved. 1uANniO: 4hia AIr~ Document
1~ Drotac[ep by O. B. Copyright Law and InCernational 7reetleo. Onavthotizad reproduCClon or 8lutribution o! thlo AU Uocumane, or err Bo[tion
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produced by AIA BOEtwazea at 1]i41~J'/ on 31/16/2015 Under order No. 0239586308 1 Which expLiBB on 07/14/1016 and Se not foY Yeeale.
(1J46T84]45)
06ec Notea~

PAPR - 004635

 .3
.4

Cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or
percentage fee; or
As provided in Section 6.3.7.

§ 6.3,4 If unit prices are sfated in the Design-Build Documents or subsequently agreed upon, and if quantities
originally contemplated are materially changed in a proposed Change Order or Change DireFtive so that application of
such unit prices to quantities of Work proposed will cause substantial inequity to the Owned or J~esign-Builder, the
F
i
applicable unit prices shall be equitably adjusted.
i

_...,

§ 6.3.5 Upon receipt of a Change Directive, the Design-Builder shall promptly proceed with the change in the Work`
involved and advise the Owner of the Design-Builder's agreement or disagreement with the method,-i£any, provided -~ -- in the Change Directive for determining the proposed adjustment in the Contract Sum or, if priorto execution of the
Design-Build Amendment, the adjustment in the Design-Builder's compensation, or Contr$ct'~ime.
§ 6.3.6 A Change Directive signed by the Design-Builder indicates the Design-Builder's agree~hent therewith,
including adjustment in Contract Sum or, if prior to execution of the Design-Build AmendMent~ the adjustment in the
Design-BuildePs compensation, and Contract Time or the method for determining them. Silch agreementssFiall be
effective immediately and shall be recorded as a Change Order.
§ 6.3.7 If the Design-Builder does not respond promptly or disagrees with the method for adjustment in tRe Contract
Sum or, if prior to execution of the Design-Build Amendment, the method for adjustment in th2 Design-Builder's
compensation, the Owner shall determine the method and the adjustment on the basis of reasonable'expenditt~res-and
savings of those performing the Work attributable to the change, including, in case of an inccease,.~n_amount £ot_ ._,_, _ .
overhead and profit as set forth in the Agreement, or if no such amount is set forth in the Agreement, a reasonable
amount. In such case, and also under Section 6.3.3.3, the Design-Builder shall keep and present, in such form as the
Owner may prescribe, an itemized accounting together with appropriate supporting data. Unless otherwise provided in
_
the Design-Build Documents, costs for the purposes of this Section 63.7 shall be limited to the following: •-" `
.1
Additional costs of professional services;
[HCS IS PROVIDING ITS CUSTOM ALLOWABLE COST RULES— WILL BE INSERTED ~ 4
A.S.A.PJ
S

~

i

Allowable Overhead and Profit Charges: Additional overhead and profit attributable to the change in contract
" °- ,,._
pricing shall not exceed the following:
,,~i
A. For work performed by the Confractor's own forces, a maximum often percent (l0%) of the allowable direct costs
or the unit pricing negotiated at the time of award.
"~ j
B. For work performed by a subcontractor's own forces, a maximum of ten percent (10%) of.the allowable direct
costs.
`
C.
For work performed by a subwntractor, overhead and profit of a maximum of five ~iercsnt (5%)his allowable .;, •~
J t
~ 'r;
by the Contractor for administration of the sub-contract.
Retainage: The District requires a retainage of three and one-half percent (3.5%) of the total contract price, as nay be
amended by any approved Change Order, to be withheld from the Contractor's payments throughout the term of the
Agreement and payable at the time of final payment after a) full completion of aU work to fie performed and al1___ _ . .
requirements established in the Agreement and acceptance by the District, b) submittal of all closeout documents, and
c) submittal of an affidavit ofpayment ofdebts/claims, if requested by the District, for evet'y subwntractor who -- - -performed work on the project evidencing they have received final payment of undisputed work and retainage
withheld. As a condition of the conVact, no more than three and one-half percent (3.5%) shall be reta~ed•from-the.,,.
progress payments of any subcontractor by the Contractor until final completion of that portion;of the work. Prompt "" ~.,
payment of retainage to all subcontractors at final completion of their acceptable work regardless of tiiri`ing during the.,
contract is mandatory. The Contractor shall, at final completion, enswe no amount of the Cyntr$otor's retained funds
is allocable to the completed and accepted work of any subcontractor nor to materials or equip ant purchased from
any supplier unless such amounts are in dispute and the Contractor has not requested paympnt~or such disputed
amounts to date. Such amounts in dispute shall be identified on the Contractor's affidavit of pa~ment of debts/claims s
s`' t...................... . . ........__.,
submitted with final documents.
i

§ 6.3.8 The amount of credit to be allowed by the Design-Builder to the Owner for a deletion.or change thatresults in.. - .
a net decrease in the Contract Sum or, if prior to execution of the Design-Build Amendment, in the Design-Builder's
Aia ~oeummt A111^ - 3014. CopycSgh[ ^ 2009 eM 3011 by The American InetituCa of ArChitecte. All rig6ta re~aNed. WFRNINC~ This TII~ nowmant
is protected by 0.6. Cop/tight Ww and Znternatioeal Treatioa, oneutAosSzed ceptodueelon or diotribuelon of tfiia AIA Doeummt, or any Boction
of iC, may zeuult Sn Bevero Civil an9 cYlminal Denaltieo~ snA wil} p9 prOaeCutaQ to Gee nax3mum vcCwt pov Oible under Ch¢ lax. Thie draft wag 16
produced by AZA eoftHa[e at 13 ~91i39 oh 31/16/2015 utldB[ Oetler No,03]95962 8_1 Whl<h expSxeB OA 07/14/2016, and ie no[ Pot t Bale.
(1366781745)
9aer Notaei

PAPR - 004636

 compensation, shall be actual net cost. When both additions and credits covering related Work or substitutions are
involved in a change, the allowance for overhead and profit shall be figured on the basis of nat increase, if any, with
respect to that change.
§ 6.3.9 Pending final determination of the total cost of a Change Directive to the Owner, the Design-Builder may
request payment for Work completed under the Change Directive in Applications for Payment: The Owner will make
an interim determination for purposes of certification for payment for those costs deemed to be'~reasonabiy justified.
The Owner's interim determination of cost shall adjust the Contract Sum or, if prior to execution of the Design-Build
Amendment, the Design-Builder's compensation, on the same basis as a Change Order, subject; to the right of
Design-Builder to disagree and assert a Claim in accordance with Article 14.
l

~
~

§ 6.3.10 When Uie Owner and Design-Builder agree with a determination concerning the adjushnents in the Contract
Sum or, if prior to execution of tha Design-Build Amendment, the adjustment in the Design-Builder's compensation
and Contract Time, or otherwise reach agreement upon the adjustments, such agreement stipll bye effective
immediately and the Owner and Design-Builder shall execute a Change Order. Change Orders'-may be issued for all or
any part of a Change Directive.
~ "j
~ ~
i i
AK'fICLE 7 OWNER'S RESPONSIBILITIES
§ 7.1 General
¢
§ 7.1.1 The Owner shall designate in writing a representative who shall have express authority tb bind the Owner with
respect to all Project matters requiring the Owner's approval or authorization.

f

_.. . . ..

s_.. .._..:

§ 7.1.2 The Owner shall render decisions in a timely manner and in accordance with the Design-Builder_'s_schedule,__
agreed to by the Owner. The Owner shall famish to the Design-Builder, within I S days after receipt of a written
request, information necessary and relevant for the Design-Builder to give notices of project commencement and take
other action to protect the integrity and exclusivity of the project payment bond(s).
,..- ``
§ 7.2 Information and Services Required of the Owner
§ 7.2.1 The Owner shall furnish information or services required of the Owner by the Design=Build Document with
reasonablepromptr~ess.
'-:_., _.,
~
§ 7.2.2 The Owner shall provide, to the extent under the Owner's control and if not required by the Design-Bui~d ~...
Documents to be provided by the Design-Builder, the results and reports of prior tests, inspections or investigations
conducted for the Project involving structural or mechanical systems; chemical, air and water pollution; hazardous
materials; or environmental and subsurface conditions and information regarding the presence of pollutants at the
Project site, Upon receipt of a written request from the Design-Builder, the Owner shall also provide surveys
describing physical characteristics, legal limitations and utility locations for the site of the Project, and a legal
~' !~~'
4 .,'~
description ofthe site under the Owner's control.
i~
/
§ 7.2.3 The Owner shall promptly obtain easements, zoning variances, and legal authorizatonsior entitlerijentsr~"
regarding site utilization where essential to the execution of the Project.
! {
~ ;
~ ~
~;
and other permits,_,
§ 7.2.4 The Owner shall cooperate with the Design-Builder in securing Isnd development, Toning,
~
licenses and inspections.

j
`'
'~

~

§ 7.2.5 The services, information, surveys and reports required to be provided by the Owner under this Agreement,
shall be fiimished at the Owner's expense, and except as otherwise specifically provided in this Agreement or- , ..
elsewhere in the Design-Build Documents or to the extent the Owner advises the Design-Builder to the contrary in
writing, the Design-Builder shall be entitled to rely upon the accuracy and completeness thereof, In no event shall- the.
Design-Builder be relieved of its responsibility to exercise proper precautions relating to tha+safe performance of the ,"'
Work.
j !'
i

'

§ 7.2.6 If the Owner observes or otherwise becomes aware of a fault or defect in the Work o'r non-~nformity with the
Design-Build Documents, the Owner shall give prompt written notice thereof to the Design-Builder.
F._.=:_- , ._ , ~ __.
_
_.

Ai.~ Docu~mt Al l^ — ]03~. CopyrSght o aao4 and ]01~ by Tla Mexican Ine[Stute of Archicecta. ali ngLG ie9ervlA. NAR1iINC: Th1! AIA DOCWeat
Ss ptotacteA by D.B. Copycig~t Gew and InCarnatSonal Tsaetieo. Onautho[Szed raproduoClon or dlotribution of Elio AIA Oocwemt, or any portion 17
aL St, may rouult to a ace CLvA1 and Crlminal peneltieu~ and Mill be prOnecuteq to the mulmum extenC peooible ~ndet th¢ Law, This d[aEt ~+ee
pcOtluC@4 by AIA 60ECwflce at 13~41~]'! on 11/16/1015 Undai O[dei No.02J9586208 1 whSch expitee OA 07/14/RO16, antl is hOt f0[ ClBdle.
(1]46~B~J15)
Oaei Noteet

PAPR - 004637

 § 7.2.7 Prior to the execution oP the Design-Build Amendment, the Design-Builder may request in writing that the
Owner provide reasonable evidence that the Owner has made financial arrangements to fulfill the Owner's obligations
under the Design-Build Documents and the Design-Builder's Proposal..
§ 7.2.8 Except as otherwise provided in the Design-Build Documents or when direct communications have been
specially authorized, the Owner shell communicate through the Design-Builder with persons or. entities employed or
retained by the Design-Builder.
§ 7.2.9 Unless required by the Design-Build Documents to be provided by the Design-Builder, the Owner shall, upon
request from the Design-Builder, furnish the services of geotechnical engineers or other consultants for investigation
of subsurface, air and water conditions when. such services are reasonably necessary to pro~erlycarry out•t#~e design--services furnished by the Design-Builder. ]n such event, the Design-Builder shall specify the services required. Such
services may include, but are not limited to, test borings, test pits, determinations of soil bearing values, percolation
tests, evaluations of hazardous materials, ground corrosion and resistivity tests, and necessary operations for
anticipating subsoil conditions. The services ofgeotechnical engineers) or other consultants shall include preparation
and submission of all appropriate reports and professional recommendations.
§ 7.2.10 The Owner shall purchase and maintain insurance as set forth in Exhibit B.

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§ 7.3 Submittals
`
§ 7.3.1 The Owner shall review and approve or take other appropriate action on Submittals; Review of 5tibm;ttals is
not conducted for the purpose of determining the accuracy and completeness of other details, sdch as dimensions an8
quantities; or for substantiating instructions for installation or performance of equipment orisystems;.or.for,_:..__,....._..._:.._. ., . .
determining that the Submittals are in conformance with the Design-Build Documents, all of which remain the
responsibility of the Design-Builder as required by the Design-Build Documents. The Owner's action will be taken in . :accordancewith the submittal schedulo approved by the Owner or, in the absence of an approved submittal schedule,
with reasonable promptness while allowing sufficient time in the Owner's judgment to permit adequate review. The,,,
Owner's review of Submittals shell not relieve the Design-Builder of the obligations under Sectio. ns 3:1.1 I, 3. l~ 12`
and 5.23. The Owner's review shall not constitute approval of safety precautions or,.unless otherwise specific~lly~
stated by the Owner, of any construction means, methods, techniques, sequences or procedures. Tfie.Owner's ap~ro€al
`""' .. _..
of a specific item shall not indicate approval of an assembly of which the item is a component._..
§ 7.3.2 Upon review of the Submittals required by the Design-Build Documents, the Owner or its designee shall notify
the Design-Builder of any non-conformance with the Design-Build Documents the Owner discovers.

'

§ 7.4 Visits to the site by the Owner shall not be construed to create an obligation on the part of the Owner to make
on-site inspections to check the quality or quantity of the Work. The Owner shall neither have`control over orcharge"
of, nor be responsible for, the construction means, methods, techniques, sequences or procedures; or for the safety
rights
precautions and programs in connection with the Work, because these are solely the Desigq~
~ Builder's
~
~ and,,::,..:~
responsibilities under the Design-Build Documents.
~

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§ 7.S The Owner shall not be responsible for the Design-Builder's failure to perform the Wgrk ~n accorda~ice with the
requirements of the Design-Build Documents. The Owner shall not have control over or charge o~,and wCl not be _,
responsible for acts or omissions of the Design-Builder, Architect, Consultants, Contractors, or their agents or
employees, or any other persons or entities performing portions of the Work for the Design=Builder; m~~ ~-- —
§ 7.6 The Owner has the authority to reject Work that does not conform to the Design-Build Documents. The Owner
shall have authority to require inspection or testing of the Work in accordance with Section 15.5;2;whether or not such
Work is fabricated, installed or completed. However, neither this authority of the Owner nor a'decisioii'made in good.,.
faith either to exercise or not to exercise such authority shall give rise to a duty or responsib~lity,,of the Owner to the
Design-Builder, the Architect, Consultants, Contractors, material and equipment suppliers, 4heir.`agents or employees, 1
{
or other persons or entities performing portions of the Work.
§ 7.7 The Owner shall determine the date or dates of Substantial Completion in accordancejwit~ Section 9.8 and the
date of final completion in accordance with Section 9.10.
~

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is proteeted by 0.3. CopyclBht Lav end Inlernatlonal TieaCixa. vnauthocize8 repioCuetion or tlistYfbution of thin AU Document, or any Dortlon
a[ St, iaay t ogle Ins era civil and erlminal panaltiea~ anA rri11 be prosecuted to the maximum extent poaeible mGez the lay. Th1e tlraf[ urea
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(1J4fi'184]45)
U[at NOt~91

le

PAPR - 004638

 § 7.8 Owncr's Right to Stop Work
If the Design-Builder fails to cottect Work which is not in accordance with the requirements of the Design-Build
Documents as required by Section 11.2 or persistently fails to carry out Work in accordance with the Design-Build
Documents, the Owner mey issue a written order to the Design-Builder to stop the Work, or any portion thereof, until
the cause for such order has been eliminated; however, the right of the Owner to stop the Work shall not give rise to a
duty on the part of the Owner to exercise this right for the benefit of the Design-Builder orany- they person or entity,
except to the extent required by Section 5.13.1.3.
l
§ 7.9 Owner's Right to Cerry Out the Work
~ 7
If the Design-Builder defaults or neglects to carry out the Work in accordance with the Design-Buildbocuments and
fails within aten-day period after receipt of written notice from the Owner to commence and continue-correction of
such default or neglect with diligence and promptness, Use Owner may, without prejudice to`other remedies the Owner
may have, correct such deficiencies. In such case, an appropriate Change Order shall be issued `deducting from
payments then or thereafter due the Design-Builder the reasonable cost of correcting such deficiencies. If payments
then or thereafter due the llesign-Builder are not sufficient to cover such amounts, the Design-Builder shall pay the
difference to the Owner. For Work on the critical path to beneficial occupancy of the Project (or defined component
thereofl the ten-day period referenced herein is reduced to five (5) days during the 60 days'pri0r to substantial
5
completion as sho~~ni on the last schedule properly submitted under § 3. L9.
S

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ARTTCT.E A TIME
§ 8.1 Progress and Completion
'
§ 8.1.1 Time limits stated in the Design-Build Documents are of the essence of the Contract. By executin~ thb "'~—
Design-Build Amendment the Design-Builder confirms that the Contract Time is a reasonable_period for performing,
the Work.
§ 8.1.2 The Design-Builder shall not, except by agreement of the Owner in writing, commence the Work prior to:the
effective date of insurance, other than property insurance, required by this Contract. The Contract Time shall not be
, ,.-a p
adjusted as a result of the Design-Builder's failure to obtain insurance required under this Contrapt; ~`"
§ 8.1.3 The Design-Builder shall proceed expeditiously with adequate forces and shall achieve Substantial
Completion within the Contract Time.
§ 8.1.4 LIQUIDATED DAMAGES FOR LATE SUBSTANTIAL AND FINAL COMPLETION OF THSWORIC.

- _2

i
The Owner and the Contractor agree that time is of the essence and that the Owner will suffer significant damage,
hardship, and lass if the Work is not substantially completed within the Contract Time. Damages the Owner will incur
~
as a result of breach of contract by failure to achieve substantial completion era: use of relocatable classrooms; use of `
alternate sites for the educational program; disruption of class locations; disruption of athletic pcogram~ disruption of .~ `'
public service activities planned for the project; loss ofrental of the project; security risks due toicomingling o£project
workers with additional persons on and near the site; additional safety risks of equipment, ~ehiFles, and uclfinished
work on the campus dwing the academic term; general disruption of the teaching and teaming process du~ to project
activities during the academic term; moving equipment during the academic term when stu~lenfs and full staffare
present; harm to the Owner's reputation and established goodwill among the community, p~rents, students,, and staff
due to late delivery of the project; loss of student morale and academic performance due to~the ongoing Work during
the academic term; harm to the Owner's public relations; disruption and inefficiency of the management of all the Owner's facilities and other current construction projects. 1'he measurement of such damages is difficult.
---.
Accordingly, such damages are converted to Liquidated Damages as follows: for each day the Work:is-nob
Substantially Complete beyond the Contract Time allowed for Substantial Completion, liquidated damages of $1000
will be due from the Design-Builder to the Owner; fbr each day the Work is not Finally Complete beyond the ConVact,.
'~:
Time allowed for Final Completion, liquidated damages of $500 will be due from the Design-B{~i1der to the Owner.
,.,~ 4
I
§ 8.2 Delays and Extensions of Time
§ 8.2.1 If the Design-Builder is delayed at any time in the commencement or progress of the~Work by an act or neglect ~ ~
of the Owner or of a consultant or separate contractor employed by the Owner; or by changes ordered in the Work by F t
the Owner; or by labor disputes, fire, unusual delay in deliveries, unavoidable casualties or other causes beyond-the ` ~" 'Design-Builder's control; or by delay authorized by the Owner pending mediation and binding.dispute.resolution.or.._,-..... ..,
AIT Document x111^ - 101 . COpyxight ~ X009 end ]014 Ey The Awezlcen Institute of AichiteCte. T11 r19h~e reeexved. NAPNINO~ 'fhla ~IIA DOCwnent
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(1346'!84345)
Oaei NoteO~

PAPR - 004639

 by other causes that the Owner determines may justify delay, then the Contract Time shall be extended by Change
Order for such reasonable time as the Owner may determine.
§ 8.2.2 Claims relating to time shall be made in accordance with applicable provisions of Article 14.
§ 8.2.3 Weather Delays; When adverse weather conditions are the basis for a request for additional time, such
request shall be documented by data substantiating the weather conditions a) were abnormal for ~ period of time which
could not have been reasonably anticipated; b) had an adverse effect on the work scheduled, and
,, altcrnatc work
unaffected by the weather could not have been done; and c) had an adverse effect on the construction schedule such
that the loss ofwork time will adversely impact the established completion date. The Contractor inusf make every
effort to mitigate the potential effect of the weather on the construction schedule including,?but;no6limited-to,
- -rescheduling of subcontractors, pmnping water from work areas, rescheduling work hours to al«emate work days
within the work week, or other such actions. Such time extension request shall be in writing and submitted to the
District for approval within ten (10) days from the end of the event causing the impact on the construction schedule.
An extension of time not requested within tfie appropriate time period shall not be considered: 'The approved
extension of time shall be incorporated in the next Change Order.
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,§ 8.2:4 Anticipated WeatLer Delays_ A total of ~+ve-two (S2~ days per calendar month.{non.cumulative) shall_be_ _._..-- Formatted: Highlight
anticipated by the Contractor as "adverse weather,"and such time shall not be considered justification for an extension
of time. Such anticipated adverse weather days are established only for normally scheduled work days, excluding
Saturdays, Sundays and major holidays, unless such adverse weather conditions on those days ire severe enough to
i~~pact the scheduled work on the.following work day. if adverse weather days beyond the fwe-two (~2) days
anticipated are substantiated and the Contractor could not mitigate the impact of the additional adverse weather days,
_
an extension of time may be allowed only to the extent of the actual impact on the last approved construction schedule
j
and only to the extent of one (I) full day of extended time for each full working day ofadverse weather conditions
which prevented aforty-hour work week within a seven (7) day calendar week. A request for adverse weather., <_ "
_ ,,
...
extension shall not be allowed after the date established for substantial completion.
...•~
~ j
ARTICLE 9 PAYMENT APPLLCATIOlY5 AlYD PROJECT COMPLETION
§ 9.1 ContracE Sum
The Contract Sum is stated in the Design-Build Amendment.

i

§ 9.2 Schedule of Values
Where the Contract Sum is based on a stipulated swn or Guaranteed Maximum Price, the Design-Builder, prior to t}ie-..
first Application for Payment after execution of the Design-Build Amendment shall submit to the Owner a schedule of
values allocating the entire Contract Sum to the various potions ofthe Work and prepared in such form apd supported
by such data to substantiate its accuracy as the Owner may require. This schedule, unless objected to by the Owner; '
..` `°
shall be used as a basis for reviewing the Design-Builder's Applications for Payment.
t
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§ 9.3 Applications for Payment
§ 9.3.1 At least TWENTY ONE days before the date established for each progress payment th~ Design-B?ild~r shall
submit to the Owner an itemized Application for Payment for completed portions of the Wgrk.;The application shall
be notarized, if required, and supported by data substantiating the Desi~-Builder's right to~pa~nent as the Owner
may require, such as copies of requisitions from the Architect, Consultants, Contractors, and material suppliers, and
s•- ----'- -- -- -- shall reflect retainage if provided for in the Design-Build Documents,

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§ 9.3.1.1 As provided in Section 63.9, Applications for Payment may include requests for payment on -account of_.._
changes in the Work that have been properly authorized by Change Airectives, or by interim determinations of the
''
""
Owner, but not yet included in Change Orders.
~~ }
§ 9.3.1.2 Applications for Payment sha11 not include requests for payment for portions of the' Work for which the
Design-Builder does not intend to pay the Architect, Consultant, Conhaclor, material suppUer, ~r other persons or
entities providing services or work for the Design-Builder, unless such Work has been performed by others whom the i j
Design-Builder intends to pay.
~ 3_.,. _..__. ... ,....~.,.._T„_ ..._,i 5
§ 9.3.2 Unless otherwise provided in the Design-Build Documents, payments shall be made-for services-provided as well as materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work. If
AIA Doeunent A1~1" - 1011. Copyilght ~ 30W aM 2014 by 1fi! Meilcnh InetSCute O[ ACChitecte. All slphCa received. NARNINOs This ]1IT DOcwnant
Doeuroent, or any poYtion
to ptotacteA by 0, 0. Copyright Lav aad Inttrnetional Tteatieq, onauthertx~d reproGuetim or distribution aE thin AU
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(i196'lB4:145)
Oae[ Notae~

20

PAPR - 004640

 approved in advance by the Owner, payment may similarly be made for materials and equipment suitably stored off
the site at a Igcation agreed upon in writing. Payment for materials and equipment stored on or off the site shall be
conditioned upon compliance by the Design-Builder with procedures satisfactory to the Owner to establish the
Owner's title to such materials and equipment or otherwise protect the Owner's interest, and shall include the costs of
applicable insurance, storage and transportation to the site for such materials and equipment stored off the site.
§ 9.3.3 The Design-Builder warrants that title to all Work, other than Inshuments of Service, covered by an
Application for Payment will pass to the Owner no later than the time of payment. The Design-'Builder further
warrants that, upon submittal of an Application for Payment, all Work for which Certificates for Payment have been
previously issued and payments received from the Owner shall, to the best of the Design-B~ildei's knowledge,
information and belief, be free and clear of liens, claims, security interests or encumbrances in favor-of the --. ---:= -e
Design-Builder, Architect, Consultants, Contractors, material suppliers, or other persons or~nti~ies entitled to make a
claim by reason ofhaving provided labor, materials and equipment relating to the Work. i ~

i

§ 9.4 Certificates for Payment
~ "
SEE § A.1.5.13 FOR SCHEDULE. [n accordance with the schedule set forth in § A.1.5.1 3; the Owner issue to the
Design-Builder a Certificate for Payment indicating the amount the Owner determines is properly due, acid notify the
Design-Builder in writing of the Owner's reasons for withholding certification in whole or n part as provided in
Section 9.5.1.
~ ~
E
§ 9.5 Decisions to Withhold Certification
§ 9.5.1 The Owner may withhold a Certificate for Payment in whole or in part to the extent~rea3onablynecessary to
protect the Owner due to the Owner's determination that the Work has not progressed to the point.indicated.in thy,.. _-_-.- -_
Design-Builder's Application for Payment, or the quality of the Work is not in accordance with the Design-Build
~
Documents. if the Owner is unable to certify payment in the amount of the Application, the Owner will notify the
Design-Builder as provided in Section 9.4. If the Design-Builder and Owner cannot agree on a revised amount,,khe "
Owner will promptly issue a Certificate for Payment for the amount that the Owner deems to be due and. owing. The.. "
Owner may also withhold a Certificate for Payment or, because of subsequently discovered evidence, may nµll'fy the
whole or a part of a Certificate for Payment previously issued to such extent as may be necessary to protect the ~w~er
from loss for which the Design-Builder is responsible because of
i
.1
defective Work, including design and construction, not remedied;
.2
third party claims filed or reasonable evidence indicating probable filing of such claims w~less security
acceptable to the Owner is provided by the Design-Builder,
.3
failure of the Design-Builder to make payments properly to the Architect, Consultants, Contractors or-:
others, for services, labor, materials or equipment;
.4
reasonable evidence that the Work cannot be completed for the unpaid balance of the Gogtract Sum;
{`
damage to the Owner or a separate contractor;
reasonable evidence that the Work will not be completed within the Contract ~~'ime~'and that the unpaid
balance would not be adequate to cover actual or liquidated damages for theanticipated delay;':or
repeated or substantial failure to carry out the Work in accordance with the Des~'~n-Build Documents.
§ 9.5.2 When the above reasons for withholding certification are removed, certification wil~ bemade for amounts
previously withheld.
; `_ ,, _ _
§ 9.5.3 If the Owner withholds ceRification for payment under Section 9.5.13, the Owner may;ants-sole option;issue-~joint checks to the Design-Builder and to the Architect or any Consultants, Contractor, material or equipment
suppliers, or other persons or entities providing services or work for the Design-Builder to whom the.Design-Buildei
'-.,
failed to make payment for Work properly performed or material or equipment suitably delivered.'

°

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§ 9.6 Progress Payments
§ 9.6.1 After the Owner has issued a Certificate for Payment, the Owner shall make payment ~n the manner and within
~ 4
1~ t
the time provided in the Design-Build Documents.
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§ 9.6.2 The Design-Builder shall pay each Architect, Consultant, Contractor, and other person qr entity providing
services or work for the Design-Builder no later than the time period required by applicablelaw, bufin'noevenfinore'"~
than seven days after receipt of payment from the Owner the amount to which the Architect,:Consultant, Contracror,--- . ..
and other person or entity providing services or work for the Design-Builder is entitled, reflecting percentages actually
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(1]46'184196)
0901 Notea~

21

PAPR - 004641

 retained from payments to the Design-Builder on account of the portion of the Work performed by the Architect,
Consultant, Contractor, or other person or entity. The Design-Builder shalt, by appropriate agreement with each
Architect, Consultant, Contractor, and other person or entity providing services or work for the Design-Builder,
require each Architect, Consultant, Contractor, and other person or entity providing services or work for the
Design-Builder to make payments to subconsultants and subcontractors in a similar manner.
§ 9.6.3 The Owner will, on request and if practicable, famish to the Architect, a ConsultanC~ Contractor, or other
person or entity providing services or work for the Design-Builder, information regarding percgntages of completion
or amounts applied for by, the Design-Builder and action taken thereon by the Owner on account of portions of the
`~ or wgrk for the- Work done by such Architect, Consultant, Contractor or other person or entity providing services
r
.— -:--._ .__....,_....._. _,._. ...
Design-Builder.
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§ 9.6.4 The Owner has the right to request written evidence from the Design-Builder that Ilse Design-Builder has
properly paid the Architect, Consultants, Contractors, or other person or entity providing services or work for the
Design-Builder, amounts paid by the Owner to the Design-Builder for the Work. Owner shall'have the right to contact
the Architect, Consultants, and Contractors to ascertain whether they have been properly pald:.'~'he Owner shall have
"'
j ~
no obligation to pay or to see to the payment of money to a Consultant or Contractor,
i

§ 9.G.5 Design-Builder payments to material and equipment suppliers shall be treated in a ~janger similar~to that
provided in Sections 9.6.2, 9.6.3 and 9.6.4.
§ 9.6.6 A Certificate for Payment, a progress payment, or partial or entire use or occupancy of the Project~by e' ~' " '"
Owner shall not constitute acceptance of Work not in accordance with the Design-Build Documents..._.,.,... ..__-..--__

1

§ 9.7 FAilure of Payment
If the Owner does not issue a Certificate for Payment, through no fault of the Design-Builder, within the tpnerequired
by the Design-Build Documents, then the Design-Builder may, upon seven additional days' written notice to the
Owner, stop the Work until payment of the amount owing has been received. The Contract Time shall be`extende
appropriately and the Contract Sum shall be increased by the amount of the Design-Builder}'s reasonable costs of
shut-down, delay and start-up, plus interest as provided for in the Design-Build Documents:"-~ ..
§ 9.8 Substantial Completion
§ 9.8.1 Substantial Completion is the stage in the progress of the Work when the Work or designated portion thereof is~ ,. ,
sufficiently complete in accordance with the Design-Build Documents so that the Owner can occupy or utilize the
Work for its intended use. The date of Substantial Completion is the date certified by the Owner,in accordance with
this Section 9.8.
`'^;
§ 9.8.2 When the Design-Builder considers that the Work, or a portion thereof which the OwneY~agrees to,ac~kpt ;.'
separately, is substantially complete, the Design-Builder shall submit to the Owner an occupancy permit issued by the
South Carolina Office of School Facilities and a comprehensive list of items to be completed or corrected p`tior to final
payment. Failure to include an item on such list does not alter the responsibility of the Design-I~uilder to complete all
~ ;:, _ _.___: __ ., {
Work in accordance with the Design-Build Documents.
__

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,~ 9.8.3 Upon receipt of the DesipmBuilder's list, the Owner shall review the Work., If the Owner's_review discloses__..._- Formatted: Not Hlghllght
any item, whether or not included on the Design-Builder's list, which is not sufficiently complete in accordance with
the Design-Build Documents so that the Owner can occupy or utilize the Work or designated portion thereof for-its
intended use, the Design-Builder shall, before issuance of the Certificate of Substantial Completion, complete or
correct such item upon notification by the Owner. In such case, the Design-Builder shall then s" ubmit a'request for' ' -,
~`
anothei review of the Work by the Owner.
{
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j
§ 9.8.4 Prior to issuance of the Certificate of Substantial Completion under Section 9.8.5, the Owner and
insurance
obligations
to
obtain
and
maintainlproperty
determine
parties'
shall
discuss
and
then
the
Design-Builder
following issuance of the Certificate of Substantial Completion.
i ..,_ ___.. . _ .__.._. ,.. ... i 3
3

§ 9.8.5 When the Work or designated portion thereof is substantially complete, the Design-Builder-will obtain for the.
Owner an occupancy permit issued by the South Carolina Office of School Facilities and a Certificate of Substantial

4

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'
iooa end xoi9 by ~lhe Auerican ineticute of Archi cec[e. A11 zl9bts reBerved. HAPNINO: This AI)i Docwant
is pmtuctad by 9.6. Copyright Law and ZaNrnatianal Tseatieo, vnaneLorized ceproAuCtlon oc dlotrlbution of tFin aIA Docwoent, or any portion
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(1396'l843<5)
Dees Noteo~

PAPR - 004642

 Completion that shall, upon the Owner's signature, establish the date of Substantial Completion; establish
responsibilities of the Owner and Design-Builder for security, maintenance, heat, utilities, damage to the Work and
insurance; and fix the time within which the Design-Builder shall finish all items on the list accompanying the
Certificate. Warranties required by the Design-Build Documents shall commence on the date of Substantial
Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial
Completion.
~--~r
§ 9.8.6 The Certificate of Substantial Completion shall be submitted by the Design-Builder`'to the Owner for written
acceptance of responsibilities assigned to it in the Certificate. Upon the Owner's acceptance, and consent o€surety, if
any, the Owner shall make payment of retainage applying to the Work or designated portion;the~eof Payment slialTlie
adjusted for Work that is incomplete or not in accordance with the requirements of the Design-Build Documents.
a
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§ 9.9 Partial Occupancy or Use
§ 9.9.1 The Owner may occupy or use any completed or partially completed portion of the Woik at any stage when
such portion is designated by separate agreement with the Design-Builder, provided such occupancy or use is
consented to, by endorsement or otherwise, by the insurer providing property insurance and authorized by public
authorities having jurisdiction over the Project. Such partial occupancy or use may comme~ice yvhether oriiiot~:the
portion is substantially complete, provided the Owner and Design-Builder have accepted in y✓rithg the res~5ons'ibilities
assigned to each of them for payments, retainage, if any, security, maintenance, heat, utilities, damage to the Work and
insurance, and have agreed in writing concerning the period for correction of the Work and%commencement of
warranties required by the Design-Build Documents. When the Design-Builder considers apportion substantially
complete, the Design-Builder shall prepare and submit a list to the Owner as provided under Section 9:8.2=Consent of"'
the Design-Builder to partial occupancy or use shall not be unreasonably withheld. The stageof the prOBress.of.the, .._..
Work shall be determined by w»tten agreement between the Owner and Design-Builder.
§ 9.9.2 Immediately prior to such partial occupancy or use, the Owner and Design-Builder shall jointly review thearea
to be occupied or portion of the Work to be used in order to determine and record the condition of the Work.
§ 9.9.3 Unless otherwise agreed upon, partial occupancy or use of a portion or portions of the Work shall not constitute
j
acceptance of Work not complying with the requirements of the Design-Build Documents E
i
§ 9.10 Final Completion and Final Payment
§ 9.10.1 Upon receipt of the Design-Builder's written notice that the Work is ready for final inspection and~acceptance
and upon receipt of a final Application for Payment, the Owner will promptly make such inspection. When the Owner ..
finds the Work acceptable under the Design-Build Documents and the Contract fully performed, the Owner will,
--- '` .
subject to Section 9.10.2, promptly issue a final Cedificate for Payment.
:~''
§ 9.10.2 Neither final payment nor any remaining retained percentage shall become due until the Desigh-Bui~der'~~
submits to the Owner (l) an affidavit that payrolls, bills for materials and equipment, and other{;indebtedriess}.•`
connected with the Work, for which the Owner or the Owner's property might be rasponsilile or encumbered, (less'
amounts withheld by Owner) have been paid or otherwise satisfied, (2) a certificate evidencing that insurance r~quired
by the Design-Build Documents to remain in force after final payment is currently in effect (3) a written Statement
that the Design-Builder knows of no substantial reason that the insurance will not be renewabl4 to cover t ie penod _. _.._,
required by the Design-Build Documents, (4) consent of surety, if any, to final payment, (5) as-constructed record
copy of the ConsWction Documents marked to indicate field changes and selections made'during construction; (6) --manufacturer's warranties, product data, and maintenance and operations manuals, and (7) if required by the Owner,
other data establishing payment or satisfaction ofobligations, such as receipts, or releases and waivers of liens; cleans,
security interests, or encumbrances, arising out of the Contract, to the extent and in such forth as,may be designated by `
the Owner. If an Architect, a Consultant, or a Contractor, or other person or entity providing services or work for the,.
Design-Builder, refuses to famish a release or waiver required by the Owner, the Design-Byilder'may famish a bond
satisfactory to the Owner to indemnify the Owner against such liens, claims, security intere~§ts, pr encumbrances. If
such liens, claims, security interests, or encumbrances remains unsatisfied after payments aTe ~ade, the
~ 3
Design-Builder shall refund to the Owner all money that the Owner may be compelled to pAy i~ discharging such
~ ~
liens, claims, security interests, or encumbrances, including all costs and reasonable attorneys' fees.
§ 9,10.3 If, after Substantial Completion of the Work, final completion thereof is materially delayed-through no fault---- - ofthe Design-Builder or by issuance of Change Orders affecting final completion, the Owner. shall, upon application
tsn noement A141^ - s01f, copyzight ° 200< and 201 by The AmeYlcnn Institute oL Architects. 111 z1phG ra~erved. NAPNiNOr 1Lie .lIa` Doa~mant
is peokeeted by U.O. Cepyrlpht Ww and International TzeaHee. Onauthotizefl reproduction or dLa trtDutf on of [hle AIA Oacueent, or any Oortlan
o[ SC, may rai~lt in eaveco elvil antl crlminal Danaltiev, and will be proeecuta0 Co tLe maximum extent poeaible unGac the lAx. Thia draft nee z3
pxotlucatl by AIA eoEtMaie at 13 X41 X37 on 11/16/2015 unEer Order No.o2~95862oe 1 nhich e~[piiee on O'!/19/2U16~ flntl Se mC foz z eels.
(11468<3C5)
IIeer Notaa~

PAPR - 004643

 by the Design-Builder, and without terminating the Contract, make payment of the balance due for that portion of the
Work fully completed and accepted. If the remaining balance for Work not fully completed or corrected is less than
retainage stipulated in the Design-Build Documents, and if bonds have been furnished, the written consent of surety to
payment of the balance due for that portion of the Work fully completed and accepted shall be submitted by the
Design-Builder to the Owner prior to issuance of payment. Such payment shall be made under terms and conditions
-;
governing final payment, except that it shall not constitute a waiver of claims.
i
§ 9.10.4 The making of final payment shall constitute a waiver of Claims by the Owner except those arising from
.1
liens, Claims, security interests or encumbrances arising out of the Contract and,unsettled;
.2
failure of fhe Work to comply with the requirements of the Design-Build Documents
.3
z ;- —
- -terms of special warranties required by the Design-Build Documents;
.4
post-occupancy services to be provided by or through the Design-Builder`•,

----

§ 9.10.5 Acceptance of final payment by the Design-Builder shall constitute a waiver of claims ~y the Design-Builder
except those previously made in writing and identified by the Design-Builder as unsettled at the time of final
Application for Payment.
'
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ARTICLE 10 PROTECCION Or PERSONS AND PROPERTY
t
§ 10.1 Safely Precautions and Programs
The Design-Builder shall be responsible for initiating, maintaining and supervising all safety p}ecautions end;
~
~
programs in connection with the performance of the Contract.
j },
~ t.. .. :. ...
s._ _.._ .._.. _. ..
§ 10.2 Safety of Persons and Property
§ 10.2.1 The Design-Builder shall be responsible for precautions for the safety of, and reasonable protection to prevent
_,_.' t
damage, injury or loss to
!
.1
employees on the Work and other persons who may be affected thareby;
.2
the Work and materials and equipment to be incorporated therein, whether in storage on or off the site,.
under care, custody or control of the Design-Builder or the Architect, Consultants,or Contractois, oT'
~
#
other person or entity providing services or work for the Design-Builder•, and•
.3
other property at the site or adjacent thereto, such as trees, shrubs, lawns, walks, pavements, ~roac~wa~s,
or structures and utilities not designated for removal, relocation or replacementin the course of ~
construction.
~ ..
§ 10.2.2 The Design-Builder shall comply with, and give notices required by, applicable laws, statutes, ordinances;
codes, rules and regulations, and lawful orders of public authorities, bearing on safety of persons or property, or their
protection from damage, injury or loss.

s

§ 10.2.3 The Design-Builder shall implement, erect, and maintain, as required by existing cop'dition's and perf4nnance ,,.
of'the Contract, reasonable safeguards for safety and protection, including posting danger sfgns~end other`}wariiings ""
against hazards, promulgating safety regulations, and notify owners and users of adjacent sites hnd utilitie§ of tjhe
safeguards and protections.
~ ~
§ 10.2.4 When use or storage of explosives or other hazardous materials or equipment, or unuspal methods, are ,. _.
necessary for execution of the Work, the Design-Builder shall exercise utmost care, and carry on such activities under
supervision ofpropedy qualified personnel
~• "-'--~----'-----§ 10.2.5 The Design-Builder shall promptly remedy damage and loss (other than damage or loss insured under --. ...._
property insurance required by the Design-Build Documents) to property referred to in Sections10.2.1.2 and 10.2.13,
caused in whole or in part by the Design-Builder, tha Architect, a Consultant, a Contractor, or`anY9ne'Hirectly or ~'
indirectly employed by any of them, or by anyone for whose acts they raay be liable and for ~vhich`the Design-Builder
is responsible under Sections 10.2.12 and 10.2.13; except damage or loss attributable to acts oP omissions of the
Owner, or anyone direcNy or indirectly employed by the Owner, or by anyone for whose acts theiOwner may be liable,
and not attributable to the fault or negligence of the Design-Builder. The foregoing obligatipns' f the Design-Builder
are in addition to the Design-Builder's obligations under Section 3.1.14.

\.

~`'
i

AIA Documnn! A1~1^ - 101 . CopyrSgM1t a 2009 and ]O1~ by The AmeiiCan Inetitu[8 of KChitec[a. A11 iigLt~ [a~eLveQ. HAIWIN.~ TAia AIA DocUaent
is protected py O.e, Cogyripht Lew and InCernatlonal Treetieo. OnauthOrSzed rapxOGueC7on or di0tribuCion o2 Gfiin AU K Ooc~vnmC, or any yoctloq
civil and criminpl @enpltim~ and will be proneautel Co the maximum asten< p000ible under the law, Th18 draft wee z4
et St, may r Dolt ins
ptoduced by AIA aof[ware aC 13X91:1] on 31/16/2015 undeC Oide[ NO.OP39586208_1 which expi[ee on 07/14/]016, 6~tl 10 IIOC EO[ i¢9ale.
(1]96'!84]45)
OOe[ Notea~

PAPR - 004644

 § 1Q.2.6 The Design-Builder shall designate a responsible member of the Design-Builder's organization, at the site,
whose duty shall be the prevention of accidents. This person shall be the Design-Builder's superintendent unless
otherwise designated by the Design-Builder in writing to the Owner.
§ 10.2.7 The Design-Builder shall not permit any part of the construction or site to be loaded so as to cause damage or
create an unsafe condition.
;- - ~
§ 10.2.8 Injury or Damage to Person or Property. If the Owner or Design-Builder suffers injury or damage to
person or property because of an act or omission of the other, or of others for whose acts such party is legally.
responsible, written notice of the injury or damage, whether or not insured, shall be given to the other partyw~thiri a
reasonable time not exceeding 21 days alter discovery. The notice shall provide sufficient c~etai.l to enable the otherparty to investigate the matter.
§ 10.3 Hazardous Materials
§ 10.3.1 The Design-Builder is responsible for compliance with any requirements included`ih t[ie Design-Build
Documents regarding hazardous materials. if the Design-Builder encounters a hazardous material or substance not
addressed in the Design-Build Documents and if reasonable precsntions will be inadequate to prevent foreseeable
bodily injury or death to persons resulting from a material or substance, including but not limited to asbestos or
polychlorinated biphenyl (PCB), encountered on the site by the Design-Builder, the Design-Builder shall?upon
recognizing the condition, immediately stop Work in the affected area and report the condition Ao the Owner in
writing,
j ~
f
a i. . -..,...~ ~._ __ .. .
§ 70.3.2 Upon receipt of the Design-Builder's written notice, the Owner shall obtain the servicesof a licensed„ __.:. _.. ..
laboratory to verify the presence or absence of the material or substance reported by the Design-Builder and, in the
event such material or substance is found to be present, to cause it to be rendered harmless. Unless otherwise required ,
by the Design-Build Docwnents, the Owner shall famish in writing to the Design-Builder the names and qualification"s
of persons or entities who sire to perform tests verifying the presence or absence of such material or substanceor who.=
are to perform the task of removal or safe containment of such material or substance. The Design-Builder will-; f
promptly reply to the Owner in writing stating whether or not the Design-Builder has reasonable objection to tl3e
persons or entities proposed by the Owner. If the Design-Builder has an objection to a person orentity proposed by the
Owner, the Owner shall propose another to whom the Design-Builder has no reasonable objection. When the material
or substance has been rendered harmless, Work in the affected area shall resume upon written agreement pf theOwner
and Design-Builder. By Change Order, the Contract Time shall be extended appropriately and the Contract Sum shall
be increased in the amount of the Design-Builder's reasonable additional costs of shut-down, delay and start-up.
§ 1Q.3.3 To the fullest extent permitted by law, the Owner sha11 indemnify and hold harmless the Design-Builder, the
Architect, Consultants, and Contractors, and employees of any of them, from and against clam' s, damages;`losses and'
expenses, including but not limited to attorneys' fees, arising out ofor resulting from perforrrmance`of tfl'e Wo~kiri the .
affected area, if in fact the material or substance presents the risk of bodily injury or death ~s dgscribed ink ~~
Section 103.1 and has not been rendered harmless, provided that such claim, damage, loss of ex~ense is attj~ibutable to
bodily injury, sickness, disease or death, or to injury to, or destruction of, tangible property(otlierthan the Wqrk
itself, except to the extent that such damage, loss or expense is due to the fault or negligence o~ the parry'seeking
indemnity.
a .,
.,. __.._ ...
§ 10.3.4 The Owner shall not be responsible under this Section 103 for materials or substances the Design-Builder-•
brings to the site unless such materials or substances are required by the Owner's Criteria. The Owner shall be
responsible for materials or substances required by the Owner's Criteria, except to the extent of the Design-Builder°s
fault or negligence in the use and handling of such materials or substances.
§ 10.3.5 The Design-Builder shall indemnify the Owner for the cost and expense the Owner ji~curs (I) for remediation ,.
`s
of a material or substance the Design-Builder brings to the site and negligently handles, or 42) Where the
Design-Builder fails ro perform its obligations under Section 103.1, except to the extent that th~ cost and expense era
?
due to the Owner's fault or negligence.

~

~

~

}

~
j

1
§ 10.3.6 If, without negligence on the part of the Design-Builder, the Design-Builder is held 1ia61e by a government ` "
agency for the cost of remediation of a hazardous material or substance solely by reason ofperforming.Work.as-. , •.-.:-..: .-- •t
AIA Document AI11^ - ROl~. Copy[1gh[ ~ SOON Gad 201 by TIIB rnetiean Snetl Cute of AMhitacte. All tights zu~rved. NARNII1c~ This AIA- Pxument
Sa y[oteeted by O.S. Cppyrip~t Lev antl Snternatlonal Treat3en. oneuthorized reproAuetlon oc tl1atYlM~tlon of Ebio AIA~ DOCluoant, or any Bortlon
o[ it, may nnult ins
clvll and cr;minel penaltlen~ avA will De proaecutetl to Che aexinum extent po~aible Andes the lax. Th1e draft was
pLOOYCed by ALA BOtCwec¢ at iJ:41:37 on 11/16/2015 undeY Oidei No,0]39586208_1 which e~ieee o~ 07/14/1016, and ie noE Eot r sale.
(1346704]45)
Oae[ Noleai

25

PAPR - 004645

 required by the Design-Build Docwnenls, the Owner shall indemnify the Design-Builder for all cost and expense
thereby incurred.
§ 10.4 Eme~'gencies
In an emergency affecting safety of persons or property, the Design-Builder shall act, at the Design-Builder's
discretion, to prevent threatened damage, injury or loss.
ARTICLE 11 UNCOVERING AND CORRECTION OF WORK
i
§ 11.1 Uncovering of Work
The Owner may request to examine a portion of the Work that the Design-Builder has covered 4o determine if the "
i
Work has been performed in accordance with the Design-Build Documents. If such Work i~ in accordance with-the - --- - Design-Build Documents, the Owner and Design-Builder shall execute a Change Order to adjust the Contract Time
and Contract Sum, as appropriate. If such Work is not in accordance with the Design-Build`Dooumenls, the costs of
uncovering and correcting the Work shall be at the Design-Builder's expense and the Design-Builder shall not be
entitled to 9 change in the Contract Time unless the condition was caused by the Owner or a separate contractor in
which event the Owner shall be responsible for payment of such costs and the Contract Ti~ewill be adjusted,as
appropriate.
, ~
J
§ 11.2 Correction of Work
~
~ s
§ 11.2.1 Before or After Substantial Completion. The Design-Builder shall promptly cori'ect~Work ether rejected
discovered
before or
by the Owner or failing to conform to the requirements of the Design-Build Documents, whether
~
after Substantial Completion and whether or not fabricated, installed or completed. Costs o~' correcting'such rejected""'
or nonconforming Work, including additional testing and inspections, the cost of uncovenng_and replacemenk.and_. __ _._.
compensation for any design consultant employed by the Owner whose expenses and compensation were made
necessary thereby, shall beat the Design-Builder's expense.
§ 11.2.2 After Substantial Completion
~
- '"
§ 11.2.2.1 In addition to the Design-Builder's obligations under Section 3.1.12, if, within the three-year duration of
the Design-Builder's post-occupancy obligations„ any of the Work is found not to be in accordance with'the
requirements of the Design-Build Documents, the Design-Builder shall correct it promptly afterieceipl of writ~en
notice from the Owner to do so unless the Owner has previously given the Design-Builder a written, acceptance of sgch
condition, The Owner shall give such notice promptly after discovery of the condition. During this period for ~ i , ,
correction of the Work, if the Owner fails to notify the Design-Builder and give the Design-Builder an opportunity to
make the correction, the Owner waives the rights to require corcection by the Design-Builder and to make a claim for
breach of warranty. If the Design-Builder fails to correct nonconforming Work within a reasonable time during that
period after receipt of notice from the Owner, the Owner may corcect it in accordance with Section 7.9..
§ 11.2.2.2 This year period for correction of Work shall be extended with respect to portion~~of Work first performed r;,~ `"
after Substantial Completion by the period of time between Substantial Completion and the#actual completion•'of that
portion of the Work.
~ ~
~ f'~'"
§ 11.2.2.3 This period for correction of Work shall not be extended by corrective Work performed by the ~
~ ;._ __ „ . _.,;
Design-Builder pursuant to this Section 11.2.

l
n,..,.,.. .__,

§ 11.2.3 The Design-Builder shall remove from the site portions of the Work that are not injaccordance with the -•_- -requirements of the Design-Build Documents and are neither corrected by the Design-Builder nor accepted by the
weer.
..,
§ 11.2.4 The Design-Builder shall bear the cost of correcting destroyed or damaged construction of the Owner o'r""
separate contractors, whether completed or partially completed, caused by the Design-Builder's correction or removal ' .
~
of Work that is not in accordance with the requirements of the Design-Build Documents. ~ ~
'` t
§ 11.2,5 Nothing contained in this Section 11.2 shall be construed to establish a period of Ignit&tion with respect to
other obligations the Design-Builder has under the Design-Build Documents. Establishment~of t~e two-year period fnr. ....
correction of Work as described in Section 11.2.2 relates only to the specific obligation of the Design-Builder to "
correct the Work, and has no relationship to the time within which the obligation to comply with-the,Design-Build .- - ..-t
Documents may besought to be enforced, nor to the time within which proceedings may be commenced to establish
LZ11 Doewent A111~ - 301. Copyright n 100 aM ]Olq by The American Ine[Stute of Arch1[eet a. A31 righLe reserved. WARliINa: 1'hfe AIA` DOCuaant
is prokectad by O.B. Coyyiipht L+M and Znternetlonal Treaties. OnauChoYlxed reprOAuCcion or dlo CriDutlon o! Chia ATA~ Docu~enC, or any Bortlon
oC iC, mny r0ea1C in severo civil and ezlwinnl yenaltiao~ anA will be proaecutad Eo Cha muximwn extent p000ible undeY the larr. ThSe draft was
produced by AIA softwflYa 8t 13:41i3'I on 11/16/]015 antler O[de[ No.O]395BGR08_1 which e~tp1[ae on 07/IC/]016, a~tl 19 dot Eot r eels.
(1J961en395)
Ocee Notee~

26

PAPR - 004646

 the Design-Builder's liability with respect to the Design-Builder's obligations other than specifically to correct the
Work.
§ 11.3 Acceptance of Nonconforming Work
If the Owner prefers to accept Work that is not in accordance with the requirements of the Design-Build Documents,
the Owner may do so instead of requiring its removal and correction, in which case the Contrac.[ Sum will be reduced
as appropriate and equitable. Such adjustment shall be effected whether or not final payme~jt has been made.
Acceptance ofNonconfonning Work may only be evidenced by written agreement specifyi{~g t~e nonconformity and
the Owner's informed consent to accept it. Nonconforming Work shall not become accepted Vj~ork by inaction or
implication.
ARTICLE 12 COPXRIGHTS AND LICENSES
t r
§ 12.1 Drawings, specifications, and other documents furnished by the Design-Builder, including those in electronic
form, are Instruments of Service. The Design-Builder, and the Architect, Consultants, Cont~actbrs, and any other
person or entity providing services or work for any oFthem, shall be deemed the authors and ~ow~iers oftheir respective
Instrwnents of Servica, including the Drawings and Specifications, and shall retain all com~nort law, statutory end
other reserved rights, including copyrights. Submission or distribution of Instruments of Service to meet official
regulatory requirements, or for similar purposes in connection with the Project, is not to be construed as publ icetion in
derogation of the reserved rights of the Design-Quilder and the Architect, Consultants, and Contractors, and ariy other
j
person or entity providing services or work for any of them,
§ 12.2 "Che Design-Builder and the Owner warrant that in transmiriing Instruments of Service, or Any other `'
information, the transmitting party is the copyright owner of such information or has permissp~_frgm,the..copytight, .. _.
owner to transmit such information for its use on the Project.
§ 12.3 Upon execution of the Agreement, the Design-Builder grants to the Owner a limited, irrevocable and.
non-exclusive license to use the Instruments of Service for purposes of constructing, using, maintaining, altering and..-•.. The license granted under this section
adding to the Project_,
permits the Owner to authorize its consultants and separate contractors to reproduce applicable portions of the
Instruments of Service for use in performing services or construction for the Project,
,. ..
.. .....
1.2.3.1 PROTOTYPE. The Owner shatI have the right to use the lnstrumen~s oY Service as a "prototype"~ ` °:..-i Formatted; font: Bolo
design under South Carolina Board of Architectural examiners regulations and policies. Any architect
~'~ Formatted: Indent: Left: 0.5"
—
receivin ~the original plans from the Owner must first acknowledge and accept full responsibility foi the
any
of
responsibility
adequacy ofthe desisn for its new ~roiect, as well es absolve the original Architect of
any kind as relates to the original desi ~i Should the Owner ~~eurovide the Documents and/or~i
Specifications to the Architect(sl for other Projects, then the original Architect, if not retained for the.other
~project(s), shall be relieved bf any liabilities arising out ofthe other Project(s).and ;o~~ ~~=~.;=witted-by
laav-the Owner will indemnify and hold harmless the orieinal Architect from any Claims arising out of such
other Project(s).
4
~ ~
4

~

i

§ 12.3.1 The Design-Builder shall obtain non-exclusive licenses from the Architect, Consultants, and Conhactors, that;
will allow the Design-Builder to satisfy its obligations to the Owner under this Article 12. The Design-Builder's
licenses from the Architect and its Consultants and Contractors shall also allow.the Owner, in the event this
Agreement is terminated for any reason to obtain a limited, irrevocable and non-exclusive license for purposes of
constructing, using, maintaining, altering and adding to the Project. subject to South Carolina regulations and policies
~"
concemine successor design professionals.;ar~t~-cNs-a~retety~i~~"~~~~- ~- r......_,..,..m„_ a....:......
,- -~ ,
§ 12.3.2 In the event the Owner alters the Instruments of Service without the author's writteq`authorization or uses the •.
Instruments of Service without retaining the authors of the Instruments of Service, the Owger r~leases the
Design-Builder, Architect, Consultants, Contractors and any other person or entity providing se~v~ces or work for any
of them, from all claims and causes of action arising from or related to such uses. The terms bf t}its Section 12.3.2 shall
~
not apply if the Owner rightfully terminates this Agreement for cause under Sections 13.1 4 or A3.2.2.

<

~
{
s

AIA Doewn~nt A111^ - 301{. Cbpytight ~ x009 and 201 by Tha American Institute oC Atehi[acte. all iighl~ reverved. NARNLHC~ This AIA~ DocwMnt
Sa D~bseteA by O.B. Copyrlght Lew and International Yreatiae. Onavthorlxetl caproCUCtion or die tribution of Chia AU document, or any portion
at it, may reuult Ins
a Civil end criminal p4naltloa, and will Da prouacuted to the nasimuu extant poueible andec the law. ThSe dcaEt wee ~.7
pxaduced Iryr AIA eoE[r/a[ee at 13 X11 X17 on 11/16/2015 untle[ Ordat No.02]9586208_3 which expires on 07/19/2016, and ie nOt f0[ [seals.
(1396"I89345)
DBeL NOtG61

PAPR - 004647

 ARTICLE 13 TERMINATION OR SUSI~ENSION
§ 13.1 Termination or Suspcnsion Prior to Execution oP the Design-Build AmenJmcnt
§ 13.1.1 If the Owner fails to make payments to the Design-Builder for Work prior 20 execution of the Design-Build
Amendment in accordance with this Agreement, such failure shall be considered substantial nonperformance and
cause for termination or, at the Design-Builder's option, cause for suspension of performance of services under this
Agreement. If the Design-Builder elects to suspend the Work, the Dasign-Builder shall give geven days' written notice
to tha Owner before suspending the Work. In the event of a suspension of the Work, the Design:-Hu ilder shall have no
liability to the Owner for delay or damage caused by the suspension of the Work. Before re'sum;ing the Work, the
Design-Builder shall be paid all sums due prior to suspension and any expenses incurred iu;the interruption and
resumption of the Design-Builder's Work. The Design-Builder's compensation for, and titt~a to complete, the
remaining Work shall be equitably adjusted.
- -- •
----- - -

j

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§ 13.1Z If the Owner suspends the Project, the Design-Builder shall be compensated for the Work performed prior to
notice of such suspension. 1Nhen the Project is resumed, the Design-Builder shall be compensated for expenses
incurred in the interruption and resumption of the Design-Builder's Work. The Design-Bui~Ber's compensation for,
and time to complete, the remaining Work shall be equitably adjusted.
- ..:
§ 13.1.3 If the Owner suspends the Project for more than 90 cumulative days for reasons other than the fault of the
Design-Builder, the Design-Builder may terminate this Agreement by giving not less than seven days' wrftten~ notice.
i

j

§ 13.1.4 Either party may terminate this Agreement upon not less than seven days' written notice should ~e gther
party fail substantially to perform in accordance with the terms of this Agreement through Rio faulYof the-party
initiating the termination.
'_.... _._... __ .. _,...~._,_,..

._

§ 13.1.5 The Owner may terminate this Agreement upon not less than seven days' written notice to the Design-Builder
for the Owner's convenience and without cause.
§ 13.1.6 In the event of termination not the fault of the Design-Builder, the Design-Builder shall be compensated for
Work performed prior to termination and any other expenses directly attributable to termination for which the
Design-Builder is not otherwise compensated. In no event shall the Design-Builder's compensation,pnder this
"''
Section 13.1.6 be greater than the compensation set forth in Section 2. ] .
§ 13.2 Termination or Suspension Following Execution of the Design-Build Amendment
§ 13.2.1 Termination by the Design-Builder
§ 13.2.1.1 The Design-Builder may terminate the ConVact if the Work is stopped fora period of 30 consecutive days
through no act or fault of the Design-Builder, the Architect, a Consultant, or a Contractor, or their, agents, or
employees, or any other persons or entities performing portions of the Work under direct or indirect contract with the ~ ,
~ .^"' ~ ~ "`;
`~
Design-Builder, for any of the following reasons:
.1
Issuance of an order of a court or other public authority having jurisdiction t}~at requires all'~W~r~C to.be
3 !
i
stopped;
,2
An act of government, such as a declaration of national emergency that requires all Work to be stopped;
,3
Because the Owner has not issued a Certificate for Payment and has not noti~ied'the Design-̀Builder of
5
the reason for withholding certification as provided in Section 9.5.1, or becapse the Owner has not
made payment on a Ce[tificate for Payment within the time stated in the Deign-Build Documents; or
,4
The Owner has failed to fiunish to the Design-Builder promptly, upon the Design-Builder's request,
reasonable evidence as required by Section 7.2.7.

;'t
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§ 13.2.1.2 The Design-Builder may terminate the Contract if, through no act or fault of the Design-Builder, the
Architect, a Consultant, a Contractor, or their agents or employees or any other persons or entities performing portions,,
of the Work under direct or indirect contract with the Design-Builder, repeated suspensions, delays or interruptions of ~ ,.
the entire Work by the Owner as described in Section 13.2.3 constitute in the aggregate mo~e than 100 percent of the `;
total number of days scheduled for completion, or 120 days in any 365-day period, whichever' i~ less.
a

~
;
;
§ 13.2.1.3 If one of the reasons described in Section 13.2.1. I or 13.2.1.2 exists, the Design-Builder may, upon seven
days' written notice to the Owner, terminate the Contract and recover from the Owner payment fbr Wok executed;~~'
including reasonable overhead and profit on that executed Work, and costs incurred by reasonofsuch. termination,---.-- --

AIA DOCw~nt Al l" - ]D1~. CopyrSght W 2aoa eM 201 by The American IneCi[ute of ACChltecte. All ilghla zeserveA. HAAIIHC: Th1A AI11~ uocwwnt
is p[oteCtBQ Dy n.e. CODY~9bt Law enA ineernational mreaeiee, anautnortzee ceproQuCtSon or dlettibuV'lon of this AU` Doceroent, of eny portion
c1v L1 and Criminal Dan~ltiea, end v111 Do pros¢cuteA eo the maxlmwn estenG poenibla und~c the law. Thie draft vaN
of it. may r au1C Sn a
pCOdUCBd by AU 80[CWii'@ at 13 41 t3~ on 11/16/3016 under Orda[ N0,0219586200_1 which expliee on 07/14/2016, end is rot Eoc LB8818.
(1346'l9934fi~
Oaes NOEeat

2$

PAPR - 004648

 § 13.2.1.4 If tha Work is stopped for a period oF60 consecutive days through no act or fault of thaDesign-Builder or
any other persons or entities performing portions of the Work under contract with the Design-Builder because the
Owner has repeatedly failed to fulfill the Owner's obligations under the Design-Build Documents with respect to
matters important to the progress of the Work, the Design-Builder may, upon seven additional days' written notice to
the Owner, terminate the ConVact and recover from the Owner as provided in Section 13.2.1.3.
§ 13.2.2 Termination by the Owner For Cause
t
§ 13.2.2.1 The Owner may terminate the Contract if the Design-Builder
.1
fails to submit the Proposal by the date required by this Agreement, or if no date; is indicated, within a
reasonable time consistent with the date of Substantial Completion;
Z
repeatedly refuses or fails to supply an Architect, or enough properly skilled~~Co~sultants, Contractors -- - - ,
or workers or proper materials;
,3
fails to make payment to the Architect, Consultants, or Contracrors for services,materials or labor in
i
accordance with their respective agreements with the Design-Builder,
.4
repeatedly disregards applicable laws, statutes, ordinances, codes, rules and rag~lations, or lawful
i
orders of a public authority; or
is otherwise guilty of substantial breach of a provision of the Design-Build I?ocUments. s - '{
.5
1

~

S

§ 13.2.2.2 When any of the above reasons exist, the Owner may without prejudice to any ofher'rights or remedies of
the Owner and after giving the Design-Builder and the Design-Builder's surety, if any, seven days' written notice,
terminate employment of the Design-Builder and may, subject to any prior righu of the surety:
.l
Exclude the Design-Builder from the site and take possession of all materials, equipment, fools;and ~
construction equipment and machinery thereon owned by the Design-Builder;,.__... . _ .
.2
Accept assigmnent of the Architect, Consultant and Contractor agreements pursuant to Section 3.1. ] 5;
and
.3
Finish the Work by whatever reasonable method the Owner may deem expedient. Upon written request
cost.of the Design-Builder, the Owner shall furnish to the Design-Builder a detailed accounting.of-the
,... "
.,.
,...~
, ,. .~
incurred bY the Owner m ims m8 t e Wor .
§ 13.2.2.3 When the Owner terminates the Contract for one of the reasons stated m Sechon~13.2:2.1, the '
-.~
Design-Builder shall not be entitled to receive fuRher payment until the Work is finished. -_

i

,'
2

~

., ;
§ 13.2.2.4 If the unpaid balance ofthe Contract Sum exceeds costs of finishing the Work and other damages incurred
~
by the Owner and not expressly waived, such excess shall be paid to the Design-Builder. If such costs and damages'
,
exceed the unpaid balance, the Design-Builder shall pay the difference to the Owner. The obligation for such
payments shall survive termination of the Contract and are expressly included in the performance.of the Work covered ... '' y
by the Design-Builder's performance bond.
j '~
'`
,.~`~
~ ~
jt ~_'~+
§ 13.2.3 Suspension by the Owner for Convenience
§ 13.2.3.1 The Owner may, without cause, order the Design-Builder in writing to suspend, delay or interrupt the,VJork
~
J ?
in whole or in part for such period of time as the Owner may determine.
~

f

§ 13.2.3.2 The Contract Sum and Contract Time shall be adjusted for increases in the cost and dime cause __ by
. .,.
suspension, delay or interruption as described in Section 1323.1. Adjustment of the Contract Sum shall include
~
-—
profit. No Adjustment shall be made ro the extent
.1
that performance is, was or would have been so suspended, delayed or interrupted by another cause for
..
. . . ,.
which the Design-Builder is responsible; or
_
.2
that an equitable adjustment is made or denied under another provision of the Contract.
,~'
j
§ 13.2.4 Termination by the Owner for Convenience
't `}
§ 13.2,4.1 The Owner may, at any time, terminate the Contract for the Owner's convenience and without cause.
f
~ q
§ 13.2.4.2 Upon receipt of written notice from the Owner of such termination for the Owne~'s donvenience, the
Design-Builder shall
{
~
+
cease operations as directed by the Owner in the notice;
.1'
.2
take actions necessary, or that the Owner may direct, for the protection and preservation of the:Work;--.. - - ,
and,
axe Document Aul" - 901. copyright ° looa and so1~ by The AnerScan 7netitute of architects, ill ri9hte re~ernd. WARIlIIiC: 1'h1D A3~1- DOc~une~t
38 Dr~~eCteE by V.D. Copyrigfit Lew snG International Treatise, Onauthorlsed roproCue<Son or diotribution of C~1a TIA Document, or any portion 29
civil end criminal Benaltieo, enA will Da proaeeutad eo the maximum oxtent pooniDla Hadar the law. Thia tlraEt roe
a[ i!, may zeoult 1w s
produced by AIA eoftwxee at 13i43i3'/ on 11/16/]Olb under Ordei NO.OZ]95B620H_1 which expi[ee OA 07/14/Y016~ ntld Le not Eoi z sale.
(1396'!89]G5)
hertL Nota9~

PAPR - 004649

 .3'

except for Work directed to be performed prior to the effective date of termination stated in the notice,
terminate all existing Project agreements, including agreements with the Architect, Consultants,
Contractors, and purchase orders, and enter into no further Project agreements and purchase orders.

§ 13.2.4.3 In case ofsuch termination for the Owner's convenience, the Design-Builder shall be entitled to receive
payment for Work executed, and costs incurred by reason of such termination.
~ y
ARTICLE 14 CLAIMS AND DISPUTE RESOLUTION
! [
§ 14.1 Claims
§ 14.1.1 DeTinition. A Claim is e demand or assertion by one of the parties seeking, as a matter of nght, payment of
money, or other relief with respect to the terms of the Contract. The term "Claim" also includes other-disputes and - -matters in question between the Owner and Design-Builder arising out of or relating to the Contract. The
i
responsibility to substantiate Claims shall rest with the party making the Claim.
j
§ 14.1.2 Time Limits on Claims. The Owner and Design-Builder shall commence all claims and causes of action,
whether in contract, tort, breach of warranty or otherwise, against the other, arising out of or'rel8ted to the Contract in
accordance with the requirements of the binding dispute resolution method selected in Section 13, withirtffie;time
period specified by law.
~ j
s
y
~
§ 14.1.3 Notice of Claims
~
f
§ 14.1.3.1 Prior To Final Payment. Prior to Final Payment, Claims by either the Owner o~ Design-Buil~er must be
initiated by written notice to the other party within 21 days after occurrence of the event gibing rise to such Cfaim or
within 2l days afrer the claimant first recognizes the condition giving rise to the Claim, whichever is.later,,_..___. .
§ 14.1.3.2 Claims Arising After Final Payment After Final Payment, Claims by either the Owner orDesign-Builder
that have not otherwise been waived pursuant to Sections 9.10.4 or 9.10.5, must be initiated by prompt written __notice
to the other party. The notice requirement in Section 14.1.3.1 and the Initial Decision requirement as a condition
,,..-•~
precedent to mediation in Section 14.2.1 shall not apply,

-' 4
r

§ 14.1.4 Continuing Contract Performance. Pending final resolution of e Claim, except ~s othe%wise agreed 'n
writing or as provided in Section 9.7 and Article 13, the Design-Builder shall proceed diligendy.with perfor~na~ce~of
the Contract and the Owner shall continue to make payments in accordance with the Design-Build Documents: I.,
§ 14.1.5 Claims for Additional Cost. If the Design-Builder intends to make a Claim for an increase in the Contract
Sum, written notice as provided herein shall be given before proceeding to execute the portion of the Work that relates
to the Claim. Prior notice is not required for Claims relating to an emergency endangering life or.property arising
under Section 10.4.
';~'
_
~,
~'
}_•''
~ f
,~s '~
§ 14.1.6 Claims for Additional Time
§ 14.1.6.1 If the Design-Builder intends to make a Claim for an increase in the Contract Time, written nonce as'~
provided herein shall be given. The Design-Builder's Claim shall include an estimate of cost and of probable e~'fect of
a j
delay on progress of the Work. In the case of a continuing delay, only one Claim is necessaFy.
..._,,..»_

I,._,..

_ __. _

~i

_. _. i

~
§ 14.1.7 Claims for Consequential Damages
The Desigh-Builder and Owner waive Claims against each other for consequential damages arising out of orrelating-to this Contract. This mutual waiver includes
.1
damages inbuned by the Owner for rental expenses, for losses of use, income, profit,_financings ,:.. .
business and reputation, and for loss of management or employee productivity or ofihe services of_.such``•, .
persons; and
.2
damages incurred by the Design-Builder for principal office expenses including the compensation of
personnel stationed there, for losses of financing, business and reputation, ~d fo'r loss of profit except '~
anticipated profit arising directly from the Work and otherwise available under tfiis Agreement.
t
This mutual waiver is applicable, without limitation, to all consequential damages due to either~party's termination in
accordance with Article 13. Nothing contained in this Section 14.1.7 shall be deemed to preclude'an awa~'d of
liquidated damages, when applicable, in accordance with the requirements of the Design-B~ild Documents, --

f

~~

1
f

TIA Ooownent A111~ - ]014. Copyright ~ 3004 a~W ]014 by The Amezicen Inetltuta of ACChitecCe. All iighte raeesved. NAIWING~ T61e TIA Doewank
ie psolectad by v.s. CODY~ight Lsw and International Treaties. anauthorixed repzoAuclSon or tliotribution of lAlo AIA~ Document, or any tlortLan
oG St, may r Dolt In eaveYe civil entl Criminal Deneltieu, an0. will be Droaecuted to Yee nexSmum axtenC pooa1b18 4n6er the law. Th18 Araft waa
piotluced by AIA Boftwate nt 13:41 t3'! on 11/16/1415 under Order No.0239586]a8_1 which expiiee on o'//1//2016 and ie not Eor r eels.
(1146'/B4J45)
Opee Notec~

30

PAPR - 004650

 § 14,2 Initial Decision
§ 14.2.1 An initial decision shall be required as a condition precedent to mediation of all Claims between the Owner
and Design-Builder initiated prior to the date final payment is due, excluding those arising under Sections 103 and
10.4 of the Agreement and Sections B3.2.9 and B3.2.10 of Exhibit B to this Agreement, unless 30 days have passed
after the Claim has been initiated with no decision having been rendered. Unless otherwise mutually agreed in writing,
the Owner shall render the initial decision on Claims.
~ —;
3
§ 14.2.2 Procedure
~ `
§ 14.2.2.1 Claims Initiated by the Owner. If the Owner initiates a Claim, the Design-Builder ghat) provide a written
response to Owner within ten days after receipt of the notice required under Section 14.1.3.1. Thereafter, fKe Owner
shall render an initial decision within ten days of receiving the Design-Builder's response: (1) ~yithdrawing the Claim
in whole or in part, (2) approving the Ctaim in whole or in part, or (3) suggesting a comproinis~.

i

§ 14.2.2.2 Clams Initiated by the Design-Builder. If the Design-Builder initiates a Clann, fhb Owner will take one
or more of the following actions within ten days after receipt of the notice required under Sectioh 14.13.1: (1) request
additional supporting data, (2) render an initial decision rejecting the Claim in whole or in art; (3) render an initial
decision approving the Claim, (4) suggest a compromise or (5) indicate that it is unable to render an initial decision
because the Owner lacks sufficient information to evaluate the merits of the Claim.
i,
§ 14.2.31n evaluating Claims, the Owner may, but shall not be obligated to, consult with o~! seek information'<from
persons with special knowledge or expertise who may assist the Owner in rendering a decis~ion.~The retention`of such
" ` '` `
persons shall be at the Owner's expense.
's
§ ]4.2,4 If the Owner requests the Design-Builder to provide a response to a Claim or to furnish additional supporting
data, the Design-Builder shall respond, within ten days after receipt of such request, and shall either (1) provide a
response on the requested supporting data, (2) advise the Owner when the response or supporting data will be
furnished or (3) advise the Owner that no supporting data witI be furnished. Upon receipt of the response or supporting
}
data, if any, the Owner will either reject or approve the Claim in whole or in part.
+ I
§ 14.2.5 The Owner's initial decision shall Q) be in writing; (2) state the reasons therefor; and (3) identify any change
in the Contract Sum or Contract Time or both. The initial decision shall be final and binding an the paities but subj~ct
to mediation and, if the parties fail to resolve their dispute through mediation, to binding dispute resolution.
§ 14,2.6 Either party may file for mediation of an initial decision at any time, subject to the terms of Section 14.2.61: ,.
14.2.6.1 Either a ma within 30 da s from the date of an initial decision, demand in writin that the other art
file for mediation within 60 days of the initial decision. If such a demand is made and the party receiving the demand
fails to file for mediation within the time required, then both parties waive their rights to mediate or put'sue 6in~ing _
j ~
'•~ I''
dispute resolution proceedings with respect to the initial decision.
§ 14.2.71n the event of a Claim against the Design-Builder, the Owner may, but is not obligat~ to, notify~thesurety,
if any, of the nature and amount of the Claim. If the Claim relates to a possibility of aDesign-Builder's default, the
Owner may, but is not obligated to, notify the surety and request the surety's assistance in sotying the c~ntr~versy. __ . ,,__

j
I
z
4

~

`-^-..-._._ _ _ -----_ _. .. .. _
._
§ 14.3 Mediation
§ 14.3.1 Claims, disputes, or other matters in controversy arising out of or related to the Contract, except those waived
as provided for in Sections 9.10.4, 9.10.5, and 14.1.7, shall be subject to mediation as a condition precedenhto binding
..
dispute resolution.
§ 14.3.2 The parties shall endeavor to resolve their Claims by mediation. The mediation she`ll pFoceed in advance of
binding dispute resolution proceedings, which shalt be stayed pending mediation for a period of:60 days from the date
~ ~
of filing, unless stayed for a longer period by agreement of the parties or court order.
§ 14.3.3 7'he parties shall share the mediator's fee and any filing fees equally. The mediation sh~ll beheld in the place
where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation shall "' "
- ..
be enforceable as settlement agreements in any court having jurisdiction.

'~~

~

Av. noewnnae x141^ - i014. copyright m 2004 and xo1~ 6y 7ne Merican Ine[itu[e of Acchi[ecte. All riehte ze~exved. gAPdit+o: 't63a 7~ir noowent
Sa pioCacCeA by D.e, Copycignt Lav snq International TreaCies, vnauthorizad reproAuetlon or diotrlbution of thLe ALAS Document, os say portiw
civil end erininel penpltieu. and will ba proaeeutaQ Co tho naxlmun ostaae poo8lble under the laM. Thie draft was 31
oC 1G, may reoult in a
produced. by AIA soEtwaee aC 13~41i]7 on 11/16/]Olb unde[ Order Na,02]9506209_1 Which EXpisee OP 07/16/2016, q~d Se not EO[ lee618.
(1346'/84345)
Oeec NOCeO~

PAPR - 004651

 ARTICLE 15 MISCELLANEOUS PROVISIONS
§ 15.1 Governing Law
The Contract shall be governed by the 12w of the place where the Project is located,
§ 15Z Successors and Assigns
s 3
§ 15.Z.1 The Owner and Design-Builder, respectively, bind themselves, their partners, successors, assigns and legal
representatives to the covenants, agreements and obligations contained in the Design-Build~Do~uments. Except as
provided in Section 15.2.2, neither party to the Contract shall assign the Contract as a whole without written consent of `
t
the other: If either party attempts to make such an assignment without such consent, that patty shall nevertheless •- -. -remain legally responsible for all obligations under the Contract.
~ ~
§ 15.2.2 The QHmer may, without consent of the Design-Builder, assign the Contract to a lender providing
construction financing for the Project, if the lender assumes the Owner's rights and obligatiohs under the Design-Build
Documents. The Design-Builder shall execute all consents reasonably required to facilitate such assignment.
y.....,9
§ 15.2.3 If the Owner requests the Design-Builder, Architect, Consultants, or Contractors to'exeFute certificates, other
than those required by Section 3. I.10, the Owner shall submit the proposed language of suc(~ ceitificates fqr rgview at
least 14 days prior to the requested dates of execution. If the Owner requests the Design-Builder, Architect, i
Consultants, or Contractors to execute consents reasonably required to facilitate assignment to ~ lender, the
Design-Builder, Architect, Consultants, or Contractors shall execute all such consents that are consistent with this
Agreement, provided the proposed consent is submitted to them for review at least 14 days`p[io[to execution._The_,_,
Design-Builder, Architect, Consultants, and Contractors shall not be required to execute certificates or consents that
would require knowledge, services or responsibilities beyond the scope of their services.
§ 15.3 Written Notice
Written notice shall be deemed to have been duly served if delivered in person to the individual,,,to a`membet:of the
firm or entity, or to an officer of the corporation for which it was intended; or if delivered at; o~ sent.by registered or
certified mail or by courier service providing proof of delivery to, the last business address ~Cnown.to the party ~vii~g
notice. Written notice may also be established by acknowledgements and responses exchanged Via electronic ~ j
communicatiais such as electronic mail or any internal messaging functionality of BIM and/or projectmanagement,
software used by the parties for the project.
~ "" ~ ,,_
i
§ 15.4 Rights and Remedies
§ 15.4.1 Duties and obligations imposed by the Design-Build Documents, and rights and remedies available
otherwise
thereunder, shall be in addition to and not a limitation ofduties, obligations, rights and remedies
",._ . . imposed,or`
,•} ,''_ r
r~ `
available bylaw.
I
tr
§ 15.4.2 No action or failure ro act by the Owner orDesign-Builder shall constitute a waiver~of ad right or duty af~'orded
them under the Contract, nor shall such action or failure to act constitute approval of or acquiescence in a bra&ch
j
~ §
thereunder, except as may be specifically agreed in writing.

! ~......_._,___._s

~_,__._.

§ IS.S Tests and InspceNons
§ 15.5.1 Tests, inspections and approvals of portions of the Work shall be made as required' bythe Design-Build- - - - ~
Documents and by applicable laws, statutes, ordinances, codes, rules and regulations or lawful orders of public
authorities. Unless otherwise provided, the Design-Builder shall make arrangements for such tests, inspections and
approvals with an independent testing laboratory or entity acceptable to the Owner, or with the appropriate public
authority, and shall bear all related costs of tests, inspections end approvals. The Design-Builder shall givethe Owner
timely notice of when and where tests and inspections are to be made so that the Owner ma~be piesent for such
~ i~.
procedures. 7'he Owner shall bear costs of (1) tests, inspections or approvals that do not beoom¢ requirements until
f
after bids are received or negotiations concluded, and (2) tests, inspections or approvals wh~re J±uilding codes or
applicable laws or regulations prohibit the Owner from delegating their cost to the Design-Builder.

`s

~

1

r
§ 15.5.2 If the Owner determines that portions of the Work require additional testing, inspection ~~r approval not
included under Section 15.5.1, the Owner will instruct the Design-Builder to make arrange~hents for-such additional- : - -~
testing, inspection or approval by an entity acceptable to the Owner, and the Design-Builder shall give timely notice to
AIA Docunant A111" - 301 . Cppy[lght ~ 200< aMl Yo14 by The Tmerican IneUtute of ArChitecte. All clghto reaaxved. HARNINO~ T11s AIA DocwnenC
is H~otected by V.e. Copyright Lav a.~d Inlarnational Tteatioc. onavt6orfzed zopraAuction or dlotriDution of tMo AIA Dotummt, or any portion
o[ 1[, nay reoult in a
e1vt1 and cziminal Denaltian, and will be DiaeecuteQ to the nax Laum Nttent po991E1e under the 1tN. Thie draft Wag
produced by AIA BOLCWflYB aC 13 ~91:~7 on 11/16/2015 antler oYder No.OSJ95863oe_1 which expires on o7/14/2016~ end ie not Eor r ante,
(13467Bd3~5)
9aeY Notna~

32

PAPR - 004652

 the Owner of when and where tests and inspections are to be made so that the Owner may be present for such
procedw~es. Such costs, except as provided in Section 15.5.3, shall ba at the Owner's expense.
§ 15.5.3 If such procedures for testing, inspection or approval under Sections 15.5.1 and 15.52 reveal failure of the
portions of the Work to comply with requirements established by the Design-Build Documents, all costs made
necessary by such failure shall be at the Design-Builder's expense.
§ 15.5.4 Required certificates of testing, inspection or approval shall, unless otherwise required; by the Design-Build
_ ~
Documents, be secured by the Design-Builder and promptly delivered to the Owner.
§ 15,5.5 Ifthe Owner is to observe tests, inspections or approvals required by the Design-Bu,ld I~ocumonts, the Owner-.
will do so promptly and, where practicable, at the nonnal place of testing.
j
§ 15.5.6 Tests or inspections conducted pursuant to the Design-Build Documents shall be made promptly to avoid
unreasonable delay in the Work.
j. l
§ 15.6 Confidential ]nformation
If the Owner orDesign-Builder transmits Confidential Information, the transmission of such' Confidential ~nfoimation
constitutes a warranty to the party receiving such Confidential Information that the transmitting party is authorized to
transm it the Confidential Information. If a party receives Confidential Information, the receiving party shAll keep the
Confidential Information strictly confidential and shall not disclose it to any other person of entity except~as set forth
in Section 15.6.1.
§ 15.G.1 A party receiving Confidential Information may disclose the Confidential Information as required bylaw or
court order, including a subpoena or other form of compulsory legal process issued by a court or governmental entity.
A party receiving Confidential Information may also disclose the Confidential Information to its employees, _.
consultants or contractors in order to perform services or work solely and exclusively for the Project, prpvided those .:. "
employees, consultants and contractors are subject to the restrictions on the disclosure and use of Confidential-;
,.
~ '`~
, . "`'
j !
Information as set forth in this Contract.
§ 15.7 Capitalization
-..
`"
Terms capitalized in the Contract include those that are (I) specifically defined, (2) the titles of numbered artic~es D[
-~•-..
(3) the titles of other documents published by the American Institute ofArchitects.
§ 15.8 Interpretation
§ 15.8.1 In the interest of brevity the Design-Build Documents frequently omit modifying words.such as, "all" and
"any" and articles such as "the" and "an," but the fact that a modifier or an article is absent from one statement and; ''
l
appears in another is not intended to affect the interpretation of either statement.

-...,

~~

§ 15.8,2 Unless otherwise stated in the Design-Build Documents, words which have well-k~own technica~ or + '
construction industry meanings are used in the Design-Build Documents in accordance with such recognized ~
meanings.
? ~
's s
Conduct of the Design-Builder's Principals, Employees, Agents anJ Representatives
_. . _._.. .,~__,.. -._....

z

The safety and security of Dishict staff, students and the general public are of utmost priority to the District,
To that end, the Design Builder shall be responsible For ensuring compliance by the Design Builder and• any.
employees; agents or representatives, or subcontractors of the Design-Builder, including all Design Consultants, to
,'
the following:
A. No drugs, alcohol, knives, firearms or other weapons on District property, whether or not there is an , `t , i
existing occupied building.
1
students, parents,
i
B. No fraternizing with, threats to, or use of abusive or profane language in the presehce'of
a
A ~ ...
i r
visitors, or District representatives, agents, or employees.
.___. _.. ._. _ _ ...
j
~
C. IYo improper attire, actions or gestures while on any District property,
~
No smoldng on District property in conformance to Horry County Board of Education policyt'"'Violations of
such policy shall resultin acivil penalty of up to $1,000 per occurrence to the individual responsible and/or
r2A Docwnmt 11141^ - 301 . CopyrighC ~ 9004 and 4019 by The American InatiCuta of Are~i[ecCs. All ripfita cneerved. NARl1INC: Y'his ]~iA Dxument
Ss Drolacted by 0.6. CopyilBht Lav and International Treatise. onaaChocizetl raproAuctlon or diot[ibut3on of thin TIl.' Docunene, oc any portron
c1vL1 and erininal penalt3ea~ and will be pxoaacuted CD the nwcLcwn extant ponoible nndec the law. Yhie draft was
oC St, may moult iu e
produced by AIA eoEtwa[e a[ 1]:11X37 on 11/16/3015 u~de[ Oxdat No,0YJ95B6~OB 1 which expicea on 07/19/]016 en[1 1a twt fot z ea1B.
I1396'lB4346)
Oasz Noteai

33

PAPR - 004653

 the Architect for whom the individual is a Principal, employee, agent, or representative.
D. Secure SLED (State Lnw Enforcement Division) criminal background cheeles on all the Design-Builder's
Principals, employees, agents, and representatives, and subcontractors, performing work on District properly and
contractually require the same of all Design Consultants, their employees, agents, and representatives. No
employees, agents or representatives, or subcontractors, of the and Design Builder having committed violent
crimes, crimes against children, or crimes of moral turpitude are allowed access to the District's premises, Such
SLED criminal background checks shall be maintained on file in the offices of the Design Builder and made
available to appropriate District personnel or the District's legal counsel immediately uRon requesk
Pramotional.Mnterials

'i
.. _ .
!. _
The Design Builder shall have the right to include photographic or artistic representations of the design of the
Project among the D e s i g n B u i I d e r' s promotional and professional materials. The D e s i g n B u i I d e r
shall be given reasonable access to the completed Project to make such representations. The ~isfrict shall provide
professional credit for the Architect and D e s i g n B u i 1 d e r in the District's promotional ~inatenals for the Project.
other than the
The Architect shall not make any representations in promotional and professional materials
s
identification of the District without the District's approval of the written copy prior to sub~ission, priniirig and
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distribution. This condition shall survive termination or completion of this Agreement.
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Drug-Free Workplace
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_
The Architect and the Architect's Design Consultants shall be responsible for initiating, maintaining and supervising:.... _ . ._~
all drug-free programs in connection with the performance of this Agreement. The drug-free programs shall conform
to Title 44, Chapter 107, § 44-107-10 through § 44-(07-90 of the South Carolina Code of Laws as may be amended. _ '' j
s
Right to Andit Project

•{

The District shall have the riBht to audit the books and records of the Architect to the extent that the bool~s a~~d
records relate to the performance of this Agreement and shall include all pricing and Change Order data:Such books
and records related to the work covered under this Agreement shall be maintained by the Architectfor a period
of not less than three (3) years from the date of final payment to the Architect under this Agreement,:.,This
requirement shall also apply to any Design Consultants performing services under the Architect's direction.

. ~
The Office of General Services of the State of South Carolina, or any auditor under contract with the.:District has :.- "~}
i
the right to audit the ArchilecYs records related to any Project incorporated under this Agreement.during the time
frame stated in the previous paragraph. The Architect shall ensure that all records per(Aining ~to any, PrO~ject are, •'
available for inspection at the location specified by the District within seventy-two (72) lour,'s of notification aGno
additional cost to the Districk This requirement shall survive termination or completion of the Agreeme~it. ;
Traffic Control On-Site and Off-Site: The Design-Builder shall conduct its operatio~~s in a ma~nef to not
interrupt pedestrian or vehicle traffic except as approved by the District and the South Carglina Deparhtteiit of _. . .,
Transportation. 7'he worksita shall be confined to the smallest area possible allowing .maximum use of streets,
sidewalks, parking areas or other pedestrian areas and reduce to a minimum any hazard to #trafficor pedestrians. The
Design-Builder shall use worker and traffic control signs and devices necessary to comply witki Section VI of U.S.
Department of Labor, Fedaral Highway Administration, Manual on Uniform Traffic Control Devices for Streets and
Highways (Washington, DC: GPO) as may be amended, to facilitate traffic control on public roads,. streets, or
highways when work performed obsducts public traffic. When such traffic areas are obstructed to any extent by work•
in progress, workers equipped with flags shall direct vehicle and pedestrian traffic. The wQrke~s so designated shall '
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not be assigned any other duties while engaged in directing traffic.
i
i
Safety Designee: The Design-Builder shall designate a competent individual at the worksite whose duty shall
be the prevention of accidents and the implementation and monitoring of all OSHA con'struCtion safety, standards ~ i
and requirements, 'the competent individual shall serve as spotter where there is exposu~e of pedestrians, students,
parents, or visitors to falling debris and, in addition, shall ensure on a daily basis that all fencing orother safety- - -~
barriers are in an upright position to prevent ingress and egress to "lay down" areas or work areas by unauthorized

AiA mcu~wnt A1~1' - 101 . copyci9ht °Root and cola by The iwericen InecStuca o[ Architec[e. All iight9 teBlNlA. NhWiINGi SI~SB AIA DoaumtgC
ie DmteckaA by 0.0. Copyright Law and In[ernational Tr<aCieo. onauthosised reptoduCtlon or diotribuElon of t61u AU Docwacnt~ or any po[tlon
extant p000ible under the lay. Thie dcaEt Mau
02 1G, may reaul< in Bever¢ civil anA orininal penalties, and will be proeacuted to Che maim
produced by AIA eofLWaYe aC 13~C1~37 on 11/16/7015 under Ortle[ No.0139586208 1 wh1Ch explrea on 07/14/1016, and ie rwC foi Ieeele.
(1396'/84345)
Opei Noteai

34

PAPR - 004654

 individuals.
Licenses and Permits: During the term ofthe contract, the Contractor shall be responsible for obtaining and
maintaining in good standing, all licenses (including professional licenses, if any), permits, inspections and
related.fees for each or any such licenses, permits and/or inspections required by state, county, city or other
government entity or unit to accomplish the work specified in this solicitation and the c;~nfr~ct.
i
Iran Divestment Act: The Iran Divestment Act List is a list published by the [Stae] Board pursuant to
Section 11- 57-310 that identifies persons engaged in investment activities in Iran. Currently?, the list. is available at the
following URL: htto•/lorocuremenksc eov/I'S/PS-ira~idiveshnent.phtm(J Consistent with Section ll -57-310(A), the
Contractor shall not contract with any person to perform a part of the Work, if, at the time you enterinto asubcontract;•
1
that person is on the then-current version of the Iran Divestment Act List
Immigrant Workers: The "South Carolina Illegal Immigration and Reform Act" requires all~employers to verify the
legal status of new employees and prohibits employment of any worker who is not legally in t~is country and authorized
to work. Effective January 1, 2012, all South Carolina employers are required to enroll in tl~e U.S, Department of
Homeland Security's E-Verify program and verity the stah~s of new employees within threebus#ness days, using
E-Verify. Failure to use E-Verify to verify new hires will result in probation for the employer or s" uspension/rep%ocation
a
of the employer's business licenses,
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SC IMMIGRATION LAW. S.C. Code § 8-14-40 Compliance; Design-Builder certifies tl}at tt~e Design-Builder will
comply with the requirements of S.C. Code § 8-14-10 el seq. and agrees to provide to the Ownef'. any documentation
required to establish either. (a) the applicability of that chapter to the contractor, subcontractor, and sub-suticontraetor,
or (b) the compliance with this that chapter by the contractor and any subcontractor or sub-subcontractor: - -- . --

j

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i

Business license, insurance, and bonds must be obtained prior to issuance of a Notice to Proceed. Failure to obtain
these within thirty (30) days of execution of the agreement makes this Agreement voidable at the option of the Owner.
ARTICLE 16 SCOPE OF THE AGREEMENT
~
.- '"~
~
§ 16.1 This Agreement is comprised of the following documents listed below:
...
.1
AlA Document A141T^L2014, Standard Form of Agreement Between Owner and Design Builder
- ._ , ~
.2
AIA Document A141T"L2014, Exhibit A, Design-Build Amendment, if eacecated
~
.3
AIA Document A141TM-201 A, Exhibit B, Insurance and Bonds
.4 'Owner's Request for Proposals No. 1415-91 (with addenda) and Design-Builder's Proposal to the same
as accepted by the Horry County Board of Education.
.5
Post-Occupancy Requirements slated in Owner's Request for Proposals No, 1415-91.
•.
This Agreement entered into as of the day and year first written above.
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3

3
OWNER (Srgnatu~•e)

DESIGN-BUILDF,R (Srgnature~

John K. Gardner, Chief Financial OffiCet
(Pri~tted name and title)

«Robert Ferris, Authorised
— Member
(Printed name and !ltle)

,,
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Axx Ooeument r1~1^ - a01f, copyright ^ 2ooa and 201 by the Mezicen Inecitute oC Archicecte. all riphta re.ervad. Nnwrsi+c: Thia nxr nocumone
is pmteetpd by O.B. Coyyright Wa and ~ternationel Treotiea. OnauChec7zad reproCucEion ox dLotrlDution o! thin AU Document, of any pardon
oL St, may r ou3C in •
civil end ecioinal pm~ltiee, and will ba Dioaecuted to the n~imum axteni possible under the law. Thie draft was
produced by AIA ao[twaze dt 13 ~41~77 O11 11/16/2015 U~d2i Ocdac NO.OZ39506208 1 which explYee OA 07/14/2016, fl~tl 18 not f0[ LCB818.
(1396704395)
Ones Noteai

35

PAPR - 004655

 Document A141TM - 2014
Standard Form of Agreement Between Owner and Design-Builder
AGREEMENT made as of the twenty-third day of November: in the year two. thousand
fifteen (20]5):
(!n ivo~•ds, indicate day, month and ye'ur.)

_ _ _ ..

BETWEEN the Owner:
(Name, legal status, address and other• i»formation~
Horry County Schools, South Carolina, a political subdivision of the State of South'....
C21'Olina.
335 Four Mi(e Rd ~ PO Box 260005
Conway; SG 29528
District Oifce Phope 843.488.6700
and the Design-Builder:
(Name, legal status, address and other information)
FIRSTFLOOR ENERGY POSITIVE LLC,
333 Fayetteville St., Suite 225
;Raleigh, NC- 27601
for the following Project:
(Name, location and detailed description)
New Carolina Forest Middle School
:(per Owner's Request for Proposals No. 1415-91)

~

'ADDITIONS AND DELETIONS:
IThe'author of this document has
'added information needed for its
'corripletion. The author may also
have revised the text of the original
AIA standard form:•An Additions ana
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 veitical line in the left
`margin of this document indicates
where the author has added
necessary information and where
the auihor has added to or deleted
from the original AlA text.
This document has important legal
consequences. Consultation with an
'attorney is encouraged with respect
to its completion or modification.
Consultation with an attorney is also„
encouraged with respect to
professional licensing requirements
in the jurisdiction where the Project
'..
is located.

Note: references to Owner's Request for Proposals No. 1.415-91 include its addenda.

"'

The Owner and Design-Builder agree as follows.

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ELECTRONIC COPYING of any
portion of this AIA~ Document to
another electronic file is prohibited and
constitutes a violation of copyright laws
as set forth in the footer of this
document.

AIA Document A141T'" — 2014. Copyright D 2004 and 2014 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 sovere civil and criminal penalties, and will he prosecuted to the maximum extant possible under the law. This draft was produced by AIA
software at 14:12;43 on 11/20/2015 under Order No.0239586208 1 which expires on 07/1A/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004656

 TABLE OF ARTICLES
1

GENERAL PROVISIONS

2

COMPENSATION AND PROGRESS PAYMEN?S

3

GENERAL REQUIREMENTS OF THE WORK OF THE DESIGN•BUILD CONTRACT

r

4

WORK PRIOR TO EXECUTION OF THE DESIGN-BUILD AMENDMENT

1

5

WORK FOLLOWING EXECUTION OF 7HE DESIGN-BUILD AMENDMENT

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6

CHANGES IN THE WORK

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3

7

OWNER'S RESPONSIBILITIES

8

TIME

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9

PAYMENT APPLICATIONS AND PROJECT COMPLETION

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10

PROTECTION OF PERSONS AND PROPERTY

11

UNCOVERING AND CORRECTION OF WORK

12

COPYRIGHTS AND LICENSES

13

TERMINATION OR SUSPENSION

14

CLAIMS AND DISPUTE RESOLUTION

15

MISCELLANEOUS PROVISIONS

16

SCOPE OF THE AGREEMENT

_ _._,_

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TABLE OF EXHIBITS
A

DESIGN-BUILD AMENDMENT

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B

INSURANCE AND BONDS

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A

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ARTICLE 1 GENERAL PROVISIONS
8 ?,__.,,.~...: ..:..... .i~
__._..._ __ ._~
§ 1.1 Owner's Criteria
~
- ---'
`Phis Agreement is based on the Owner's Criteria set forth in this Section 1.1.
(Note the disposition for the follol~~ing items by inserting the ~~equested info~~mation or° u statement such as "not
app/icable" a^ "unlcnown at time of execution. "If the Owner intends to provide a set of design documents,-and the..
i~eyuesied i~fa~ination is contained in the design documents, identify the design documents and inse~~t "see Owner's
_.
..
design documents" inhere approp~~iate.)
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§ 1.1.1 The Owner's program for the Project:
,
(Set forth the program, identify documentation in which the program is set forth, or state the manner in which the
program will be developed.)
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Per "Design Requirements" published fo1• Solicitation No. 1415-91and .Design-Builder's Proposal to Owner
pursuant to Solicitation No.1415-91 selected .by the Horny County Board of Education on November 2, 20I S.

j
.... _.,~

AIA Document A141T"' — 2014. Copyright O 2004 and 2014 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 Ue prosecuted to the maximum eutent possible under 4he law. Thfs draft was produced by AIA
software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, and is not for resale.
User Notes:
(1196251001)

PAPR - 004657

2

 § 1.1.2 The Owner's design requirements for the Project and related documentation:
(Ident~ below, or in an attached exhibit, the documentation that contains the Owner's design reguii•ements,
including any pe~formarrce specifications.for the Project.)
Per "Design Requirements° published for Solicitation No. 1415-91 and Design-Builder's Proposal to Owner ``
pursuant to Solicitation No. ].415:-9 selected`~y the Hori•y County Board of Education on November 2,:2015. 1.
§ 1.1.3 The Project's physical characteristics:
(Ident~ or describe, if appropriate, size, location, dimensions, or other pertinent information, such as geotechnical
reports; site, boundary and topographic surveys; trafftc and utility studies; availability ofpublic and private lilities " ^ ^'
and services; legal description of the site; etc.)
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Per "Design Requirements" published for Solicitation No. 1415-91 and DesigtrBuilder's Proposal to Owner
'pursuant to Solicitation No.1415-91 selected by the Horry County Board of Education on November 2, 2015.:_

'

"'
§ 1.1.4 The Owner's anticipated Sustainable Objective for the Project, if any:
~Identi.fY the Owner's Sustainable ObJecNve.for the Pro.1ect such as Sustainabilih' Certi.ftcation~;: benefit to~fhe
environment, enhancement to the health and well-being of building occupants, or improveraentof energy~effcierrcy.
If the Ot•vner identifies a Szrstainable Objective, incorporate AIA Document A141 T"t--2014, ~xh'ibit C, Sus~ainpble
Projects, into this Agreement to define the terms, conditions and Work related to the Divne~'s Sustainable
Objective.)
'
Per "Design Requirements" puUlished for Solicitation No. 1415-91 and Desi~m-Builder's~Proposal to Owner
pursuatrt to SolicitationNo,1415-91 selected'Uy the Hon•y County Board of Education on November 2, 2015„

~.

__3

1.1.5
Number not used.
§ 1.1.6 The Owner's budget for the Work to be provided by the Design-Builder is set forth :below:
g'
(Provide totalfor Owner's budget, and if known, a line item breakdown of costs.)
Per "Design Requirements" published for Solicitation No. 1415-91 as amended through the Board of Education's
aciiou NovemUet• 2;:2015.
§ 1.1.7 The Owner's design and construction milestone dates:
(Paragraphs deleted)
Per "Design Requirements" published for Solicitation No. 1415-91

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§ 1.1.8 The Owner requires the Design-Builder to retain the following Architect, Consultar~~ts and Contractors at`the.
Design-Builder's cost:
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Architect

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- _ _
SFL+A Architects; P.A. 333 Fayetteville :Street Suite 225, Raleigh, NC 27601 ~-

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Consultants
Per Design-I~uilder's Proposal to Owner pursuant to Solicitation. No.1415-91.

.3

Contractors
__
Per Design-Builder's Proposal to Owner pursuant to

§ 1.1.9 Additional Owner's Criteria upon which the Agreement is based:
(Ident~ special characteristics or needs of the Project not identified elsewhere, such as histor-ic.pr-esetvation - _-.-,,: ->. ,..:
regacirements.)
AIA Document A141T'" — 2014. Copyright ~ 2004 and 2014 by The American Ins4tute of Architects. All rights reserved. WARNING: This AIA"' Document is
nrotocEed by U,S. Copyright Law and International Treaties. Unauihorizeci reproduction or distribution of this AIA`" Documont, or any portion of it,
may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible uncierthe law. This draft was produced byAlA
software at 14.12:43 on 11/20/2015 under Order No.02395862D8_1 which e~ires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004658

3

 Per "Design Requirements" published foi• Solicitation No:141.5-91 (Summary of Services Required, Article 3)
including aU post-occupancy requirements published in the solicitatiat as amended by addenda..
§ 1.1.10 The Design-Builder shall confirm that the information included in the Owner's Criteria complies with
applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public~authorities.
§ 1.1.10.1 If the Owner's Criteria conflicts with applicable laws, statutes, ordinances, codes, rules and regulations,
or lawful orders of public authorities, the Design-Builder shall notify the Owner of the conflict?
.~.:_e _ .__~.
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§ 1.1.11 If there is a change in the Owner's Criteria, the Owner and the Design-Builder shad execute-a-Modification- in accordance with Article 6.
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§ 1.1.12 If the Owner and Design-Builder intend to transmit Instruments of Service or any other information or
documentation in digital form, they shall endeavor to establish necessary protocols governing' such transmissions.
Unless otherwise agreed, the parties will use AIA Document E203TM-2013 to establish the;protocols for the
development, use, transmission, and exchange of digital data and building information modeling.
5
§ 1.2 Project Team
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§ 1.2.1 The Owner identifies the following representative in accordance with Section 7.1.1:
~~.

Executive Director of Facilities (or a designee identified in writing by the owner.)
Horry County. Schools
Tacilities llepattment, 1160 ~ Highway SO
Conway, SC 29526
843.488.6965

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§ 1.2.2 The persons or entities, in addition to the Owner's representative, who are required to review the
Design-Builder's Submittals are as follows:
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(List name, address and other information.)

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;Owner may utilize third panty project management which will also-receive submittals.
~.. , ._
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§ 1.2.3 The Owner will retain the following consultants and separate contractors:
(List discipline, scope of work, and, if known, zdentify by name and address.)
To be determined by Owner. If retained,
such consultantswill be identified prompfly
_

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§ 1.2.4 The Design-Builder identifies the following representative in accordance with Secti~n ~ 12:
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(List name, address and other information.)

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'Robbie: Ferris, S.C. AR:6106
I~IRSTFLO(~R ENERGY POSITNE LLG,
333 Fayetteville St., Suite 225, Raleigh; NC 27601
919-573-6350
_

_.,

- , .,.
§ 1.2.5 Neither the Owner's nox• the Design-Builder's representative shall be changed without ten days'•written
,..
notice to the other party.
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§ 1.3 Binding Dispute Resolution
For any Claim subject to, but not resolved by, mediation pursuant to Section 14.3, the method of binding dispute
'
resolution shall be the following:
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[ ~, ] Litigation in a court of competent
(Paragraphs deleted)
jurisdiction, nonjury before a circuit judge in Horry County, SC.

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- -

AIA Document A141'"' — 2014. Copyrights 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNItJG: This AIA" Document is
protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA"' Document, or any ponfon of it,
may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible unciar the law. This draft was produced by AIA
software at 74:1.2:43 on 11/20/2015 under Order No,0238586206 1 which expires on 07114/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004659

4

 § 1.4 Definitions
§ 1.4.1 Design-Build Documents. The Design-Build Documents consist of this Agreement between Owner and
Design-Builder and its attached Exhibits (hereinai~er, the "Agreement"); other documents listed in this Agreement;
and. Modifications issued after execution of this Agreement. A Modification is (1) a written amendment to the
Contract signed by both parties, including the Design-Build Amendment, (2) a Change Order, qr (3) a Change
Directive.
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_ ..-.:
'

§ 1.4.2 The ContrAct. The Design-Build Documents form the Contract. The Contract represents-tile entire slid
integrated ageement between the parties and supersedes prior negotiations, representations; or ageements, either
written or oral. The Contract may be amended or modified only by a Modification, T'he Design•,=Build Documents
shall not be construed to create a contractual relationship of any kind between any persons ~ r entities other than the
Owner and the Design-Builder.
3
§ 1.4.3 The Work. The term "Work" means the design, construction and related services requited to fulfill the
Design-Builder's obligations under the Design-Build Documents, whether completed or pairtially completed; a~
includes all labor, materials, equipment and services provided or to be provided by the Design-Builder. The
may constitute the whole or a part of the Project.
§ 1.4.4 The Project. The Project is the total design and construction of which the Work performed under the
Design-Build Documents may be the whole or a part, and may include design and construc~ion'bythe Owner'and by "
separate contractors.
~_
§ 1.45 Instruments of Service. Instruments of Service are representations, in any medium of expression now

.- '`"
known or later developed, of the tangible and intangible creative work performed by the Design-Builder,
Contractor(s), Architect, and Consultants) under their respective agreements. Instruments of Service may include,._., ,
without limitation, studies, surveys, models, sketches, drawings, specifications, digital models and other similar t
materials,
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§ 1.4.6 Submittal. A Submittal is any submission to the Owner for review and approval deillonstrating
,,,
Design-Builder proposes to conform to the Design-Build Documents for those portions of the Workfor,which the !...,
Design-Build Documents require Submittals. Submittals include, but are not limited to, shop drawings, product data, ''
and samples. Submittals are not Design-Build Documents unless incorporated into a Modification.

...

§ 1.4.7 Owner. The Owner is the entity identified as such in the Agreement and is referred to throughout the
Design-Build Documents as if singular in number. The term "Owner" means the Owner or the'Owner's authorized.
representative. The Owner may have employees that are design professionals or otherwise'slcilled in construction
or construction management, and such employees may, from time to time, perform various task's or duties, for.:or orr
behalf of the Owner under this Agreement. However, it is specifically understood that the:O~Vner (including these
agents and employees) has no obligation or duty to apply specialty or professional knowledge and skill, and shall not
he held to have undertaken to provide or perform any aspect of the Owner's performance o~'ths Agreeme~t aS a
design professional or specially skilled and knowledgeable construction industry member or construction MariagerL_
and this principle applies regardless of the Owner's position titles or office division titles as maybe appl►cable to
..,,.~.,T.. _ _ ._
~.._...w_. . _..,
such employees.

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§ 1.4.8 Design-Builder. The Design-Builder is the person or entity identified as such in the Agreement-and is~ ~- ,....,_
referred to throughout the Design-Build Documents as if singular in number. The term "Design-Builder"_ .means
.. _ the '' ,,
Design-Builder or the Design-Builder's authorized representative.
§ 1.4.9 Consultant. A Consultant is a person or entity providing professional services for tie Design-Builder for all , ~`
or a portion of the Work, and is referred to throughout the Design-Build Docunnents as if singular in number. To the
extent required by the relevant jurisdiction, the Consultant shall be lawfully licensed to proyide~the required
professional services.
3
d

j

AIA Document A147 ~"' — 2b74. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"' bocument is
protected Uy U.S. Copyright Law and International 7ro~ties. 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 extene possible under the law. This draft was produced by AIA
software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004660

 § 1.4.10 Architect. The Architect is a person or entity providing design services for the Design-Builder for all or a
portion of the Work, and is lawfully licensed to practice architecture in the applicable jurisdiction. The Architect is
referred to throughout the Design-Build Documents as if singular in number,
§ 1.4.11 Contractor. A Contractor is a person or entity performing all or a portion of the construction, required in
connection with the Work, for the Design-$udder. The Contractor shall be lawfully licensed; i~required in the
jurisdiction where the Project is located, The Contractor is referred to throughout the Design-B~ild Documents as if
singular in number and means a Contractor or an authorized representative of the Contractor. j
§ 1.4.12 Confidential Information. Confidential Information is information containing confidenfial or business
~ a..r.,.
proprietary information that is clearly marked as "confidential."
}
§ 1.4.13 Contract Time. Unless otherwise provided, Contract Time is the period of time, i~clu'ding authorized
adjustments, as set forth in the Design-Build Amendment for Substantial Completion of the Worlc.
§ 1.4.14 Day. The term "day" as used in the Design-Build Documents shall mean calendar day Unless otherwise
} ~
~"
specifically defined.

s.
§ 1.4.15 Contract Sum. The Contract Sum is the amount to be paid to the Design-Builder for performance o~the
Work after execution of the Design-Build Amendment, as identified in Article A.1 of the Design-Build Aneridm<
`""" - -' '' ' "' - - ARTICLE 2 COMPENSATION AND PROGRESS PAYMENTS
§ 2.1 Compensation for Work Performed Prior To Execution of Design-Build Amendment._,.._. .__. ,_ _ ,_~_._: _ ,: , ...-.._ __ _.,, _.§ 2.1.1 Unless otherwise agreed, payments for Work performed prior to Execution of the Design-Build Amendment
shall be made monthly. For the Design-Builder's performance of Work prior to the execution of the Design-Build
'` j
h
Amendment, the Owner shall compensate the Design-Builder as follows:
(Insert amount of, or basisfor, conzpensatiorr, including compensationfor any Sustainability Services, o~~.indicate
the exhibit in which the information is provided If there will be a limit on the total amount of compensationfor
Work performed p~zor to the execution of the Design-Build Amendment, state the amount of tlie~lrmit) ~ • "''
!1 1
j
,:~Tlie Design-Builder may invoice the Design-Builder may invoice the owner for $1,118,043. for its design work
performed prior to the execution of the Design-Build Amendment. This amount is within and part of the price
'agreed in the Design-Build Amendment.
,~

(Paragraphs deleted)
§ 2.1 number not used]
~• --- • .
(Paragrapl~s deleted)
(Table deleted)
`~•
§ 2.1.4 Payments to the Design-Builder Prior To Execution of Design-Build Amendment ,` '
{
§ 2.1.4.1 Payments are due and payable upon presentation of the Design-Builder's invoice.
(Parag~~aphs deleted)
~ ,~
~ ~~ . .
The Owner will not pay interest on unpaid sums. This is a specific waiver of requirements of S.C. Code Ann. §§
29-6-30 and 29-6-50.
~ t

.:~2

•~

1
(Paragraph deleted)
§ 2.2 Contract Sum and Payment for Work Performed After Execution of Design-Build Amendment
For the- Design-Builder's performance of the Work after execution of the Design-Build Amendment, the Owner.•,..,,,,,
shall pay to the Design-Builder the Contract Sunt in current funds as agreed in the Desig►-Build Amendment.
ARTICLE 3 GENERAL REQUIItEMENTS OF THE WORK OF THE DESIGN-BTJILD CONTRACT
§ 3.1 General
~ ~
§ 3.1.1 The Design-Builder shall comply with any applicable licensing requirements in the jurisdiction where the
Project is located.
j

'°; ` ``

Building Permit and Other Permits and Fees: No general building permit is required in accordance with §
6-9-110 of the South Carolina Code of Laws; however, the Contractor shall Ue required to. provide_mechanical,.:.:. : . .
electrical, plumbing and other such permits which may be required for purposes of inspection at no additional
AIA Document A141T"~ — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. Ail rights reserved. WARNING: This AIA'-' Qocument is
protected by U,S. Copyright Lnw anti International Treaties. Unauthorized reproduction or distribution of this AfA°' Document, or any portion of it,
may result in severe clvll and criminal penalties, and will be prosecuted to the maximum extant possible under the law. This draft was produced by AIA
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(1196251001)
User Notes;

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f

}

 cost to the District. Except for permits and fees which are the responsibility of the Contractor in the Contract
Documents, the District shall secure and pay for necessary approvals, easements, assessments, utility impact
fees, permits, and such charges required for the successful completion of the work. For each day (not counting
Saturdays and Sundays, and not counting the day the Design-Builder submits its completed application to the
authority) beyond five (5) days that a jurisdictional authority takes to respond to a permit application or similar
permit request that is on the project's critical path, the Design Builder may claim one (1) yadditional day for the
achievement of Substantial Completion.
§ 3.1.2 The Design-Builder shall designate in writing a representative who is authorized to act on the
Design-Builder's behalf with respect to the Project.
. ...:..._.._,,,__..:__,._.._.._ __.

1
§ 3.1.3 The Design-Builder shall perform the Work in accordance with the Design-Build Documents. 'The
Design-Builder shall not be relieved of the obligation to perform the Work in accordance with the Design-Build
Documents by the activities, tests, inspections or approvals of the Owner.
9. ._ .1

§ 3.1.3.1 The Design-Builder shall perform the Work in compliance with applicable laws, statutes, ordinances,
codes, rules and regulations, or lawful orders of public authorities. If the Design-Builder performs Work eorit~ary to
applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of pubic authorities„the;
Design-Builder shall assume responsibility for such Work and shall bear the costs ariributa~le to correction. :j
§ 3.1.3.2 Neither the Design-Builder nor any Contractor, Consultant, or Architect shall be obligated to perform any
act which they believe will violate any applicable laws, statutes, ordinances, codes, rules and regalations;"or lawful
orders of public authorities. If the Design-Builder determines that implementation of any in'struction,received from
the Owner, including those in the Owner's Criteria, would cause a violation of any applicable laws, statutes,
ordinances, codes, rules and regulations, or lawful orders of public authorities, the Design-Builder shall notify the
Owner in writing. Upon verification by the Owner that a change to the Owner's Criteria is required to remedy the "'
violation, the Owner and the Design-Builder shall execute a Modification in accordance with Article 6. , :-• `'

a
'

§ 3.1.4 The Design-Builder shall be responsible to the Owner for acts, errors, and omissions of the llesign-Builder;'s
employees, Architect, Consultants, Contractors, and their agents and employees, and other persons or entities ~ 3
,..,
°'_.,..__..,
~
performing portions of the Work.
..:1
§ 3.1.5 General Consultation. The Design-Builder shall schedule and conduct periodic meetings with the Owner to '"'
review matters such as procedures, progress, coordination, and scheduling of the Work.
§ 3.1.6 When the Owner's Design Requirements or applicable law requires that services be performed by licensed
professionals, the Design-Builder shall provide those services through qualified, licensed professionals. Tlie Owner '`
understands and agrees that the services of the Design-Builder's Architect and the Design-Builder's other ',
Consultants are performed in the sole interest of, and for the exclusive benefit of, the Design-Builder, ~y ~.
j

~

~

'''

.'

§ 3.1.7 The Design-Builder, with the assistance of the Owner, shall prepare and file documents~required tg obtain
~ 9
necessary approvals of governmental authorities having jurisdiction over the Project.
The Office of School Facilities (OSF) in conjunction with the State Fire Marshal shall determine the enforcement
and interpretation of all the applicable codes and referenced standards on state ~uildings; including the -- ~--District's school facilities.
_.
. -...
§ 3.1.8 Progress Reports
§ 3.1.8.1 The Design-Builder shall keep the Owner informed of the progress and quality of the Work ~,s stated m
~~~,
the Design Requirements, the Design-Builder shall submit written progress reports, photographs of Work in
`~
progress, and other data to the Owner electronically, or through the Owner's option, project management software,
j r
~;
showing estimated percentages of completion and other information identified below:
.1
Work completed for the period;
? 5
j
.2
Project schedule status;
"`"""
.3
Submittal schedule and status report, including a sumnnary of outstanding Submittals;
~....:.s_,___.:,, ...,_,..~ .::...:. ._..: ,_ ..:,.... .. .'
.4
Responses to requests for information to be provided by the Owner;
Approved Change Orders and Change Directives;
.5
AIA Document A141 T" — 2014. Copyright m 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: Thia AIA"1' Document is
protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA°' Documont, or any portion of it,
may rosult in severe civil and criminal penalties, and will be prosecuted to the maximum extent possihle under the law. This draft was produced by AIA
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(1186251001)
User Notes:

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7

 Pending Change Order and Change Directive status reports;
Tests and inspection reports;
Status report of Work rejected by the Owner;
Status of Claims previously submitted in accordance with Article 14;
Cumulative total of the Cost of the Work to date including the Design-Builder's compensation and
Reimbursable Expenses, if any;
.11 Current Project cash-flow and forecast reports; and
.12 Additional information as designated by the Owner through its project mariageSnent software data
requirements.
_ _
—
~
§ 3.1.8.2
In
(Pmag~-aphs deleted)
~ S
addition to the requirements of § 3.1.8.1, the Design-Builder shall provide similar information Ehrough in-person
progress report presentations to the Horry County Board of Education each month during one of the Board's public
meetings.
.6
.7
.8
.9
.10

--~

§ 3.1.9 Design-Builder's Schedules
- °`for
§ 3.1.9.1 The Design-Builder•, promptly after execution of this Agreement, shall prepare and s~
information a schedule for the Work. 'The schedule, including the time required for design and
not exceed time limits current under the Design-Build Documents, shall be revised at appropri
the
required by the conditions of the Work and Project, shall be related to the entire Project to the
Design-Build Documents, shall provide for expeditious and practicable execution of the Work ind shall include
allowances for periods of time required for the Owner's review and for approval of submission by authorities-~ .. _ . _ . - . - -3
having jurisdiction over the Project.
§ 3.1.9.2 The Design-Builder shall perform the Work in general accordance with the most recent schedules
submitted to the Owner.

'"

each ofl "
§ 3.1.10 Certifications. Design-Builder shall include in each Application for Payment a certification from „_.
the Architect, Consultants, and Contractors, and furnish to the Owner, these certifications with respect to'~he
documents and services provided by the Architect, Consultants, and Contractors (a) that, tathe best of their f }
knowledge, information and belief, the documents or services to which the certifications relate (i) areconsistent with
the Design-Build Documents, except to the extent specifically identified in the certificate, and (ii) comply with'
applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities governing
1
the design of the Project; and (b) that the Owner and its consultants shall be entitled to rely upon the accuracy of the • . . .
;:
representations and statements contained in the certifications. The Design-Builder's Architect, Consultants, and
Contractors shall not be required to execute certificates or consents that would require lmowledge; services or
-`'
,~
responsibilities beyond the scope of their services.
~~
5 ,'
'."
§ 3.1.11 Design-Builder's Submittals
§ 3.1.11.1 Prior to submission of any Submittals, the Design-Builder shall prepare a Submittal ~Schedule,a~}id shall
submit the schedule for the Owner's approval. The Owner's approval shall not unreasonably b~ delayed o~ wi~held.
The Submittal schedule shall (1) be coordinated with the Design-Builder's schedule provided ih Section 3~ 1.9t 1,
(2) allow the Owner reasonable time to review Submittals, and (3) be periodically updated }o reflect the progress, of
the Work. If the Design-Builder fails to submit a Submittal schedule, the Design-Builder shall not be entitled to any
increase in Contract Sum or extension of Contract Time based on the time required for review of Submittals:-~•- °•° - -

--'

§ 3.1.11.2 By providing Submittals the Design-Builder represents to the Owner that it has (1) reviewed and ~ -- ~_
~"•:,..
approved them, (2) determined and verified materials, field measurements and field construction criteria related
thereto, or will do so and (3) checked and coordinated the information contained within such Submittals with the'' -,_..
~~
~';
requirements of the Work and of the Design-Build Documents.
~'~
a
§ 3.1.11.3 The Design-Builder shall perform no portion of the Work for which the Design-~uil¢ Documents require
_ ~
r
Submittals.until thcOwner or its designee has approved the respective Submittal
i
3
§ 3.1.11.4 The Work shall be in accordance with approved Submittals except that the Design-Builder"sfia11"noflie -' - `
relieved of its responsibility to perform the Work consistent with the requirements of the Design-.Build_Documents,. -.- .-... . .
The Work may deviate from the Design-Build Documents only if the Desig►-Builder has notified the Owner in
AIA Document A141*" — 2014. Copyright D 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA'" Document is
protected by U.S. Copytiyht Law end international Troaties, Unauthorized reproduction or distribution of this AIA`a 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 draft was produced by AIA
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(1196251001)
User Notes:

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 writing of a deviation from the Design-Build Documents at the time of the Submittal and a Modif cation is executed
authorizing the identified deviation. The Design-Builder shall not be relieved of responsibility for errors or
omissions in Submittals by the Owner's approval of the Submittals.
§ 3.1.11.5 All professional design services or certifications to be provided by the Design-Builder, including all
drawings, calculations, specifications, certifications, shop drawings and other Submittals, shall;contain the signature
and seal of the licensed design professional preparing them. Submittals related to the Work~des~gned or certified by
the licensed design professionals, if prepared by others, shall bear the licensed design profe`ssional's written
approval. The Owner and its consultants shall be entitled to rely upon the adequacy, accuracy a~d completeness of __
_ .
~
the services, certifications or approvals performed by such design professionals.
,,.__.v
§ 3.1.12 Warranty. The Design-Builder warrants to the Owner that materials and equipment fi rnished under the
Contract will be of good qualiTy and new unless the Design-Build Documents require or permit' otherwise. The
Design-Builder further warrants that the Work will conform to the requirements of the Design-Build Documents and
will be fi•ee from defects, except for those inherent in the quality of the Work or otherwise expressly permitted by
the Design-Build Documents. Work, materials, or equipment not conforming to these requirements may be
considered defective. The Design-Builder's warranty excludes remedy for damage or defect caused by abuse,;
alterations to the Work not executed by the Design-Builder, improper or insufficient maintenance, improper t
operation, or normal wear and tear and normal usage. If required by the Owner, the Design'Bu lder shall Furnish
satisfactory evidence as to the kind and quality of materials and equipment.
§ 3.1.13 Royalties, Patents and Copyrights
§ 3.1.13.1 The Design-Builder shall pay all royalties and license fees.

~

~

~
~

,.,.

~ .

_ ,.

§ 3.1.13.2 The Design-Builder shall defend suits or claims for infringement of copyrights and patent rights and shall
hold the Owner and its separate contractors and consultants harmless from loss on account thereof, but shall not,be^"
responsible for such defense or loss when a particular design, process or product of a particular manufacturer'or
manufacturers is required by the Owner, or where the copyright violations are required in the Owner's Criteria
However, if the Design-Builder has reason to believe that the design, process or product required in the°(3wnerts
Criteria is an infringement of a copyright or a patent, the Design-Builder shall be responsible for such loss unie`ss
such information is promptly furnished to the Ovmer. If the Owner receives notice from a patentor copyright gwn~r
of an alleged violation of a patent or copyright, attributable to the Design-Builder, the Owner shall`give.promp~
written notice to the Design-Builder.
§ 3.1.14 Indemnification
§ 3.1.14.1 To the fullest extent permitted by law, the Design-Builder shall indemnify and hold harmless,the Owner,
-~
including the Owner's agents and employees, from and against claims, damages, losses and gxpenses, including but °'' ~
-~'`'
`
not limited to attorneys' fees, arising out of or resulting from performance of the Work, but;bnly: Yo fhe"eaten caused
.:by the negligent acts or omissions of the Design-Builder, Architect, a Consultant, a Contractor,~for anyonedirectly,.or~~
indirectly employed by them or anyone for whose acts they may be liable. Such obligation shah] not be construed to
negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist a~ to a party~or ~erson
s
described in this Section 3.1.14.
§ 3.1.14.2 The indemnification obligation under this Section 3.1.14 shall not be limited by a limitation on amount or
type of damages, compensation, or benefits payable by or for Design-Builder, Architect, a Consultant;a Contractor; •
or anyone directly or indirectly employed by them, under workers' compensation acts, disability benefit acts or other
employee benefit acts.
=:.~ •-~ _° ~ -- -, ..

- ---~

...,,
§ 3.1.15 Contittgent Assignment of Agreements
§ 3.1.15.1 Each agreement for a portion of the Work is assigned by the Design-Builder to the O~vt►er, provided that '`~ ~ y
~`~
.1 assignment is effective only a8er termination of the Contract by the Owner for cause, pursuant to
~ ~
Sections 13,1.4 or 13.2.2, and only for those agreements that the Owner accepts ~y written
notification to the Design-Builder and the Architect, Consultants, and Contractors whose agreements
are accepted for assignment; and
.~ 1
.2
assignment is subject to the prior rights of the surety, if any, obligated under;bond relatirig'tottiemm` ~' ""
'. _..-..._
.. _.... _ ._~__
_„
Contract.
AIA Document A141T"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA" Document is
proter_ted by U.S. Co~~yright Law and International Treaties. Unauthorized reproduction or distril~~ition of this AIA`~ Document, or any portion of it,
may result in severe civil and criminal penalties, and will uo prosecuted to the maximum extent possible uncierthe Iaw. This draft was produced byAlA
soHware at 14:12:43 on 11/20/2015 under Ordar No.o239586208_1 which e~ires on 07/14/2016, and is not for resale.
(1196251001)
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PAPR - 004664

 Wlien the Owner accepts the assignment of an agreement, the Owner assumes the Design-Builder's rights and
obligations under the agreement.
§ 3.1.15.2 Upon such assignment, if the Work has been suspended for more than 30 days, the wmpensation under
the assigned agreement shall be equitably adjusted for increases in cost resulting from the suspension.
a_
§ 3.1.15.3 Upon such assignment to the Owner under this Section 3.1.1 S, the Owner may further assign the
agreement to a successor design-builder or other entity. If the Owner assigns the agreementito ~ successor
design-builder or other entity, the Owner shall nevertheless remain legally responsible for ill of the successor
design-builder's. or other entity's obligations under the agreement.
?
~
_.
,..._. , _,_,...._ ,...:s
§ 3.1.16 Design-Builder's Insurance and Bonds. The Design-Builder shall purchase and ~ ai~tain insurance and
provide bonds as set forth in Euhibit B.
~ i
s'
ARTICLE 4 WORK PRIOR TO EXECUTION OF THE DESIGN-BUILD AMENDMENT
§ 4.1 General
- ""`
§ 4.1.1 Any information submitted by the Design-Builder, and any interim decisions made ~y the Owner„shall be
for the purpose of facilitating the design process and shall not modify the Owner's Criteria unless the Ow~er and
Design-Builder execute a Modification.
~ r
[Numbers §4.2 & §43 intentionally not used]

~

~

~

j

(Pa~•agraphs deleted)
§ 4.4 Design-Builder's Construction Proposal
§ 4.4.1 The Design-Builder's Construction Proposal shall include the following;
.1
A list of the documents and other information, including the Design-Builder's original Proposal; ,
Development Documents as proposed in the Owner's procurement leading to this Agreement;-upon ,
which the Design-Builder's Proposal is based;
,,.The proposed Contract Sum, including the compensation method;
~
~
.2
.3
The proposed date the Design-Builder shall achieve Substantial Completion';
j
~`"`"'
.4
An enumeration of any qualifications and exclusions, if applicable;
~ ,...
` s ..
.5
A list of the Design-Builder's key personnel, Contractors and suppliers; and
,.:.:
.6
The date on which the Design-Builder's Construction Proposal expires.
-,.:..
§ 4.4.2 Submission of the Design-Builder's Construction Proposal shall constitute a representation by the
Design-Builder that it has visited the site and become familiar with local conditions under whid~:the Worlc is to be
completed.
_. .
',,~

... ~
~...

§ 4.4.3 If the Owner and Design-Builder agree on a proposal, the Owner and Design-Builder shall executg the
Design-Build Amendment setting forth the terms of their agreement.
~
~
umentOWING EXECUTION OF THE DESIGN-BUILD AMEN~TD~VIENT
A5.1 Cnst uconDo
§ 5.1.1 Upon the execution of the Design-Build Amendment, the Design-Builder shall prepare Construction
Documents. The Construction Documents shall establish the quality levels of materials and`systemsrequired.-~'he-- - Construction Documents shall be consistent with the Design-Build Documents.

-~

§ 5.1.2 The Design-Builder shall provide the Construction Documents to the Owner for the Owner's information. If '
the Owner discovers any deviations between the Construction Documents and the Design-Build Documents, the "
,~=,
Owner shall promptly notify the Design-Builder of such deviations in writing. The Construo~ion;Documents shall
~'~
not modify the Design-Build Documents unless the Owner and Design-Builder execute a Modification. The failure
of the Owner to discover any such deviations shall not relieve the Design-Builder of the obligation to perform the
Work in accordance with the Design-Build Documents.
s ~
§ 5.1.2.1 The Design-Builder shall submit three copies of all Construction Documents prepared and sulimi~fed'to --~" "
~. ,_ ~,.~..r.. ....,.,.. . ..~__~
{-Regulatory Agencies as a portion of the permitting and approval process for this work.
AIA Document A141'"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA' Document is
profecYed by U.S. Copyright Lew end International Treaties. Unauthorized reproduction or distribution of this AIA~' Document, or any portion of it,
may result in severe civil anti crii)iinal penalties, and will be prosecuted to the maximum extent possible under the ITw. This draft was produced by AIA
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~O

 § 5.2 Construction
§ 5.2.1 Commencement. Except as permitted in Section 5.2.2, construction shall not commcncc prior to execution
of the Design-Build Amendment.
§ 5.2.2 If the Owner and Design-Builder agree in writing, construction may proceed prior to the execution of the
Design-Build Amendment, However, such authorization shall not waive the Owner's right to reject the
Design-Builder's Proposal.
4'

§ 5.2.3 The Design-Builder shall supervise and direct the Work, using the Design-Builder' best skill and attention.
The Design-Builder shall be solely responsible for, and have control over, construction means, methods; teclniques
sequences and procedures, and for coordinating all portions of the Work under the Contract; unless tha Design-Build Documents give other specific instructions concerning these matters.
s
..

_....,;
-

§ 5.2.4 The Design-Builder shall be responsible for inspection of portions of Work already performed to determine
that such portion's are in proper condition to receive subsequent Work.
'"' "
Maintenance of Record Drawings: The Contractor shall maintain at the worksite o~te (1) record copy of the
Contract Documents including approved changes in good order and marked currently to record c~anges and
selections made during performance of the work. A copy of submittals accepted bye they District shall'~also be
maintained at the worksite. These items shall be available to the Architect and Dish•ict when present at the
worksite. When required by the Contract Documents, the Contractor shall provide record drawings on all
increments of the work such as, by way of illustration and not limitation, plumbing, electrical,~mecfianical; and"all systems, such as fire and security systems, incorporated into the work. The Contractor..shall.,furnish an
electronic and paper copy of record drawings of "as-built" detail to the Architect at final completion of all
work, excluding punch list items as required by the Contract Documents.

°" "t
.t

Professional Certifications: When professional certification of performance criteria for materials,-•systems, or
equipment is required by the Contract Documents, the District shall be entitled to rely upon the accuracy apd
completeness of such calculations and certifications.
-_
~ k
:.. _,
;,_
... 4
Contractor's Quality Control P►•ogram: The Contractor shall institute and maintain throughout the contract
term a quality control program, designed to ensure the work performed is in accordance with t1~ Contract
Documents, including any changes, at all times and in all respects. The program shall include providing daily._,.
supervision and conducting frequent inspections by the Worksite Superintendent(s).
~ntractor agrees to abide
1. Compliance with Employment Laws: By entering into a Contract Agreement, the
and'- not limitation, the...
by all applicable laws pertaining to employment including, by way of illustrati
following:
~.,
A. Title VII of the Civil Rights Act of 1964, as may be amended.
e. Age Discrimination in Employment Act of 1964, as may be amended,
~ $
C. Title I of the Americans Disabilities Act of 1990, as may be amended.
o. Equal Pay Act of 1963, as may be amended.
E. Fair Labor Standards Act, as may be amended.
F. South Carolina Wages Act, Code 37-10-10 et seq., as may be amended.
s. South Carolina Worker's Compensation Act, Code 42-1-10 et seq., as may be amended.
The Contractor shall not discriminate against any employee or applicant for employment
religion, color, sex, age, handicap, or national origin except when .such condition
occupational qualification reasonably necessary for normal operations of the Contractor. T
all solicitations or advertisements for employees, shall state the Contractor is an "E.
Employer." The Contractor agrees to post in conspicuous places, visible to employees a
employment, notices setting forth the provisions of this nondiscrimination clause and
provision of this paragaph in every subcontract or purchase agreement of more than
$10,000.

-

s

ause of race;--°~~ -.•,.
a:,bona fide
-''•. `''
`t~ •~~
:ontractor, in
j~Pportunity
2. ~
pplicants for
include the
~
_.,-.~,e,, ,....,__....___._..~_~..-

i

AIA Document A141T"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: Thia AIA"' Document (s
protected by U.S. Copyright Law and International Treaties. Unautharizecl reproduction or distribution of this AI A" Document, or any portion of it,
may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible unclor the law. This draft was produced by AIA
software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which e~cpires on 07/14/2016, and is not for resale.
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User Notes:

PAPR - 004666

~~

 Employment Taxes and Benefits: Unless under order from the Internal Revenue Service or South Carolina state
government, the District does not withhold from the contract payments any Federal or State income taxes, or any
employment-related taxes normally withheld on the District's employees. Further, the District shall not provide any
employment related insurances or other benefits such as worker.'s compensation for the benefit of any Contractor,
subcontractor or supplier employees.
.,....
Project Key Staff =Project Manages: The Contractor shall assign a skilled, experienced,;"and dedicated Project
Manager to the project and identified in Eachibit A. The Project Manager shall secure th~ materials of proper
quality and quantity to meet the Contract Documents and manage the appropriate; tim;~ng__of_ all materials,
sub-contracted work, and Contractor provided labor to ensure the continual progress ;~'of the work to meet the
substantial completion date. The Contractor shall not change the Project Manager or the duties and status ofthe
Project Manager during the course of the project without approval of the District.

z
-

Project Key Staff -- Worksife Superintendent(s): The Contractor shall employ at? _lest one (1) full-time,
competent Worksite Superintendent and, if required by the Contract Documents, an additional part-time or
fu[l-time, competent secondary Worksite Superintendent if expedient for the size and scdpe of the project. ,Exhibit
A identifies the Worksite Superintendent(s). No less than one (1) Worksite Superintendent shall be in attendance
at the worksite at all times during performance of any work by the Contractor's own for':ces for subcontractors and
during delivery of any materials, The Worksite Superintendent shall not perform the ~ork~of any tr'de or other
duties; however, the secondary Worksite Superintendent may perform part-time work of a~trade or t~e d"uties of
OSHA Compliance Officer or fireguard, if approved by the District. 'The Contractor shall not~_change ar}y Worksite _
Superintendent or the duties or status of same during the course of the project without approval of the District.
The Worlcsite Superintendents) shall enforce strict discipline and good order among-~the-Gontractor's--~-----~-~
representatives, agents, employees, subcontractors and suppliers.
_
Worksite Communications: The Project Manager and Worksite Superintendents) are representatives of the ,.
Design Builder and communications given to them, either orally or in writing, shall be as binding as if given,to it►e
Principal of the Design Builder.
~~ ,1
~.. ..
§ 5.3 Labor and Materials
"~
§ 5.3.1 Unless otherwise provided in the Design-Build Documents, the Design-Builder shall provide.and pay for
..
labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transpoi`tation, and
..........
. . :. . :. . .
other facilities and services, necessary for proper execution and completion of the Work, whether temporary or
• . ..
permanent, and whether or not incorporated or to be incorporated in the Work.
§ 5.3.2 When a material or system is specified in the Design-Build Documents, the Design-Builder may snake
... -.
~a~'~
,,, ~'
substitutions only in accordance with Article 6.
'i

§ 5.3.3 The Design-Builder shall enforce strict discipline and good order among the DesigtFBuilder's eployees
and other persons carrying out the Work. The Design-Builder shall not permit employment;of ~lnfit persons orb''
persons not properly skilled in tasks assigned to them.
~

5

.... .
..,~{
~ k . ~~..:~~~t.?
§ 5.4 Taxes
The Design-Builder shalt pay sales, consumer, use and similar taxes, for the Worlc provided,by the Design-Builder,_.,____,__~
that are legally enacted when the Design-Build Amendment is executed, whether or not yet effective or merely
scheduled to go into effect.
;~`
•--~„" "'
`'
§ 5.5 Permits, Fees, Notices and Compliance with Laws
'~
§ 5.5.1 Unless otherwise provided in the Design-Build Documents, the Design-Builder shall secureand pay for the '~
y `~5 ';.
permits, fees, licenses, and inspections by government agencies, necessary for proper execu~ior~=of the Work and
Substantial Completion of the Project.
~
Y
§ 5.5.2 The Design-Builder shall comply with and give notices required by applicable laws; sta~utes, ordinances,
codes, rules and regulations, and lawful orders of public authorities, applicable to performance of-the-Work:---------:- - - --~
~ ,_ , _ ___
,. _r
§ 5.5.3 Concealed or Unknown Conditions. If the Design-Builder encounters conditions at the site that are
(1) subsurface or otherwise concealed physical conditions that differ materially from those indicated in the
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protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA" Document, or any portion of it,
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(1196251001)
User Notes:

PAPR - 004667

r.
_ti

~2

 Design-Build Documents or (2) unknown physical conditions of an unusual nature that differ materially from those
ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for
in the Design-Build Documents, the Design-Builder shall promptly provide notice to the Owner before conditions
are disturbed and in no event later than 21 days after first observance of the conditions. The Owner shall promptly
investigate such conditions and, if the Owner determines that they differ materially and cause an increase or
decrease in the Design-Builder's cost of, or time required for, performance of any part of the Work, shall
recommend an equitable adjustment in the Contract Sum or Contract Time, or both. If the Qwn~er determines that the
conditions at the site are not materially different from those indicated in the Design-Build Documents and that no
change in the terms of the Contract is justified, the Owner shall promptly notify the Design~Bu~lder in writing,
stating the reasons. If the Design-Builder disputes the Owner's determination or recommendation; the
§ a- - ----~--------- -- -Design-Builder may proceed as provided in Article 14.
i
§ 5.5.4 If, in the course of the Work, the Design-Builder encounters human remains, or recognizes the existence of
burial markers, archaeological sites, or wetlands, not indicated in the Design-Build Documents; the Design-Builder
shall immediately suspend any operations that would affect them and shall notify the Owner. Upon receipt of such
notice, the Owner shall promptly take any action necessary to obtain governmental authorization required to resume
the operations. The Design-Builder-shall continue to suspend such operations until otherwise instructed by t7
Owner but shall continue with al] other operations that do not affect those remains or features. Requests for
adjustments in the Contract Sum and Contract Time arising from the existence of such remains or featured maybe
made as provided in Article 14.
~
a '
i.
# ..
~ __, ....---_.._..
§ 5.6 Allowances
I
§ 5.6.1 The Design-Builder shall include in the Contract Sum all allowances stated in the Design-Bt~ld,D.ocuments. ..:. ... .:...~
Items covered by allowances shall be supplied for such amounts, and by such persons or entities as the Owner may
~"'
direct, but the Design-Builder shall not be required to employ persons or entities to whom the Design-Builder has
reasonable objection.
§ 5.6.2 Unless otherwise provided in the Design-Build Documents,
. ,
.1 allowances shall cover the cost to the Design-Builder of materials and equipment delivered at th3e side
and all required taxes, less applicable trade discounts;
.2
the Design-Builder's costs for unloading and handling at the site, labor, installation costs; overhead
~... ;
~_ >,_.
profit, and other expenses contemplated for stated allowance amounts, shall be included.in the
Contract Sum but not in the allowances; and
.3 whenever costs are more than or less than allowances, the Contract Sum shall be adjusted accordingly •....
by Change Order. The amount ofthe Change Order shall reflect (1) the difference between actual
costs and the allowances under Section 5.6.2.1 and (2) changes in Design-Builder.'.s-costs. under
Section 5.6.2.2.

-,
4

,,.
§ 5.6.3 The Owner shall make selections of materials and equipment with reasonable promptness
s ; for allowances
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j ~
;~ `,, .
requiring Owner selection.
~ j
j
§ 5.7 Key Personnel, Contractors and Suppliers
§ 5.7.1 The Design-Builder shall not employ personnel, or contract with Contractors or sup~lie~s to whom they
_.
Owner has made reasonable and timely objection. The Design-Builder shall not be required to contract with anyone
" -~
----~
to whom the Design-Builder has made reasonable and timely objection.

, ._

'
---~

§ 5.7.2 If the Design-Builder desires to change any of the personnel, Contractors or suppliers identified in the
,...
"' • ti
Design-Build Amendment, including but not limited to any contractor or design professional identified by the
Design-Builder in its Request for Qualifications response, the Design-Builder shall notify the~'bwner and provide the._,
name and qualifications of the proposed new personnel, design professional, Contractor or supplier. The Owner may ',
a
reply within 14 days to the Design-Builder in writing, stating (1) whether the Owner has re~sogable objection to the
proposed new personnel, design professional, Contractor or supplier or (2) that the Owner requires additional time to ~
review. Failure of the Owner to reply within the 14-day period shall constitute notice of no ea~onable objection.

s

§ 5.7.3 Except for those persons or entities already identified or required in the Design-Bui~d Amendment; tFie "`~ `"" ~"~~
Design-Builder, as soon as practicable after execution of the Design-Build Amendment, shall.furnish:.in.writing-to--. .~.__.,..:.:,
the Owner the names of persons or entities (including those who are to furnish materials or equipment fabricated to a
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proEected by U.S. Copyright Law pnd International Treaties. Unauthorized reprod~~otion or distribution of this AIA~' Document, or any portion of it,
may result in severe civil ~ncl criminal penalties, and will be prosecuted to the maximum extent possihle antler tho law. This draftwas produced by AIA
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(1196251001)
User Notes:

PAPR - 004668

~3

 special design) proposed for each principal portion of the Work. The Owner may reply within 14 days to the
Design-Builder in writing stating (1) whether the Owner has reasonable objection to any such proposed person or
entity or (2) that the Owner requires additional time for review. Failure of the Owner to reply within the 14-day
period shall constitute notice of no reasonable objection.
§ 5.7.3.1 If the Owner has reasonable objection to a person or entity proposed by the Design-Builder, the
Design-Builder shall propose another to whom the Owner has no reasonable objection.
tl
Documents
and
Submittals
at
the
Site
~
§ 5.8
__~
~
In addition to any Owner requirements to keep electronic project data up to date, the Design-Builder sfiallmaintain
at the site for the Owner one copy of the Design-Build Documents and a current set of the construction: Documents;-- -----~ 3
in good order and marked currently to indicate field changes and selections made during copstraction, and one copy
of approved Submittals. The Design-Builder shall deliver these items to the Owner in accordance with Section
9.10.2 as a record of the Work as constructed.
§ 5:9 Use of Site
"""
The Design-Builder shall confine operations at the site to areas permitted by applicable laws, statutes, ordiiiaices,
codes, rules and regulations, lawful orders of public authorities, and the Design-Build Documen ts, and shall not
~
Y
unreasonably encumber the site with materials or equipment.
~

'

7

§ 5.10 Cutting and Patching
The Design-Builder shall not cut, patch or otherwise alter fully or partially completed construction bythe"Owner or°a separate contractor except with written consent of the Owner and of such separate contractor;:such,consent,shall.
. ..:._ : ;
not be unreasonably withheld. 7'he Design-Builder shall not unreasonably withhold from the Owner or a separate
•"
contractor the Design-Builder's consent to cutting or otherwise altering the Work.
.::,
.~
§ S.11 Cleaning Up
§ 5.11.1 The Design-guilder shall keep the premises and surrounding area free from accumulation of waste . .. ~,
materials or rubbish caused by operations under the Contract. At completion of the Work, the Design-Builder sha11
remove waste materials, rubbish, the Design-Builder's tools, construction equipment, machinery-aid surplus
..
materials from and about the Project.
.;. .. ,:_
.. ~,
,_ ..:,,,_
7_.. ,:
-§ 5.11.2 If the Design-Builder fails to clean up as provided in the Design-Build Documents, the Owner may do.so
and Owner shall be entitled to reimbursement from the Design-Builder.
.a
§ 5.12 Access to Work
The Design-Builder shall provide the Owner and its separate contractors and consultants access to.the Wotk in
preparation and progress wherever located. The Design-Builder shall notify the Owner regaj~ding'Project safety
criteria and programs, which the Owner, and its contractors and consultants, shall comply v1ithwhile at the site. :.

`' }

;
~ p'
§ 5.13 Constriction by Owner or by Separate Contractors
§ 5.13.1 Owner's Right to Perform Construction and to Award Separate Contracts ~ ~
's
§ 5.13.1.1 The Owner reserves the right to perform construction or operations related to the Project with tl~e ~.— ._
_~.
Owner's own forces; and to award separate contracts in connection with other portions of ttie Project, or other
construction or operations on the sits, under ternis and conditions identical or substantially similar~to thisContract --- - - -including those terms and conditions related to insurance and waiver of subrogation. The Owner shall notify the
Design-Builder promptly after execution of any separate contract, If the Design-Builder claims that delay or•
,,
as ~rovidcd
additional cost is involved because of such action by the Owner, the Design-Builder shall make;a"Claim,:~.
~~,>
',
in Article 14.
~~
'S ',?:
§ 5.13.1.2 When separate contracts are awarded for different portions of the Project or other'cot~struction or
operations on the site, the term "Design-Builder" in the Design-Build Documents in each case shall mean the
_,
individual or entity that executes each separate agreement with the Owner.
a
§ 5.13.1.3 The Owner shall provide for coordination of the activities of the Owner's own forces, and"of each
separate contractor, with the Work of the Design-Builder, who shall cooperate with them, The Design-Builder shall.. , .
participate with other separate contractors and the Owner in reviewing their construction schedules. The
AIA Document A141T"" — 2014. Copyright ~ 2004 and 2014 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 tiie maximum extent possihle under the law. This drak was produced by AIA
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(1196251001)
User Notea:

PAPR - 004669

14

 Design-Builder shall make any revisions to the construction schedule deemed necessary after a joint review and
mutual agreement. The construction schedules shallthen constitute the schedules to be used by the Design-Builder,
separate contractors and the Owner until subsequently revised.
§ 5.13.1.4 Unless otherwise provided in the Design-Build Documents, when the Owner performs construction or
operations related to the Project with the Owner's own forces or separate contractors, the Owner shall be deemed to
be subject to the same obligations, and to have the same rights, that apply to the Design-Builder under the Contract.
§ 5.14 Mutual Responsibility
~ §
§ 5.14.1 The Design-Builder shall afford the Owner and separate contractors reasonable opportunity for 'infroduction
and storage of their materials arrd equipment and performance of their activities, and shall connect and coordinate,--.- the Design-Builder's construction and operations with theirs as required by the Design-Bui~d Documents.

" ,~
-•

§ 5.14.2 If part of the Design-Builder's Work depends upon construction or operations by the Qwner or a separate
contractor, the Design-Builder shall, prior to proceeding with that portion of the Work, prepare7a written report to
the Owner, identifying apparent discrepancies or defects in the construction or operations b~ the Owner or separate
contractor that would render it unsuitable for proper execution and results of the Design-Buildca•'s Work. Failure of
the Design-Builder to report shall constitute an acknowledgment that the Owner's or separate contractor's
completed or partially completed construction is fit and proper to receive the Design-Builder'sWork, except ~s to
~
defects not then reasonably discoverable.
~

;
t

1

"'' "`~ ~?
§ 5.14.3 The Design-Builder shall reimburse the Owner and other contractar(s) for costs the Owner and other'
contractor(s), respectively, incur because of the Design-Builder's delays, improperly t~med`;.actvities or defecttve_,.. ,.__
-,
construction.
~~
§ 5.14.4 The Design-Builder shall promptly remedy damage the Design-Builder wrongfully causes to completed,•or``
partially completed construction or to property oPthe Owner or separate contractors as provided in Secti9n>1`0.2.5.
§ 5.14.5 The Owner and each separate contractor shall have the same responsibilities for cutting and patching the
Work as the Design-Builder has with respect to the construction of the Owner or separate contractors m
~.
Section 5.10.
§ 5.15 Owner's Right to Clean Up
" ~~•.
- _.
If a dispute arises among the Design-Builder, separate contractors and the Owner as to the responsibility under their---......_
; _:
respective contracts for maintaining the premises and surrounding area free from waste materials and rubbish, the
~,,.:- ---,_,,
Owner may clean up and will allocate the cost among those responsible.
,,, ~
E
t~ ,,:~''
ARTICLE 6 CHANGES 1N THE WORK
§ 6.1 General
_`
§ 6.1.1 Changes in the Work may be accomplished after execution of the Contract, and without invalidatntg the
Contract, by Change Order or Change Directive, subject to the limitations stated in this Art~cle16 and elsewhere in
= j
the Design-Build Documents.
~
§ 6.1.2 A Change Order shall be based upon agreement between the Owner and Design-Builder. The Owner may
'~= ~ ~ - - -~-~- ~• - --~- - ~
issue a Change Directive without agreement by the Design-Builder.
§ 6.1.3 Changes in the Work shall be performed under applicable provisions of the Design-Build
the Design-Builder shall proceed promptly, unless otherwise provided in the Change Order or Gh Inge Directive,
_.. . .. _..
§ 6.2 Change Orders
A Change Order is a written instrument signed by the Owner and Design-Builder stating
the following:
The change in the Work;
The amount of the adjustment, if any, in the Contract Sum or, if prior to
.2
Design-Build Amendment, the adjustment in the Design-Builder's comb
.3
The extent of the adjustment, if any, in the Contract Time.

',,

,'`h,

Bement upon all of

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4

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of the
ind",.,._~.,.: _.
c

AIA Document A147'"' — 20i4. Copyright m 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA'°' Document is
protected by U.S. Copyright Law and International Treaties, Unauthorizacl reproduction or distribution of this AIAW Document, or any portion of it,
may result in severe civil anti criminal penalties, and will be prosecuted to the maximum extent possible uncier the Iaw. Thls draft was produced by AIA
software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which e~lres on 07/14/2016, and Is not for resale.
(1196251001)
User Notes:

PAPR - 004670

15

 § 6.3 Change Directives
§ 6.3.1 A Change Directive is a written order signed by the Owner directing a change in the Work prior to
agreement on adjustment, if any, in the Contract Sum or, if prior to execution of the Design-Build Amendment, the
adjustment in the Design-Builder's compensation, or Contract Time. The Owner may by Change Directive, without
invalidating the Contract, order changes in the Work within the general scope of the Contract consisting of
additions, deletions or other revisions, the Contract Sum or, if prior to execution of the Design-Build Amendment,
the adjustment in the Design-Builder's compensation, and Contract Time being adjusted accordingly.
§ 6.3.2 A Change Directive shall be used in the absence of total agreement on the terms of a Cl}ange Order.
9

§ 6.3.3 If the Change Directive provides for an adjustment to the Contract Sum or, if prior to execution of the ~ _ -~-- - ~-~•- - '
Design-Build Amendment, an adjustment in the Design-Builder's compensation, the adjustneri't shall be based on
one of the following methods:
3
Mutual acceptance of a lump sum properly itemized and supported by sufficient'substantiating data to
,X
'
~'
permit evaluation;
.2
Unit prices stated in the Design-Build Documents or subsequently agreed upon; j
.3
Cost to be determined in a manner agreed upon by the parties and a mutuallj! acceptable fined or
percentage fee; or
.4
As provided in Section 6.3.7.
3 '
j
3
r
§ 6.3.4 If unit prices are stated in the Design-Build Documents or subsequently agreed upo~, acid if quantities
originally contemplated are materially changed in a proposed Change Order or Change Directive so that'applicafton M`-'" ~" s
of such unit prices to quantities of Work proposed will cause substantial inequity to the OWner,.or..Des .gn,Buildet,. . .:. . __..__._.s
the applicable unit prices shall be equitably adjusted.
.:,.;
§ 6.3.5 Upon receipt of a Change Directive, the Design-Builder shall promptly proceed with the change in the Work`
_.. - '"
involved and advise the Owner of the Design-Builder's agreement or disageement with the method, if any;
provided in the Change Directive for determining the proposed adjustment in the Contract Sum or, ifprior to
execution of the Design-Build Amendment, the adjustment in the Design-Builder's compegsation, or Contract .Time.
§ 6.3.6 A Change Directive signed by the Design-Builder indicates the Design-Builder's agreement tfierewith,'
including adjustment in Contract Sum or, if prior to execution of the Design-Build Amendment, the adjustment in a-„_
the Design-Builder's compensation, and Contract Time or the method for determining them, Such agreement shall
be effective immediately and shall be recorded as a Change Order.

~

,a
_.2

'' 4.
§ 6.3.7 If the Design-Builder does not respond promptly or disagrees with the method for adjustment in.the.Contract
Sum or, if prior to execution of the Design-Build Amendment, the method for adjustment in t}ie Design-Builder's ,. •'``~ ' ::..
compensation, the Owner shall determine the method and the adjustment on the basis of reasonable ezpendit~res'and ,;•~''
savings of those performing the Work attributable to the change, including, in case of an increase, an amount for :, -``
overhead and profit as set forth in the Agreement, or if no such amount is set forth in the A~reement, a reasonable
amount. In such case, and also under Section 6.33.3, the Design-Builder shall keep and present, in such f¢rm;as the
Owner may prescribe, an itemized accounting together with appropriate supporting data. Unles's otherwise provided
in the Design-Build Documents, costs £or the purposes of this Section 6.3.7 shall be limited'to ~he following: ~
jj
,Change Order Allowable Pricing: For any change in contract price, the Contractor shall provide, itemize,
and justify with appropriate supporting data. direct costs attributable to the change. Direct•costs-- ~- °-• - -~
attributable to the change in work shall be limited to the following:
..
..
,,:.
"~~,,.,,
A, Costs of materials, equipment and processes to be incorporated into the work including costs of
shipping, handling, fabricating, sales tax (8%required in Horry County and 9"/o within certain
incorporated parts of the City of Myrtle Beach as of August 1, 2009), or other su~h~costs inherent in
4'
the provision and delivery of such materials, equipment and processes by the supplier or
manufacturer.
~ ?
~ j
B. Costs of direct labor based on actual hourly labor rates multiplied by the actual~work hours required to
accomplish the change in work when such change in work results in additioriat contract time or labor.
No Contractor or subcontractor shall ask for direct labor costs, when work required' can be ~~" "'~""
accomplished with the existing work force, in conjunction with other concurrent,work, and.during-the.-.--....-. ::.:~i
current approved contract time. The hourly labor rate for any additional contract time or laborers shall
AIA Document A141 n" — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNIIJG: Thia AIA" document is
protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this /alA`D Document, or any portion of it,
may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possihle under the law. This draft was produced by AIA
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(1196251001)
User Notes:

PAPR - 004671

16

 be actual hourly rates not to exceed thirty dollars ($30) per hour unless documented proof of payment
of a higher hourly rate for a specific skilled laborer is approved by the District prior to Change Order
execution.
C. Costs of fringe benefits for additional direct labor, including social security, unemployment or other
taxes, health and workers' compensation insurances, or other benefits required by agreement, custom
or applicable laws. Such fringe benefit rate shall not exceed twenty-eight percent (28%)and the
District~has the right to request itemized documentation proving the fringe benefit rate used.
D. Costs of machinery or equipment rented or leased in the short term specifically<for completion of the
additional work to be performed. Such equipment rented/leased shall not custorr~arily be owned by
a
the Contractor or •any subcontractor affected by the change but shall be necessary to the ~"
accomplishment of the work required. Copies of invoices for such rental shall be provided to--~-:-- -• ~---•-•--•--~?
document the cost of rental or lease of machinery or equipment. The District shall not pay for use of
Contractor- or subcontractor-owned equipment or machinery, which costs are in~Cluded in the
overhead computation.
E. Costs ofpermits or inspection fees directly attributable to the change in work and tlot included as part of
the Contractor's requirements nor attributable to the Contractor's nonperforcriari~e or
non-conformance to the Contract Agreement.
~ r
~ s
F. Other such direct costs directly attributable to the work and approved by the District.
G. Any additional cost resulting from an amendment to performance and payment~bon~ds but in rio event
more than one percent (1%) after application of overhead and profit provided foil elsewhere. Tl~e
Contractor shall be responsible for notifying the Surety of any changes in th' contract pric', ~f
required by the Surety.
~ 3 `-'-'
a
Costs itemized shall not exceed the unit costs as listed in the most current issue of Means Construction Cost
Data or actual costs justified to the satisfaction of the District.
.: . ~'
,.:..
,+
Unallowable Costs: Any costs which may be perceived by the Contractor to be indirectly attributable to a,.:..
change in work shall not be included in direct costs but shall be considered part ofihe overhead and!
profit rate applied to direct costs. Such costs not to be included in direct costs sha11 be,.by way of a
P j
illustration and not limitation:
A. Labor hours and fringe benefit costs of the worksite superintendents) when such costs we're incluc~ed,'or
should have been included, in the original bid submitted or result from the Contractor's:ir~ability to ~.,,
meet the approved schedule or required completion date. The Contractor must prove, to the'" "'~-•
satisfaction of the District, such additional costs are directly attributable to any extension of time ~ `"
,,~
beyond the last approved completion date. An increase in contract price for additional site supervision
shall be at the Districts' sole discretion.
~
B. Perceived additional costs attributable to the Project Manager or supervision and.coordination of
''
",
subcontractors, suppliers or Contractor employees.
C. Costs related to use, rental, purchase or replacement of equipment generally or customarily necessary to'
accomplish the work but not to be incorporated into the work such as, by wa~ o~illustraUo~► and not
limitation, hand tools, generators, cleaning equipment, scaffolding, signage, fen~ing, vehicles, fuel,
'
and so forth.
D. Transportation or travel costs related to the transporting of hired or contracted supervisors, workers or._-._,,
subcontractors to and from the worksite or between worksites or to pick-up end deliver materials,
equipment and processes to the warksite by the Contractor's or subcontractor's-own forces including ---~ - -parlcing, tolls, fines, meals, per diem, hotel, living expenses, or other such costs.
E. Costs attributable to expediting delivery of materials, equipment or processes including telephone=galls,.
facsimile transmissions. copying, employee labor and benefits, and so forth.
F. Costs attributable to maintaining a local office, home office or corporate office as well as office staffing:::
£~
~ , ~i
equipment and consumables, and so forth.
,~
G. Costs for maintaining on-site facilities, including work trailers, telephones, computers, licenses,
~ ~
temporal'/ utilities, and so forth.
4
y
H. Contracted services such as accountants, payroll service providers. attorneys, catering and so forth.
y
I. Catering or vending services, portable toilets, dumpsters, and so forth.
J. Other. such indirect costs of doing business or costs normally considered inclusi~e ~n' ove"rhead "'""`
Allowable Overhead and Prott Charges: Additional overhead and profit attributable to the change in contract
AIA Document A141T"" — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA'°' document is
pratacted by t1.S. C6pyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA~' Document, or any portion of it,
may result in sctvere civil and crimi~wl penAlties, and will tie prosecuted to the maximum eutent possible unclorthe law. This draftwas produced by AIA
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(1196251001)
User Notes:

PAPR - 004672

17

 pricing shall not exceed the following:
A. For work performed by the Contractor's own forces, a maximum of ten percent (10%) of the allowable direct
costs or the unit pricing negotiated at the time of award.
I3. For work performed bya subcontractor's own forces, a maximum of ten percent (10%) of the allowable direct
costs.
C.
For work performed by a subcontractor, overhead and profit of a maximum of five,-peroent (5%) is
allowable by the Contractor for administration of the sub-contract.
a
Retainage: The District requires a retainage of three and one-half percent (3.5%) of the total contract price, as may . ..._~
be amended by any approved Change Order, to be withheld fran the Contractor s paymen~s throughoutth'e term of
the Agreement and payable at the time of final payment after a) full completion of all work'to be performed and all --- - - -- - a
requirements established in the Agreement and acceptance by the District, b) submittal of a~l closeout documents,
and c) submittal of an affidavit of payment of debts/claims, if requested by the District, for'evexy subcontractor who
performed work on the project evidencing they have received final payment of undisputed yvork and retainage
withheld. As a condition of the contract, no more than three and one-half percent (3.5%) shall' be retained from the
progress payments of any subcontractor by the Contractor until final completion of that portion; of the work.
Prompt payment of retainage to all subcontractors at final completion of their acceptable work regardless fof timing
during the contract is mandatory. The Contractor shall, at final completion, ensure no amount~of the Canhactor's
retained funds is allocable to the completed and accepted work of any subcontractor nor to materials or equip, ent
purchased fi•om any supplier unless such amounts are in dispute and the Contractor has not'regtlested payinen~tfor
such disputed amounts to date. Such amounts in dispute shall be identified on the Contractor's affidavit ~Of payment
of debts/claims submitted with final documents.
- - "` ~ }" `T".':-- ~` -•
r
7
§ 6.3.8 The amount of credit to be allowed by the Design-Builder to the Owner for a deletion or change that results
•° "`
in a net decrease in the Contract Sum or, if prior to execution of the Design-Build Amendment, in the
Design-Builder's compensation, shall be actual net cost. When both additions and credits covering related Work or
,,, ,;
substitutions are involved in a change, the allowance for overhead and profit shall be figured on the basi$:of r►et
increase, if any, with respect to that change.
_..
§ 6.3.9 Pending final determination of the total cost of a Change Directive to the Owner, the Design-Builder may
request payment for Work completed under the Change Directive in Applications for Payment,.The Owner. will
make an interim determination for purposes of certification for payment for those costs deemed to 6e reasonably ~:....,
justified. The Owner's interim determination of cost shall adjust the Contract Sum or, if prior to execution'of the
Design-Build Amendment, the Design-Builder's compensation, on the same basis as a Change Order, subject to tF►e -• ~.:,.,.
right of Design-Builder to disagee and assert a Claim in accordance with Article 14.
in t~e.Contraet
.
§ 6.3.10 When the Owner and Design-Builder a~'ee with a determination concernin g the adJ ustments
Sum or, if prior to execution of the Design-Build Amendment, the adjustment in the Design=Builder's co~npensafion ,.
and Contract Time, or otherwise reach agreement upon the adjustments, such agreement sh i ll be effective '~'
immediately and the Owner and Design-Builder shall execute a Change Order. Change Orders nay be issued for all
,~ ~
~
or any part of a Change Directive.

~ ~

~

~ ~

~ ~ _ , _ ,,,_y
ARTICLE 7 OWNER'S RESPONSIBILTTIES
§ 7.1 General
§ 7.1.1 The Owner shall designate in writing a representative who shall have express authority to bind the Owner
with respect to all Project matters requiring the Owner's approval or authorization.
,;.,
§ 7.1.2 The Owner shall render decisions in a timely manner and in accordance with the DesigrL-Builder's schedule " ,,
agreed to by the Owner. The Owner shall furnish to the Design-Builder, within 15 days after,r`eceipt of a written
~^3
request, information necessary and relevant for the Design-Builder to give notices of projec ''commencement and
~
take other action to protect the integity and exclusivity of the project payment bond(s).

Yi

~ ~
§ 7.2 Information and Services Required of the Owner
Documents with
§ 7.2.1 The Owner shall furnish information or services required of the Owner by the Design-Build
__.-.,_~.
_.._ _,
,_ -- ~
reasonable promptness.
,

AIA Document A141'"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING; This AIA-" Document is
protecfed by U.S. C6~~yriyht Law and International Treaties. Unauthurizecl reproduction or distribution of this AIA`a Document, or any portion of it,
may result in sevore civil and criminal penalties, and will be prosecuted to the maximum extent possible uncierthe law. This draH was produced by AIA
software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14!2016, and is not for resale,
(1196251001)
User Notes:

PAPR - 004673

}
F
a

.~ $

 § 7.2.2 The.Owner shall provide, to the extent under the Owner's control and ifnot required by the Design-Build
Documents to be provided by the Design-Builder, the results and reports of prior tests, inspections or investigations
conducted for the Project involving structural or mechanical systems; chemical, air and water pollution; hazardous
materials; or environmental and subsurface conditions and information regarding the presence of pollutants at the
Project site. Upon receipt of a written request from the Design-Builder, the Owner shall also provide surveys
describing physical characteristics, legal limitations and utility locations for the site of the Project, and a legal
description of the site under the Owner's control.
j
~'

t

§ 7.2.3 The Owner shall promptly obtain easements, zoning variances, and legal authorizat ons or entitlements
{
regarding site utilization where essential to the execution of the Project.

~

§ 7.2.4 The Owner shall cooperate with the Design-Builder in securing land development, zoning, and other permits,
licenses and inspections.
~ ~
§ 7.2.5 The services, information, surveys and reports required to be provided by the Own r`uri~der this Agreement,
shal I be furnished at the Owner's expense, and except as otherwise specifically provided inthis. Agreement or
elsewhere in the Design-Build Documents or to the extent the Owner advises the Design-Builder to the contrary in
writing, the Design-Builder shall be entitled to rely upon the accuracy and completeness thereof In no event shall
the Design-Builder be relieved of its responsibility to exercise proper precautions relating to the safe performance of
the Work.
~
~`
t L
§ 7.2.6 If the Owner observes or otherwise becomes aware of a fault or defect in the Work or non-conforrimity`with°
the Design-Build Documents, the Owner shall give prompt written notice thereof to the Deign B~,ilde!',

-,

§ 7.2.7 Prior to the execution of the Design-Build Amendment, the Design-Builder may request in writing that the
Owner provide reasonable evidence that the Owner has made financial arrangements to fulfill the Owner's
obligations under the Design-Build Documents and the Design-Builder's Proposal..
..
1
§ 7.2.8 Except as otherwise provided in the Design-Build Documents or when direct communications have been
specially authorized, the Owner shall communicate through the Design-Builder with persons or entities employedbr
..,
retained by the Design-Builder.
.a

~
§ 7.2.9 Unless required by the Design-Build Documents to be provided by the Design-Builder, the Owner shall,._
_
upon request from the Design-Builder, furnish the services of geotechnical engineers or other consultants for
investigation of subsurface, air and water conditions when such services are reasonably necessary to properly carry
the services
~`
out the desi~ services furnished bY the DesiPte-Builder. In such event~ the Desi~-Builder shall_:speci fy..:..
required. Such services may include, but are not limited to, test borings, test pits, determinations of soil bearing
values, percolation tests, evaluations of hazardous materials, ground corrosion and resistivity tests and necessary
opeeations for anticipating subsoil conditions. The services of geotechnical engineers) or other, consultants s~i'all , :
include preparation and submission of ail appropriate reports and professional recommendations.
'' ,
insurance
set
forth
in
Exhibit
B.
shall
purchase
maintain
as
§ 7.2.10 The Owner
and
1 f._~ ._._. _.. . __...
- . , ., ..~
§ 7.3 Submittals
a
§ 7.3.1 The Owner shall review and approve or take other appropriate action on Submittals -Review ofSubmittalsis--• - - ~'
not conducted for the purpose of determining the accuracy and completeness of other details, such as dimensions
and quantities; or for substantiating instructions for installation or performance of equipment or systems;-or for --...:.__
` ~•.,,
determining that the Submittals are in conformance with the Design-Build Documents, all of which remain the
responsibility of the Design-Builder as required by the Design-Build Documents. The Ownerrs action will betaken-.. ~';~
~~
in accordance with the submittal schedule approved by the Owner or, in the absence of an approved submittal
=~'; ~
schedule, with reasonable promptness while allowing sufficient time in the Owner's judgment tb permit adequate
review. The Owner's review of Submittals shall not relieve the Design-Builder of the obligations under
Sections 3.1.11, 3.1.12, and 5.2.3. The Owner's review shall not constitute approval of safety precautions or, unless
f
otherwise specifically stated by the Owner, of any construction means, methods, techniques, sequences or
procedures. The Owner's approval of a specific item shall not indicate approval of an assembly of whicfi tteitem is ' S 3

AIA Document A141T"' — 2014. Copyright m 2004 and 2014 by The American Institute of Architects. Ail 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 rosult in severe civil and criminal penalties, and will be prosecuted to the maximum oxtont possible unclerthe law. This draftwas produced by AIA
software at 14:12:43 on 11/20!2015 under Order No.0239586208_t which e~lres on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

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.19

 § 7.3.2 Upon review of the Submittals required by the Design-Build Documents, the Owner or its designee shall
notify the Design-Builder of any non-conformance with the Design-Build Documents the Owner discovers.
§ 7.4 Visits to the site by the Owner shall not be construed to create an obligation on the part of the Owner to make
on-site inspections to check the quality or quantity of the Work. The Owner shall neither have control over or charge
of, nor be responsible for, the construction means, methods, techniques, sequences or procedures, or for the safety
precautions and programs in connection with the Work, because these are solely the Design-Builder's rights and
responsibilities under the Design-Build Documents.
a
§ 7.5 The Owner shall not be responsible for the Design-Builder's failure to perform the Work iri accordance with
the requirements of the Design-Build Documents. The Owner shat l not have control over oX charge of; -and will-not- ~
be responsibI'e for acts or omissions of the Design-Builder, Architect, Consultants, Cbntrac~ors,; or their agents or
employees, or any other persons or entities performing portions of the Work for the Design=Builder.

_._ . t
--

s

s

§ 7.6 The Owner has the authority to reject Work that does not conform to the Design-Build Documents, The Owner
shall have authority to require inspection or testing of the Work in accordance with Section.15.5.2, whether or not
such Work is fabricated, installed or completed. However, neither this authority of the Owner r%or a decision made in
good faith either to exercise or not to exercise such authority shall give rise to a duty or responsibility of the Owner
to the Design-Builder, the Architect, Consultants, Contractors, material and equipmeirt sup~jliers, their agents or
y
,+
employees, or other persons or entities performing portions of the Work.
'~ 1
pI!
§ 7.7 The Owner shall determine the date or dates of Substantial Completion in accordance~witir"Section`y.8 and the
date of final completion in accordance with Section 9.10.
§ 7.8 Owner's Right to Stop Work
If the Design-Builder fails to correct Work which is not in accordance with the requirements of the Design-Build "'
Documents as required by Section 11.2 or persistently fails to carry out Work in accordance with the Design=Build_.,
Documents, the Owner may issue a written order to the Design-Builder to stop the Work, or any portion thereof, ~
until the cause for such order has been eliminated; however, the right of the Owner to stop «he Work shall not give:
rise to a duty on the part of the Owner to exercise this right for the benefit of the Design-Builder or any other person
_
or entity, except to the extent required by Section 5.13.1.3.

.
- , `'

i

"`
§ 7.9 Owner's Right to Carry Out the Work
If the Design-Builder defaults or neglects to carry out the Work in accordance with the Design-Build Documents `' • . .
and fails within aten-day period after receipt of written notice from the Owner to commence and continue
''
correction of such default or neglect with diligence and promptness, the Owner may, without prejudice to other
remedies the Owner may have, correct such deficiencies. In such case, an appropriate Change^Order shall be issued•"'~
~
deducting from payments then or thereafter due the Design-Builder the reasonable cost of cc~rre~ting such '~ :deficiencies. If payments then or thereafter due the Design-Builder are not sufficient to cover such amounts, the .:
Design-Builder shall pay the difference to the Owner. For Work on the critical path to be `efioial occupancy ofthe
Project (or defined component thereof the ten-day period referenced herein is reduced to fi e SS) days duringsthe
60 days prior to substantial completion as shown on the last schedule properly submitted u~der.~ § 3.1.9. ~ ~
~ •,-_..,:,_~.::_.:y-, ,. .._._...._._.-.. ._,...:-_
ARTICLE 8 TIME
~...-:..-_...__--v-,---.-_:T.~,,,_..T.-_,-•-._:..,. --- ._
§ 8.1 Progress and Completion
§ 8.1.1 Time limits stated in the Design-Build Documents are of the essence of the Contract. By executing the
Design-Build Amendment the Design-Builder confirms that the Contract Time is a reasonable period..for performing
the Work.
~~
§ 8.1.2 The Design-Builder shall not, except by agreement of the Owner in writing, commence flie Work prior to the ~' .
~`~, •~~
effective date of insurance, other than property insurance, required by this Contract. The Cc;~~ntract Time shall not be
!3
adjusted as a result of the Design-Builder's failure to obtain insurance required under this Contract.
§ 8.1.3 The Design-Builder shall proceed expeditiously with adequate forces and shall achi~ve Substantial
~ ; -~~- -'~`~`~f'"~" `~ `~ ~Completion within the Contract Time.

`

§ 8.1.4 LIQUIDATED DAMAGES FOR LATE SUBSTANTIAL AND FINAL COMPLETION OF THE WORK.
AIA Document A1'41TM — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA" Document is
protected by U.S. Copyright Law and InternaEional Treaties. Unauthorized reproduction or distribution of this AIA~' Document, or any portion of it,
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20

 The Owner and the Contractor agree that time is of the essence and that the Owner will suffer significant damage,
hardship, and loss if the Work is not substantially completed within the Contract Time. Damages the Owner will
incur as a result of breach of contract by failure to achieve substantial completion are: use of relocatable classrooms;
use of alternate sites for the educational program; disruption of class locations; disruption of athletic program;
disruption of public service activities planned for the project; loss of rental of the project; sgcur~ty risks due to
comingling of project workers with additional persons on and near the site; additional safety risks of equipment,
vehicles, and unfinished work on the campus during the academic term; general disruption'of tYle teaching and
learning process due to project activities during the academic term; moving equipment during t~e academic term
when students and full staff are present; harm to the Owner's reputation and established goodwill among the
-community, parents, students, and staff due to late delivery of the project; loss of student morale-and academic
performance due to the ongoing Work during the academic term; harm to the Owner's public r~lations; disruption
and inefficiency of the management of all the Owner's facilities and other current const►uction~rojects. The
measurement of such damages is difficult. Accordingly, such damages are converted to Lqui ated Damages as
follows: for e8ch day the Work is not Substantially Complete beyond the Contract Time allovfed for Substantial
Completion, liquidated damages of $1000 will be due from the Design-Builder to the Owner;" -for each day the
Work is not Finally Complete beyond the Contract Time allowed for Final Completion, liquidated damages of $500
will be due from the Design-Builder to the Owner.
4
~ F
§ 8.2 Delays and Extensions of Time
~ ~
f
§ 8.2.1 If the Design-Builder is delayed at any time in the commencement or progress of the V✓rork by an act or
neglect of the Owner or of a consultant or separate contractor employed by the Owner; or by changes ordcred~ in the"
Work by the Owner; or by labor disputes, fire, unusual delay in deliveries, unavoidable cast~alties,.or otlicr causes. . . ...,...:
beyond the Design-Builder's control; or by delay authorized by the Owner pending mediation and binding dispute
resolution or by other causes that the Owner determines may justify delay, then the Contract Time shall be extended
by Change Order for such reasonable time as the Owner may determine.

'

§ 8.2.2 Claims relating to time shall he made in accordance with applicable provisions of Article ~4 "
s

1

(Paragraph deleted)
~V
::-_::,.,_
§ 8.2.3 Weather Delays: When adverse weather conditions are the basis for a request for'additional time,,such
request shall be documented by data substantiating the weather conditions a) were abnormal for a period of t in e '~
which could not have been reasonably anticipated; b) had an adverse effect on the work scheduled, and alternate
work unaffected by the weather could not have been done; and c) had an adverse effect on the construction schedule -• ...,
a
`'
such that the loss of work time will adversely impact the established completion date. The Contractor must make
'`~
every effort to mitigate the potential effect of the weather on the construction schedule including,..but-not limited to,
,~
rescheduling of subcontractors, pumping water from work areas, rescheduling work hours to,alternate workdays , ~~`
within the work week, or other such actions. Such time extension request shall be in writing and su6mitted'totli`e
District for approval within ten (10) days from the end of the event causing the impact on ttie construction sc~ `edule:'
An extension of time not requested within the appropriate time period shall not be considered. :The approved ;~ "
extension of time shall be incorporated in the next Change Order.
i ~
~ ;~
__
§ 8.2.4 Anticipated Weather Delays: A total of two (2) days per calendar month (non-cumulative) shah bej_
j
anticipated by the Contractor as "adverse weather," and such time shall not be considered justificatton for an
extension of time. Such anticipated adverse weather days are established only for normally scheduled work days - --•--~•— ~~
excluding Saturdays, Sundays and major holidays, unless such adverse weather conditions on those days are severe
enough to impact the scheduled work on the following work day. If adverse weather days beyond the.two (2) days_,
'`..~
anticipated are substantiated and the Contractor could not mitigate the impact of the additional adverse weather
days, an extension of time may be apowed only to the extent of the actual impact on the last:approved construction --,,
;
schedule and only to the extent of one (1) full day of extended time for each full working day of,,adverse weather
,''Y
conditions which prevented aforty-hour work week within a seven (7) day calendar week. ~ A request for adverse
weather extension shall not be allowed after the date established for substantial completion.
i ~
~
~ a
j
ARTICLE 9 PAYMENT APPLICATIONS AND PROTECT COMPLETION
~
~
§ 9.1 Contract Sum
,:
_ ._~
~—.
The Contract Sum is stated in the Design-Build Amendment.
AIA Document A141T"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"' Document is
protected by U.S. Copyright Law and InEernational Treat[es. Unau4hprized reproduction or distribution of this AIAi° Document, or any portion of if,
may rQsult in severe civil anti criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA
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(1196251001)
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z,~

 § 9.2 Schedule of Values
Where the Conhact Sum is based on a stipulated sum or Guaranteed Maximum Price, the Design-Builder, prior to
the first Application for Payment after execution of the Design-Build Amendment shall submit to the Owner a
schedule of values allocating the entire Contract Sum to the various portions of the Work and prepared in such form
and supported by such data to substantiate its accuracy as the Owner may require. This schedule, unless objected to
by the Owner, shall be used as a basis for reviewing the Design-Builder's Applications for ~ayment,
~ ''e
§ 9.3 Applications for Payment
§ 4.3.1 At least TWENTY ONE days before the date established for each progress paymen$, th~ Design-Builder
_
_...
}
shall submit to the Owner an itemized Application for Payment for completed portions of the ork; The application
shall be notarized, if required, and supported by data substantiating the Design-Builder's ri~ht to-payment as the - ----------~
Owner may require, such as copies of requisitions from the Architect, Consultants, Contractors; and material
suppliers, and shall reflect retainage if provided for in the Design-Build Documents.
§ 9.3.1.1 As provided in Section 6.3.9, Applications for Payment may include requests for payment on account of
changes in the Work that have been properly authorized by Change Directives, or by interi~ri`dterminations of the
~ F
Owner, but not yet included in Change Orders.
~

3

§ 9.3.1.2 Applications for Payment shall not include requests for payment for portions of th'e V~?ork for wluchthe
Design-Builder does not intend to pay the Architect, Consultant, Contractor, material supplier, or other persons or
entities providing services or work for the Design-Builder, unless such Work has been perfprmed by others whom
the Design-Builder intends to pay,
~
"~`-' `;
?...
_ ,. __,~u
§ 9.3.2 Unless otherwise provided in the Design-Build Documents, payments shall be made for services provided as
i
well.as materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work. If
h
approved in~advance by the Owner, payment may similarly be made for materials and equipment suitably stored off'
the site at a location agreed upon in writing. Payrr►ent for materials and equipment stored on or offthc site shall be conditioned upon compliance by the Design-Builder with procedures satisfactory to the Owner to establish the
Owner's title to such materials and equipment or otherwise protect the Owner's interest, anal shall include the costs
of applicable insurance, storage and transportation to the site for such materials and equiprr~entstoi~ed off the site.
n.......

~"'

V

i~

§ 9.3.3 The Design-Builder warrants that title to all Work, other than Instruments of Service, covered by. an
i._...
~ ` ` - -....,
Application for Payment will pass to the Owner no later than the time of payment. The Design-Builder furEher-. .,
wan~ants that, upon submittal of an Application for Payment, all Work for which Certificates for Payment have beer .;.,. {~
previously issued and payments received from tha Owner shall, to the best of the Design-Builder's knowledge,
'`
information and belief, be free and clear of liens, claims, secw•ity interests or encumbrances in favor of the
~
Design-Builder, Architect, Consultants, Contractors, material suppliers, or other persons or e}~fities entitledto make ' `
:. '"~,~~
a claim by reason of having provided labor, materials and equipment relating to the Work. ~'
~
§ 9.4 Certificates for Payment
SEE § A.1.5.1.3 FOR SCHEDULE. In accordance with the schedule set forth in § A.1.5.1~.3, fhe Owner jssue~to the
Design-Builder a Certificate for Payment indicating the amount the Owner determines is properly due, an~i notify
the Design-Builder in writing of the Owner's reasons for withholding certification in whole or mart as_p~ovi~ded in _
Section 9.5.1.
i
_,... ,._.. _.
r ...
...... .. . ....s
§ 9.5 Decisions to Withhold Certification
§ 9.5.1 The Owner may withhold a Certificate for Payment in whole or in part to the e~ctent reasonably necessary.t4_,
protect the Owner due to the Owner's determination that the Work has not progressed to the point indicated in the
Design-Builder's Application for Payment, or the quality of the Worlc is not in accordance with the Design-Build"' ~,
Documents. If the Owner is unable to certify payment in the amount of the Application, the,Owner will notify the
~ ~}
Design-Builder as provided in Section 9.4. If the Design-Builder aad Owner cannot agree oft a devised amount, the
Owner will promptly issue a Certificate for Payment for the amount that the Owner deems ~o be due and owing. The
Owner may also withhold a Certificate for Payment or, because of subsequently discoveredi evidence, may nullify
remedeen~t as ma be ~ec~ssar
{
the who(eir a
__. ,Y to protect the
Y
Owner from los for which the Design-Builder is responsble because of
_.,_
defective Wokemcudmg desnt
•
~ andlconstructton tnot
AIA Document A1417M — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"' document is
protecfed by U.S. Copyright Law anti International Treaties. Unauthorized reproduction or distribution of this AIAw 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 draft was produced by AIA
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(1196251001)
User Notes:

PAPR - 004677

22

 .2
.3
.4
.5
.6

.7

third party claims filed or reasonable evidence indicating probaUle filing of such claims unless
security acceptable to the Owner is provided by the Desi~-Builder;
failu►•e of the Design-Builder to mace payments properly to the Architect, Consultants, Contractors or
others, for services, labor, materials or equipment;
reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum;
damage to the Owner or a separate contractor;
-;
reasonable evidence that the Work will not be completed within die Contrac~ Tighe, and that the
unpaid balance would not be adequate to cover actual or liquidated damagesfor the anticipated delay;
or
# ~_.. .
repeated or substantial failure to carry out the Work in accordance with the Design-guild Documents.
i

§ 9.5.2 When the above reasons for withholding certification are removed, certification will be~jnade for amounts
previously withheld.
£ j
§ 9.5.3 If the Owner withholds certification for payment under Section 9.5.1.3, the Owner cl ay; at its sole option,
issue joint checks to the Design-Builder and to the Architect or any Consultants, Cohtractor'm~terial or equipment
suppliers, or ocher persons or entities providing services or work for the Design-Builder to ~vho~n the Design-wilder
j
failed to make payment for Work properly performed or material or equipment suitably dell,'ver~d,
s
§ 9.6 Progress Payments
§ 9.6.1 After the Owner has issued a Certificate for Payment, the Owner shall make payment irk the mann~r and
4 a-. ------..:. s = :._.._ _.__,.._ _, .
within the time provided in the Design-Build Documents.
`,
§ 9.6.2 The Design-Builder shall pay each Architect, Consultant, Contractor, and other person or entity providing
services or work for the Design-Builder no later than the time period required by applicable law, but in no event
,:: • , ~ •'
more than seven days after receipt of payment from the Owner the amount to which the Architect, Consultant,,.,.::.Contractor, and other person or entity providing services or work for the Design-Builder is entitled, reflectingpercentages actually retained from payments to the Design-Builder on account of the portion of the-Work perfgrm~d
by the Architect,•Consultant, Contractor, or other person or entity. The Design-Builder shall; by appropriate
agreement with each Architect, Consultant, Contractor, and other person or entity providing services or work for the
Design-Builder, require each Architect, Consultant, Contractor, and other person or entity providing services.o~ k
work for the Design-Builder to make payments to subconsultants and subcontractors in a similar manner,;
§ 9.6.3 The Owner will, on request and if practicable, furnish to the Architect, a Consultant, Contractor, or other "`° .. , .
",;
person or entity providing services or work for the Design-Builder, information regarding percentages of completion
~
or amounts applied for by the Design-Builder and action taken thereon by the Owner on account. of portions of the
Work done by such Architect, Consultant, Contractor or other person or entity providing services or work'for the ;.
Design-Builder.
E`
~ 'e ,
~ ~:
§ 9.6.4 The Owner has the right to request written evidence from the Design-Builder that ttie Design-Builder has ~ `
properly paid the Architect, Consultants, Contractors, or other person or entity providing se'rvipes or work~for~the
Design-Builder, amounts paid by the Owner to the Design-Builder for the Work. Owner shall have the rig~t to
contact the Architect, Consultants, and Contractors to ascertain whether they have been properly paid. Th~ Owner
shall have no obligation to pay or to see to the payment of money to a Consultant or Contractor.
s _ . ._.. . _ ....~..__.._._..__. _. _ _ . __~_ . . .._._.
§ 9.6.5 Design-Builder payments to material and equipment suppliers shall be treated in a manner similar to that
•,- .T --- . _ = provided in Sections 9.6.2, 9.6.3 and 9.6.4.
§ 9.6.6 A Certificate for Payment, a progress payment, or partial or entire use or occupancy of the Project by the``'
~ ~~`•,
Owner shall not constitute acceptance of Work not in accordance with the Design-Build Documents.
F

2

~~:.

'~

j

w
5

(Paragraph deleted)
~
~ ~
9.7 Failure of Pa meat
the Owner does of issue a Certificate for Payment, through no fault of the Design-Bui(d~, w~i~hin"tire Time ~~ "`"
required by the Design-Build Documents, then the Design-Builder may, upon seven additional,days'-written.notice..~.,----..< —:
to the Owner, stop the Work until payment of the amount owing has been received. The Contract Time shall be
~

~

E

f

AIA Document A141T"' — 2014. Copyright O 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"' Document is
nrutectsd by U,S. Copyright Law anti International Treaties. Unauthorized reproduction or distribution oFthfs AIA" Documont, or any portion of it,
may result in severe 'civil Emci criminal penaitiea, and will be prosecuted to tNe maximum extonk possiWle under the law. This draft was produced byAlA
software at 14:12:43 on 11/20/2015 under Order No.o239586208_1 which e~ires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004678

23

 extended appropriately and the Contract Sum shall be increased by the amount of the Design-Builder's reasonable
costs of shut-down, delay and start-up, plus interest as provided for in the Desig►-Build Documents.
§ 9.8 Substantial Completion
§ 9.8.1 Substantial Completion is the stage in the progress of the Work when the Worlc or designated portion thereof
is sufficiently complete in accordance with the Design-Build Documents so that the Ownercan: occupy or utilize the
Work for its intended use. The date of Substantial Completion is the date certified by the Owner in accordance with
this Section 9.8.
_
_~,
§ 9.8.2 When the Design-Builder considers that the Work, or a portion thereof which the Owner agrees to accept
separately, is substantially complete, the Design=Builder shall submit to the Owner an occu~ancy-permit-issued-by- -------~ --a
the South Carolina Office of School Facilities and a comprehensive list of items to be com}~let~d or corrected prior
to final payment. Failure to include an item on such list does not alter the responsibility of ~e ~esign-Builder to
complete all Work in accordance with the Design-Build Documents.
§ 9.8.3 Upon receipt of the Design-Builder's list, the Owner shall review the Work.. If the Owrier's review discloses
any item;. whether or not included on the Design-Builder's list, which is not sui~iciently complete in accoi'dan':ce with
the Design-Build Documents so that the Owner can occupy or utilize the Work or designated portion thereof for its
intended use, the Design-Builder shall, before issuance of the Certificate of Substantial Completion, complete or
correct such item upon notification by the Owner. In such case, the Design-Builder shall th~n submit a re~uest for
y
another review of the Work by the Owner.
§ 9.8.4 Prior to issuance of the Certificate of Substantial Completion under Section 9.8.5, tl~e Oy~meir,and . ,:._ ,_ .,_ _... _ .
Design-Builder shall discuss and then determine the parties' obligations to obtain and maintain property insurance
following issuance of the Certificate of Substantial Completion.
§ 9.8.5 When the Work or designated portion thereof is substantially complete, the Design-Builder will obtain for
the Owner an occupancy permit issued by the South Carolina Office of School Facilities and a Certificate of:,,. :
Substantial Completion that shall, upon the Owner's signature, establish the date of Substantial Completion;
establish responsibilities of the Owner and Design-Builder for security, maintenance, heat, iatilities,,damage to :they
Work and insurance; and fix the time within which the Design-Builder shall finish all items'on.the list"`~> :,..~.
accompanying the Certificate. Warranties required by the Design-Build Documents shall commenck'on.,thedale o , _
Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate.o~
Substantial Completion.
§ 9.8.6 The Certificate of Substantial Completion shall be submitted by the Design-Builder to the:Owner for written
acceptance of responsibilities assigned to it in the Certificate. Upon the Owner's acceptance,and consent of surety,-~ ~'~
if any, the Owner shall make payment of retainage applying to the Work or designated portion thereof"R~ymenh`
shall be adjusted for Worlc that is incomplete or not in accordance with the requirements ofthe{besign-Bi~ildj>"
Documents.
; ~
~ ~,<

€

~ ~
~ !
§ 9.9 Partial Occupancy or Use
§ 9.9.1 The Owner may occupy or use any completed or partially completed portion of the Wok at,any st~ge ;when,, _ ,
$
such portion is designated by separate agreement with the Design-Buitder, provided such o~cupancy or use is
-consented to, by endorsement or otherwise, by the insurer providing property insurance an -authorized by public - ~ •
authorities having jurisdiction over the Project. Such partial occupancy or use may commence whether or not the
portion is substantially complete, provided the Owner and Design-Builder have accepted in writing the ------ - ~ - ::, .,,
responsibilities assigned to each of them for payments,.retainage, if any, security, maintenance,,heat, utilities,
damage to the Work and insurance, and have agreed in writing concerning the period for correction of the Worlc and .,
commencement of warranties required by the Design-Build Documents. When the Design-$~uilder considers a
A~; ,±~
portion substantially complete, the Design-Builder shall prepare and submit a list to the Owner ~s provided under
Section 9.8.2. Consent of the Design-Builder to partial occupancy or use shall not be unreasonably withheld. The
stage of the progress of the Work shall be determined by written agreement between the Owner, and Design-Builder.

g

j

t

§ 9.9.2 Immediately prior to such partial occupancy or use, the Owner and Design-Builder shall jointly review tlie" ~~`
area to be occupied or portion of the Work to be used in order to determine and record the condition ofthe-Work.- -.-- - ...... .:+
AIA Document A141T'" — 2014. Copyright 0 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA' Document is
proE~eted by U.S. Copyright Luw ~nci International Treaties. Unauthorized reproduction or distrihutio~t of this AIA"~ Document, or any portion of it,
may result in severe civil and criminal penalties, and will be prosecuted to the maximum axtent possihle unclor the law. Thfs draH was produced by AIA
software at 14:12:43 on 11120/2015 under Ordar No.0239566208_1 which a~ires on 07/14/2016, and fs not for resale.
(1196251001)
User Notes:

PAPR - 004679

2,4

 § 9.9.3 Unless otherwise agreed upon, partial occupancy or use of a portion or portions of the Work shall not
constitute acceptance of Work not complying with the requirements of the Design-Build Documents.
§ 9.10 Final Completion and Final Payment
§ 9.10.1 Upon receipt of the Design-Builder's written notice that the Work is ready for final inspection and
acceptance and upon receipt of a final Application for Payment, the Owner will promptly make; such inspection.
When the Owner finds the Work acceptable under the Design-Build Documents and the Contract fully performed,
the Owner will, subject to Section 9.10.2, promptly issue a final Certificate for Payment. ~ j
,..~;
i
§ 9.10.2 Neither final payment nor any remaining retained percentage shall become due until thenesign=Builder
submits to the Owner (1) an affidavit that payrolls, bills for materials and equipment, and o~her;indebtedness ------•--- - --- ---}
connected with the Work, for which the Owner or the Owner's property might be ~•esponsille o~ encumbered, (less
amounts withheld by Owner) have been paid or otherwise satisfied, (2) a certificate eviden~ing'that insurance
required by the Design-Build Documents to remain in force after final payment is currentlyin effect, (3) a written
statement that the Design-Builder knows of no substantial reason that the insurance will not`be renewable to cover
the period required by the Design-Build Documents, (4) consent of surety, if any, to final payment, (5)
as-constructed record copy of the Construction Documents marked to indicate field changed and selections made
during construction, (6) manufacturer's warranties, product data, and maintenance and operations manuals, and (7)
if required by the Owner, other data establishing payment or satisfaction of obligations, such asp receipts, or releases
and waivers of liens, claims, security interests, or encumbrances, arising out of the Contract, to'the extent and' in
such form as may be designated by the Owner. If an Architect, a Consultant, or a Contractor, o►' other person or
"~
entity providing services or work for the Design-Builder, refuses to furnish a release or wai"ver r' equired by the
Owner, the Design-Builder may furnish a bond satisfactory to the Owner to indemnify the 4wner.againsl such_liens, ,.
__:~
claims, security interests, or encumbrances, If such liens, claims, security interests, or encumbrances remains
-~' ~
unsatisfied after.payments are made, the Design-Builder shall refund to the Owner all money that the Owner may be
,.~~
compelled to pay in discharging such liens, claims, security interests, or encumbrances, including all costs and
""
"~
reasonable attorneys' fees.
§ 9.10.3 If, after Substantial Completion of the Work, final completion thereof ismaterially-delayed through no fault
of the Design-Builder or by issuance of Change Orders affecting final completion, the Owner shall,,upon application
by the Design-Builder, and without terminating the Contract, make payment of the balanceEBue..for that portion# of
the Work fully completed and accepted. If the remaining balance for Work not fully completed or corrected
... is less, ,_
_i
than retainage stipulated in the Design-Build Documents, and if bonds have been furnished, the written cori"sent of
surety to payment of the balance due for that portion of the Work fully completed and accepted shall be submitted "' •. ,,
i
';;
by the Design-Builder to the Owner prior to issuance of payment. Such payment shall be made under terms and
conditions governing final payment, except that it shall not constitute a waiver of claims.
§ 9.10.4 The making of final payment shall constitute a waiver of Claims by the Owner except those arising''from'
.1
liens, Claims, security interests or encumbrances arising out of the Contract 8nd;~ansettled;'~ 'r''
.2
failure of the Work to comply with the requirements of the Design-Build Documents;
~ 4'
terms of special warranties required by the Design-Build Documents;
.3
.4
post-occupancy services to be provided by or through the Design-Builder;.
3
i, ¢
~,.

..,..,,k

... . ... ..- .._

if
§ 9.10.5 Acceptance of final payment by the Design-Builder shall constitute a waiver of claims by the
Design-Builder except those previously made in writing and identified by the Design-Build'er~as-unseltledat the time - - -'
of final Application for Payment.

ARTICLE 10 PROTECTION OF PERSONS AND PROPERTY
~
,1"
§ 10.1 Safety Precautions and Programs
~`,
The Design-Builder shall be responsible for initiating, maintaining and supervising all safety prgcautions and
~ ~`
~,
programs in connection with the performance of the Contract.
4 ~
~
§ 10.2 Safety of Persons and Property
protection to
{
§ 1Q.2.1 The Design-Builder shall be responsible for precautions for the safety of, and reasdna~le
+...._~—~.._......,_ ~,-: ,.:..,; ~..._ _. . ,,.z
prevent damage, injury or loss to
£.__.. .....:...... .._.:.. .:,. ,:_.. _,._. ,. _ ... :_
employees on the Work and other persons who may be affected thereby;
.1
AIA Document A741'"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA" Document is
protected by U.S. Copyright Law and International Troaties. Unauthorized reproduction or disEribution of this AIA~' Docwnent, or any portion of it,
may result in severe civil and criminal penalties, and will lie prosecuted to fhe maximum extent possiblo wiAerthr, law. This dreftwas produced byAlA
software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which e~ires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004680

25

 .2

.3

the Work and materials and equipment to be incorporated therein, whether in storage on or off the
site, under care, custody or control of the Design-Builder or the Architect, Consultants, or
Contractors, or other person or entity providing services or work for the Design-Builder; and
other property at the site or adjacent thereto, such as trees, shrubs, lawns, walks, pavements,
roadways, or structures and utilities not designated for removal, relocation or replacement in the
j
course of construction.

§ 10.2.2 The Design-Builder shall comply with, and give notices required by, applicable layvs, statutes, ordinances,
codes, rules and regulations, and lawful orders of public authorities, bearing on safety of pexso►s or property, or
their protection from damage, injury or loss.
§ 10.2.3 The Design-Builder shall implement, erect, and maintain, as required by existing cond'tions and
performance of the Contract, reasonable safeguards for safety and protection, including postin~danger signs and
other warnings against hazards, promulgating safety regulations, and notify owners and users o~adjacent sites and
"'
utilities of the safeguards and protections.
.
,. ..}
§ 10.2.4 When use or storage of explosives or other hazardous materials or equipment, or uiius~al methods; ale
necessary for execution of the Work, the Design-Builder shall exercise utmost care, and carry on such activities
j r
E
under supervision of properly qualified personnel.
{
j
§ 10.2.5 The Design-Builder shall promptly remedy damage and loss (other than damage or loss insured under
j
property insurance required by the Design-Build Documents) to property referred to in Sections 10:2.1:2 and `'-'-"'~ `
10.2.13, caused in whole or in part by the Design-Builder, the Architect, a Consultant, a Cpntractor, or.anyone_,__.,,: _~_,_„ _,, ~
directly or indirectly employed by any of them, or by anyone for whose acts they may be liable and for which the
`"'
Design-Builder is responsible under Sections 10.2.1.2 and 10,2.1.3; except damage or loss attributable to acts or
omissions of the Owner, or anyone directly or indirectly employed by the Owner, or by anyone fox whose acts the ``
Owner may be liable, and not attributable to the fault or negligence of the Design-Builder. The foregoing:obligations ..- ""
of the Design-Buildex are in addition to the Design-Builder's obligations under Section 3.1.14.
1

§ 10.2.6 T'he Design-Builder shall designate a responsible member of the Design-Builder's organization, at thesite,
whose duty shall be the prevention of accidents. This person shall be the Design-Builder's superntendent•upless
{
otherwise designated by the Design-Builder in writing to the Owner.
§ 10.2.7 The Design-Builder shall not permit any part of the construction or site to be loaded so as to cause damage • ~ ...
';
or create an unsafe condition.
§ 10.2.8 Injury or Damage to Person or Property. If the Owner or Design-Builder suffers .~rijury or damage to
person or property because of an act or omission of the other, or of others for whose acts such pasty is legally ,
responsible, written notice of the injury or damage, whether or not insured, shall be given td the other park~y with':
reasonable time not exceeding 21 days after discovery. The notice shall provide sufficient c~eta4] to enablethe ot~
'
~r
party to investigate the matter.
~ y , _ . _. __~
,, _.,____
§ 10.3 Hazardous Materials
§ 10.3.1 The Design-Builder is responsible for compliance with any requirements included in the Design-Build
Documents regarding hazardous materials. If the Design-Builder encounters a hazardous material or substance not
addressed in the Design-Build Documents and if reasonable precautions will be inadequate to prevent foreseeable
bodily injury or death to persons resulting from a material or substance, including but not limited to„asbestos-or~-...
~"`
,:p:on
Pof Ychlorinated biPhenYt CPCB), encountered on the site bY the Desi ~-Builder the Desi~-Builder shall~ u
~''>~
recognizing the condition, immediately stop Work in the affected area and report the condition to the Owner in
writing.
~
y
''

~i

`~} ~
§ 10.3.2 Upon receipt of the Design-Builder's written notice, the Owner shall obtain the se►~vic~s of a licensed
laboratory to verify the presence or absence of the material or substance reported by the Designs-Builder and, in the
event such material or substance is found to be present, to cause it to be rendered harmless.'+;Un~ess otherwise
'-~
required by the Design-Build Documents, the Owner shall fizrnish in writing to the Design-builder the names and
qualifications of persons or entities who are to perform tests verifying the presence or absence.of such material or. _ -.. . -, ..
substance or who are to perform the task of removal or safe containment of such material or substance. The
AIA Document A141T"' — 2014. Copyright m 2004 and 201A by The American Instltute of Architects. All rights reserved. WARNING: This AIA-' bocument is
protected by U.S. Copyright Law and International Troatfes, llnautharizecl reproduction or distribution of this AIA`~ Document, or any portion of if,
may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possihle under the law. This draft was produced by AIA
software at 14:12:43 on 1112012015 under Order No.0239586208_1 which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004681

26

 Design-Builder will promptly reply to the Owner in writing stating whether or not the Design-Builder has
reasonable objection to the persons or entities proposed by the Owner. If the Design-Builder has an objection to a
person or entity proposed by the Owner, the Owner shall propose another• to whom the Design-Builder has no
reasonable objection. When the material or substance has been rendered harmless, Work in the affected area shall
resume upon written agreement of the Owner and Design-Builder. By Change Order, the Contract Time shall be
extended appropriately and the Contract Sum shall be increased in the amount of the Design-Builder's reasonable
additional costs of shut-down, delay and start-up.
ti j
r

§ 10.3.3 To the fullest extent permitted by law, the Owner shall indemnify and hold harmless ~e Design-Builder,
the Architect, Consultants, and Contractors, and employees of any of them, from and against claims; damages,
losses and expenses, including but not limited to attorneys' fees, arising out of or resulting frorn•per-formance of-the- -- - ---Work in the affected area, if in fact the material or substance presents the risk of bodily injury or death as described
in Section 10.3.1 and has not been rendered harmless, provided that such claim, damage, lo$s or expense is
attributable to bodily injury, sickness, disease or death, or to injury to, or destruction of, tarigib~e property (other
than the Work itsel fl, except to the extent that such damage, loss or expense is due to the faulf'dr negligence of the
party seeking indemnity.
' "' t
§ 10.3.4 The Owner shall not be responsible under this Section 10.3 for materials or substances~the Design=Builder
brings to the site unless such materials or substances are required by the Owner's Criteria. 'Z't~e Owner shall be
responsible for materials or substances required by the Owner's Criteria, except to the extent o~the Design-B~ilder's
y
fault or negligence in the use and handling of such materials or substances.
n
_, . .
§ 10.3.5 The Design-Builder shall indemnify the Owner for the cost and expense the Owner,incucs_,(1) fon._ ..__.... _ . ..,_
remediation of a material or substance the Design-Builder brings to the site and negligently handles, or (2) where the
Design-Builder fails to perform its obligations under Section 10.3.1, except to the extent that the cost and expense
are due to the Owner's fault or negligence.

,.

s'

§ 10.3.6 If, without negligence on the part of the Design-Builder, the Design-Builder is held liable-by a governme~t
agency for the cost of remediation of a hazardous material- or substance solely by reason ofperforming Worlc as
required by the Design-Build Documents, the Owner shall indemnify the Design-Builder for all cost and expense
3
_:,...
thereby incurred.
.,......,..,...~~
..::..........
-_,.,.
§ 10.4 Emergencies
In an emergency affecting safety of persons ox property, the Design-Builder shalt act, at the Design-Builder's
discretion, to prevent threatened damage, injury or loss.
.:•,`;
••
. .:
~
ARTICLE 11 UNCOVERING AND CORRECTION OF WORK
t ~'"
~~
§ 11.1 Uncovering of Work
The Owner may request to examine a portion of the Work that the Design-Builder has cove~ed to determineif the
Worlc has been performed in accordance with the Design,Build Documents. If such Work is in~accordance with the
Design-Build Documents, the Owner and Design-Builder shall execute a Change Order to adjust the Conti~actr.Time
and Contract Sum, as appropriate. If such Work is not in acwrdance with the Design-BuildDocuments, the c ~ sts of
uncovering and correcting the Work shall be at the Design-Builder's expense and the Design-Builder shall no be
entitled to a change in the Contract Time unless the condition was caused by the Owner or a separate contractor in
which event the Owner shall be responsible for payment of such costs and the Contract Tirriewll be adjusted°as— '~ - - - -'
appropriate.
§ 11.2 Correction of Work
§ 11.2.1 Before or After Substantial Completion. The Design-Builder shall promptly correct Work either rejected
by the Owner or failing to conform to the requirements of the Design-Build Documents, wh~theC"discovered before 1:; ~`"i
' ~ 'i
or after Substantial Completion and whether or not fabricated, installed or completed, Costs of correcting such
`~
rejected or nonconforming Work, including additional testing and inspections, the cost of uncov ering and
replacement, and compensation for any design consultant employed by the Owner whose expenses and
y
compensation were made necessary thereby, shall be at the Design-Builder's expense.
F
S

+

AIA Document A141'"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Archftacts. All rights reserved. WARNING; Th)s AIA" Document is
protected by U.S. GapyrighE Lew 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 ~e prosecuted to the maximum extent possible unclertiie law. This draft was produced by AIA
software at 14:12:43 on 11/20/2015 under Order No.0239686208_1 which e~ires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004682

Z7

 § 11.2.2 After Substantial Completion
§ 11.2.2.1 In addition to the Design-Builder's obligations under Section 3.1,12, if, within the three-year duration of
the Design-Builder's post-occupancy obligations„ any of the Work is found not to be in accordance with the
requirements of the Design-Build Documents, the Design-Builder shall correct it promptly after receipt of written
notice from the Owner to do so unless the Owner has previously given the Design-Builder a written acceptance of
such condition, The Owner shall give such notice promptly after discovery of the condition;. During this period for
correction of the Work, if the Owner fails to notify the Design-Builder and give the Design.,Budder an oppo►~tunity
to make the correction, the Owner waives the rights to require correction by the Design-Builder'• and to make a claim
for breach of warranty. If the Design-Builder fails to correct nonconforming Work within a reasonable time during
~
that period after receipt of notice from the Owner, the Owner may correct it in accordance with Section 7.9,'

s

§ 11.2.2.2 This year period for correction of Work shall be extended with respect to portions ofl Work first
performed after Substantial Completion by the period of time between Substantial Completion and the actual
#
completion ofthat portion of the Work.
§ 11.2.2.3 This period for correction of Work shall not be extended by corrective Work perforttyed by the
Design-Builder pursuant to this Section 11.2.
~ ~
~ ~s
fl

:.

§ 11.2.3 The Design-Builder shall remove from the site portions of the Work that are not in~ accordance with the
requirements of the Design-Build Documents and are neither corrected by the Design-Builder rior accepted by the
Owner.
t

,,.

_

~_

§ 11.2.4 The Design-Builder shall bear the cost of correcting destroyed or damaged construction of the Owner ox —:..__ . .
separate contractors, whether completed or partially completed, caused by the Design-Builder's correction or
•°
removal of Work that is not in accordance with the requirements of the Design-Build Documents.
§ 11.2.5 Nothing contained in this Section 11.2 shall be construed to establish a period of limitation with respect to
other obligations the Design-Builder has under the Design-Build Documents. Establishment of the two-year,perioc~
for correction of Work as described in Section 1 ].2.2 relates only to the specific obligation kof the Desigr -Builder too
correct the Work, and has no relationship to the time within which the obligation to comply,: with=the Design-B~kild;
Documents may be sought to be enforced, nor to the time within which proceedings may be'commenced to.est~blish
the Design-Builder's liability with respect to the Design-Builder's obligations other than specifically to,correct$the'_
Work.
§ 11.3 Acceptance of Nonconforming Work
If the Owner prefers to accept Work that is not in accordance with the requirements of the Design-Build,Documents, ..
the Owner may do so instead of requiring its removal and correction, in which case the Contract Sum will''be~.
reduced as appropriate and equitable. Such adjustment shall be effected whether or not final`payment has beenr:: ~`
made. Acceptance of Nonconforming Work may only be evidenced by written agreement specifying they ;~'' ~ ``
nonconformity and the Owner's informed consent to accept it. Nonconforming Work shall not become accepted
~ ~
~; r
Work by inaction or implication.'
ARTICLE 12 COPYRIGHTS AND LICENSES
~ ~,_._:,.:..,__..__ ~ ~._.,-T._:_.-...: ..:.;
§.12.1 Drawings, specifications, and other documents furnished by the Design-Builder, including those in electronic
form, are Instruments of Service. The Design-Builder, and the Architect, Consultants, Conf'raetors;-and any~other-= -- - - - S
person or entity providing services or work for any of them, shall be deemed the authors and owners of their
respective Instruments of Service, including the Drawings and Specifications, and shall retain all common-law;- •,.-__
'' .,
statutory and other reserved rights, including copyrights. Submission or distribution of Instruments of Service to
meet official regulatory requirements, or for similar purposes in connection with the Project,;is not,:to-6e~construed`- ..,,
'`-~
as publication in derogation of the reserved rights of the Design-Builder and the Architect, Consultants, and
ry ~
Contractors, and any other person or entity providing services or work for any of them.
F
§ 12.2 The Design-Builder and the Owner warrant that in transmitting L~struments of Service, qr any other
from the copyright
~
information, the transmitting party is the copyright owner of such information or has permissio .,...__r...::.__,_:.,,..__.._..
`- ~ " "
owner to transmit such information for its use on the Project.
~._.
AIA Document A141 TM — 2014. Copyright 0 2004 and 2014 by Tha American Institute of Architects. All rights reserved. WARNING: This AIA" Docwnent is
protected by U.S. Copyriflht Law and International Treaties. Unauthorized ruproductiai or distribution of this AIA`~ Documenf, or any portion of it,
may result in severe civil and criminal penalties, and will be prosecuted to file maximum extent possible under tho law. This draN was produced by AIA
soHware at 14:12:43 on 11/2W2015 under Order No.0239586208_7 which e~ires on 07/7M2016, and is not for resale.
(1196251001)
~
User Notes:

PAPR - 004683

3
r
s

28

 § 12.3 Upon execution of the Agreement, the Design-Builder grants to the Owner a limited, irrevocable and
non-exclusive license to use the Instruments of Service for purposes of constructing, using, maintaining, altering and
adding to the Project. .The license granted under this section permits the Owner to authorize its consultants and
separate contractors to reproduce applicable portions of the Instruments of Service for use in performing services or
construction for the Project.
1.2.3.1 PROTOTXPE. The Owner shall have the right to use the Instruments o~"f Service as a
"prototype" design under South Carolina Board of Architectural Examiners regulations and policies. Any
architect receiving the original plans from the Owner must first acknowledge and ~ccept full responsibility
for the adequacy of the design for its new project, as well as absolve the original Architect of any
responsibility of any kind as relates to the original design. Should the Owner provide -the Documents ---and/or Specifications to the Architects) for other Projects, then the original Archi~ect,~if not retained for
the other project(s); shall be relieved of any liabilities arising out of the other Project(sa and the Owner will
indemnify and hold harmless the original Architect from any Claims arising out o~ suc;~► other Project(s).
§ 12.3.1 The Design-Builder shall obtain non-exclusive licenses from the Architect, Consultants, and Contractors,
that will allow the Design-Builder to satisfy its obligations to the Owner under this Article 12. 'The Design-Builder's
licenses from the Architect and its Consultants and Contractors shall also allow the Owner, in the event this
Agreement is terminated for any reason to obtain a limited, irrevocable and non-exclusive license for purposes of
constructing, using, maintaining, altering and adding to the Project, subject to South Carolina regulations and4
policies concerning successor design professionals...
j ~
§ 12.3.2 Tn the event the Owner alters the Instruments of Service without the author's written.authoKizatio~.or.uses_, _
the Instruments of Service without retaining the authors of the Instruments of Service, the Owner releases the
Design-Builder, Architect, Consultants, Contractors and any other person or entity providing services or work for
any of them, from all claims and causes of action arising from or related to such uses. 'The terms of this Section ,,.:.12,3.2 shall not apply if the Owner rightfully terminates this Agreement for cause under Sections 13.1.4. or--13.2.2..,,

, . ___..
^ "'
,.

ARTICLE 13 TERMINATION OR SiJSPENSION
§ 13.1 Termination or Suspension Prior to Execution of the Design-Build Amendments
§ 13.1.1 If the Owner fails to make payments to the Design-Builder for Work prior to execution. o_f the Design-wild
Amendment in accordance with this A~'cement such failure shall be considered substantial nonPerformance and 't.
cause for termination or, at the Design-Builder's option, cause for suspension of performance of services under__~k►is
Agreement. If the Design►-Builder elects to suspend the Wank, the Design-Builder shall give seven days' written ~ "
notice to the Owner before suspending the Work. In the event of a suspension of the Work, the Design-Builder shall +
have no liability to the Owner for delay or damage caused by the suspension of the Work. Before-resuming the
Work, the Design-Builder shall be paid all sums due prior to suspension and aay expenses incurred in the ~,.
interruption and resumption of the Design-Builder's Work, The Design-Builder's compensation for, .arid;timg to
!
"s~ ~~~
complete, the remaining Work shall be equitably adjusted.

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§ 13.1Z If the Owner suspends the Project, the Design-Builder shall be compensated for the Work perforr[iedk~rior
to notice of such suspension. When the Project is resumed, the Design-Builder shall be corr~pet~sated for eXpenses
compensation
for•,
incurred in the interruption and resumption of the Design-Builder's Work. The Design-BuiCder~s
~
:-. ..
and time to complete, the remaining Work shall be equitably adjusted.

,~

§ 13.1.3 If the Owner suspends the Project for more than 90 cumulative days for reasons other than the fault of the
Design-$uildec, the Design-Builder may terminate thrs Agreement by giving not less than seven days'_.written- --- .
notice.
§ 13.1.4 Either party may terminate this Agreement upon not less than seven days' written notice should the other
party fail substantially to perform in accordance with the terms of this Agreement through rio f~ult of the party
''
initiating the termination.
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§ 13.1.5 The Owner may terminate this Agreement upon not less than seven days' written notice to the
~ `~"' ~ "~ ^`" '~ "~
Design-Builder for the Owner's convenience and without cause.

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~
1

AIA Document A141 TM — 2014. Copyright O 2004 and 2014 by The American Institute of Architects. Ail rights reserved. WARNING: This AIA"' Document is
protQeted 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 anti criminal penplties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA
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(1196251001)
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 § 13.1.6 Tn the event of termination not the fault of the Design-Builder, the Design-Builder shall be compensated for
Work performed prior to termination and any other expenses directly attributable to termination for which the
Design-Builder is not otherwise compensated. In no event shall the Design-Builder's compensation under this
Section 13.1.6 be greater than the compensation set forth in Section 2.1.
§ 13.2 Termination or Suspension Following Execution of the Design-Build Amendment§.13.2.1 Termination by the Design-Builder
§ 13.2.1.1 The Design-Builder may terminate the Contract ifthe Work is stopped for a period of 30 consecutive
days through no act or fault of the Design-Builder, the Architect, a Consultant, or a Contractor,'or their agents or
employees, or any other persons or entities performing portions of the Work under direct or indirect conri act with
the Design-Buildea•, for any of the following reasons:
j
--•.1
Issuance of an order of a court or other public authority having jurisdiction tat tequires all Work to
be stopped;
~ ,~
.2
An act of government, such as a declaration of national emergency that requires all Work to be
stopped;
.3
Because the Owner has not issued a Certificate for Payment and has not noti~ied~the Design-Builder
of the reason for withholding certification as provided in Section 9.5.1, or because the Owner has not
made payment on a Certificate for Payment within the time stated in the DesignBuild Documents; or
.4
The Owner has failed to furnish to tha Design-Builder promptly, upon the DPsigin-Builder's rey~uest,
reasonable evidence as required by Section 7.2.7.
~ j
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§ 13.2.1.2 The Design-Builder may terminate the Contract if, through no act ar fault of the Design=Builder, t~e ~ ~
Architect, aConsultant, aContractor, or their agents or employees or any other persons or entities..p~rformng , . _. _
portions of the Work under direct or indirect contract with the Design-Builder, repeated suspensions, delays or
interruptions of the entire Work by the Owner as described in Section 13.2.3 constitute in the aggregate more than
100 percent of the total number of days scheduled for completion, or 120 days in any 365-day period, whichever. is
.=~` '
less.

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§ 13.2.1.3 If one of the reasons described in Section 13.2.1.1 or 13.2.1.2 exists, the Design.-,Bixilder may, uponeven
days' written notice to the Owner, terminate the Contract and recover from the Owner payrrment for_ Work execSted
termination:
including reasonable overhead and profit on that executed Work, and costs incurred by reason of such
.._
_
,....„.
~
§ 13.2.1A If the Work is stopped for a period of 60 consecutive days through no act or fault of the Design=Builder or "
~
any other persons or entities performing portions of the Work under contract with the Design-Builder because the'" --.,.
Owner has repeatedly failed to fulfill the Owner's obligations under the Design-Build Documents with respect to
`~~
matters important to the progress of the Work, the Design-Builder may, upon seven additional days' written notice
<- "
.''`~.~
to the Owner, terminate the Contract and recover from the Owner as provided in Section 13.2, 13
~ ~
i~: ~''~
§ 13.2.2 Termination by the Owner For Cause
13.2.2.1 The Owner may terminate the Contract if the Design-Builder
s ~
'
~`' '
fails to submit the Proposal by the date required by this Agreement, or ifno ate is indicated, v~ithin a
.1
'
reasonable time consistent with the date of Substantial Completion;
.2
repeatedly refuses or fails to supply an Architect, or enough properly skilledsConsultants,_
Contractors, or workers or proper materials;
.3
fails to make payment to the Architect, Consultants, or Contractors for services, materials or labor in-- accordance with their respective agreements with the Design-Builder;
.4
repeatedly disregards applicable laws, statutes, ordinances, codes, rules and regulations,.or-lawful___,..
orders of a public authority; or
~,,;
.5
is otherwise guilty of substantial breach of a provision of the Design-Build Documents
't
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§ 13.2.2.2 When any of the above reasons exist, the Owner may without prejudice to any o er ~ights or remedies of Y~, `'J
the Owner and after giving the Design-Builder and the Design-Builder's surety, if any, sev~n days' written notice,
{
terminate employment of the Design-Builder and may, subject to any prior rights of the surety.;
;'s
tools, and
Exclude the Design-Builder from the site and take possession of all materials, equipment,~-"'-,.r,__.~.,
.l
..... _~
construction equipment and machinery thereon owned by the Design-Buildeh; °"-' -""„`
.2
Accept assignment of the Architect, Consultant and Contractor agreements pursuant-to.-::.,....._...~.... _.,._.-_ .___ , __.
Section 3.1.15; and
AIA Document A1A1T" — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA" Document is
protected by U.S. Copyriytit LTw ~ncl International Treaties. Unauthorized reproduction or distrilxition of tills AIA' Document, or any portion of it,
may result in severe civil and criminal penalties, and will bo prosecuted to the maximum extent possible under the law. This draft was produced by AIA
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30

 .: ..

_

-

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Finish the Work by whatever reasonable method the Owner may deem expedient. Upon written
request of the Design-Builder, the Owner shall furnish to the Design-Builder a detailed accounting of
the costs incurred by the Owner in finishing the Work.

§ 13.2.2.3 When the Owner terminates the Contract for one of the reasons stated in Section 13.2.2.1, the
Design-Builder shall not be entitled to receive further payment until the Work is finished. - ~!
§ 13.2.2.4 If the unpaid balance of the Contract Sum exceeds costs of finishing the Work a~ld other damages
incurred by the Owner and not expressly waived, such excess shall be paid to the Design-Builder. If such costs and
damages exceed the unpaid balance, the Design-Builder shall pay the difference to the Owrer.'Tt~e obligation far
such payments shall survive termination of the Contract and are expressly included in the performance of the Work
covered by the Design-Builder's performance bond.
i

- -~

§ 13.2.3 Suspension by the Owaer for Convenience
§ 13.2.3.1 The Owner.may, without cause, order the Design-Builder in writing to suspend, delay or interrupt the
Work in.whole or in part for such period of time as the Owner may determine.
~` "~
§ 13.2.3.2 The Contract Sum and Contract Time shall be adjusted for increases in the cost and ~ime caused by
suspension, delay or interruption as described in Section 13.2.3.1. Adjustment of the Contact ~um shall incitide
protit. No adjustment shall be made to the extent
that performance is, was or would have been so suspended, delayed or interrupted by another cause
.1
~
$
for which the Design-Builder is responsible; or
.2
that an equitable adjustment is made or denied under another provision of the C,gntraGt
_ _.

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§ 13.2.4 Term nation by the Owner for Convenience
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§ 13.2.4.1 The Owner may, at any time, terminate the Contract for the Owner's convenience and without cause..,. ~~ "~
..
§ 13.2.4.2 Upon receipt of written notice from the Owner of such terrnination for the Owner s cor~vemence,,We
Design-Builder shall
1 ,~
..
-;=:_..~ .
.1
cease operations as directed by the Owner in the notice;
.2
take actions necessary, or that the Owner may direct, for the protection and preservation of-the ~Vor, ;
-<__ ,,.
and,
~
.,.,
.3
except for Work directed to be performed prior to the effective date of termination stated in'the .. ,_
j
' - ...
notice, terminate all existing Project ageements, including agreements with the Architect,
Consultants, Contractors, and purchase orders, and enter into no further Project agreements and
purchase orders.
§ 13.2.4.3 In case of such termination for the Owner's convenience, the Design-Builder shad be,entitled:to r"ecelve
~
~~ '.
payment for Work executed, and costs incurred by reason of such termination.
ARTICLE l4 CLAIMS AND DISPUTE RESOLUTION
~ j
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§ 14.1 Claims
§ 14.1.1 Definition. A Claim is a demand or assertion by one of the parties seeking, as a mattes of right payrr4ent of __
money, or other relief with respect to the terms of the Contract. The term "Claim" also includes other disputes and
matters in question between the Owner and Design-Builder arising out of or relating to the Contract; The- • •-~ -responsibility to substantiate Claims shall rest with the party making the Claim.
§ 14.1.2 Time Limits on Claims. The Owner and Design-Builder shall commence all claims and causes of action,
whether in contract, tort, breach of warranty or otherwise, against the other, arising out of or related to the Contraot ~.,
in accordance with the requirements of the binding dispute resolution method selected in Section 1.3, within the time '``; ~t
period specified by law.
~
~;
'i
§ 14.1.3 Notice of Claims
§ 14.1.3.1 Prior To Final Payment. Prior to Final Payment, Claims by either the Owner or Design-Builder must be
initiated by written notice to the other party within 21 days after occurrence of the event giying;rise to suc}i Claim or"" '~~
within 21 days after the claimant first recognizes the condition giving rise to the Claim, whichever:.is dater..,-::. :_.,, _: ;- ...,,_...
AIA Document A141TM — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"' Document is
protected by U.S. Cnpyriyht Law and International Treaties. Unauthorized reproduction or distribution of this AIA~ Document, ar any portion of it,
may result in severe civil anti criminal penalties, aiiJ will be prosecuted to the maximum extent possible under the law. Th(s draft was produced by AIA
software at 14:12:43 on 11/20/201b under Order No.0239586208_1 which expires on 07/1412016, and is not for resale.
(1196251001)
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31

 § 14.1.3.2 Claims.Arising After Final Paynnent. After Final Payment, Claims by either the Owner or
Design-Builder that have not otherwise been waived pursuant to Sections 9.10.4 or 9.10.5, must be initiated by
prompt written notice to the other party. The notice requirement in Section 14.1.3.1 and the Initial Decision
requirement as a condition precedent to mediation in Section 14.2.1 shall not apply.
§ 14.1.4 Continuing Contract Performance. Pending final resolution of a Claim, except as otherwise agreed in
writing or as provided in Section 9.7 and Article 13, the Design-Builder shall proceed diligently with performance of
the Contract and the Owner shall continue to make payments in accordance with the Design-Bijild Documents.
j
§ 14.1.5 Claims for Additional Cost. If the Design-Builder intends to make a Claim for ari increase in'the TContract
Sum, written notice as provided herein shall be given before proceeding to execute the portion of the Work-that- -- -relates to the Claim. Prior notice is not required for Claims relating to an emergency endangering life or property
arising under Section 10.4.
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§ 14.1.6 Claims for Additional Time
§ 14.1.6.1 If the Design-Builder intends to make a Claim for an increase in the Contract Tiirie;'~vritten notice as
provided herein shall be given. The Design-Builder's Claim shall include an estimate of cost a "d of probable effect
of delay on progress of the Work. In the case of a continuing delay, only one Claim is nece~say.
y
7

(Paragraph deleted)
§ 14.1.7 Claims for Consequential Damages
y
The Design-Builder and Owner waive Claims against each other for consequential damages arising out odor relating `~ ` -+
to this Contract. This mutual waiver includes
-.,,.,,. . . .
,_. ,_
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damages incurred by the Owner for rental expenses, for losses of use, income, profit, financing,
.1
`'
business and reputation, and for loss of management or employee productivity or of the services of
such persons; and
.:
.2
damages incurred by the Design-Builder for prmcipai office expenses including the compensation of ,,
personnel stationed there, for losses of financing, business and reputation, and for loss of profit• ,
~
except anticipated profit arising directly from the Work and otherwise available undet:this'~~
Agreement.
This mutual waiver is applicable, without Limitation, to all consequential damages due to either party's.termination..
in accordance with Article 13. Nothing contained in this Section 14.1.7 shall be deemed to preclude an award of_
liquidated damages, when applicable, in accordance with the requirements of the Design-Build Documents.
§ 14.2 Initial Decision
§ 14,2.1 An initial decision shall be required as a condition precedent to mediation of all Claims between the Owner
and Design-Builder initiated prior to the date final payment is due, excluding those arising under Sections 10,.3 acid
10.4 of the Ageement and Sections B.3.2.9 and B.3.2.10 of Exhibit B to this Agreement, u~►les,'s 30 days have
passed after the Claim has been initiated with no decision having been rendered. Unless other~t!ise mutually agreed
~ ~
~'
in writing, the Owner shall render the initial decision on Claims.
3
14.2.2 Procedure
~ g .. ~,
§ 14.2.2.1 Claims Initiated by the Owner. If the Owner initiates a Claim, the Design-Builder shall provide a
s
written response to Owner within ten days after receipt of the notice required under Section€-14:-1.3.-1-:Thereafter;the---~~ - - -'
Owner shall render an initial decision within ten days of receiving the Design-Builder's response; (1) withdrawing
the Claim in whole or in part, (2) approving the Claim in whole or in part, or (3) suggesting acompromise
--:._:..,.
§ 14.2.2.2 Claims Initiated by the Design-Builder. If the Design-Builder initiates a Ciaim, the Owner will tale one..,
or more of the following actions within ten days after receipt of the notice required under Sgction 14.1.3.1:
1 re uest additional su ortin data 2 render an initial decision xe ectin the Claim in hol or in art
(3) render an initial decision approving the Claim, (4) suggest a compromise or (5) indicate tha it is unable to render
an initial decision because the Owner lacks sufficient information to evaluate the merits of the Claim.

''.
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~~
~

§ 14.2.3 In evaluating Claims, the Owner may, but shall not be obligated to, consult with o~ sek information from
persons with special knowledge or expertise who may assist the Owner in rendering a decision.-T'he_retention.of.:-- -_._. ... _...,!
such persons shall be at the Owner's expense.
AIA Document A141T'" — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"' Document is
~irotocted by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distrihution of this AIA'' Document, or any portion of ft,
may result in severe civil and criminal penalties, and will Uo prosecuted to the maximum extent possihle under the law. Thls draft was produced byAlA
software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, and is not for resale.
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 § 14.2.4 Tf the Owner requests the Design-Builder to provide a response to a Claim or to furnish additional
supporting data, the Design-Builder shall respond, within ten days after receipt of such request, and shall either (i)
provide a response on the requested supporting data, (2) advise the Owner when the response or supporting data. will
be furnished or (3) advise the Owner that no supporting data will be furnished. Upon receipt of the response or
supporting data, if any, the Owner will either reject or approve the Claiin in whole or in part;
§ 14.2.5 The Owner's initial decision shall (1) be in writing; (2) state the reasons therefor; and (3) identify any
change in the Contract Sum or Contract Time or both. The initial decision shall be final and binding on the parties
but subject to mediation and, if the parties fail to resolve their dispute through mediation, to binding dispute
_ __...___._ -_.:.
~
resolution.

__i

§ 14.2.6 Either party may file for mediation of an initial decision at any time, subject to the~tert~s of
Section 14.2.6.1.
}
s:..._.
§ 14.2.6.1 Either party may, within 30 days from the date of an initial decision, demand in yvritng that the other
party file for mediation within 60 days of the initial decision. If such a demand is made and: the;party receiving the
demand fails to file for mediation within the time required, then both parties waive their rights ~o mediate'~or pursue
binding dispute resolution proceedings with respect to the initial decision.
i

~~

~

§ 14.2.7 In the event of a Claim against the Design-Builder, the Owner may, but is not obligated to, notifjlj the
"`
surety, if any, of the nature and amount of the Claim. If the Claim relates to a possibility of'a Design-Buiider''s default, the Owner may, but is not obligated to, notify the surety and request the surety's assistance in r~solYing th,e.. _ _'
controversy.
~
(Paragraph deleted)
>~
,..:
, .: °• ' ~,
§ 14.3 Mediation
,. .<
§ 14.3.1 Claims, disputes, or other matters in controversy arising out of or related to the Contract,.:except those
waived as provided for in Sections 9.10.4, 9.10,5, and 14.1.7, shall be subject to mediation as'a condition'preceder~t
to binding dispute resolution.
~
§ 14.3.2 The parties shall endeavor to resolve their Claims by mediation. The mediation shall pro~eed..in advance:
of binding dispute resolution proceedings, which shall be stayed pending mediation for a period of 60 days'from the
date of filing, unless stayed for a longer period by agreement of the parties or court order.
§ 14.3.3 The parties shall share the mediator's fee and any filing fees equally. The mediation shall-be-held in the
place where the Project is located, unless another location is mutually agreed upon. Agreements reached iii-,,
., ~
.,~
mediation shall be enforceable as settlement agreements in any court having jurisdiction. S'
'~.4 ,y.

(Paragraphs deleted)
ARTICLE 15 MISCELLANEOUS PROVISIONS
§ 15.1 Governing Law
The Contract shall be governed by the law of the place where the Project is located.

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§ 15.2 Successors and Assigns
,•- ='-., -~ ~ - ~ ~• - § 15.2.1 The Owner and Design-Builder, respectively, bind themselves, their partners, successors; assigns and legal
representatives to the covenants, agreements and obligations contained in the Design-Build Documents'.~Bxcept as ••...
provided in Section 15.2.2, neither party to the Contract shall assign the Contract as a whole'~without written consent
~'~
of the other, If either party attempts to make such an assignment without such consent, thatyparty shall nevertheless
4
remain legally responsible for all obligations under the Contract.
7
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§ 15.2.2 The Owner may, without consent of the Design-Builder, assign the Contract to a lender providing
construction financing for the Project, if the lender assumes the Owner's rights and obligations?under the' `-~" ~~"`" `" ~
Design-Build Documents. The Design-Builder shall execute all consents reasonably required:to.facilitatesuch._._-. -_..____ _
assignment.
AIA Document A141TM — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"' Document is
protected by U.S. Copyright Law aitcl International Tr¢afies. Unauthorized reproduction or distribution of this AIAp' Document, or any portion of it,
may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible undor tho law. This draft was produced by AIA
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 § 15.2.3 If the Owner requests the Design-Builder, Architect, Consultants, or Contractors to execute certificates,
otfier than those required by Section 3.1.10, the Owner shall submit the proposed language of such certificates for
review at least 14 days prior to the requested dates of execution. If the Owner requests the Resign-Builder,
Architect, Consultants, or Contractors to execute consents reasonably required to facilitate assignment to a lender,
the Design-Builder, Architect, Consultants, or Contractors shall execute all such consents that are consistent with
this Agreement, provided the proposed consent is submitted to them for review at least 14 days~prior to execution.
1'he Design-Builder, Architect, Consultants, and Contractors shall not be required to execute certificates or consents
that would require knowledge, services or responsibilities beyond the scope of their service,.
~:
_. _ _. .. •.•--.-_.:. ...
~
§ 15.3 Written Notice
individual,
if
in
person
to
the
to
a
member
of the
Written notice shall be deemed to have been duly served delivered
firm or entity, or to an officer of the corporation for which it was intended; or if delivered a't, or sent by registered or
certified mail or by courier service providing proof of delivery to, the last business address known to the party
giving notice. Written notice may also be established by acknowledgements and responses exchanged via
electronic communications such as electronic mail or any internal messaging functionality of BIM and/or project
~ ~
~ '"
management software used by the parties for the project.
i
;
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§ 15.4 Rights and Remedies
§ 15.4.1 Duties and obligations imposed by the Design-Build Documents, and rights and reinec~ies available
thereunder, shall be in addition to and not a limitation of duties, obligations, rights and remedies otherwise imposed
~ I:__, :..,. .,.._: -~ M„__._~, .:
or available bylaw.
§ 15.4.2 No action or failure to act by the Owner or Design-Builder shall constitute a waiver of a right or duty
afforded them under the Contract, nor shall such action or failure to act constitute approval of or acquiescence in a
breach thereunder, except as may be specifically agreed in writing.
§• 15.5 Tests and Inspections
,.> `
; t
§ 15.5.1 Tests, inspections and approvals of portions of the Work shall be made as required;-by the Design-Build
Documents and by applicable laws, statutes, ordinances, codes, rules and regulations ox lawful orders of publict
authorities. Unless otherwise provided, the Design-Builder shall make arrangements for such-tests, inspeetions:anc~
approvals with an independent testing laboratory or entity acceptable to the Owner, or with the appropriate public ~._
authority, and shall bear all related costs of tests, inspections and approvals, T'he Design-Builder shall give tha:
,, ~f
Owner timely notice of when and where tests and inspections are to be made so that the Owner may be present for ~ -.. .
approvals
become
requirements
tests,
inspections
or
that
do
not
such procedures. The Owner shall bear costs of (1)
until after bids are received or negotiations concluded, and (2) tests,. inspections or approvals where building codes
or applicable laws or regulations prohibit the Owner from delegating their cost to the DesignBuilder. ''` a,
§ 15.5.2 If the Owner determines that portions of the Work require additional testing, mspe~tio~i or appro~al'not
included under Section 15.5.1, the Owner will instruct the Design-Builder to make arrangements for such;additional
testing, inspection or approval by an entity acceptable to the Owner, and the Design-Builder shall give timely ~otice
to the Owner of when and where tests and inspections are to be made so that the Owner may be present fo'r su h
j s
procedures. Such costs, except as provided in Section 15.5.3, shall be at the Owner's expen''se. ?
k

§ 15.5.3 If such procedures for testing, inspection or approval under Sections 1.5.5.1 and 15':5.2-reveal failure-ofthe , - - • - • •portions of the Work to comply with requirements established by the Design-Build Documents, all costs made
,:., - ,- •- - -.-..
necessary by such failure shall be at the Design-Builder's expense.
certificates of testin g, ms
~ pection or aPProyal shall, unless otherwise re9uired~ bY.:the'DesiSn-Build •.,.
§ 15.5.4 Re9uired
~
~
'~
Documents, be secured by the Design-Builder and promptly delivered to the Owner.
~i~Y

§ 15.5.5 If the Owner is to observe tests, inspections or approvals required by the Design-Build~Documents, the
4
Owner will do so promptly and, where practicable, at the normal place of testing.

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§ 15.5.6 Tests or inspections conducted pursuant to the Design-Build Documents shall be riiade pr"omptly fo'avoid`° '~ ' i
,._.,_
m.~..~:
#. ..
,. _, ..,. __.f
unreasonable delay in the Work.
AIA Document A147 n" — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved. WARPIING: This AIA"' Document is
protected by U.S. Copyright Law and International Treaties. Unauthprized reproductimi or dlstriUution of tills AIA~' UocumenC, or any ~~ortion of it,
may result in severe dvll and crtminai penalties, and will Ise prosecuted to the maximum extant possible under the law. This draHwas produced by AIA
sotlware at 14:12:43. on 11/20/2015 under Order No.0239586208_1 which e~ires on 07!14/2016, and is nol for resale.
(1196251001)
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34

 § 15.6 Confidential Information
If the Owner or Design-Builder transmits Confidential Information, the transmission of such Confidential
Information constitutes a warranty to the party receiving such Confidential Information that the transmitting party is
authorized to transmit the Confidential information. If a party receives Confidential Information, the receiving party
shall keep the Confidential Information strictly confidential and shall not disclose it to any other person or entity
except as set forth in Section 15,6.1,
~ --~~
a y
§ 15.6.1 A party receiving Confidential Information may disclose the Confidential Information~as required by law or
court order, including a subpoena or other form of compulsory legal process issued by a court or governmental
. .. . ,-{
entity. A party receiving Confidential Information may also disclose the Confidential Information fo its employee's,
consultants or contractors in order to perform services or work solely and exclusively for the Project,•provided those -- --_
employees, consultants and contractors are subject to the restrictions on the disclosure and u` seof Confidential
~
~;
Information as set forth in this Contract.
§ 15.7 Capitalization
!- 3
Terms capitalized in the Contract include those that are (1) specifically defined, (2) tine titles of numbered articles ox
~ ~
~ `~ ~`
(3) the titles of other documents published by the American Institute of Architects.
§ 15.8 Interpretation
p y
§ 15.8.1 In the interest of brevity the Design-Build Documents frequently omit modifying V'vorc~s such as "all'F, and
"any" and articles such as "the" and "an," but the fact that a modifier or an article is absent from one state►nent and
.r,__ .t..___
i:. ._ ..
h
appears in another is not intended to affect the interpretation of either statement.

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7

'

§ 15.8.2 Unless otherwise stated in the Design-Build Documents, words which have well-known technical or
construction industry meanings are used in the Design-Build Documents in accordance with such recognized
meanings.

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is

.,:
Conduct of the Design-Builder's Principals, Employees, Agents and Representatives.:.,<. , .: ~
s
The safety and. security of District staff, students and the general public are of utmost. priority tb the
District. To that end, the Design Builder shall be responsible for ensuring compliance by the..Desigri Builder and
any employees, agents or representatives, or subcontractors of the Design-Builder, including, all Design__ .
..
Consultants, to the following:

-,.
4

A.
B.
C.

D.

p rty, whether or not there is an
"~
:;:;
No ti rogs, alcohol knives, firearms or other wee pors on District p roe
-- - •-,.
"~
existing occupied building.
No fraternizing with, tiv~eats to, or use of abusive or profane language in the presence'of students::.parents;
.-'
~:~
visitors, or District representatives, agents, or employees.
No improper attire, actions or gestures while on any District property.
No smoking on District property in conformance to Horry County Board of Educ1tion policy. Vio ations
of such policy shall result in a civil penalty of up to $1,000 per occurrence to the individual ~esp~nsible
~ 5
and/or the Architect for whom the individual is a Principal, employee, agent, or representative.
Secure SLED (State Law Enforcement Division) criminal background checks ~n all. the,.. ,...~~ ~,..~:,:,~.-,-:-.:.,.:... ,:,
Design-Builder's Principals, employees, agents, and representatives, and subcontractors, performing work on
'~
District P roPertY and contractual(Y reQuire the same of all Desi~ Consultants their emPtoY ees agBrits and ' ~representatives. No employees, agents or representatives, or subcontractors, of the and Design Builder having
committed violent crimes, crimes against children, ar crimes of moral turpitude are allowed:access- to the --.,.__
District's premises. Such SLED criminal background checks shall be maintained on file in the oi~ices.o~the
- ,.. '`
Design Builder and made available to appropriate District personnel or the District's legal counsel
immediately upon request.
; ~'
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Promotional Materials

1
7

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The Design Builder shall have the right to include photographic or artistic representations of the_design.of_,_ . j
the Project among the Design B u i 1 d e r ' s promotional and professional materials. 'The Design
Builder shall be given reasonable access to the completed Project to make such representations: The'~Distri`ct"- ~-~ ~" ~'
shall provide professional credit for the Architect and Design B u i 1 d e r in the District's promotional
AIA Document A741TM — 2014. Copyright ~ 2004 and 2014 by Tha American Institute of Architects. All rights reserved. WARNING: This AIA`~ Document is
protected by U.S. Copyright Lave and International Treaties. Unauthorized reproduction ordis4ribution of this AIA`D 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 draft was produced by AIA
software et 14:12:43 on 11/20/201b under Order No.U239586208_1 which expires on 07N4/2o16, and is not for resale.
(1196251001)
User Notes:

PAPR - 004690

35

 materials for the Project. The Architect shall not make any representations in promotional and professional
materials other than the identification of the District without the Districts approval of the written copy prior to
submission, printing and distribution. This condition shall survive termination or completion of this Ageement.

Drug-Free Workplace

j
a

The Architect and the Architect's Design Consultants shall be responsible for initjating, maintaining and
supervising all drug-free programs in connection with the performance of this Ageement. ThP"~ drug-free programs
shall conform to Title 44, Chapter 107, § 44-107-10 through § 44-107-90 of the South Carolina Code of Laws~as
_._.....,. .. ,_
; :_...,._..._.
may be amended.
A
i

Right to Audit Project

_

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~ __~

The District shall have the right to audit the books and records of the Architect to the e`~tei~t that the books and
records relate to the performance of this Agreement and shall include all pricing and Ghat}ge Order 'data. Such
books and records related to the work covered under this Agreement shall be m~int~ined by t~e Architect
for a period of not less than three (3) years from the date of final payment to the Architect under this +~geement.
This requirement shall also apply to any Design Consultants performing services under the Architects dt~ection.

The Office of General Services of the State of South Carolina, or any auditor under contract with-the District- has ~ - ~ ~-r~
the right to audit the Architect's records related to any Project incorporated under this Agreement during the time
`~ .
frame stated in the previous paragraph, The Architect shall ensure that all records pertaining to any Project are
available for inspection at the location specified by the District within seventy-two (72) hours of notification at
no additional cost to the District. This requirement shall survive termination or completion of the Agreement i..
~0 r
Traffic Control On-Site and Off-Site: The Design-Builder shall conduct its operations u~ a manner to dot
interrupt pedestrian or vehicle traffic except as approved by the District and the South. Carolina. Department Hof
Transportation. The worksite shall be confined to the smallest area possible allowing maximum use'•of,:sireets,
sidewallcs, parking areas or other pedestrian areas and reduce to a minimum any hazard to traffic"or-..pedestrians.-.
The Design-Builder shall use worker and traffic control signs and devices necessary to comply with Section VI_.of
3
U.S. Department of Labor, Federal Highway Adminishation, Manual on Uniform Traffic Control Devices for `
Streets and Highways (Washington, DC: GPO) as may be amended, to facilitate traffic control on public roads,
{
streets, or highways when work performed obstructs public traffic. When such traffic areas at`e`obstructed to any.,..
extent by work in progress, workers equipped with flags shall direct vehicle and pedestria~`traffic. The w9rkers'so
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~ ';e ~ ~~"'~
designated shall not be assigned any other duties while engaged in directing traffic.
Safety Designee: The Design-Builder shall designate a competent individual at the worksite whose duty shall
be the prevention of accidents and the implementation and monitoring of all OSHA construction safety' st~ndards
and requirements. The competent individual shall serve as spotter where there is exposure o#'peclestria~s, students,
parents, or visitors to falling debris and, in addition, shall ensure on a daily basis that ill fencing-or ~other•safety •_. -_— 4
barriers are in an upright position to prevent ingress and egress to "lay down" areas or w,brk ,areas by unauthorized__.:.____ _ ?
individuals.
Licenses and Permits: During the term of the contract, the Contractor shall be responsible''for obtaining`"'
`.
and maintaining in good standing, all licenses (including professional licenses,,if any), permits, '
inspections and related fees for each or any such licenses, permits and/or inspections required by state, county,
`'~ ~3§_
city or other government entity or unit to accomplish.the work specified in this solicitarion ~~nd the contract.
`'
F
Iran Divestment Act: The Iran Divestment Act List is a list published by the [State] ~oard pursuant to
Section 11- 57-310 that identifies persons engaged in investment activities in Iran. Currently, ~he list is available at
the following iJRL: htpx//procurement.sc.gov/PS/PS-irandivestment.phtmL) Consistent with eetion~l-1-37.3i0(B); --'
the Contractor shall not contract with any person to perform a part of the Work, if, at the time you_ enter,into a. , _, ,_ ,_ _. ,,_, ___
subcontract, that person is on the then-current version of the Iran Divestment Act List
AIA Document A141T"' — 2014. Copyright O 2004 and 2014 by The American Institute of Architects. All rights reserved. WARNING: This AIA"' Oocumeiit is
~irotecfed by U.S. Copyright LHw ~nci International Treaties. Unauthorized reproduction or di3trilxition of this AIA~ Document, or any portion of it,
may result in severe civil and criminal peneltios, and will be nrosecufed to rile maximum extent possible under the law. This draRwes produced byAlA
software at 14:7 2:43 on 11/20/2015 under Order No.0239586208_1 which e~ires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004691

36

 Immigrant Workers: The "South Carolina Illegal Immigration and Reform Act" requires all employers to verify the
legal status of new employees and prohibits employment of any worker who is not legally in this country and
authorized to work. Effective January 1, 2012, all South Carolina employers are required to enroll in the U.S.
Department of Homeland Security's E-Verify program and verify the status of new employees within three business
days, using E-Verify. Failure to use E-Verify to verify new hires will result in probation for the employer or
suspension/revocation ofthe employer's business licenses.
SC IlVIMIGRATION LAW. S.C. Code § 8-14-40 Compliance: Design-Builder certifiesthatfthe Design-Builder
will comply with the requirements of S.C. Code § 8-14-10 et seq. and agrees to provide to tli;e Owner any
. _,.-,
_.
documentation required to establish either: (a) the applicability of that chapter to the contractor subcontractor, and
sub-subcontractor; ox (b) the compliance with this that chapter by the contractor and any subcontractor or - -- - - - --------- ~ - s
sub-subcontractor.
i ,i
Business license, insurance, and bonds must be obtained prior to issuance of a Notice to Pr~ceed. Failure to obtain
these within thirty (30) days of execution of the agreement makes this Agreement voidable'ati the option of the
Owner.
"~`
ARTICLE 16 SCOPE OF TII~ AGREEMENT
S~
16.1 This Agreement is comprised of the following documents listed below:
.1
AIA Document A141T"'2014, Standard Form of Agreement Between Owner and Design-Bui~der
I 3
.2
AIA Document A141T"'-2014, Exhibit A, Design-Build Amendment, if executed
i'
~ -'
- -" .3
AIA Document A141TM2014, Exhibit B, Insurance and Bonds
.4
Owner's Request for Proposals No. 1415-91 (with addenda) and Design-Builder's Proposal tothe __ ,., .
_
same as accepted by the Horry County Board of Education.
(Pm~ag~•aphs deleted)
.5
Post-Occupancy Requirements stated in Owner's Request for Proposals No, 1415-91.
This Agreement entered into as of the day and year first written above.

~

OWNER (Signature)
Joe Defeo, Chair of the Board of Education
(Printed name and title)

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AIA Document A141T"' — 2014. Copyright 0 2004 and 2014 by The American institute of Architects. All rights reserved. WARNING: This AIA" Document is
protected by U.S. Copyright Law and International Treaties. U~authorizecl reproduction or distribution of this AIA°' Document, or any portion of it,
may res~dt in sovere civil and criminal penalties, and will be prosecuted to the maximum extant possible under the law. This draftwas produced by AIA
software at 14:12:43 on 11/20/2015 under Order No.0239588206_t which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004692

37

 Additions and Deletions Reporfi for
AIA~ Document A 141T'" — 2014
This Additions and Deletions Report, as defined on page 1 of the associated document, reproduces below all text the author has
added to the standard form AIA document in order to complete it, as well as any text the author may have addetl to or deleted from
the original AIA text Added text is shown underlined. Deleted text is indicated with a horizontal line through thebriginal AIA text.
Note: This Additions and Deletions Report is provided for Information purposes only and is not incorporated into or constitute any part of the associated AIA document. This Additions and Deletions Report and its associated document were generated
simultaneously by AIA software at 14:12:43 on 11/20/2015.
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PAGE 1
AGREEMENT made as of the twent,~-thi~rd day of Novemt~er in the year twothousand fifteen (2015)~
...

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Horry County Schools, South Carolina, a political'subd vision of tfie State of South Carolina.
335 Four Mile Rd f PO Box 260005`Conway. SC 29528
District Office Phone 843.488:6700

. ..:_
~ ~4

New Carolina Forest Middle School
(per Owner's Requesti for Proposals No. 1415-91)
Note: references to Owner's Request for Proposals No. 1415-91 include its addenda.

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PAGE 2
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CIICTAIAIARI F DDl11C!`TC

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Per "llesign Requirements" published for Solicitation No. 1415-91and .Design-Builder's Proposal to Owner
pursuant to Solicitation No,1415-91 selected bythe Horr~v Board of Education on November 2,.2015,
PAGE 3

''\

Per'"Desi~► Requirements"published for Solicitation Noi 14] 5-91 and Design-Builder's Proposal to Owner
'pursuant to Solicitation No.14i 5=9 selected by the Horry'County Board of Education on November 2, 2015. 1.
...

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Per °'Design Requirements" published for Solicitation No. 1415-91 and Design-Builder's Proposal to Owner
pursuant to SolicitationNo.1415-91 selected by tl~e Horry County Board ofFducation on No~embex 2, 2015..

Additions and Deletions Report for AIA Document A141 T"" — 2014. Copyright D 2004 and ?014 by The American Institute of Architects. All rights reserved.
WARNING: This AIA' Document is protected Uy U.S. Copyright Lew and International Treaties. Unauthorized reproduction or distribution of this AIA"
DocurnenE, or any portion of if, may resitlt in severe civil and criroinai penalties, and will be prosecuted to the maximum extent ~~ossible unclor the law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Ordor No.0239586208_t which expires on 07/14/2016, and is not for resale.
(11962510p1)
User Notes:

PAPR - 004693

.~

 Pet• "Desien Reauiremenfs" nuUlished for Solicitation Na 1415-91 and Desien-Builder's Proposal to Owner
pursuanEto Solicitation No.1415-91 selected by the Hoiti'y County Board of Education on November 2, 20]5..
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1.1.5 313~C~YVC~31'6~Elfit3SZin~vviinrift~2R~-~8-~t}C~livvt=c~~cnf{~.~G'C~li1C-}LfE~it3,•
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;. .Number not used.

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Per "Desi~,n Requirements" published for Solicitation No.`14}5-9T as amended through the Board of Education's
action November 2; 2015.
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§ 1.1.7 The Owner's design and construction milestone dates:
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~~st~t~~^se-t33l~sEene~#aEes:

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s~i~I~1SS19:, ..FTIo..:,... R,.~I.7,,.. Dr.~..03e1~:

SFL+A Architects; P.A. 333.Favetteville Street Suite 225, Ralei~;h, NC 27601 ,

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Per Desien-Builder's Proposal to Owner pursuant to Solicitation No.1415=9T

PAGE 4

Additions and Deletions Report for AAA Document A141T"' — 2014. Copyright D 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARIVING: This AIAs' Docinnent is protectucl by U.S. Cgpyriyht 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 voiil be prosecuEed to the maximum extent possible under the law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.023s586208_1 which expires on 07/14!2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004694

2

 Per "Design Requirements" published for Solicitation No. 1415-91 (Summary of Services Required, .Article 3~
including all post-occupancy requirements aublished in thelsolicitation as_amended-:by addenda.

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Executive Director of Facilities (or a designee identified in writing by the owner.Y
Horry County Schools
Facilities Department, 1160 E I3ighway 50
Conway, SC 29526
'. 843.488'.6965

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:Owner may utilize third parlyproiect management which will also receive submittals.

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1'o be determined 6v Owner: If retained, such consultants will Ue identified promptly..

__
Robt~ie Ferris, S.C. AR.6106
FIRSTFLOOR ENERGY POSITIVE LLC,
333 Fayetteville St., Suite 225, Raleigh, NC27601
.919-573-6350'

-

Litigation in a court of competent ~eHee

jurisdiction, nonjury before a circuit iudQe in Horry County, SC.
PAGE 5
§ 1.4.7 Owner. The Owner is the ~er~se~t-e~entity identified as such in the Agreement and is
the Design-Build Documents as if singular iri number. The term "Owner" means the Owner ~
authorized representative. The Owner may have employees that are design professionals or
construction or construction manaeement. and such employees may, fiom time to time, perf<

',
3
i
3

Additions and Deletions Report for AIA Document A147'"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIA°' Document is protected by U.9. Gopyright Law and Internakfonal Treaties. Unauthorized reproduction or distribution of this AIAm
pocurne~t, or any portion of it, may result in severo civil and criminal ~senalties, and will bo prosecuted to the maximum extent possftrle under Eha law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07/74!2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004695

3

 < The Design-Builder may invoice the Design-Builder may invoice the owner for $1,118,043. for its design work'
performed prior to the execution of the Design-Build Amendment. This amount is within and part of the price
agreed in the Design-Build Amendment.

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Buildine Permit and Other Permits and Fees: N_o_~eneral building Hermit is required in accordance with
'~
electrical, plumbin¢ and other such permits which may be required for purposes oY inspection at no additional
f
cost to the District. Except for permits and fees which are the responsibility of the Contractor u the Contract
Documents, the District shall secure and pav for necessary approvals, easements, assessmehts, ~utility impact
~ ~
fees ermits and such char es re uired for the successful com letion of the work. For eac~ da not countin
Saturdays and Sundays, and not counting the day the Design-Builder submits its complete apblication to the
authority) beyond five (51 days that a jurisdictional authority takes to respond to a permit application.or_similar._. .. ._. _ti
~
permit request that is on the proiecYs critical path, the Design Builder may claim one (1) additional da for the
achievement of Substantial Completion.
Additions and Deletions Report for AIA Document A1A1T"' —2074. Copyright 02004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIAs̀' Document is protected by U.S. Copyright Law anti International Treaties. Unauthorized reproduction or clistributian of Phis AIA"
Document, or any portion of if, may result in severe civil and criminal penalties, anti will bo ~~roseculeci to the maximum extent possi~lo under the law.
Thfs draflwas produced by AIA software at 14:12:43 on 11!20/2015 under Order No.0239586208_1 which expires on 07H4/2016, and Is nolfor resale.
(1196251001)
User Notes:

PAPR - 004696

4

 PAGE 7
§ 3.1.4 The Design-Builder shall be responsible to the Owner for aeEs-acts, errors, and omissions of the
Design-Builder's employees, Architect, Consultants, Contractors, and their agents and employees, and other persons
or entities performing portions of the Work.
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§ 3.1.6 When the Owner's Design Requirements or applicable law requires that services be performed by licensed
professionals, the Design-Builder shall provide those services through qualified, licensed prof~ssi~nals. The'Owner
understands and agrees that the services of the Design-Builder's Architect and the Design-Builder?s other
Consultants are performed in the sole interest of, and for the exclusive benefit of, the Design-~udder.

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Dishict's school facilities.
§ 3.1.8.1 The Design-Builder shall keep the Owner informed of the progress and qualiTy of
° • ~-'
Design-Builder shall submit written progress ~~~~~'~ ~~ +'~~ n.,,~~~, reports, photographs of Work in nro~ress,- and- - ..~
other data to the Owner electronically, or through the Owner's option, project management software, showing
estimated percentages of completion and other information identified below:
_.
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..,.. ,. ..
PAGE 8
.,..~
.12 Additional information as
designated by the Owner through its proiect management software data requirements.
§ 3.1.8.2
In

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~'~~« ~..~--~~-.., ~~-~-~~~:~~ ~~'..~, ~~~+~'~ ..~a~~~a ^^^• ~^':-~~•~^,addition to the requirements of § 3.1.8.1,
the Desi~~-Builder shall provide similar information through in-person progress report presentations fo'tH'e Horry
Count~Board of Education each month during one of the Board's public meetings.
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Design-Builderl
§ 3.1.10 Certifications.
~
shall include in each Application for Payment a certification from each of the Architect, Consultants, and
Contractors, and furnish to the Owner, these certifications with respect to the documents and servi'ces~provid~d bj~- — •-- ,-- --•— _~;
the Architect, Consultants, and Contractors (a) that, to the best of their knowledge, information and belief, the
. ._
;
documents or services to which the certifications relate (i) are consistent with the Design-Build Documents, except
to the extent specifically identified in the certificate, and (ii) comply with applicable laws, statutes, ordinances,
codes, rules and regulations, or lawful orders of public authorities governing the design of the Project;-and fib) that '
'.
the Owner and its consultants shall be entitled to rely upon the accuracy of the representations and'statements --• - .__,,.
`''~,
contained in the certifications. The Design-Builder's Architect, Consultants, and Contractors shall not`be required to
execute certificates or consents that would require knowledge, services or responsibilities bey~nd tFie scope of their
services.
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§ 3.1.11.3 The Design-Builder shall perform no portion of the Work for which the Design-But~d Documents require
_,.,....
. ,_:.,
•---~ Submittals until the-Owner or its designee has approved the respective Submittal.

s
._,,._~r:_.

Additions and Deletions Report for AIA Document A747 TM — 2074. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIA° gorument is proteat~d by U.S. Copyrl~ht Law and International Treaties. Unauthorized reproduction or distribution of this AIA`~'
Document, or any portion of ii, may result in severe civil and criminal penalties, and will be prosncutecl to the maximum extent possible under the law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07!14/2018, and is not for resale.
(1196251001)
User Notes:

PAPR - 004697

5

 PAGE 10
(Numbers 54.2 & §4.3 intentionally not usedl

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Additions and Deletions Report for AIA Document A141T" — 2014. Copyr(ght 0 2004 and 2014 by The American Institute o(Architects. All rights reserved.
WARNING: This AIA~' Document is protected by U.S. Copyright Law and IntQrnatfonai Treaties. Unaufhorized reproduction or dlstrl6ution of th(s 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 draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.02395ss208_i which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004698

6

 4.4 Design-Builder's Construction Proposal
§ 4.4.1

,
' The Design-Builder's

Construction Proposal shall include the following:
.1
A list of the n~~':-~:~~~.. ^~~:^~ aocuments and other information, including the Design-Builder's
Documents as proposed in the Owner's procurement leading to this Agreement}upon which the
~ a...,.. ... ._ . _
]design-Builder's Proposal is based;
The proposed Contract Sum, including the compensation
,
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§ 4.4.2 Submission of the Design-Builder's Construction Proposal shall constitute a represent~tiori by the g
Design-Builder that it has visited the site and become familiar with local conditions under which the Work is to be
completed.
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.2

.3

The proposed date the Design-Builder shall achieve Substantial met-ierr;Coinpletion ;
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'The date on which the Design-Builder's Construction Proposal expires.

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S 5.1.2.1 The Design-Builder shall submit three copies of all Construction Documents prepared and submitted to
Regulatory Agencies as a portion of the permitting and approval process for this work.
._ .. ,,..

,.

PAGt

selections made duringperformance of the work. A copy of submittals accepted by the District shall also be..
maintained et the worksite. These items shall be available to the Architect and District when present at the
worksite. When required by the Contract Documents, the Contractor shall provide record drawings on all
increments of the work such as, by way of illustration and not limitation, plumbing, electrical, - mechanical, and

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all cvctems ci~rh as fire an~i cPrnrity cvstems incnrnnrate~l into the work_ The Cnntraitnr shall fi~rriish an

work, excluding punch list items as required by the Contract Documents.

completeness of such calculations and certifications.
a

;,iuue_provium~ uauy

.. -.

su ervision and conducting frequent inspections by the Worksite Superintendent(s).

f~

._

3,•
A
a^,

~I'

A.
B.
C.
D.

Title VII ofthe Civil Rights Act of 1964, as may be amended.
Abe Discrimination in Employment Act of 1964, as may be amended.
Title I of the Americans Disabilities Act of 1990, as maybe amended.
Equal Pav Act of 1963, as may be amended.

itrac~or agrees to abide
nitation, the following:

5

{,

's

,'

Additions and Deletions Report for AIA Document A141TM — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIAN Document is protected by U.S. Copyright Luwand Intern~tianal'freaties. UnauthorizQd reproduction or distrihution of this AIA~
Document, or any portion of ft, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extenf possiblo under the law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004699

7

 E. Fair Labor Standards Act, as may be amended.
F. South Carolina Wages Act, Code 37-10-10 et seq., as may be amended.
~. South Carolina Worker's Compensation Act, Code 42-1-10 et seq., as may be amended.
T'he Contractor shall not discriminate against any employee or applicant for employment because of race,
z•eligion, color, sex, age, handicap, or national origin except when such condition is a bona fide
occupational qualification reasonably necessary for normal operations of the Contractor. The Contractor, in
all solicitations or advertisements for employees, shall state the Contractor is an "Equal Opportunity
Employer." The Contractor a raees to post in conspicuous places, visible to employees and `applicants for
employment, notices setting forth the provisions of this nondiscrimination clause and shad iriclude~.the.,.—... .:___.,.. . . .._ . ,-_-.
provision of this paragraph in every subcontract or purchase agreement of more than

,:

Project Manager during the course of the proiect without approval of the District.
Project Kev Staff -- Worksite Superintendent(s): The Contractor shall employ at least one (1) full-tirrie

"..:'a:~~ ~~-M:• ~~ ,..~„ ~~ ~~.. ~+~~~ permits, fees, licenses, and inspections by government agencies, necessary for
` ~ "'"
proper execution of the Work and Substantial Completion of the Project.
,'~:

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,
l

PAGE 13
v
3

1.

§ 5.7.2 If the Design-Builder ek►exge~desires to chance any of the personnel, Contractors or suppljers identified in
the Design-build Amendment, including but not limited to any contractor or designprofessional identified by the
Design-Builder in its Request for Qualifications response, the Design-Builder shall notify the wrier and provide the
name and qualifications ofthe proposed new personnel, design professional, Contractor or supPlier. The.Owner maY
reply within 14 days to the Design-Builder in writing, stating (1) whether the Owner has reasoiiaU(c objection to the

F

Additions and Deletions Report for AIA Document A741T'" — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING; This AIA" Documant 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 eivil and criminal penalties, anti will be prosecutacl to the maximum extent possihla under tho law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2018, and Is notfor resale.
(1196251001)
User Notes:

PAPR - 004700

r'4

~

$

 proposed new personnel, design professional, Contractor or supplier or (2) that the Owner requires additional time to
review. Failure of the Owner to reply within the 14-day period shat( constitute notice of no reasonable objection.
PAGE 14
§ 5.7.3.1 If the Owner has reasonable objection to a person or entity proposed by the Design-Builder, the
~~,-het
Desigu-$wilder shall propose another to whom the Owner has no reasonable objection, rF

1

j

~In addition~to anv Owner requirements to keep electronic project data up to date, the Design-Builder shall
maintain at the site for the Owner one copy of the Design-Build Documents and a current set of the Construction
Documents, in good order and marked currently to indicate field changes and selections made~'dur ng constr~ctidn,
and one copy of approved Submittals. The Design-Builder shall deliver these items to the Owner in accordance with
~
R
Section 9.10.2 as a record of the Worlc as constructed,
m
t.
PAGE 15

a

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~:

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<..

_

.~-•"~~- § 5.14.3 The Design-Builder shall reimburse the Owner and other contractar(s) for costs the Ov~mery~~••~
and other contracfor(sl, respectively, incur because of the Design-Builder's delays,
improperly timed activities

._.
-- - - ~•
`~

~Ver-l~or defective construction.
PAGE 16

to the following:

execution.
'~;
M1'1

5
d
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~'

request itemized documentation proving the fringe benefit rate used.

3
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., .. .,.,..,....7

Additions and Deletions Report for AIA Document A141T'" —2014. Copyright ~2004 and 2014 by The American Institute of Architects. All rights reserved.
WAF2tJING: This AIA°J Document is protected by U.S. Copyriyf~t Law and International Treyties. Unauthurized 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 maximurn extent possible under the law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004701

9

 the Contractor or anv subcontractor affected by the change but shall be necessar t
accomplishment of the work required. Copies of invoices for such rental shall beprovided to
document the cost of rental or lease of machinery or equipment. The District shall not pay for use of
Contractor- or subcontractor-owned equipment or machinery, which costs are included in the
overhead computation.
>~
>
se~s~e~•~. Costs of permits or inspection fees directly attributable to the chat se in work and not
or non-conformance to the Contract Agreement.
gent

required by the Surety

Data or actual costs justified to the satisfaction of the Districk

illustration and not limitation:

4

~

':

- •'
T'~~:~~ R..:,a~~ ~~ ~*"~~;A. Labor hours and fringe benefit costs of the worksite superintendentfs)-- --•
when such costs were included, or should have been included, in the original bid submitted or result
T~
from the Contractor's inability to meet the approved schedule or required completion date. The
-'
Contractor must prove, to the satisfaction of the District, such additional costs are directly attributable ~
to any extension of time beyond the last approved completion date. An increase in contract price for t- ~"
,,: : ~
additional site supervision shall be at the Districts' sole discretion.
.: .. .., `"
f
B. Perceived additional costs attributable to the Pro ect Manager or supervision and coordination of
'~
`"•- :.
E
subcontractors, suupliers or Contractor employees.
C. Costs related to use, rental, purchase or replacement of equipment generally or customarily neceSsarv'to
accomplish the work but not to be incorporated into the work such as, by way of illustration` and not
limitation, hand tools, generators, cleaningequipment, scaffolding, si~nage, fencing, vehicles, fuel; ~-~r..,..,
- -- '
and so forth.
,~~'`
D. Transportation or travel costs related to the transporting of hired or contracted supervisors, workers or

including telephone calls, facsimile transmissions. covvin~, employee labor and behefits, and ~o
forth.
_._r_ ,
F. Costs attributable to maintaining a local office, home office or corporate office as well as=office s~affin~.
eJc uinment and consumables, and so forth.
G. Costs for maintaining on-site facilities, including work trailers, telephones, computers, licenses,
temporal'/ utilities, and so forth.
` °H. Contracted services such as accountants, payroll service providers. attorneys, catering and<so"foi=th.
,,,:.-------- .. _.
`5.
,,,~`"
I. Catering or vending services, portable toilets, dumpsters, and so forth.
J. Other such indirect costs of doing- business or costs normally considered inclusive in'overhead.
~'
i~
~~;
Allowable Overhead and Profit CharEes: Additional overhead and profit attributable to 'the change in contract
~ a
pricing shall not exceed the following:
3 ~
A. For work performed by the Contractor's own forces, a maximum of ten percent (10%) of file allowable direct
~ ~, ,..__._.. .,.~.._..._:~-,__..:_~._~._..~....~ 1
costs or the unit pricing negotiated at the time of award.
4
B. For work performed by a subcontractor's own forces, a maximum of ten percent (10%) of the allowable direct
costs.
{
Additions and Deletions Report for AIA Document A141n" — 2014. Copyright ~ 2004 and 2014 by Tha Ameriban Institute of Architects. All rights reserved.
WARNING: This AIA~ Document is protected fay U.S. Copyriyht Law anti International Treaties. Unauthorized reproduction or distribution oPthis AIA`~ ~ ~
Document, or any portion of it, may result in severe civil and criminal ~~enalties, and will be prosecuted to the rr~aximum extent possible under the law.
This draft was produced by AIA sofNvare at 14:12:43 on 11/2W2015 under Order No.0239586208 7 which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004702

 C.
For work performed by a subcontractor, overhead and profit of a maximum of five percent (5%1 is
allowable by the Contractor for administration of the sub-contract.
.Retaina~e•
The District requires a retainage of three and one-half percent (3.5%) of the total contract price, as may be amended
by any approved Change Order, to be withheld from the Contractor's payments throughout the term of the

of debts/claims submitted with final documents.

~

-- -

PAGE 18
§ 7.1.2 The Owner shall render decisions in a timely manner and in accordance with the Design-BLilder's schedule
agreed to by the Owner. The Owner shall furnish to the Design-Builder, within 15 days after r~ceipt of a written? _ _
''
request, information necessary and relevant for the Design-Builder to
'
.give notices of project
commencement and take other action to protect the integrity and exclusivity of the project payment bond(s).
PAGE 19

...,.,~~

§ 7.2.4 The Owner shall cooperate with the Design-Builder in securing
other permits, licenses and inspections.

i

y

-i~g-land development,~zonirig~and
j... ~
~

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§ 7.2.7 Prior to the execution of the Design-Build Amendment, the Design-Builder may request in writing that the
Owner provide reasonable evidence that the Owner has made financial arrangements to fulfill the Owner's
obligations under the Design-Build Documents and the Design-Builder's
e

,.~ ~:..

,.~

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,,.: o.,. ewe „o

_,.`.,'
_,.•~

`a ..

n.,;~a~Pro osal.

PAGE 20
§ 7.3.2 Upon review of the Submittals required by the Design-Build Documents, the Owner ox its designee shall
notify the Design-Builder of any non-conformance with the Design-Build Documents the Owner discovers:

"~.,

...

~'~

,
If the Design-Builder defaults or neglects to carry out the Work in accordance with the Design'-Build Documents
and fails within aten-day period after receipt of written notice from the Owner to commence and Continue
correction of such default or neglect with diligence and promptness, the Owner may, without prejudice to other
remedies the Owner may have, correct such deficiencies. In such case, an appropriate Change;Order shall be issued.. _,_. ...,.._,
deducting from payments then or thereafter due the Design-Builder the reasonable cost of corecting such
deficiencies. If payments then or thereafter due the Design-Builder are not sufficient to cover SubH'am:ounts,- the -" '" " ~ `' " "-~'
Additions and Deletions Report for AIA Document A141T'" — 2014. Copyrighl0 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIAN Documont is protected by U.S. Copyright Law and I~ternational7reaties. Unauthorized reproduction or distribution of this AIA" ,~,~
~oaument, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possiblo undor the law.
This draft was produced by AIA software at 14:12:43 on 11/2o/2D15 under Order No,02395862oe_1 which expires on 07114/2016, and is not for resale,
(1196251001)
User Notes:

PAPR - 004703

 Design-Builder shall pay the difference to the Owner. For Work on the critical path to beneficial occupancy„of the
Proiect (or defined component thereofl the ten-dayperiod referenced herein is reduced to five (5) days during the
60 days prior to substantial completion as shown on the last schedule properly submitted under 5 3.1.9.

i

will be due from the Design-Builder to the Owner.

PAGE 21

request shall be documented by data substantiating the weather conditions a) were abnormal for a period of time"'• •-.,_„
which could not have been reasonably anticipated; bl had an adverse effect on the work scheduled, and alternate
work unaffected by the weather could not have been done; and c) had an adverse effect on the construction schedule
such that the loss of work time will adversely impact the established completion date. The Contractor must.make
every effort to mitieate the potential effect of the weather on the construction schedule including, but not.limifed to,A~~'~~
reschedulin~of subcontractors, pumping water from work areas, rescheduling work hours to alternate worR'dav~,:H''~
within the work week, or other such actions. Such time extension request shall be in writing ~nd'submitted to the ...- `

`"`
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',.~-

extension of time shall be incorporated in the next Change Order.
hall be

m
VAVlUUL1C V4~Y4U0. yJ~ ~J 4lL4QyJ

1141 1
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enough to impact the scheduled work on the following work day, If adverse weather days bevond'the two.(2.1 days. ._.
anticipated are substantiated and the Contractor could not mitigate the impact of the additional adverse weather
days, an extension of time may be allowed only to the extent of the actual impact on the last approved construction
schedule and only to the extent of one L,) full day of extended time for each full workingday of adverse weather
conditions which prevented aforty-hour work week within a seven (7) day calendar week. A`request for adverse
weather extension shall not be allowed after the date established for substantial. completion. j +

`~Gi

`

PAGE 22

~

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Additions and Deletions Report for AIA Document A147'"' — 2014. Copyright 0 2004 and 2014 by The American Institute of Architects. All Hghts reserved.
WARNING: This AIA°~ Document is protected Isy U.S. Copyrtyht Law anti International 7reatios. Unauthorized reproduction or clistri0ution of this AIA`" ~ 2
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 draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239596208_1 which expires an 07/1412016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004704

 § 9.3.1 At least hex-TWENTY ONE days before the date established for each progress payment, the Design-Builder
shall submit to the Owner an itemized Application for Payment for completed portions of the Work. The application
shall be notarized, if required, and supported by data substantiating the Design-Builder's right to payment as the
Owner may require, such as copies of requisitions from the Architect, Consultants, Contractors, and material
suppliers, and shall reflect retainage if provided for in the Design-Build Documents.
a., . ..:~
a
i

...

~

.SEE..::§ A.1.5.1..3...._.,.,_T,- -FORSCHEDULE. In accordance with the schedule set forth in § A,1.5.1.3, the Owner issue to the Design-Builder
. _..._-.-......r----- -_ ~--_-_~_.
a Certificate for Payment indicating the amount the Owner determines is properly due, and notify the
Design-Builder in writing of the Owner's reasons for withholding certification in whole or in part as provided in
Section 9.5.1.
! ''
PAGE 23
.7

repeated or substantial failure to carry out the Work in accordance with the

§ 9.6.4 The Owner has the right to request written evidence from the Design-Builder that the Desi~n_-Builders has ._
properly paid the Architect, Consultants, Contractors, or other person or entity providing services or work for the
'
'fie °_ - =
Design-Builder, amounts paid by the Owner to the Design-Builder for the Work.
~,-~:~'~ ~..~'~ ~<.:a~~~~ ..,:~,.:~ ~~..~~ a~..~, *"~ Owner shall have the right to contact the Architect, Consultants, and
Contractors to ascertain whether they have been properly paid. The Owner shall have no obligation to pay or to see
~ ~~.".~::•:'.~~'~~ :~~•~~' ~^ !~::• !'ontractor. .
to the payment o~money to a Consultant or f".,.~.w~~~: ~.. ~ ' ~^

~ ~• ~ - ''
..,.,:
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PAGE 24

i

_ :..:_.:...,,7
agrees-to aeCept~-§ 9.8.2 When the Design-Builder considers that the Work, or a portion thereof which the ~
separately, is substantially complete, the Design-Builder shall
an occupancy permit issued by the South Carolina Office of School Facilities and a comp:
completed or corrected prior to final payment. Failure to include an item on such list does not alter the responsibility
,;. - '°" "' " ""'` ~ ~•
of the Design-Builder to complete all Work in accordance with the Design-Build Documents.
§ 9.8.3 Upon receipt of the Design-Builder's list, the Owner shall

'`
'~
'
review{the.,Work.. If the
sufficiently
Owner's review discloses any item, whether or not included on the Design-Builder's list, which is.not
i
complete in accordance with the Design-Build Documents so that the Owner can occupy or utilize the Work or
designated portion thereof for its intended use, the Design-Builder shall, before issuance of the Certificate of
Substantial Completion, complete or correct such item upon notification by the Owner, in such case, the ,_. _...__ ~_.. __ . _.
Design-Builder shall then submit a request for another '
'-"` "'~ -"
Eex~leHe~:review ofthe Work bythe Owner.

r•
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s

- ` -~"

Additions and Deletions Report for AIA Document A141T"' — 2014. Copyright ~ 2004 and 2014 by The Amarlcan Institute of Architects. All rights reserved.
WARNING This AIA°~ Document is protected by U,S. Copyright Law anti International Treaties. Unauthorized reproduction or dfsfribution of this AIA`"
Document, or any portion of it, may result in severe civil end criminal penalties, and wilt be prosecuted to the maximum extent possible under fhe law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239586208 1 which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004705

'r

13

 § 9.8.5 When the Work or designated portion thereof is substantially complete, the Design-Builder will ~e~n~e-€e~
~'~~ ^..,~~-'^ ^:^^~•..r~ obtain for the Owner an occupancy permit issued by the South Carolina Office of School
Facilities and a Certificate of Substantial Completion that shall, upon the Owner's signature, establish the date of
Substantial Completion; establish responsibilities of the Owner and Design-Builder for security, triaintenance, heat,
utilities, damage to the Work and insurance; and fix the time within which the Design-Builder~sha~l finish all items
on the list accompanying the Certificate. Warranties required by the Design-Build Documents'•shall
commence on
P
- _.:the date of Substantial Completion of the Work or designated portion thereof unless otherwise~provided.in-.the
Certificate of Substantial Completion.
i

§ 9.9.2 Lnmediately prior to such partial occupancy or use, the Owner and Design-Builder shall jointly ~s~es~
review the area to be occupied or portion of the Work to be used in order to determine and record.the condition of
the Worlc.
q ~ ~
y ,., .;
PAGE 25

~

.2
.3
.4

~
#
failure of the Work to comply with the requirements of the Design-Build Docu~en~s; ee
terns of special warranties required by the Design-Build ~eem~et~s:Documents;
post-occupancy services to be provided by or through the Desi~r►-Builder. ~

3
°
~
~

i
5
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PAGE 27
§ 11.2.1 Before or After Substantial Completion. The Design-Builder shall promptly correct Work either rejected`
by the Owner or failing to conform to the requirements of the Design-Build Documents, whether discovered before
or after Substantial Completion and whether or not fabricated, installed or completed. Costs of correcting such ° `a
rejected or nonconforming Work, including additional testing and inspections, the cost of uncdvering.;an8
• ::
replacement, and compensation for any design consultant employed by the Owner whose expenses and
~ -. ,,,
"`
~
compensation were made necessary thereby, shall be at the Design-Builder's expense.

{
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PAGE 28
§ 11.2.2.1 In addition to the Design-$udder's obligations under Section 3,1.12, if, within
rt:~F--

...a: o..

~

~~ ~

~esm~e~t~the three-year duration of the Design-Builder's post-occupancy obligations„ any o'.
not to be in accordance with the requirements of the Design-Build Documents, the Design-Buhl
promptly after receipt of written notice from the Owner to do so unless the Owner has previous
Design-Builder a written acceptance of such condition.'The Owner shall give such notice prom
this period for correction of the Work, if the Owner failsl
of the condition. During
Design-Builder and give the Design-Builder an opportunity to make the correction, the Owner;
require correction by the Design-Builder and to make a claim for breach of warranty, If the De:
correct nonconforming Work within a reasonable time during that period after receipt of notice
Owner may correct it in accordance with Section 7.9.

ie Vi~ork i"s, found`
F shall correct ~t .:
given the i
after disc very
?otify the ~
ves•the•rights to- - - - =-_ -_--_,
n-Builder fails to
. ..
~m the Owmer, the

§ 11.2.2.2 -Tr"
~This year period for correction of Work shall be extended with respect
first performed after Substantial Completion by the period of time between Substantial Comple
completion of that portion of the Work.
§ 11.2.2.3 ~kte-e~ea~-This period for correction of Work shall not be extended by
the Design-Builder pursuant to this Section 11.2.

Additions and Deletions Report for AIA Document A141T"' —2014. Copyright m 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIAd Document is protected by U.S. Copyright Law anti International Treaties. Unauthorized reproduction or distribution of this AIA`n
Uocumont, or any portion of it, may result fn severe civil and criminal penalties, and will be ~xosecuted to the maximum extent possible under Ehe Iaw.
This draft was produced by AIA software at 14:12:43 on 11!20/2015 under Ordar No,0239586208_1 which expires on 07114/2016, and is not for resale.
(11962510D1)
User Notes:

PAPR - 004706

14

 § 11.2.5 Nothing contained in this Section 11.2 shall be construed to establish a period of limitation with respect to
other obligations the Design-Builder has under the Design-Build Documents. Establishment of the eye-yeas
two-Year period for correction of Work as described in Section 11.2.2 relates only to the specific obligation of the
Design-Builder to correct the Work, and has no relationship to the time within which the obligation to comply with
the Design-Build Documents may be sought to be enforced, nor to the time within which proceedings may be
commenced to establish the Design-Builder's liability with respect to the Design-Builder's obligations other than
specifically to correct the Work,

Tf the Owner prefers to accept Work that is not in accordance with the requirements of the L
the Owner may do so instead of requiring its removal and correction, in which case the Con
reduced as appropriate and equitable. Such adjustment shall be effected whether or noC final
made. Acceptance of Nonconformine Work may only be evidenced by written agreement ;

Build Documents,
m will be`
;nt has been

Work by inaction or implication,
PAGE 29
§ 12.3 Upon execution of the Agreement, the Design-Builder grants to the Owner a limited,
non-exclusive license to use the Instruments of Sarvice ~^'~'~~ ~~a ~-•~'~~~~~~~'•~ for purposes
maintaining, altering and adding to the

and

~e license granted
under this section permits the Owner to authorize its consultants and separate contractors to
portions of the Insfiuments of Service ~~'~'•~ ~~a ~•~~'•~~~•~~'~~ for use in performing services or construction for the
Project.
. .

i~ ~ i .w„ i:,.o....e ,... ..«oa :., t~,:~ ce...:~.. » ~ ..ti..n te,....:.,.,.

1.2.3.1 PRO.TO'TYPE. The Owner shall have the rieht to use tl~e Instruments of Serviee'as a
"prototype" design under South Carolina Board of Architectural Examiners re~ulatioris and po(i'cies. Any
architect receiving the original plans from the Owner must first acknowledge and accept full responsibility
for the adequacy of the design for its new project, as well as absolve the original Architect of anv
resnonsibility of anv ]cind as relates to the orieinal desim. Should the Owner arovide the Documents
and/or Specifications to the Architects) for other Protects, then the original Architect, if not retained for' - . ..
the other proiect(s), shall be relieved of anv liabilities arising out of the other Proiect(sl and the Owner will
indemnify andhold harmless the original Architect from anv Claims arising out of such other Project(s).
.,._...

"''
.._.
;~. =`~'i

§ 12.3.1 The Design-Builder shall obtain non-exclusive licenses from the Architect, Consultan#s andContractors, ,:
that will allow the Design-Builder to satisfy its obligations to the Owner under this Article 12.,fThe Design-builder's
licenses from the Architect and its Consultants and Contractors shall also allow the Owner, in ~the~event this ' `
Agreement is terminated for any reason ~~'~~~ *"~„ *"~ a~F..'' ~°«~.,, n..me,... ., +w.... ... F~,o~,,,.a:,,., n..:~,, ~ ~..
.
M.
'
.
~ ` ,to obtain a
for purposes of constructing using,
limited, irrevocable and non-exclusive license
maintaining, altering and adding to the Project,
s

~

.: :,.

~:_, ,

:::.,.,.~

s
e3E~

~

~
~~SUU~ECt ,,,

to South Carolina regulations and policies concerning successor design professionals...

-- -.-

§ 12.3.2 In the event the Owner alters the Instruments of Service without the author's written a1'~ithorization or uses
the Instruments of Service without retaining the authors of the Instruments of Service, the Owi er releases the
Design-Builder, Architect, Consultants, Contractors and any other person or entity providing services or work for
any of them, from all claims and causes of action arising from or related to such uses. The n..!....~I«,..we ,,.......«
? 1
..

~i
F

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a

,

Additions and Deletions Report for AIA Document A141T"' — 2014. Copyright ~ 2004 and 2014 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 distrtbutian of Ehis AIA"
DocumenE, or any portion of it, may result in savors civil and criminal penalties, and will be prosecuted to the maximum extent possible under tho law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07114/2076, and is not for resale.
(1196251001)
User Notes:

PAPR - 004707

15

 ,,
c~~':~„ ,'" " "''"e~terms of this Section 12.3.2 shall not apply if the Owner rightfully terminates this Agreement for
cause under Sections 13.1.4 or 13,2.2.
PAGE 30
§ 13.1.6 In the event of termination not the fault of the Design-Builder, the Design-Builder shill be compensated for
termination ~nd any other
Work performed prior to
psated. Li no event
expenses directly attributable to termination for which the Design-Builder is not otherwise
set forth.in-.-~
shall the Design-Builder's compensation under this Section 13.1.6 be greater than the compensation
t
Section 2.1.
_
._.
-:.... ..
s

_ 3
...._,

§ 13.2.1.3 If one of the reasons described in Section 13.2.1.1 or 13.2.1.2 exists,- the Design-Buide`r may, upon seven
days' written notice to the Owner, terminate the Contract and recover from the.Owner payment for Work executed,
including reasonable overhead and ~e€i~profit on that executed Work, and costs incurred by ~eas~on of such ...:.......:.
~~-m:~~«:~-~~~a a~~~~~~. termination.
~
~ ~
~ i
PAGE 31
~ ~
r
_
§ 13.2.2.4 If the unpaid balance of the Contract Sum exceeds costs of finishing the Worlc and gthe~'_damagesi~ ~
incurred by the Owner and not expressly waived, such excess shall be paid to the Design-BuilZler. If such costs and
damages exceed the unpaid balance, the Design-Builder shall pay the difference to the Owner:The-obligation for -- -- --- -~_ _
r'~
and are expressly included in the performance of
such payments shall survive termination of the ~~Contract
the Work covered by the Design-Builder's performance bond.
...

.. -

,. .,,

,;

§ 13.2.4.3 In case of such termination for the Owner's convenience, the Design-Builder shall be entitled`to receive
~
payment for Work executed, and costs incurred by reason of such
.,,~* ,....~.,, ~x,,...~..,,.. e o,....o,,,termination.
-.
~

-

..,

§ 14.1.2 Time Limits on Claims. The Owner and Design-Builder shall commence all claims and causes of action,
.. .,
.- "'
'
whether in contract, tort, breach of warranty or otherwise, against the other, arising out of or related'to'ttie Contract
,.: °'
in accordance with the requirements of the binding dispute resolution method selected in Section ~1.3, within the time° '
;`
,.
period specified by
,:~w .w: ee,.~;

i n i .'.law.

i

PAGE 32

€

}y
y

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7
.

~

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~'

..,

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s~ 5

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~~

.2

, `i

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?i

j
damages incurred by the Design-Builder for principal office expenses including the compensation of
personnel stationed there, for losses of financing, business and reputation, and for loss of profit
IFWork and otherwise available under this.,...: ._.__ .___.,,~...:5
except anticipated profit arising directly from the
Agreement.
~

,

Additions and Deletions Report for AIA Document A141*"' — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIAd Document iu protected by U.S. Copyright Law and International7reaties. Unauthorized reproduction or distribution ofthie AIA~ 16
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 draft was produced by AIA software at 14:12:43 on 11120/2015 under Order No.0239586208_i which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004708

 PAGE 33
~ ~A 7 4 TF

., n~,.:..... «„~.,.,,,, ~,. ,... ;.. *we ,...t,:o,.+ „~., .,,o,.l,.,~,.~~ ise~ «t,o ,,.,«t.. ......o..t:..,. ~..,.L, r~i..:.., ...,.,.. ..«,.,.oe.7 ;.,

n,...r....~n«i......:4ti. n««~:..n ~.~u ~n..~ f.. ni.rv...~.. ...:4{. kl..~ ~: ur. ....F:...~ n« ~~:r.i.- auna~ir. on

§ 14.3.21'he parties shall endeavor to resolve their C(aims by

The
,
mediation shall proceed in advance of binding dispute resolution proceedings, which shall be stayed pending
mediation for a period of 60 days from the date of filing, unless stayed for a longer period by agreement of the
¢
ti
F .-.:.-_,
parties or court order,
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y
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'

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e

Additions end Deletions Report for AIA Document A141T"' — 2074. Copyright m 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIAF' Document is protected by U.S. Copyright Law and international Treaties. Unauthorized reproduction ar clistrihutfon 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 draft was produced by AIA software et 14:12:43 on 11/2W2015 under Order No.0239586208 1 which expires on 07/14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004709

17

 The Contract shall be governed by the law of the place where the Project is

PAGE 34

';

Written notice shall be deemed to have been duly served if delivered in person to the individual,,td a member of the
firm or entity, or to an officer of the corporation for which it was intended; or if delivered at, or sent by registered or
certified mait or by courier service providing proof of delivery to, the last business address kngwn~to the party::...,;,
giving notice. Written notice may also be established by acknowledgennents and resuonses exchaged via ~ 1
management software used by the parties for the project.
PAGE 35

The safety and security of District staff, students and the general public are of utmost priority to the
District. To that end. the Desien Builder shall be responsible for ensurine compliance by the Desien Builder and`
auv cug~ivycca, agciiw v~

ic}nc~cutuwvc~, vi

Consultants, to the following:

3UVVV1lU2lt~W1J

vi u~c

LGJ!{{lYlJ4lWG~

ui~~uuiuK arr a~wi~
,:

~

,.: -

~

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,J

A. No dross, alcohol, knives, firearms or other weaaons on District property, whether or not there is an
•-_.,
existing occupied building.
- -.
B. No fraternizing with, threats to, or use of abusive or profane language in the presence of studenfs; •parents, '~
visitors, or District representatives, agents, or emnlovees.
C. No improver attire, actions or sestures while on any District property.
No smoking on District property in conformance to Horry County Board of Education policy. Violations
of. such policy shall result in a civil penalty of up to $1,000 per occurrence to the indiVcival responsible
,s
,-.•
,~
°'
and/or the Architect for whom the individual is a Principal, employee, agent, or representative: ~- -°~--~.~
~ ,.

`~
,;.. y
:~
`'
,;.
,;>~"

immediately upon request.

Addltlons and Deletions Report for AIA Document A747T" — 2014. Copyrfghl0 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIA" Document is protecked by U.S. Copyright Law anti International Treaties. Unauthorized reproduction or distribution of this AIA~ .~ $
Document, or eny portion of it, may result in severe civil and criminal penakies, and will be prosecuted to the maximum extent possible under the law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.o239566208_1 which expires on o7l14/2016, and is notfor resale.
(1196251001)
User Notes:

PAPR - 004710

 Drue-Free Workplace
The Architect and the Architect's Design Consultants shall be responsible for initiating, maintaining and
supervising all drug-free programs in connection with the performance of this Agreement. The drug-free programs

interrupt pedestrian or vehicle traffic except as approved by the District and the South Carolina Department of
Transportation. The woricsite shall be confined to the smallest area possible allowing maximum use of streets, ,..
.
sidewalks, parking areas or other pedestrian areas and reduce to a minimum any hazard to traffic or pedestrians.

Section 11- 57-310 that identifies persons en~a¢ed in investment activities in Iran. Currently, the list`is available at
the following URL: http://procurement.sagov/PS/PS-irandivestment.uhtm(.) Consistent with Section l_1-57=3'10(B)~ -..,
the Contractor shall not contract with anyperson toperform a part of the Work, if, at the time you enter into a
1+ ~
subcontract, that person is on the then-current version o~the Iran Divestment Act List
Immigrant Workers: The "South Carolina Illegal Immigration and Reform Act" requires all emplo'vers to verify the
legal status of new employees and prohibits employment of any workex who is not le~ally in this country and
authorized to work. effective Januarx 1, 2012, all South Carolina employers are required to enroll ih the U.S.
Department of Homeland Security's E-Verifyproeram and verify the status of new employees wit(in three•businessdays, using E-Verify. failure to use E-Veri to verify new hires will result in probation for the§employer or,._ _ .,,
suspension/revocation of the employer's business licenses.

,:
s

`+{
?
S

~~s
`t.
~r
{
''

~

4

Additions and Deletions Report for AIA Document A141T"' — 201A. Copyright 0 20D4 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIA~' Documont is proteetecl by U.S. Copyright Law and International Treaties. Unautliorizod reprodu~tfon or distribution of this AIA"
Document, or any pnrlion of it, may reeult in sovere civil and criminal penalties, an<I will be prosecuEed to Ilia maximum extent possible under the law.
This draft was produced by AIA software at 14:12:43 on 11/2012015 under Order No.D239586208_1 which expires on 07H4/2016, and Is not for resale.
(1196251001)
User Notes:

PAPR - 004711

19

i

~
~
i
i

 SC IlVIIVIIGRATION LAW. S.C. Code § 8-14-40 Compliance: Design-Builder certifies that the Design-Builder
will comply with the requirements of S,C. Code § 8-14-10 et seA, and agrees to provide to the Owner any
documentation required to establish either: (a the applicability of that chapter to the contractor, subcontractor, and
sub-subcontractor; or (b) the compliance with this that chapter by the contractor and any subcontractor or
sub-subcontractor.

Owner.

PAGE 37

Joe Defeo, .Chair of the<Board of Education

.f,'

Additions and Deletions Repoli for AIA Document A141n" — 2014. Copyright ~ 2004 and 2014 by The American Institute of Architects. All rights reserved.
WARNING: This AIA°' Document is protected by U.S. Copyright Law and International Treatios. Unauthorized reproduction or ciistributfon of this AIA~ 20
Document, or any portion of (t, may result in severe civil and criminal penalties, and will be ~xosecuted to the maximum extent possible under tho law.
This draft was produced by AIA software at 14:12:43 on 11/20/2015 under Order No.0239586208_1 which expires on 07!14/2016, and is not for resale.
(1196251001)
User Notes:

PAPR - 004712

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Keith R. Powell
Friday, November 20, ?015 12:43 PM
Robbie Ferris
RE: HCS contracts forms

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Forgot to add —they did not want to do the consent to the CX. They felt it would fuel adverse press if FFEP got to "pick
its own" owner agent. Obviously you will be free to complain about whoever they do get, if warranted.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not consCitUte permission to examine; copy or distrihute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above iininediately.

From: Keith R. Powell
Sent: Friday, November 20, 2015 12:17 PM
To: 'Robbie Ferris'
Subject: RE: HCS contracts forms
Robbie —I've got a block of time from now to about 3:30 where I can't work on this. The A141 is attached with changes
related to your points below. I am going to have to tale this to the Board on Monday night for a motion, and will
probably change the signatory from John Gardner to the board chair. Joe is aware of this.
have put in the more generous time claims provisions that you think will get you the time you need, and I have updated
the prototype language and increased the initial invoice per your chart. On SMS we will probably leave in the 5/7. date
as with the others, but can put in a clause allowing time for delays in acquiring asite —same principle.
The insurance idea is worth considering but we don't have time to fully vet it, so I have added a note in Exhibit B that the
insurance can be changed by agreement at any time.

still need to fix 2.1.1 and to .copy over the HCS's exhibits e and f, but wanted to get this to you before I get distracted
for a few hours.

What do you think? i will run you avariance-checked version of everything a little later today when I thini< we have all
settled.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
1

PAPR - 004713

 NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute tl~e accompanying material. if you receive this message in error, please
notify us by telephone as listed above immediately.

__

from: Robbie Ferris [mailto:RFerrisCc~sfla.biz]
Sent: Thursday, November 19, 2015 4:24 PM
To: Keith R. Powell
Subject: RE: HCS contracts forms
Here is where I think we are, call me anytime to discuss if you have questions:
1. On the schedule I have talked with our subs and they can't accelerate the schedule with an increase in cost.
wish this answer were different so I guess we will have to go get the board to address the issue.
2, We consider the following a very big concession. We will grant HCS use of the drawings as you outlined in 12.3
but I prefer to strike "to the extent permitted by law" in the second to last line. My logic is that if they use my
drawings and I am sued at the very least they should guarantee that they will pay my cost of defense and time
associated with such defense. Also, in 12.3.1- in the first line change "shall" to "will endeavor to". I don't even
know who ail of the designers are at this point plus I can't guarantee that they will agree. I will work very hard to
get this done.
In addition, in exchange for this right to use the drawings we would ask the following three things be added to
the contract.
a. We be paid for our up front work as previously discussed within 2 weeks of signing the contract.
b. We be given the right to approve the owners selection of and scope for the commissioning agent. The
owner will not hire the commissioning agent without our approval.
3, If the owner is interested we have found that we can buy a $15,000,000 professional liability insurance policy
with an 8 year tail that covers all known designers at the time we bind the policy. That policy will cost us about
$1,300,000.00 but if the owner is willing to limit our liability to the limits of our professional liability insurance
we will spend the extra money on that policy. This would be a great benefit because the owner would have
significantly more coverage (7 times) more than they would otherwise have. Plus it protects the owner over the
8 years. It costs us more money but I think it would protect us all.
4. Typos:
a. 2.1.1- the design builder is repeated
b. 9.8.3- review the .,...i think you left the word work out?
c. Were fine with exhibit e and f that you sent over. We would ask that you consider the following. Under
section 5.7 Key Personnel, Contractors and Suppliers: If the Owner has objection to personnel,
Contractors, or suppliers and require that another personnel, Contractor, or supplier be used, they
should pay for the difference in price.
From: Keith R. Powell [mailto:kpowellCc~childs-halligan.net]
Sent: Thursday, November 19, 2015 12:30 PM
To: Robbie Ferris
Subject: FW: HCS contracts forms
Importance: High
Getting down to home stretch I hope:
1. The staff does not believe it has authority to extend beyond the May 15` date. It is clear to me that I'm not going
to be able to do anything about that in the absence of a board action. However, FFEP has a monthly report
directly to the Board, so certainly you will have many opportunities to explain the reasonableness and basis of
the proposed durations to the Board and seek the necessary extensions — so much was made of this in the
informal statements and press, though, that it may not be in anyone's interest to breach the May 1date while
so much public attention is focused on this. When the SMS site is pinned down, for example, might be a time to
address it.

PAPR - 004714

 Mark has a simpler outline of the prototype issue. As far as I can tell this is the main clause to bear down upon
today and tomorrow.
3. I can't make any progress on the proposal costs reimbursement.
4. i can't make any progress on the retainage issue.
S. Everyone is relieved there has been no protest.
think we ought to plan to do this execution meefiing on Monday. I would like to get all the terms settled by
mid-day tomorrow and then be able to create and circulate the final sets of ail 5 projects on Friday afternoon

Keith R. Poweli
Childs &Halligan, P.A.
Columbia, South Carolina
www.chiIds-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

REDACTED

PAPR - 004715

 Sheri L. Wainscott
From:
Sent:
To:
Subject:
Attachments:

Robbie Ferris <RFerris@sfla.biz>
Friday, November 20, 2015 12:55 PM
Keith R. Powell
Re: HCS contracts forms
image001.png

Follow Up Flag:
Flag Status:

Follow up
Flagged

am printing it and I will start working on it now we can talk later today when you finish up
Sent from my iPhone
On Nov 20, 2015, at 12:17 PM, Keith R. Powell <kpowell(~childs-haili~an.net> wrote:
Robbie —I've got a block of time from now to about 3:30 where I can't work on this. The A141 is
attached with changes related to your points below. I am going to have to tale this to the Board on
Monday night for a motion, and will probably change the signatory from John Gardner to the board
chair: Joe is aware of this.
have put in the more generous time claims provisions that you think will get you the time you need,
and I have updated the prototype language and increased the initial invoice per your chart: On SMS we
will probably leave in the 5/1 date as with the others, but can put in a clause allowing time for delays in
acquiring asite —same principle.
The insurance idea is worth considering but we don't have time to fully vet it, so I have added a note in
Exhibit B that the insurance can be changed by agreement at any time.

still need to fix 2.1.1 and to copy over the HC5's exhibits e and f, but wanted to get this to you before
get distracted for a few hours.

What da you think? I will run you avariance-checked version of everything a little later today when
think we have all settled.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If
you have received this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive this message in error, please notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerrisCa)sfla.biz]
Sent: Thursday, November 19, 2015 4:24 PM
To: Keith R. Powell
Subject: RE: HCS contracts forms
i
PAPR - 004716

 Here is where I think we are, call me anytime to discuss if you have questions:
1. On the schedule I have talked with our subs and they can't accelerate the schedule with an
increase in cost. I wish this answer were different so I guess we will have to go get the board to
address the issue.
2. We consider the following a very big concession. We will grant HCS use of the drawings as you
outlined in 123 but I prefer to strike "to the extent permitted by law" in the second to last line.
My logic is that if they use my drawings and I am sued at the very least -they should guarantee
that they will pay my cost of defense and time associated with such defense. Also, in 12.3.1- in
the first line change "shall" to "will endeavor to". I don't even know who all of the designers are
at this point plus I can't guarantee that they will agree. I will work very hard to get this done.
In addition, in exchange for this right to use the drawings we would ask the following three
things be added to the contract.
a. We be paid for our up front work as previously discussed within 2 weeks of signing the
contract.
b. We be given the right to approve the owners selection of and scope for the
commissioning agent. The owner will not hire the commissioning agent without our
approval.
3. If the owner is interested we have found that we can buy a $15,000,000 professional liability
insurance policy with an 8 year tail that covers all known designers at the time we bind the
policy. That policy will cost us about $1,300,000.00 but if the owner is willing to limit our liability
to the limits of our professional liability insurance we will spend the extra money on that policy.
This would be a great benefit because the owner would have significantly more coverage (7
times) more than they would otherwise have. Plus it protects the owner over the 8 years. It
costs us more money but I think it would protect us all.
4. Typos:
a. 2.1.1-the design builder is repeated
b. 9.8.3- review the .....i think you left the word work out?
c. Were fine with exhibit e and f that you sent over. We would asl< that you consider the
following. Under section 5.7 Key Personnel, Contractors and Suppliers: If the Owner has
objection to personnel, Contractors, or suppliers and require that another personnel,
Contractor, or supplier be used, they should pay for the difference in price,
__
From: Keith R. Powell [mailto:kpowellC~childs-halligan.net]
Sent: Thursday, November 19, 2015 12:30 PM
To: Robbie Ferris
Subject: FW: HCS contracts forms
Importance: High
Getting down to home stretch I hope:
1. The staff does not believe it has authority to extend beyond the May 15` date. It is clear to me
that I'm not going to be able to do anything about that in the absence of a board
action. However, FFEP has a monthly report directly to the Board, so certainly you will have
many opportunities to explain the reasonableness and basis of the proposed durations to the
Board and seek the necessary extensions —so much was made of this in the informal statements
and press, though, that it may not be in anyone's interest to breach the May 1date while so
much public attention is focused on this. When the SMS site is pinned down, for example, might
be a time to address it.
2. Mari< has a simpler outline of the prototype issue. As far as I can tell this is the main clause to
bear down upon today and tomorrow.
2
PAPR - 004717

 3. I can't make any progress on the proposal costs reimbursement.
4. i can't male any progress on the retainage issue.
5. Everyone is relieved there has been no protest.
think we ought to plan to do this execution meeting on Monday. I would like to get all the
terms settled by mid-day tomorrow and then be able to create and circulate the final sets of all
5 projects on Friday afternoon.

Keith R. Powell
Childs & Halligan, P.A.
Columbia, South Carolina
www.chfIds-halliga n.com
(803) 254-4035
NOTICE: This e-snail may contain information that is personal and confidential, non-disclosable end protected by attorney-client privilege, If
you have received this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive this message in error, please notify us by telephone as listed above immediately.

REDACTED

PAPR - 004718

  

<6731757__2 141 main - Working Draft - (I).docx>

PAPR - 004719

Sheri L. Wainscott
From:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Saturday, November 21, 2015 8:25 AM
Keith R. Powell
RE: HCS contracts forms

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Keith,
Our plan is that if they pick a bad CX we will hire our own CX because we need a quality commissioning job.. I think them
not giving us approval authority is short sighted. I guess they don't see themselves as a part of a team, they see
themselves as separate from the team. Odd!!
From: Keith R. Powell [mailto;kpowell@childs-halligan.net]
Sent: Friday, November 20, 2015 12:43 PM
To: Robbie Ferris
Subject: RE: HCS contracts forms
Forgot to add —they did not want to do the consent to the CX. They felt it would fuel adverse press if FFEP got to "pick
its own" owner agent. Obviously you will be free to complain about whoever they do get, if warranted.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-snail inay contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have rereived
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

From: Keith R. Powell
Sent: Friday, November 20, 2015 12;17 PM
To: 'Robbie Ferris'
Subject: RE: HCS contracts forms
Robbie —I've got a block of time from now to about 3:30 where I can't work on this. The A141 is attached with changes
related to your points below. I am going to have to take this to the Board on Monday night for a motion, and will
probably change the signatory from John Gardner to the board chair. toe is aware of this.
have put in the more generous time claims provisions that you think will get you the time you need, and I have updated
the prototype language and increased the initial invoice per yaur chart. On SMS we will probably leave in the 5/1 date
as with the others, but can put in a clause allowing time for delays in acquiring a site —same principle.
The insurance idea is worth considering but we don't have time to fully vet it, so I have added a note in Exhibit B that the
insurance can be changed by agreement at any time.

PAPR - 004720

 still need to fix 2.1.1 and to copy over the HCS's exhibits e and f, but wanted to get this to you before I get distracted
for a few hours.

What do you think? I will run you avariance-checked version of everything a little later today when I think we have all
settled.
Keith R. Powell
Childs & Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035

-

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

-

_ —__ ..

From: Robbie Ferris [mailto:RFerris@sfla.biz]
Sent: Thursday, November 19, 2015 4:2.4 PM
To: Keith R. Powell
Subject: RE: HCS contracts forms
Here is where I think we are, call me anytime to discuss if you have questions:
1. On the schedule I have talked with our subs and they can't accelerate the schedule with an increase in cost.
wish this answer were different so I guess we will have to go get the board to address the issue.
2. We consider the following a very big concession. We will grant NCS use of the drawings as you outlined in 12.3
but I prefer to strike "to the extent permitted by law" in the second to last line. My logic is that if they use my
drawings and I am sued at the very least they should guarantee that they will pay my cost of defense and time
associated with such defense. Also, in 12.3.1- in the first line change "shall" to "will endeavor to". f don't even
know who all of the designers are at this point plus I can't guarantee that they will agree. I will work very hard to
get this done.
In addition, in exchange for this right to use the drawings we would ask the following three things be added to
the contract.
a. We be paid for our up front work as previously discussed within 2 weeks of signing the contract,
b. We be given the right to approve the owners selection of and scope for the commissioning agent. The
owner will not hire the commissioning agent without our approval.
3. If the owner is interested we have found that we can buy a $15,000,000 professional liability insurance policy
with an 8 year tail that covers all known designers at the time we bind the policy. That policy will cost us about
$1,300,000.00 but if the owner is willing to limit our liability to the limits of our professional liability insurance
we will spend the extra money on that policy. This would be a great benefit because the owner would have
significantly more coverage (7 times) more than they would otherwise have. Plus it protects the owner over the
8 years. It costs us more money but I think it would protect us all.
4. Typos:
a. 2.1.1- the design builder is repeated
b. 9.8.3- review the .....i think you left the word work out?
c: Were fine with exhibit e and f that you sent over. We would ask that you consider the following. Under
section 5.7 Key Personnel, Contractors and Suppliers: If the Owner has objection to personnel,
Contractors, or suppliers and require that another personnel, Contractor, or supplier be used, they
should pay for the difference in price.
_

_ __

From: Keith R. Powell [mailto:kpowellCa~childs-halligan.net]
Sent: Thursday, November 19, 2015 12:30 PM
To: Robbie Ferris
2

PAPR - 004721

 Subject: FW: HCS contracts forms
Importance: High
Getting down to home stretch I hope:
1. The staff does not believe it has authority to extend beyond the May 15' date. It is clear to me that I'm not going
to be able to do anything about that in the absence of a board action. However, FFEP has a monthly report
directly to the Board, so certainly you will have many opportunities to explain the reasonableness and basis of
the proposed durations to the Board and seek the necessary extensions — so much was made of this in the
informal statements and press, though, that it may not be in anyone's interest to breach the May 1date while
so much public attention is focused on this. When the SMS site is pinned down, for example, might be a time to
address it.
2, Marl< has a simpler outline of the prototype issue. As far as I can tell this is the main clause to bear down upon
today and tomorrow.
3. I can't male any progress on the proposal costs reimbursement.
4. I can't make any progress on the retainage issue.
5. Everyone is relieved there has been no protest.
think we ought to plan to do this execution meeting on Monday. I would like to get all the terms settled by
mid-day tomorrow and then be able to create and circulate the final sets of all 5 projects on Friday afternoon.

Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If you have received
this e-snail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.

REDACTED
PAPR - 004722

  

REIACTEI



Sheri L. Wainscott
From:
Sent:
To:
Cc:
Subject:
Attachments:

Keith R. Powell
Tuesday, November 24, 2015 5:12 PM
Clark, Brad
Robbie Ferris
Re: HCS ~ Exhibit B -Builder's Risk Coverage
image001.png

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

That's probably best
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.Childs-halliean.coin
(803) 254=4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected
by attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to
examine, copy or distribute the accompanying material. If you receive this message in error, please notify us by
telephone as listed above immediately.
On Nov 24, 2015, at 5:05 PM, Clark, Brad <Brad.Clark cr,BBandT.com> wrote:
Robbie,
I'm available Tuesday and Friday next week to meet with HCS staff to review insurance options.
Thanks,
Brad Clari<, GC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell

brad.clarl<@bbandt.com
m a iIco.d e: 120-80-01-15
From: Robbie Ferris [mailto:RFerrisC~sfla.biz]
Sent: November 24, 2015 4:49 PM

To: Clark, Brad
i
PAPR - 004724

 Cc: Keith R. Powell
Subject: Re: HCS ~ Exhibit B -Builder's Risk Coverage
Brad
Would it make sense for you to meet with Hcs staff About insurance options next week Say
wednsday

Sent from my iPhone
On Nov 24, 2015, at 2:03 PM, Clark, Brad <Brad.Clark(a~BBandT.coin> wrote:
Keith,
have received two quotes for Builder's Risk coverage from Zurich and AmRisc, and
should receive a third quote today from ACE. I will provide you with a spreadsheet
comparing the three options and allow for HCS to compare the coverage to the
coverage available through the IRF. I can also provide sample coverage forms.
A large factor in determining the cost of the Builder's Risk insurance is the # of months
that coverage will be needed. Do you know if HCS will want Builder's Risk coverage in
force immediately or would like to wait until vertical construction/subsurface work to
accommodate vertical construction begins?
After review of the IRF coverage form, causes of loss form, and the flood and
earthquake endorsements, I still have the same concerns as outlined in our original
correspondence for protection of the Design-Builder.
•

•
•
•

•

•
•

Damage to the project by a subcontractor would be covered by the IRF's
Builder's Risk policy; however, the Builder's Risl< insurer may look to 3`d party
coverage to pay the claim which could lead to a delay on the project. We
recommend providing the Design-Builder and subcontractors with a waiver of
subrogation on the Builder's Risk policy as all covered claims will be First Party
claims and should be settled much more swiftly.
Materials at temporary storage facilities are not covered on the IRF policy.
Materials must be within 100 feet of the described premises to be covered.
Since the Design-Builder and subcontractors of all tier will not be Named
Insured's on the IRF's policy, the word "you" and "your" as used in the policy
only refer to HCS as a Named Insured.
o Covered Property is defined in 1.b.(2) as "your building material and
supplies used for construction". I# HCS has not paid Firstfloor/their
subcontractors for materials located at the site, it can be argued that
those materials are considered Property of Others.
o There is coverage limitation of $2,500 of Property of Others
Delay is not covered on the IRF policy. If a covered cause of loss on the Builder's
Risk policy damages one or more schools, would HCS want insurance proceeds
to pay for the extra expense to accommodate those students that were to
occupy these schools?
The endorsements that you provided indicate that coverage will extend for
Flood and Quake.
Can you please confirm that the deductibles for Wind, Flood, and Quake will
be $1,000 as outlined in the coverage overview?
2
PAPR - 004725

 Thank you,
Brad Clark, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545' Direct
678.612.7403 Cell
brad.clark@bbandt.com
m a iIco de: 120-80-01-15

"

From: Keith R. Powell [mailto:kpowellCa?childs-halligan.net]
Sent: November 18, 2015 2:20 PM
To: Clark, Brad; Robbie Ferris (RFerrisC~sfla.biz)
Subject: RE: HCS ~ Exhibit B
I'm talking to them about a lot of last minute edits this afternoon and will include the
builder-provided BR policy as a topic on the list. The terms provide for FFEP to place
coverages after execution so we have a few days, although of course next week is
truncated for business purposes.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www,chiids-haiIiga n.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disdosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.

From: Clark, Brad [mailto;Brad.Clark@BBandT.com]
Sent: Wednesday, November 18, 2015 2:17 PM
To: Keith R, Powell; Robbie Ferris (RFerrisCo>sfla.biz)
Subject: RE: HCS ~ Exhibit B
Thank you Keith.
will review the coverage and inform Robbie / Firstfloor Energy Positive LLC ("PEEP") of
any concerns.
If you would like, I will pursue a Builder's Rislc coverage option in the voluntary
marketplace that will list HCS, FFEP, and subcontractors as named insureds. HCS can
compare this to the premium and coverage available through the IRE.
do you know what wind/named storm deductible the IRF uses?
Thanks,
Brad Clarl<, CIC
Vice President
3

PAPR - 004726

 BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clark@bbandt.com
ma iIcode: 120-80-01-15
From: Keith R. Powell [mailto:kpowellCa~childs-hailigan.net]
Sent: November 18, 2015 12:56 PM
To: Clark, Brad; Robbie Ferris (RFerrisC~sfla.biz)
Subject: FW: HCS (Exhibit B
Importance: High
Attached info for your use.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-snail inay contain information that is personal and confidential, non-clisclosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.

From: Ara Heinz [mailto:AHeinzCa>horrycountyschools.net]
Sent: Wednesday, November 18, 2015 12:40 PM
To: Keith R. Powell
Subject: RE: HCS ~ Exhibit B
Mr. Powell,
Sorry for the delay. In a mtg this morning and dr's appt right after. Let me know if you
need anything else.
Regards,
f~ V'ai

Ara Heinz ~ Procurement Services ~ ~+ P: 843/488-6930
Horry County Schools ~ 335 Four Mile Rd. ~ Conway, SC 29526
Website: Procurement.horrycountvschools.net

<image001.png>
From: Keith R. Powell [mailto:kpowell@childs-halli~an.net]
Sent: Tuesday, November 17, 2015 6:39 PM
To: Ara Heinz
Subject: Fwd: HCS ~ Exhibit B
Ara -can you get your irf policy to me? I know you sent two excerpts in the
summer but the insurance agent for ffep needs to see it all. Thanks.
Keith R. Powell
4

PAPR - 004727

 Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halli fan, com
(803) 254-4035

NOTICE: This e-mail may contain information thatrs personal and confidential,
non-disclosable and protected by attorney-client privilege. If you have xeceived
this e-mail in ez-ror, this does not constitute permission to examine, copy or
distribute the accompanying material. If you receive this message in error, please
notify us by telephone as listed above immediately.
Begin forwarded message:
From: "Clark, Brad" <Brad.Clark cr,BBandT.com>
Date: November 17, 2015 at 5:30:59 PM EST
To: "Keith R. Powell" <kpowell(evchilds-halli~an.net>, Robbie
Ferris <RFerris~sfla.biz>
Subject: RE: HCS ~ Exhibit B
Keith,
Can you please send me the Causes of Loss Form referenced in the
Builders Risl<Coverage Form and all applicable
endorsements/exclusions? I would like to review the excluded perils as
the policy wording in the attachments you send provides very limited
coverage for the exposure.
Thank you,
Brad Clarl<, CIC
Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 Direct
678.612.7403 Cell
brad.clarl<@bbandt.com
ma ilco d e: 120-80-01-15
From: Keith R. Powell [mailto:kpowellCc~childs-halligan.net]
Sent: November 17, 2015 1:22 PM
To: Robbie Ferris
Cc: Elark, Brad
Subject: RE: HCS ~ Exhibit B
Here are the forms. The BR policy talks about "your" property, but the
IRF won't let HCS name a nongovernment entity as an insured or loss
payee.
Keith R. Powell
Childs & Halligan, P.A.
Columbia, South Carolina
www.childs-halligan.com
5
PAPR - 004728

 (803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable
and protected byattorney-client privilege. If you have received this e-mail in error, this does not
constitute permission to examine, copy or distribute the accompanying material. If you receive
this message in error, please notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerrisC~sfla.biz]
Sent: Tuesday, November 17, 2015 12:22 PM
To: Keith R. Powell
Cc: Clark, Brad (Brad.ClarkCa~BBandT.com)
Subject: FW: HCS ~ Exhibit B

Keith,
Apparently our insurance company sent mean email about this
a few days ago thatInever sent you. Sorry!!
Feel free to call Brad directly to discuss his concerns.
Robbie

Robbie/Mike,
After reviewing this updated draft, 1 still see the same potential problem
areas as previously outlined. There are some significant gaps in the
protection of First Floor and subcontractors with the language used for
Builder's Rislc coverage, specifically:
•

~

•

~

Design-Builder and subcontractors of all tiers should have
insured status on the Builder's Risk policy in order to ensure
yourinterests are protected.
HCS should agree to waive subrogation against First Floor and
subcontractors of all tiers for losses covered by the Builder's
Risk policy. This waiver will prevent HCS' insurer from seeking
subrogation against First Floor's or a subcontractor's GL
coverage if a contractor caused damage to the project.
The contract states that HCS has the responsibility to pay losses
not covered by deductibles, but the contract does not state
anything regarding excluded perils, inadequate limits, or
property not covered. These can all be significant exposures.
Other areas as outlined in the attached "Builder's Risk
Considerations".

Additional Insured status is still referenced for Pollution Liability
coverage even though that coverage is not required by HCS. t
recommend striking this language since First Floor is not required to
carry Pollution Liability by HCS. As discussed previously, BB&T still
recommends that you purchase Pollution Liability coverage to protect
First Floor.
Tha nI<s,
Brad Clark, CIC
6

PAPR - 004729

 Vice President
BB&T Insurance Services
4309 Emperor Blvd., Suite 300
Durham, NC 27703
919.281.4545 direct
678.612.7403 Celi
brad.clarkCa@bbandt.com
ma ilcode: 120-80-01-15
From: Peeples, Kenneth
Sent: November 17, 2015 10:30 AM

To: Blanchard, Kathy; Clark, Brad
Subject: Fwd: Hcs

Ken Peeples
919-281-4510 office
919-215-9779 cell
Via iPhone

Begin forwarded message:
From: Robbie Ferris <RFerrisna sfla.biz>
Date: November 17, 2015 at 9:55:52 AM EST
To: Nancy Zablud <NZablud(~sfla.biz~, Mike
Wawrzyniak <mwawrzyniak cr,sfla.biz~, "Kenneth
J. Peeples" <kpeeples~a,bbandt.com>, Aaron
Thomas <athomas~a,metconus.com>, Mike Richter
<mrichter a,talovin~ conl>
Subject: Fwd: Hcs
Guys,
See attached e~chibit B in the email from Keith
Powell.
Robbie
Sent from my iPhone
Begin forwarded message:
From: "Keith R. Powell"
<kpowell ,childs-halli an.net>
Date: November 17, 2015 at 9:47:32
AM EST
To: "Robbie Ferris
(RFerris o,sfla.biz)"
<RFerris e,sfla.biz>, Mark Wolfe
<MWo1fe002(a~horr~c
yschools.
net>, "Ara Heinz
AHeinz(n~horrvcotmiyschools.net)"
PAPR - 004730

 <AHeinzna,hon.~c
tvschools.net>,
John Gardner
<JGardner(a~horrvcountvschools.net
>, Kenneth Generette
<KGenerette(a~horrvcountvschools.n
et>,
~
~
.

"rmaxe horn.~c untyschools.net"
<rmaxey(c~r,horrycountvschools.net>
Cc: "William F. Halligan"
<bhalli~anna,childs-halli~an.net>
.Subject: RE: Hcs
Robbie & HCS folks:
Ex B updated draft attached for
review &comment. Waiting on
HCS comments on 141 and Ex A.
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halligan•com

(803) 254-4035
NOTICE: This e-mail may contain
information that is personal and
confidential, non-disclosable and
protected by attorney-client
privilege. If you have received this email in error, this does not constitute
permission to examine, copy or
distribute the accompanying
material. If you receive this message
in error, please notify us by
telephone as listed above
immediately.

On Nov 17, 2015, at 7:43 AM,
Robbie Ferris <RFerris e,sfla.biz>
wrote:
Keith
Can you send the
latest version of the

contract for review
Robbie
Sent from my iPhone

PAPR - 004731

 '~.;

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,c~trbjecr to ~~r•nteclio~~ crrzdc>r t'/7e lcri~~~. 1I~e n~es,~•ccge is i~itc~r~~lec~,~i;r•
the ,sc~1e tcse of'~he ir~t~iric~z~~~l ar er~t.il~: !a ~•i~Fiicl~ iI s ~icl~lre,sset~. 1~'
.yi~rt cu•c~ ~~ol` IhFr ZIIIC'YtI.IPCf I"GCI~JIC'{it, ~:ozr. crre notzfii:cl lltu~ u~71- rise,
i2isb•il~ution n~• i:nl~~~it2g of'the rrze:ssagc is srrirrl1~l.~ro/ail~irc~ct lf.}-ou
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J?011-~)1LI)I1C: 1/?f0!'171LlflOi2 Of'13.Bc~T or

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1fJ1%I1C!l.~IG(~6'lV Uf 178 l!?ClCj1-C'1"lt.Yll l"!'ClYlS'!'1JIS,5'7071,

<Builders Risk Considerations.pd~

PAPR - 004732

 Bl~~X.1

BB&T Insurance Services, Inc.
Brad Clarlc
4309 Emperor Blvd., Suite 300
Durham, NC 27703
Phone(919)281-4545
Fax(888)746-8761
Toll Free (800) 672-1674

Builder's Risk Considerations /Questions for HCS

B.3.2.6 indicates that the Owner will file a copy of the Builder's Risk policy. Will the Owner provide the
Design-Builder with a specimen (sample) copy of the policy that will be used?
2.

BB&T recommends that the Design-Builder and subcontractors of all tiers should be added as named
insured on the Builder's Risk policy.
a. B.3.2.5 indicates that the owner will provide a waiver of subrogation in favor of the Design-Builder
for adjacent property. If the owner will not add the Design-Builder as named insured, request
should be made that the owner waive subrogation on the Builder's Risk policy in favor of the
Design-Builder and subcontractors of all tiers.
i. Section B3.2.7 has been struck which would normally provide the waiver on the Builder's
Risk policy. BB&T recommends that this section be added back into the contract.

3.

B.3.2.1.2 indicates owner shall pay costs not covered because of such deductibles. Will owner also pay costs
not covered because, of excluded perils, excluded property, or inadequate limits?
a. Areas of exposure that may not be covered on the SC policy include, but are not limited to: delay in
completion, expediting expenses, testing, and construction forms and scaffolding.

4.

Section 5.1.43 states that the Design-Builder will reimburse the owner for delay, improperly timed
activities, and defective construction. A loss to the project caused by a subcontractor that is covered by the
Builder's Risk policy may also delay the project. If the Builder's Risk policy obtained by the owner does not
include Defay in Completion coverage, the uninsured costs from the delay may be the responsibility of the
Design-Builder.

5.

B.3.2.13 states that the Builder's Risk policy will provide coverage for portions of the work stored off the
site and portions of the work in transit; however, the SC policyholder manual indicates that "covered
property" includes machinery, equipment and supplies within 100 feet of the premises. BB&T recommends
clarifying coverage for off-site property and property in transit.

6.

BB&T recommends obtaining a full list of exclusions and a list of property not covered on the Builder's
Risk policy obtained by Owner.

PAPR - 004733

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Robbie Ferris <RFerris@sfla.biz>
Monday, November 23, 2015 1:52 PM
Keith R. Powell
Re: HCS -Revised Invoices

Follow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Keith, we could use the standard application for payment however the contract says that for services rendered before
the amended meant is signed we should submit an invoice. I think the process that is contemplated is that we submit an
invoice for the first application. We then have the schedule of values approved. And then all other applications for
payment our standard AIA applications. We can discuss this later today
Sent from my iPhone
On Nov 23, 2015, at 12:37 PM, Keith R. Powell <kpowell@chills-halligan.net> wrote:

Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halli~an.com
(803) 254-4035

NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and
protected by attorney-client privilege. If you have received this e-mail in error, this does not constitute
permission to examine, copy or distribute the accompanying material. If you receive this message in
error, please notify us by telephone'as listed above immediately.
Begin forwarded message:
From:lohn Gardner <JGardner@horrvcountyschools.net>
Date: November 23, 2015 at 12:27:36 PM EST
To: "Keith R. Powell" <kpowell@chills-halli~an.net>, Mark Wolfe
<MWoIfe002(~horrycountvschools.net>
Subject: RE: HCS -Revised Invoices
Keith,
Why would he not use the standard AIA application for payment?
Thanks!
John

PAPR - 004734

 From: Keith R. Powell [mailto:kpowell@childs-halli~an.net]
Sent: Monday, November 23, 2015 12:25 PM
To: John Gardner <JGardner()horrycountvschools.net>; Mark Wolfe
<MWoIfe002 @horrycountyschools.net>
Subject: FW: HCS -Revised Invoices
While we're there today can you give Robbie the info he will need to submit invoices?
Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halliga~.com
(803) 254-4035
NOTICE: Tliis e-mail may contain information that is personal and confidential, non-disciosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.

From: Robbie Ferris [mailto:RFerrisCa)sfla,bizl
Sent: Sunday, November 22, 2015 6:23 PM
To: Keith R. Powell
Subject: FW: HCS -Revised Invoices
Keith,
These are the invoices I plan on submitting. Since the school folks are not talking to us
until we get a contract can you tell me what we need to do to officially submit these? If
they do wire transfers that is always best for us so we can pay people faster. We have
included wire transfer instruction incase they are able to do wire transfers.
Robbie
From: Rick Green
Sent: Sunday, November 22, 2015 6:14 PM
To: Robbie Ferris
Subject: HCS -Revised Invoices
Here you go!!! I've also attached the wire instructions to move funds into the Firstfloor
Energy Positive (HCS Team) account at BB&T.

Richard A. Green
Firstfloor Inc.
4400 Silas Creek Parkway, Ste. 200
Winston Salem, NC 27104
Office: (336) 794-2325
Fax: (336) 768-7666
rqreen@_firstfloor.biz

2

PAPR - 004735

 Sheri L. Wainscott
From:
Sent:
To:
Subject:

Keith R. Powell
Monday, November 23, 2015 12:38 PM
Robbie Ferris
Fwd: HCS -Revised Invoices

Foflow Up Flag:
Flag Status:

Follow up
Flagged

Categories:

Red Category

Keith R. Powell
Childs &Halligan, P.A.
Columbia, South Carolina
www.childs-halli~an.com
(803) 254-4035

NOTICE: This e-mail may contain information that is persona! and confidential, non-disclosable and protected by
attorney-client privilege. If you have received this e-mail in error, this does not constitute permission to examine, copy
or distribute the accompanying material. If you receive this message in error, please notify us by telephone as listed
above immediately.
Begin forwarded message:
From: John Gardner <1Gardner@horrycountvschools.net>
Date: November 23, 2015 at 12:27:36 PM EST
To: "Keith R. Powell" <kpowell@childs-hailigan.net>, Mark Wolfe
<MWoIfe002@horrvcountvschools.net>
Subject: RE: HCS -Revised Invoices
Keith,
Why would he not use the standard AIA application for payment?
Thanks!
John
From: Keith R. Powell [mailto:kpowell@childs-halligan.net]
Sent: Monday, November 23, 2015 12:25 PM
To: John Gardner <JGardner@horrycountyschools.net>; Mark Wolfe
<MWoIfe002@horrYcountvschools.net>
Subject: FW: HCS -Revised Invoices
While we're there today can you give Robbie the info he will need to submit invoices?
Keith R. Powell
Childs &Halligan, P.A.
1

PAPR - 004736

 Columbia, South Carolina
www.childs-halligan.com
(803) 254-4035
NOTICE: This e-mail may contain information that is personal and confidential, non-disclosable and protected by attorney-client privilege. If
you have received this e-mail in error, this does not constitute permission to examine, copy or distribute the accompanying material. If you
receive this message in error, please notify us by telephone as listed above immediately.

From: Robbie Ferris [mailto:RFerrisCa~sfla.biz]
Sent: Sunday, November 2Z, 2015 6:23 PM
To: Keith R. Powell
Subject: F1N: HCS -Revised Invoices
Keith,
These are the invoices I plan on submitting. Since the school folks are not talking to us until we get a
contract can you tell me what we need to do to officially submit these? If they do wire transfers that is
always best for us so.we can pay people faster. We have included wire transfer instruction incase they
are able to do wire transfers.
Robbie
From: Rick Green
Sent: Sunday, November 22, 2015 6:14 PM
To: Robbie Ferris
Subject: HCS -Revised Invoices
Here you go!!! I've also attached the wire instructions to move funds into the Firstfloor Energy Positive
(HCS Team) account at BB&T.

Richard A. Green
Firstfloor Inc.
4400 Silas Creek Parkway, Ste. 200
Winston Salem, NC 27104
Office: (336) 794-2325
Fax: (336) 768-7666
rgreen(a~firstfloor. biz

PAPR - 004737