Orange County NC Website
Browse       Search
14 <br /> Orange County, NC I CONSTRUCTION MANAGER AT RISK CONTRACT I CONFIDENTIAL DRAFT <br /> prior to taking any action which has a time and/or cost impact. All change orders will be settled in full. No <br /> caveats for later settlement of time extensions or delays will be accepted. <br /> ARTICLE 8: SUBCONTRACTS AND SUBCONTRACTORS <br /> 8.1 The CMAR shall determine appropriate bid packages for all trade scopes. Separate bid packages shall <br /> be prepared for general construction, electrical, mechanical, plumbing, and fire protection. The CMAR shall <br /> publicly advertise all subcontract packages as required by N.C. Gen. Stat. § 143-129 and shall accept bids <br /> from pre-qualified first-tier subcontractors. All bids shall be opened publicly and shall constitute public <br /> records under N.C. Gen. Stat. Chapter 132. <br /> 8.2 The CMAR shall award each subcontract to the lowest responsible, responsive bidder. Prior to award, <br /> the CMAR shall submit to the Owner certified bid tabulations, copies of all bids received, MWBE <br /> documentation, and the CMAR's written recommendation for award. No award shall be made without the <br /> Owner's written concurrence. <br /> 8.3 The CMAR may not bid on, or self-perform the Work of, any trade package without the Owner's prior <br /> written approval. Self-performance exceeding $100,000 on any single package requires the Board <br /> approval. The CMAR hereby discloses the following related-party relationships: <br /> 8.4 The CMAR shall require Performance and Payment Bonds from each Subcontractor for subcontracts <br /> exceeding $500,000, or as otherwise required by the Owner. <br /> 8.5 All Subcontractors shall be bound to the CMAR by subcontract terms consistent with the Contract <br /> Documents. The CMAR shall include in each subcontract: (a) flow-down of all applicable Contract <br /> Document obligations; (b) Owner's right to inspect and audit; (c) MWBE requirements; (d) E-Verify <br /> requirements; (e) prompt payment obligations; and (f)the contingent assignment provision of Article 7. <br /> 8.6 Contingent Assignment of Subcontracts. Each subcontract agreement for a portion of the Work is <br /> hereby assigned by the CMAR to the Owner, subject to the following: (a) Assignment becomes effective <br /> only upon termination of this Contract by the Owner for cause under Article 25.2 and the Owner's written <br /> acceptance of the specific subcontract; (b)Assignment is subject to the prior rights of any surety under the <br /> Performance and Payment Bonds; (c) Upon accepting assignment, the Owner assumes the CMAR's rights <br /> and obligations under the assigned subcontract from the date of acceptance; (d) If work under an assigned <br /> subcontract has been suspended for more than thirty (30) days following Contract termination, the <br /> Subcontractor's compensation shall be equitably adjusted for increased direct costs resulting from the <br /> suspension. <br /> 8.7 The CMAR shall pay each Subcontractor within seven (7)days of the CMAR's receipt of payment from <br /> the Owner, pursuant to N.C. Gen. Stat. § 143-134.1. Retainage withheld from Subcontractors shall not <br /> exceed the retainage withheld by the Owner from the CMAR on account of that subcontractor's work. <br /> Interest on late payments to Subcontractors shall accrue at twelve percent(12%)per annum from the eighth <br /> day. <br /> 8.8 Upon completion of all Subcontractor contracts, the CMAR shall deliver to the Owner copies of all <br /> subcontracts, lien waivers, and affidavits from Subcontractors confirming full payment. <br /> ARTICLE 9: KEY PERSONNEL AND CONDUCT <br /> 9.1 The Key Personnel identified in Exhibit C are designated by the CMAR as the individuals who will be <br /> assigned to the Project in the roles specified. Key Personnel shall be available to the Project for the duration <br /> of the phases specified in Exhibit C. The CMAR shall not reassign, replace, or remove Key Personnel <br /> without the Owner's prior written consent. <br /> 9.2 Replacement of Key Personnel. If Key Personnel must be replaced due to departure from the CMAR's <br /> firm, illness, or other unavoidable circumstance, the CMAR shall: (a) provide the Owner with at least thirty <br /> (30) days advance written notice; (b) propose a replacement of equal or greater qualifications; and (c) <br /> Page 11 of 35 <br />