01-28-2019 Council Packet - Laserfiche WebLink

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200631v1 for performance, has not cured any defect in performance specifically itemized in such demand, the City may, at its option: o Withhold payment. o Consider all or any part of this contract breached and terminate the contractor, or o May hire another contractor to cure any defects in performance or complete all work covered by this specification for the remaining term of this contract. o Any demand for performance shall be specifically delivered to contractor by personal delivery, certified or registered mail. C. The City will make periodic inspections and follow up as needed with the contractor to discuss any issues, etc. D. Payments to Subcontractor. (1) Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor’s receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1½ percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. (2) Minn. Stat. § 290.92 requires that the City obtain a Withholding Affidavit for Contractors, Form IC‐134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Progress Payments. City shall make 95% progress payments on account of the Contract Price on the basis of Contractor’s Applications for Payment during performance of the Work Upon final completion of the Work, City shall pay the remainder of the Contract Price as recommended by City. 5. COMPLETION DATE/LIQUIDATED DAMAGES. A. Contract Term: The contract will be for approximately five (5) years, beginning on the first day of a fully executed Contract and ending on __________. B. Liquidated Damages: Time is of the essence to the contract. Should the Contractor fail to complete the work within the specified time stipulated in the contract or within such extended time as may have been allowed, the Contractor shall be liable and shall pay to the City the amount shown in the following schedule of deductions, not as a penalty but as liquidated damages, for each day of overrun in the contract time or such extended time as may have been allowed. The liquidated damages for failure to complete the contract on time are approximate, due to the impracticality of calculating and proving actual delay costs. This schedule of deductions establishes the cost of delay to account for administration, engineering, inspection, and supervision during periods of extended and delayed performance. The costs of delay represented by this schedule are understood to be a fair and reasonable estimate of the costs that will be borne by the City during extended and delayed performance by the Contractor of the work. The liquidated damage amount specified will accrue and be assessed until final completion of the total physical work of the contract even though the work may be substantially complete. The City will deduct these liquidated damages from any monies due or to become due to the Contractor from the City. Deduction for Each Day of Overrun in Contract Time: $500.00 per day. . 6. Change Orders: After contract is awarded, additional purchases or modifications may be