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00700 - A201-1997 SUPPLEMENTAL CONDITIONS

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					                                  A201-1997 Supplemental Conditions

The General Conditions are incorporated herein by reference and made a part hereof;
they are the 1997 edition of the General Conditions of the Contract for Construction, AIA
A201-1997 modified and amended as follows, modify the original document Sub-
paragraphs as follows:
    a. Para. 3.7.1 is deleted; Permits, Fees and Notices are the responsibility of the
        Owner.
    b. Para. 4.2.4 is deleted and replaced with the following: “4.2.4 Communications
        Facilitating Contract Administration. The Owner and Contractor shall endeavor
        to communicate directly with each other about matters arising out of or relating to
        the contract. Communications by and with the Architect’s consultants shall be
        through the Architect. Communications by and with Subcontractors and material
        suppliers shall be through the Contractor. Communications by and with separate
        contractors shall be through the Owner.”
    c. Para 4.2.8 is deleted and replaced with the following: “4.2.8 The Architect may
        authorize minor changes in the Work as provided in Paragraph 7.4.”
    d. Para. 4.6.2 is amended by adding the following after the last sentence. “The
        Arbitrators shall award the prevailing party all reasonable attorney’s fees,
        arbitrator fees, expert fees and costs incurred in participating in the arbitration. If
        the amount in dispute exceeds $25,000, it is agreed that the arbitrators shall
        permit limited discovery, including depositions of key witnesses and the
        production of documents relating to the dispute or project.”
    e. Para. 4.6.4 is deleted.
    f. Para. 6.1.1 is amended by adding the following after the last sentence. “The
        Contractor and his Sub-Contractors shall coordinate their work with the Owner’s
        TI Contractor. But, the Owner’s TI Contractor shall not attach to or tie-into
        Contractors Work without prior permission.”
    g. Para. 7.2.2 add these sub-paragraphs following 7.2.2.
            a. 7.2.2 Add the following sentence to the end of 7.2.2. “The use of a
                Change Order with an agreed upon cost shall be preferred over a
                Construction Change Directive.”
            b. “7.2.2.1 Change Orders increasing the Scope of Work will have additional
                Fee added with a Contractor’s Fee of Five Percent (5%) and Subcontractor
                fees not exceeding 10% Overhead and 10% Profit.
            c. “7.2.2.2 Change Orders decreasing the Scope of Work will not result in
                any reduction of Contractor’s Fee.
            d. “7.2.2.3 No Change Order work can begin without the written and signed
                authorization of Owner. Contractor (and its Sub-Contractors) expressly
                agree to waive any claim for reimbursement for any additional work
                performed without prior written and signed authorization from Owner,
                even if Owner receives added value by such additional work performed by
                Contractor.”

     h. Para. 7.3.1 Add the following to the end of the last sentence. “ , as soon as
        practical, by execution of a Change Order.”


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     i. Following Para 7.3.6.5 Add the following. “7.3.6.6 When pricing Change Orders,
        Contractor (and its Sub-Contractors) shall provide pricing on a fair and reasonable
        basis consistent, where possible, with the pricing of the Cost of the Work in the
        base contract and otherwise consistent with good industry practice. In addition,
        Contractor and Owner shall make reasonable efforts to minimize any schedule
        impact associated with Change Orders.”
     j. Para. 9.2.1 is deleted and replaced with the following: “9.2.1 The Contractor has
        prepared and attached hereto as Exhibit “A” a Schedule of Values allocated to
        various portions of the Work. This Schedule of Values, as modified by Change
        Orders, if any, shall be used as a basis for preparing and reviewing the
        Contractor’s Applications for Payment.”
     k. Para. 9.3.1.2 Add the following to the end of the paragraph: “ , or as payment to
        Contractor for work it performed.”
     l. Para. 9.4.1 Insert the following at the end of the paragraph: “The Owner may
        approve Application for Payment with or without consultation with the
        Architect.”
     m. Para. 9.8.5 delete the words “and consent of surety, if any”.
     n. After Para. 9.10.5 Add the following paragraph: “9.10.6 Upon Completion of the
        project, Contractor shall furnish the Owner with the Project Record Drawings
        showing posted changes and as-built conditions in red-line, Operations and
        Maintenance data and Owner’s Manual, including copies of required warranties.”
     o. Prior to Paragraph 9.3.1 insert the following:
        “9.3.0 Prompt Payment Provisions. Notwithstanding any provisions to the
        contrary contained in the Contract Documents, the Owner and Contractor agree
        that the following prompt payment provisions are incorporated into the
        Guaranteed Price and the Agreements between them and with Subcontractors and
        Suppliers.
          a.    Owner shall arrange funding for prompt payment of all Work ordered.
          b.    Contractor shall submit timely Applications for Payment accompanied by,
                accurate supporting schedules to determine percentage of completion
                of the elements of work, Contractor’s Conditional Waiver of Lien for
                current Progress Payment, Contractor’s Unconditional Waiver of Lien for
                previous payment, and copies of Unconditional Waivers of Lien through
                the previous payment for all Subcontractors and Suppliers who have filed
                notices establishing lien rights, and required documentation for stored
                materials. Proof of costs incurred shall be submitted for amounts included
                in the current Application for Payment in the “Allowance” line items.
         c.     No additional documents shall be required with Progress payments,
                without prior consent of the Contractor, unless Owner’s lender reasonably
                requires other documentation.
         d.     Owner shall notify Contractor within 14 calendar days of receipt of the
                Application for Payment if he will deny payment for any portion of the
                Application for Payment. Owner shall pay the undisputed amount due.
         e.     Within 7 calendar days of receipt of payment by Owner, Contractor
                will pay all of its Subcontractors and Suppliers the proportionate amount
                earned of the payment made, subject only to receipt of Lien releases and


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                    other documents required by their agreements.
          f.        Should the Owner fail to make timely payments then additional costs,
                    damages, interest and delays from suspension of work may occur. Should
                    such delays result in added costs or delays in the Work, then the Contract
                    Sum and Substantial Completion date shall be modified to compensate
                    Contractor.

ARTICLE 11 of the General Conditions is modified by the addition of the following:

11.1.1 Workers’ Compensation and Employer’s Liability Insurance for all employees at
       the Site of the Project, as follows:
       Coverage A (Workers’ Compensation) Statutory;
       Coverage B (Employer’s Liability $1,000,000.00 in Nevada and $100,000.00
       each accident in other states;

11.1.4 Contractor’s Liability Insurance limits of liability shall be:

11.1.5 Commercial General Liability Insurance including Premises-Operations;
       Independent Contractor’s Protective; Products and Completed Operations; Broad
       Form Property Damage, also including:
       (i) Bodily Injury and Property Damage Liability - $1,000,000.00 each occurrence
       and $2,000,000.00 annual aggregates (products and completed operations);
       Maintain products and Completed Operations for one (1) year after Substantial
       Completion;
       (ii) Independent Contractors Liability (to cover Contractor’s Liability arising out
       of the work performed by its Subcontractors);
       (iii) Personal Injury Liability Insurance (Hazards A, B, C, D with Exclusions for
       assumed liability deleted) $1,000,000 limit;
       (iv) Blanket X, C and U Coverage;

11.1.6 Comprehensive Automobile Liability Insurance covering all owned, hired or non-
       owned vehicles including the loading or unloading thereof:
       Bodily Injury and Property Damage Liability $1,000,000.00 combined single
       limit.

11.1.7 ADDITIONAL INSUREDS: The Commercial General Liability insurance
       required of the Contractor shall include an endorsement naming the following
       listed entities, their agents, consultants, and employees as additional insured’s on
       policies providing required coverages):

          1. the Owner
          2. the Lender

11.3.1 Optional Project Management Protective Liability Insurance shall not be provided
       on this Project.



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11.4      Is modified as follows: the Owner will purchase, effect and maintain property
          insurance for all the Work to be performed under this Contract. The policy of
          insurance shall be “All Risk” form, provide primary coverage, and copies of the
          policy will be made available to Contractor. The Policy shall be equal to the full
          insurable value of the Work. The policy shall provide coverage for materials
          stored on-site; and for materials in transit to a maximum of $100,000; have a
          deductible not greater than $2,500.00 per occurrence.




                            END A201-1997 SUPPLEMENTAL CONDITIONS




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