This Consulting Services Agreement for Assignable Consultants can be used when
entering into agreement with consultants that may be assigned to another entity in the
future. This form contains standard terms and language that is used in this type of
agreement, however, optional terms and language may be added to ensure the needs
of the contracting parties are met. Use this form if one wishes to receive consulting
services that are assignable or if one wishes to give consulting services that are
CONSULTING SERVICES AGREEMENT
AGREEMENT made as of _________ ____, 200__
"Owner/Client": [insert Owner/Client name and address]
and the "Consultant": [insert Consultant name and address]
The "Program Manager" is: [insert PM name and address]
Point of Contact: [insert]
The "Project" is: [describe Project and location]
THIS CONSULTING SERVICES AGREEMENT ("Agreement"), effective as of the date set forth
above, is between Owner/Client and Consultant, who state and agree as follows:
1. Consultant. By way of a written request for proposals ("RFP"), a copy of which is
attached to Exhibit A, Owner/Client requested that a firm or firms with the qualifications to meet the
requirements of the RFP submit proposals to provide services described in the RFP. After evaluating the
respondents, Owner/Client selected Consultant, and Owner/Client now wishes to retain Consultant to
provide services to Owner/Client in connection with the Project. Consultant shall perform its services
pursuant to this Agreement under the direction and management of Program Manager and for the benefit
of Owner/Client. Consultant is an independent contractor and not an agent, servant or representative of
Owner/Client or Program Manager. Consultant will have no authority legally to obligate Owner/Client
except as specified in this Agreement or as otherwise specified in writing by Owner/Client from time to
time. The "Consultant Representative" for purposes of this Agreement is designated above.
2. Scope of Services; Work Authorizations. Exhibit A attached hereto contains the RFP
which outlines the full range of services that Owner/Client might request from Consultant (the "Services").
However, Owner/Client will request particular Services from Consultant only on the basis of work
authorizations mutually agreed by the parties. This Agreement is intended as a master agreement that
defines the basic commercial terms under which Consultant will provide services within the general scope
outlined in Exhibit A and how Owner/Client will make payment for those services. The scope and pricing
for each set of specific Services shall be agreed upon and set forth in a written work authorization for
such specific Services.
Consultant represents that the Services shall be carried out in a manner consistent with industry
standards and good commercial practices, without negligent errors or omissions.
3. Time of Performance. The term for a particular set of Services shall be set forth in the
applicable work authorization. Consultant shall commence its Services immediately upon receipt of a
signed copy of this Agreement and a written work authorization and shall continue until the scope
described in each work authorization is completed or until this Agreement is terminated. Consultant
agrees to perform its Services continuously, diligently, and energetically, and to complete the Services in
accordance with the Project schedule provided by Owner/Client. Time is of the essence of this
4. Further Work. If, during the course of the Services, Consultant discovers any fact or
condition which would lead Consultant to recommend further analysis, testing, evaluation or other
services beyond the scope of the outstanding work authorizations, Consultant shall contact Owner/Client
to discuss Consultant's findings and recommendations and give an estimate of the cost of such further
work. Owner/Client may authorize Consultant to perform such additional work only by providing written
direction to Consultant specifying the work to be performed and the maximum additional fee to be added
to the amount authorized in the work authorization. Consultant shall not be responsible or liable for any
costs, damages, claims or other consequences to the extent arising out of Owner/Client's decision not to
accept Consultant's recommendation for further work.
5. Subconsultants; Employees.
(a) Consultant shall not contract with or otherwise engage, employ or utilize any consultants,
contractors, or other third parties (any such, a "Subconsultant") in connection with any Services without
Program Manager's prior written consent in each instance. Consultant shall furnish Owner/Client with a
list of Subconsultants proposed to be used on the Project prior to commencing Services under a
particular work authorization, and shall promptly notify Owner/Client of proposed changes to such list.
Neither use of a Subconsultant by Consultant, nor Program Manager's consent thereto, shall relieve
Consultant of its obligations under this Agreement. Consultant shall be responsible to Owner/Client for
the acts and omissions of its employees and Subconsultants, and their agents and employees. The
terms, conditions, and provisions of the Consultant's agreement with each Subconsultant shall be subject
and subordinate to, and not inconsistent with, the terms, conditions and provisions of this Agreement.
Nothing contained herein shall create any relationship of contract or agency between Owner/Client and
any Subconsultant. Consultant's obligation to pay its Subconsultants is independent from Owner/Client's
obligation to pay Consultant for Services; Owner/Client shall have no obligation to pay or enforce
payment to Subconsultants. For purposes of Consultant's obligations and responsibilities under this
Agreement, reference to "Consultant" shall be deemed to bind every Subconsultant of any tier, unless the
context specifically requires otherwise.
(b) Each work authorization shall include a staffing plan from Consultant indicating the
persons and corresponding titles who will perform the Services under such work authorization, together
with an estimate of their hours allocated to the work authorization. Any changes to such staffing plan
require advance notice to Program Manager. Consultant shall employ individuals for the Project to whom
Owner/Client has no reasonable objection. In the event Owner/Client has a reasonable objection to any
employee performing Services, it shall notify Consultant, which shall promptly cause the individual to be
removed from the Project and replace same with an unobjectionable employee at no cost to
6. Compensation; Documentation. Compensation for Consultant's performance of the
Services shall be as set forth in Exhibit B and in the applicable work authorization, payable monthly in
proportion to the Services performed within each phase (or subphase) of Services (if a work authorization
provides for phases).
Subject to any not to exceed amount in a work authorization, Consultant will be reimbursed for
reasonable, necessary and out-of-pocket expenses (collectively, "Reimbursable Expenses"), which will be
invoiced at direct cost, including but not limited to the following: (a) copying expenses, printing and
plotting, and other office-related expenses; (b) long-distance telephone calls, faxes, and similar
communication expenses; (c) postage, courier, and express mail costs; (d) out-of-town travel to and from
Sacramento, including transportation and lodging and the per diem expenses referenced in the "Travel
Policy" attached to Exhibit B; and (e) other expenses approved in writing by Program Manager prior to
being incurred by Consultant. Travel expenses need to comply with the Travel Policy to be Reimbursable
Consultant shall bill Owner/Client monthly for Services performed and Reimbursable Expenses
incurred. The bill shall itemize and describe the Services performed, identify personnel performing the
Services and the time expended (for Services compensated on a time and expenses basis), and any
Reimbursable Expenses, with appropriate documentation of all of the foregoing attached thereto. Prior to
submitting invoices to Owner/Client, Consultant shall submit same to Program Manager for review.
Within ten (10) calendar days after receipt of each such invoice, Program Manager shall verify the
accuracy of the amounts shown on same, correct the value or values where appropriate, and notify
Consultant of any changes or disagreements. Provided that Consultant delivers a properly completed,
documented invoice to Program Manager, payment of undisputed amounts will be due twenty (20) days
from Owner/Client's receipt of such invoice together with Program Manager's recommendation as to
payment; if invoices are untimely, incomplete or improperly documented, then payment may be delayed
until the thirtieth day after Program Manager receives a properly completed, documented invoice.
Consultant agrees to provide any supporting documentation for each invoice which Program Manager or
Owner/Client reasonably requests. Upon request, Consultant shall provide an executed statutory form of
waiver and release with each invoice and upon receipt of final payment as a condition to payment. Any
payment made hereunder prior to completion and acceptance of the Services shall not be construed as
evidence of acceptance of any part of Consultant's Services.
For a period of four years following substantial completion of the Project, Consultant shall
maintain full and accurate records and books of account necessary to document: (a) all activities
undertaken by or on behalf of Consultant (including by its agents and Subconsultants) in the course of
performing Services hereunder; and (b) all charges, expenses and disbursements incurred by Consultant,
its agents or Subconsultants in performing Services hereunder. Consultant will promptly make such
books and records available to Owner/Client during normal business hours upon prior written request.
7. Insurance. Exhibit C sets forth certain insurance requirements and is incorporated
herein. However, Owner/Client is exploring the desirability of instituting a consolidated insurance program
(“CIP”) for the Project in which Owner/Client and certain of its contracting parties would participate. If
Owner/Client elects to institute a CIP and require Consultant's participation, the CIP will then define the
terms and conditions of insurance coverage and would substitute for Exhibit C. To the extent that a CIP
does not provide for certain insurance coverages necessary for the Project, the provisions of Exhibit C
relating to such non-provided coverages shall apply. Consultant agrees that at all times during the life of
this Agreement, it shall maintain at its own cost those insurance coverages required by this Agreement.
8. Indemnification. Consultant shall, with respect to all services which are covered by or
incidental to this Agreement, indemnify, defend, and hold the Indemnified Parties harmless from and
against any and all claims, liability, loss, damage, costs or expenses, including reasonable attorneys'
fees, awards, fines or judgments, resulting from death or bodily injury to persons, injury to property or
other loss, damage or expense, but only to the extent caused by or arising from Consultant’s negligent
provision of Services or willful misconduct. For purposes of this Agreement, "Indemnified Parties" means
Owner/Client, Program Manager, and the other parties identified as additional insured parties in Exhibit C.
9. Waiver of Consequential Damages. Neither Owner/Client nor Consultant shall be
liable to the other for any consequential, indirect or special damages in connection with this Project.
10. Dispute Resolution. Unless otherwise agreed in writing by the parties, no dispute shall
interfere with the prompt performance of their respective obligations under this Agreement.
Notwithstanding a dispute, Consultant shall continue to perform its Services, and Owner/Client shall
continue to make payment of all undisputed amounts in accordance with the provisions of the Agreement.
(a) In the event of a dispute regarding the scope of work or interpretation of this Agreement,
or any other claims or controversy between Owner/Client and Consultant, the parties agree to have their
project representatives meet and attempt to resolve the disagreement as early and quickly as practicable.
If the parties’ project representatives are unable to resolve the dispute, either party may request a
meeting of senior management representatives. Such meeting shall be commenced within seven (7)
days after the meeting request for the express purpose of openly sharing information concerning the
dispute and attempting in good faith to resolve the disagreement.
(b) Any claims, disputes or controversies arising out of, or in relation to the interpretation,
application or enforcement of this Agreement, and not resolved by the meetings described above, shall
be submitted to non-binding mediation prior to the initiation of any suit or other litigation. The cost of the
mediation shall be split equally between both parties. This agreement to mediate shall be specifically
enforceable under the laws of the State of California.
(c) If mediation is unsuccessful, then either party may commence legal proceedings.
Subject to Rule 66 of the Federal Rules of Civil Procedure and 28 U.S.C. § 959, any dispute between
Owner/Client and Consultant pertaining to or arising out of or in connection with this Agreement or the
Project shall be decided by litigation venued exclusively in a court with subject matter jurisdiction located
in San Francisco or Sacramento, California, or other mutually acceptable location.
(d) The parties agree that to the extent permitted by the contract documents, all third parties
necessary to resolve a claim, dispute or controversy shall be parties to the same dispute resolution
proceeding. To the extent disputes between Owner/Client and Consultant involve, in whole or in part,
disputes between Owner/Client and any design professional or contractor, Owner/Client shall be entitled
either to join Consultant in the proceeding commenced by or against the design professional or contractor
or to a stay of any dispute resolution proceeding commenced by Consultant pending resolution of the
claim with the design professional or contractor. Consultant shall specifically bind the Subconsultants to
the terms of these dispute resolution provisions.
11. Default. If Consultant at any time refuses or fails to prosecute the Services in a proper or
timely fashion, or is adjudicated a bankrupt, or files an arrangement proceeding, or commits any act of
insolvency, or makes an assignment for the benefit of creditors without Owner/Client's written consent, or
fails to make prompt payment to persons furnishing labor, equipment or materials, or becomes delinquent
with respect to contributions or payments required to be made to any employee benefit program or trust,
or otherwise fails to perform fully any and all of the agreements herein contained, Consultant shall be in
default. If Consultant fails to cure the default within five (5) calendar days after written notice thereof,
Owner/Client may, at its sole option, (a) provide any such labor, equipment and materials as may be
necessary and deduct the cost thereof from any money then due or thereafter to become due to
Consultant under this Agreement; or (b) terminate Consultant's right to proceed with the Services. If
Owner/Client elects to terminate, Consultant will deliver to Owner/Client a complete set of the data,
documents and materials previously prepared by Consultant reflecting the current state of preparation,
together (if applicable) with a disc or discs containing the same and will use good faith efforts to cause an
orderly transition to, and will cooperate with on a transitional basis, Owner/Client's new consulting firm (if
any) for the Project engaged to provide similar services. In case of such default termination, Consultant
shall not be entitled to receive any further payment under this Agreement until the Services are
completely finished. At that time, if the unpaid balance of the amount to be paid under this Agreement
exceeds the expenses incurred by Owner/Client in finishing the Services, such excess shall be paid by
Owner/Client to Consultant; but, if such expense shall exceed such unpaid balance, then Consultant shall
promptly pay to Owner/Client the difference. The expense referred to in the last sentence shall include
expenses incurred by Owner/Client for furnishing materials, for finishing the Services, for reasonable
attorneys' fees, for additional program management or project management expense, and for any
damages sustained by Owner/Client by reason of Consultant's default, plus a markup of 5% general
overhead on any and all of such expenses. If it is determined by litigation, arbitration or otherwise that a
termination by Owner/Client for default was unjustified hereunder, the termination shall be deemed a
termination for convenience under Section 13 below and Consultant shall be limited to the remedies in
12. Termination for Convenience. Owner/Client shall have the right to terminate this
Agreement at any time in its sole discretion and with or without cause, by written notice to Consultant.
Consultant shall stop work immediately upon receipt of a notice of termination and promptly deliver to
Owner/Client the results of the Services to the date of termination. Owner/Client will compensate
Consultant for Services performed prior to termination; if Owner/Client elects to terminate this Agreement
for its convenience and without cause, Owner/Client will also reimburse Consultant for documented,
reasonable and necessary out-of-pocket costs actually incurred by Consultant in connection with
termination, provided that the total of all of the foregoing shall not exceed the total compensation provided
under all outstanding work authorizations. Consultant shall not be entitled to any payment for so-called
"lost profit". This right to terminate shall be in addition to, and not in lieu of, any other rights and remedies
Owner/Client may have at law or in equity.
13. Intellectual Property. To the extent Consultant is preparing data, documents or
materials which may be subject to copyright or other intellectual property rights, Owner/Client shall own
such data, documents and materials and is granted those rights whether the Project is completed or not,
and all work product shall be delivered to Owner/Client on the earlier of (i) the substantial completion of
the Services in a work authorization, or (ii) the date of termination of this Agreement. Consultant shall be
deemed to have assigned any intellectual property rights (including copyrights) in such data, documents
and materials to Owner/Client. However, Consultant may retain a copy of its work product for its files and
may revise portions thereof for other projects, provided that it not disclose any confidential information.
14. Notices. All notices required or permitted by this Agreement shall be in writing and may
be accomplished either by personal delivery, first-class regular mail of the United States Post Office,
express delivery by a reputable national carrier, or facsimile transmission with confirmation of
transmission, sent to the party at the address or facsimile number shown in this Agreement. The written
notice shall be effective on the date of receipt.
15. Governing Law; State Required Terms and Conditions. This Agreement shall be
governed by and construed under the laws of the State of California. The State Required Terms and
Conditions attached as Exhibit D (to the extent applicable to the Services) are incorporated by reference.
Consultant shall perform the Services in full compliance with such terms and any other applicable federal,
state and local laws and regulations in effect at the time the Services are rendered. Also, Consultant will
need to comply with any Owner/Client requirements governing access to a site that is operated by
16. No Third Party Obligations. Nothing contained in the Agreement shall be deemed to
create a contractual relationship with, or create a cause of action in favor of, any third party against
Consultant or Owner/Client.
17. Prevailing Party Costs. If either party commences any legal proceedings under or
related to this Agreement or the Services, including but not limited to proceedings in arbitration or any
state, federal or bankruptcy court, the prevailing party shall be entitled to recover its attorneys’ fees,
expert witness’ fees, and all costs of suit, whether or not otherwise recoverable under the Code of Civil
Procedure or the Federal Rules of Civil Procedure.
18. Entire Agreement; Modification; Waiver. The exhibits attached to this Agreement are
incorporated herein. This Agreement, including its exhibits, constitutes the entire agreement of the
parties and supersedes any and all prior or contemporaneous written or oral negotiations,
correspondence, understandings and agreements between the parties respecting the subject matter
hereof. No supplement, modification or amendment to this Agreement shall be binding unless executed
in writing by both parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall
constitute, a waiver of any other provisions, nor shall any waiver constitute a continuing waiver. No
waiver shall be binding unless executed in writing by the party making the waiver.
19. Assignment. This Agreement shall be binding upon and shall inure to the benefit of the
parties and their respective permitted successors and assigns. Consultant shall not be entitled to assign
or delegate any of its rights or obligations hereunder without the prior written consent of Owner/Client.
Owner/Client may assign this Agreement, in whole or in part, to an affiliated entity, as that term is defined
in California Corporations Code section 150, or (iii) to one or more design-builders performing work for
Owner/Client on the Project, at any time and without Consultant's consent. Owner/Client will promptly
provide notice to Consultant of any such assignment.
20. Savings Clause. If any provision of this Agreement, or any part thereof, shall be held to
be invalid under any applicable federal, state, municipal or other law, ruling or regulation, then such
provision shall remain in effect to the extent permitted, and the remaining provisions of this Agreement
shall remain in full force and effect.
21. Execution. By their signature below, each of the following represent that they have
authority to execute this Agreement and to bind the party on whose behalf their execution is made. This
Agreement may be signed in counterparts, each complete set of which shall constitute an original.
Printed Name: Printed Name:
SCOPE OF SERVICES
The general scope of Services are described in the Request for [Qualifications] [Proposals]
dated ________ ____, 20__ (attached hereto). The specific scope of Consultant's Services
shall be negotiated and defined in individual work authorizations.
Exhibit A – Scope of Services Page 7
[describe what terms for compensation are agreed upon generally (e.g., hourly rates,
markup for profit and overhead), and what will be set forth in a work authorization (e.g.,
not-to-exceed or lump sum amounts, staff utilized for work authorization)]
Exhibit B – Compensation Page 8
1.5.6 TRAVEL PROCEDURES
126.96.36.199 Travel Authorization Form
Travel which can be billed to the Owner/Client, such as a trip related to recruiting a senior level
individual, must be authorized by a Deputy Program Manager, prior to the first increment of travel
occurring. Use the Travel Authorization Form provided as Attachment 1.5-D.
Travel which is not billable to Owner/Client, but chargeable to the Project, must also be authorized by
a Deputy Program Manager.
Normal travel by existing team members on routine Owner/Client business do not need advance
authorization by a Deputy Program Manager.
Request the current negotiated federal rate when making reservations. See Attachment 1.5-A. If
unable to secure the negotiated federal rate, attempt to book lodging at a facility offering as close to
the federal rate as possible. However, if the actual lodging cost exceeds the federal rate, the excess is
not billable to the Program.
Lodging receipts must be provided showing the expense was actually incurred, not just booked or
Show each day’s lodging expenses separately.
Separate billable from non-billable (in excess of per diem) lodging expenses.
Show lodging tax separately for each day. Tax is fully billable, and is additional to the Federal Max
Lodging Rate, regardless of amount.
188.8.131.52 Meals and Incidental Expenses
Individual Meals – Meal receipts are not required for individual meals when on travel status. You
may claim actual meal costs, up to the appropriate per diem limit as indicated on the Meals and
Incidental Expense (MI&E) rate sheet. Alcohol is not reimbursable. Even though receipts do not
need to be submitted, maintain itemized individual meal receipts to support a potential future audit
which may be held to determine whether the full per diem amount is warranted. Do not submit
individual meal expenses or per diem for a meal when a Group Meal was provided.
Group Meals – Itemized meal receipts are required for group meals. Alcohol is not reimbursable.
For group meals, you must include the following:
List of attendees showing affiliations
Meal expense cost limits per person apply. That is, aggregate cost of the group meal
cannot exceed the per diem times the number of attendees.
Certain meals are reimbursable that are not travel-related. Meals brought into an office to facilitate
Exhibit B – Compensation Page 9
the continuity of a business meeting are reimbursable, providing you include the following in the
Indicate the purpose of the business meeting
List of attendees showing affiliations
Meal expense cost limits per person apply. That is, aggregate cost of the group meal
cannot exceed the per diem times the number of attendees.
Incidental Expenses - Incidental expenses are generally personal goods such as toothpaste. These
expenses are included in the federal M&IE rate. Alcohol is not reimbursable.
The current IRS rate for business use of a personal vehicle is reimbursable and billable. It can be
found at http://www.irs.gov. The rate is subject to annual adjustment.
Mileage between an employee’s main residence and the employee’s local project office is not
reimbursable. Mileage for business use of a personal vehicle to another work location is reimbursable
and billable only to the extent that the total daily mileage exceeds the employee’s normal daily
personal vehicle mileage to their local office.
The least-cost travel alternative should always be considered before deciding to use a personal
vehicle. Rental cars with unlimited mileage are frequently less expensive than the use of a personal
Travel shall be via the most economical mode in terms of direct expense and time away from the
office. When it is necessary to fly on Owner/Client business, employees will follow their employer’s
normal travel procedure, which normally includes prior written approval by their supervisor for the
specific purpose and duration of the trip.
When advance planning for air travel is possible, flights shall be booked sufficiently in advance of the
departure date to take advantage of reduced pricing.
First class flights are not reimbursable from Owner/Client. Coach class is appropriate for all
Proof of airline expense must be provided in the employee’s expense report. This proof shall be in
the form of a boarding pass or other document showing that the travel actually occurred, not just that
the reservation was made. Receipts from third party travel vendors such as Expedia or Travelocity
are not acceptable forms of proof, therefore, because they don’t prove that travel actually occurred.
184.108.40.206 Separate Expenses
Separate expenses for the Owner/Client Program from other expenses. That is, do not include non-
Program expenses on the same expense report. Expense reports must be reviewed and approved by
an appropriate person in the submitting firm, according to the firm’s normal business practices, prior
to submittal for reimbursement. Expense reports which are submitted without the reviewer’s
signature will be returned without further review.
Exhibit B – Compensation Page 10
220.127.116.11 Expense Reports
Travel expenses are documented, approved and reimbursed through expense reports. Each firm
working on the Owner/Client Program has a different expense report form. A sample of one firm’s
form is included as Attachment 1.5-C. Employees will follow their own firm’s procedures for filling
out and submitting the form.
Attachment 1.5-A - Federal GSA Domestic Per Diem Rates dated 10-22-08
Attachment 1.5-B - Federal GSA Frequently Asked Questions dated 10-18-07
Attachment 1.5-C - Example Expense Report Form dated 4-30-08, 1 page
Attachment 1.5-D - Travel Authorization Form dated 4-30-08, 1 page
Exhibit B – Compensation Page 11
Attachment 1.5-A – Federal GSA Domestic Per Diem Rates
[insert current Federal GSA Domestic Per Diem Rates www.irs.gov ]
Exhibit B – Compensation Page 12
Attachment 1.5-B – Federal GSA Frequently Asked Questions
[insert current Federal GSA Frequently Asked Questions www.irs.gov ]
Exhibit B – Compensation Page 13
Attachment 1.5-C EXAMPLE EXPENSE REPORT FORM
Employee Name: John Doe Emp No 1
Company A Project Name: Owner/Client Project Proj No 999
Destination: Anywhere USA Dates 2/25-3/04/08
Auto Airline Hotel Hotel Per-Diem Miscellaneous
Date Gas Rental Park Mi 0.505 Ticket No No Taxes /Meals No Amount Notes/Description
2/25 67 $33.84 285.00 219.00 30.66 59.00 1 Sacramento, CA
5.00 2 Parking - Capital Bldg
2/29 $0.00 219.00 30.66 59.00 4 Monterey, CA (Site visit)
3/1 $0.00 219.00 30.66 59.00 8
3/2 $0.00 109.00 13.08 59.00 12
328.00 13 Team dinner (non Reimb)
3/3 $0.00 109.00 13.08 59.00 16
3/4 302.43 52.50 17 59.00 20
$8.59 21 Airport to Office
35.00 22 Airport Parking
Total $0.00 $302.43 $92.50 $42.43 $285.00 $875.00 $118.14 $682.00 $0.00
Acct 1201 $437.36 1202 1203 1204 1205 1206
Reimbursable to Business Expenses Total $2,069.50
Non Reimbursable Business Expenses Total $328.00
Total Reimbursable Business Expenses $2,397.50
Exhibit B – Compensation Page 14
TRAVEL AUTHORIZATION FORM
1 Name of person traveling: __________________________________________________
2 Name of person requesting authorization:
3 Purpose of this trip: ___________________________________________________________
4 Dates travel will occur: _______________________ and ___________________________
5 Is travel billable to Owner/Client?
Yes, provide WA or WO number ______________________________
No, charge to project overhead
Deputy Program Manager Date
7 Distribution after approval and prior to travel occurring
Deputy Program Manager approving form
Exhibit B – Compensation Page 15
[Have insurance coverages reviewed by insurance advisor in connection with a particular project]
Prior to Consultant commencing performance of the Services, Consultant shall, at its sole cost and
expense, procure and, at all times while performing the Services maintain all insurance coverages, limits
and terms required by this Exhibit with companies satisfactory to Owner/Client. Certificates, using the
ACORD form, evidencing such insurance and, upon request, copies of the insurance policies and
endorsements shall be promptly delivered to Owner/Client. Evidence that the required insurance is
currently in force is a condition precedent to Owner/Client’s obligation to pay Consultant.
1. Types of Insurance:
a. Workers' Compensation; Employer's Liability. In accordance with the provisions of
Section 3700 of the Labor Code, workers' compensation insurance and occupational
disease insurance as required by law and employer's liability insurance with minimum
limits of $1,000,000, covering all work places involved in this Agreement. If applicable,
Consultant shall furnish a Certificate of Permission to self insure under the workers'
compensation and employers' liability Insurance statutes of California. The workers
compensation policy shall be endorsed to include coverage for USL&H benefits if the
Consultant’s employees work in or about navigable waterways.
b. Commercial General Liability. Commercial general liability insurance written on the
occurrence basis on ISO form CG 00 01 12 04 or an equivalent form, with limits of not
less than as indicated in either (1) or (2) as follows: (1) Bodily Injury Liability - $1,000,000
each person, $1,000,000 each occurrence; Property Damage Liability - $1,000,000 each
occurrence, $1,000,000 aggregate; (2) A single limit for Bodily Injury Liability and
Property Damage Liability Combined of $1,000,000 each occurrence and $1,000,000
aggregate. Modified Occurrence form is not acceptable. The insurance shall cover all
operations of Consultant and its team, including but not limited to: (1) premises,
operations and mobile equipment liability; (2) completed operations and products liability;
(3) contractual liability coverage including the tort liability of another assumed in a
business contract; (4) explosion, collapse, and underground property damage; (5) broad
form property damage liability; and (6) personal injury and advertising liability.
c. Automobile. Commercial Automobile Liability insurance coverage in the sum not less
than $1,000,000 per accident for bodily injury and property damage combined. Coverage
shall be written on ISO form CA 00 01, CA 00 05, CA 00 12, CA 00 20, or an equivalent
form and shall apply to any auto including owned, hired, and non-owned autos.
d. Umbrella Liability. Coverage shall apply over the employer’s liability, commercial
general liability and automobile liability policies required above and shall be at least as
broad as the underlying coverage, including but not limited to completed operations and
contractual liability, with limits of $2,000,000 per occurrence and annual aggregate.
e. Professional Liability. Professional Liability Insurance with limits of liability in amounts
not less than $2,000,000 per claim and $2,000,000 aggregate. Coverage shall apply to
negligent acts, errors or omissions arising from the professional services provided under
this Agreement, of Consultant or any person/entity for whose acts Consultant may be
liable. The deductible under any such policy shall not be more than $50,000, without
Owner/Client’s prior written permission. The Services provided under this Agreement
shall not be excluded from coverage under such policy and the retroactive date on such
policy shall be prior to the first date upon which Consultant provided Services under this
Exhibit C – Insurance Page 16 4/24/2013
Agreement. Such professional liability policy shall contain no exclusion or limitation for
contractual liability. Such coverage shall be maintained for a period of not less than three
(3) years after substantial completion of the Project.
2. Owner/Client, Program Manager, and each of their officers, directors, venturers, parents,
affiliates, subsidiaries and agents, and all shareholders, officers, directors, employees and
managers of same shall be named as additional insured parties under the commercial general
liability, automobile liability and umbrella liability insurance policies with respect to the Services.
The additional insured endorsement on the commercial general liability policy shall include both
“on-going operations” and liability arising from “your work/completed operations” (the equivalent
of ISO additional insured endorsement CG20-10-11-85).
3. In addition to providing evidence of the required coverage and limits, each certificate of insurance
shall provide evidence of compliance with the requirements of Section 2 above. Such certificates
of insurance shall be provided/updated annually until three years after substantial completion of
the Project. The certificates shall provide that there will be no cancellation or material modification
of coverage without 30 days' (except for ten (10) days’ for non-payment of premiums) prior written
notice to Owner/Client, and shall further provide that Owner/Client shall be given notice of
nonrenewal at least fourteen (14) days prior to the nonrenewal date. The words “endeavor to”
and “but failure to mail such notice shall impose no obligation or liability of any kind upon the
company, its agents or representatives” shall be deleted from the certificate of insurance form’s
cancellation provision. Failure of the Consultant to supply a certificate of insurance or other
evidence of full compliance with these insurance requirements or failure of Owner/Client to
identify a deficiency from evidence that is provided shall not be construed as a waiver of
Consultant’s obligation to maintain such insurance.
4. All insurance coverage (except workers compensation and professional liability above) to be
maintained and furnished hereunder by Consultant shall be primary and non-contributory with
respect to any insurance maintained by Owner/Client and/or any other additional insured.
5. All insurance (except professional liability and pollution liability) shall be maintained on an
“occurrence” basis. All policies must be in effect prior to commencement of Services and be
maintained for the duration of the Services. In addition, "claims-made" policies must be
maintained for a period of at least three (3) years after substantial completion of the Project.
6. Contractual liability insurance coverage (commercial general, umbrella, and auto liability) required
to be maintained and furnished hereunder by Consultant shall specifically include coverage in
respect to the indemnification provision set forth in Section 9 of the Agreement. If necessary, the
auto policy shall be endorsed to provide contractual liability coverage equivalent to that provided
in the 1990 and later editions of CA 00 01.
7. Each policy of liability insurance (except professional liability) shall include a waiver of
subrogation in favor of all additional insured parties and shall be endorsed to recite the name of
the Project and the location of the Project Site. If the Consultant’s liability policies do not contain
the standard ISO separation of insureds condition, or a substantially similar clause, they shall be
endorsed to provide cross-liability coverage.
8. Insurance coverage shall be maintained by insurance companies that have a rating of at least
A:VII in the most recent edition of Best's Key Rating Guide, have equivalent or better ratings from
Standard and Poor and Moody's and are otherwise satisfactory to Owner/Client. Owner/Client
shall have the right to approve the form and content of Consultant's insurance policies.
Owner/Client reserves the right to periodically review Consultant's insurance policies and
coverages and require changes to such policies to the extent that said insurance is relevant to
this Agreement. Any additional premiums or other associated costs for such changes shall be at
Exhibit C – Insurance Page 17 4/24/2013
9. Consultant shall require each of its Subconsultants to procure and maintain during the life of the
Project: workers' compensation, commercial general liability, automobile liability, and
professional liability insurance (to the extent Subconsultants are providing professional services),
meeting the same requirements (other than limits) as those specified above for Consultant. Since
Consultant is responsible for the acts and omissions of the Subconsultants, Consultant shall be
permitted to determine the appropriate limits for each such entity. Consultant shall not allow any
Subconsultant to provide services in connection with the Project until that party has procured and
provided evidence of the insurance specified herein.
10. Except as otherwise provided herein, Consultant shall be responsible for any and all deductibles
under all policies.
11. Owner/Client and Consultant waive all rights against (1) each other and any of their
Subconsultants, agents and employees, each of the other, and (2) separate contractors, if any,
and any of their subcontractors, sub-subcontractors, consultants, agents and employees, for loss
or damage to the extent covered by builder's risk or any other property or equipment insurance
applicable to the Project, except such rights as they may have to the proceeds of such insurance
less their pro-rata share of the deductible. A waiver of subrogation shall be effective as to a
person or entity even though that person or entity would otherwise have a duty of indemnification,
contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or
not the person or entity had an insurable interest in the property damaged. In no event shall this
waiver apply to negligent acts or omissions or willful misconduct of Consultant or anyone for
whom it is responsible.
12. If the policies of insurance referred to in this Exhibit require an endorsement or consent of the
insurance company to provide for continued coverage where there is a waiver of subrogation, the
owners of such policies will cause them to be so endorsed or obtain such consent.
13. Failure to maintain the required insurance may result in termination of this contract at
Owner/Client’s option. If the Consultant fails to maintain the insurance as set forth herein,
Owner/Client shall have the right, but not the obligation, to purchase said insurance at
14. By requiring insurance herein, Owner/Client does not represent that coverage and limits will
necessarily be adequate to protect Owner/Client and/or Consultant and such coverage and limits
shall not be deemed as a limitation on Consultant’s liability under the indemnities granted to
Owner/Client in this contract.
Exhibit C – Insurance Page 18 4/24/2013
STATE REQUIRED TERMS AND CONDITIONS
1. AUDIT: Consultant agrees that the [insert name of Owner/Client] (“Owner/Client”), or their
designated representative shall have the right to review and to copy any records and supporting
documentation pertaining to the performance of this Agreement. Consultant agrees to maintain such
records for possible audit for a minimum of three (3) years after final payment, unless a longer period of
records retention is stipulated. Consultant agrees to allow the auditor(s) access to such records during
normal business hours and to allow interviews of any employees who might reasonably have information
related to such records. Further, Consultant agrees to include a similar right of Owner/Client to audit
records and interview staff in any subconsultant agreement related to performance of this Agreement.
(Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896.)
2. NON-DISCRIMINATION CLAUSE: During the performance of this Agreement, Consultant and its
subconsultants shall not unlawfully discriminate, harass, or allow harassment against any employee or
applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical
disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital
status, and denial of family care leave. Consultant and subconsultants shall insure that the evaluation and
treatment of their employees and applicants for employment are free from such discrimination and
harassment. Consultant and subconsultants shall comply with the provisions of the Fair Employment and
Housing Act (Gov. Code §12990 (a-f) et seq.) and the applicable regulations promulgated thereunder
(California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair
Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in
Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this
Agreement by reference and made a part hereof as if set forth in full, and Consultant hereby certifies that
it has, unless exempted, complied with theses nondiscrimination program requirements. Consultant and
its subconsultants shall give written notice of their obligations under this clause to labor organizations with
which they have a collective bargaining or other Agreement. Consultant shall include the
nondiscrimination and compliance provisions of this clause in all subconsultant agreements to perform
work under the Agreement.
3. ANTITRUST CLAIMS: The Consultant agrees that if this Agreement was awarded by means of a
competitive bid, the Consultant shall comply with the requirements of the Government Codes Sections set
a. For the purpose of this Section 3:
1) “Public purchase” means a purchase by means of competitive bids of goods, services, or materials by
Owner/Client or the State or any of its political subdivisions or public agencies on whose behalf the
Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and
2) “Public purchasing body” means Owner/Client or the State or the subdivision or agency making a
public purchase. (Government Code Section 4550.)
b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted,
it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have
under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2
(commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising
from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to
the bid. Such assignment shall be made and become effective at the time the purchasing body tenders
final payment to the bidder. (Government Code Section 4552.)
c. If an awarding body or public purchasing body receives, either through judgment or settlement, a
monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to
receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public
body any portion of the recovery, including treble damages, attributable to overcharges that were paid by
Exhibit D – State Required Terms and Conditions Page 19
the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in
obtaining that portion of the recovery. (Government Code Section 4553.)
d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand,
reassign the cause of action assigned under this part if the assignor has been or may have been injured
by the violation of law for which the cause of action arose and (a) the assignee has not been injured
thereby, or (b) the assignee declines to file a court action for the cause of action. (See Government Code
4. CHILD SUPPORT COMPLIANCE ACT: If this Agreement is in excess of $100,000, Consultant
acknowledges in accordance with Public Contract Code 7110, that:
a) Consultant recognizes the importance of child and family support obligations and shall fully comply with
all applicable state and federal laws relating to child and family support enforcement, including, but not
limited to, disclosure of information and compliance with earnings assignment orders, as provided in
Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and
b) Consultant, to the best of its knowledge is fully complying with the earnings assignment orders of all
employees and is providing the names of all new employees to the New Hire Registry maintained by the
California Employment Development Department.
5. PRIORITY HIRING CONSIDERATIONS: If this Agreement includes services in excess of $200,000,
Consultant shall give priority consideration in filling vacancies in positions funded by the Agreement to
qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub.
Contract Code §10353.
6. DRUG-FREE WORKPLACE REQUIREMENTS: Consultant will comply with the requirements of the
Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation,
possession or use of a controlled substance is prohibited and specifying actions to be taken against
employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person’s or organization's policy of maintaining a drug-free workplace;
3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and, 2) agree to abide by the
terms of the company's statement as a condition of employment on the Agreement.
Failure to comply with these requirements may result in suspension of payments under the Agreement or
termination of the Agreement or both and Consultant may be ineligible for award of any future
Owner/Client or State agreements if Owner/Client or the State determine that any of the following has
occurred: Consultant has made false certification, or violated the certification by failing to carry out the
requirements as noted above. (Gov. Code §8350 et seq.)
7. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Consultant certifies that no more than
one (1) final unappealable finding of contempt of court by a Federal court has been issued against
Consultant within the immediately preceding two-year period because of Consultant’s failure to comply
with an order of a Federal court, which orders Consultant to comply with an order of the National Labor
Relations Board. (Pub. Contract Code §10296.) (Not applicable to public entities.)
8. DOMESTIC PARTNERS: For contracts over $100,000, Consultant certifies that Consultant is in
compliance with Public Contract Code Section 10295.3.
Exhibit D – State Required Terms and Conditions Page 20
9. CONFLICT OF INTEREST/STATE OFFICERS OR EMPLOYEES: Consultant acknowledges its
awareness of the following provisions regarding current or former state employees:
a. No state officer or employee may engage in any employment, activity or enterprise from which the
officer or employee receives compensation or has a financial interest and which is sponsored or funded
by any state agency, unless the employment, activity or enterprise is required as a condition of regular
state employment. (Pub. Contract Code § 10410.)
b. No state officer or employee may contract on his or her own behalf as an independent Consultant with
any state agency to provide goods or services. (Pub. Contract Code § 10410.) c. For the two-year period
from the date he or she left state employment, no former state officer or employee may enter into a
contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or
any part of the decision-making process relevant to the contract while employed in any capacity by any
state agency. (Pub. Contract Code §10411.)
d. For the twelve-month period from the date he or she left state employment, no former state officer or
employee may enter into a contract with any state agency if he or she was employed by that state agency
in a policy-making position in the same general subject area as the proposed contract within the 12-
month period prior to his or her leaving state service. (Pub. Contract Code §10411.)
10. LABOR CODE/WORKERS' COMPENSATION: Consultant acknowledges its awareness of the
provisions which require every employer to be insured against liability for Worker's Compensation or to
undertake self-insurance in accordance with law, and Consultant agrees to comply with such provisions
before commencing the performance of the work of this Agreement. (Labor Code Section 3700.)
11. AMERICANS WITH DISABILITIES ACT: Consultant certifies that it complies with the Americans with
Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all
applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)
12. AIR OR WATER POLLUTION VIOLATION: Consultant agrees that it shall not be: (1) in violation of
any order or resolution not subject to review promulgated by the State Air Resources Board or an air
pollution control district; (2) subject to a cease and desist order not subject to review issued pursuant to
Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions;
or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.
Exhibit D – State Required Terms and Conditions Page 21