both the developer and the contractor to provide a minimum of detailing to ensure the 

 proper quality of materials and workmanship and to avoid misunderstandings about what is 

 expected. The basic rule is to inform the contractor exactly the ultimate product desired, 

 but allow him maximum freedom of choice as to how this goal will be reached. Certain 

 critical items must be specified in great detail; other items may be roughly dimensioned and 

 specified with instructions that the contractor submit shop drawings for approval before 

 proceeding with construction. This is especially important for features where modular units 

 must be fitted together or where multiple choices are available that wiU give approximately 

 equal results. 



Most public agencies and large private developers have standard contract forms to protect 

 them against mistakes, accidents, and inabilities of the contractor. If the agency or 

 developer has had little experience in contract administration, the following is a checklist of 

 protective items normally covered in the bidding and construction-contract documents. 



(1) Items Covered in the Invitation to Bid. 



(a) A deposit for each set of plans and specifications taken out covering their 

 reproduction costs. The deposit is reimbursable when the items are returned with the 

 contractor's bid. Extra copies may be turned over to the successful bidder, as several sets 

 will be needed during the construction period. 



(b) Bid bond in the amount of about 10 percent of the bid price to ensure that, 

 if successful, the bidder will sign the contract. 



(c) Prevailing minimum wage rates for labor (usually required by a public 

 agency's charter, but not necessary for a private developer). 



(d) A listing of the bidder's equipment to be used on the project. 



(e) Reservation of the right to reject any bids, to waive informalities in bids, and 

 to make awards as the interest of agency or developer may require. 



(2) Items Covered in the Contract Form. 



(a) Time for commencement and completion of contract with specification of a 

 Liquidated Damages assessment for each day of overrun in the<estimated amount that such 

 delays in completion will cost the owner in terms of administrative expense and (in some 

 cases) loss of revenues. Certain provisions for time extension must be included to cover 

 delays that are not the fault of the contractor. 



(b) Acknowledgment of prior site investigation by the contractor and ensurance 

 of his complete acquaintance with conditions that may affect his work. 



(c) Declaration of full responsibility of the contractor for all the work specified 

 including that done by subcontractors and their employees. 



(d) Requirement for the contractor to comply with all applicable laws and to 

 secure all necessary permits. 



(e) Provision for holding the owner harmless against law suits or other actions 

 that may be brought against the contractor as a result of his performance of the contract. 



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