11/17/2004 Agreement
DANNY L. KOLHAGE
CLERK OF THE CIRCUIT COURT
DATE:
December 6,2004
TO:
Peter Horton, Manager
Monroe County Airports
FROM:
Bevette Moore
Airport Business Administrator
Pamela G. Hancnlf1JN
Deputy Clerk 0
ATTN:
At the November 17, 2004, Board of County Commissioner's meeting the Board granted
approval and authorized execution of a Contract between Monroe County and Florida Industrial
Electric, Inc. for the Taxiway Lights and Airfield Guidance Sign Project at the Florida Keys
Marathon Airport.
Enclosed are three duplicate originals of the above-mentioned for your handling. Should
you have any questions please do not hesitate to contact this office.
cc: County Administrator w/o document
County Attorney
Finance
File!
CONTRACT DOCUMENTS
TAXIWAY LIGHTS (2 TIW) AND AIRFIELD
GUIDANCE SIGN
FLORIDA KEYS MARATHON AIRPORT
MONROE COUNTY, FLORIDA
-
A.I.P. No. 3-12-0044-2004
FM Item No. 41468419401
PFC Application Nos. 8
URS Corporation Contract No.: 12638065.00000
Prepared for:
THE MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
MR. MURRAY E. NELSON, DISTRICT 5
DR. DAVID P. RICE, DISTRICT 4
MS. DIXIE M. SPEHAR, DISTRICT 1
MR. GEORGE NEUGENT, DISTRICT 2
MR. CHARLES "SONNY" McCOY, DISTRICT 3
MAYOR
MAYOR PRO TEM
COMMISSIONER
COMMISSIONER
COMMISSIONER
Prepared by:
URS CORPORATION
MAY 2004
ADDENDUM No. 2
June 28,2004
To
Specifications and Other Contract Documents for
Taxiway Lights (2 T/W) and Airfield Guidance Sign
Florida Keys Marathon Airport
Monroe County, Florida
A.I.P. No, 3-12-0044-2004
FM Item No. 41468419401
PFC No.8
TO ALL CONCERNED:
The following items are modifications and interpretations to the original contract documents. The
following items as provided hereinafter are now in effect and have the same force as if included
in the original documents.
Bidder shall acknowledge receipt of this addendum on the proposal form (Section C, page 1-16
and Section H, page 1-29).
Also, please sign this page of the addendum and return by fax (305) 261-4017 to confirm
your receipt.
This Addendum No.2 consists of 16 total pages.
F/oY'I'tlt:L ~1h4-1 defr-/<=-,::7Jic.
(;Z:i) 1/ (~~
Signature
0nuU # /?$M/I'/1
Name .
-1/'d fltYrJltl
Title
Addendum No.2
Page 1
ADDENDUM No.2
June 28, 2004
To
Specifications and Other Contract Documents for
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Florida Keys Marathon Airport
Monroe County, Florida
A.I.P. No. 3-12-0044-2004
FM Item No. 41468419401
PFC No.8
This addendum to the Contract Documents includes modifications to the following:
A. Modification to Division I. Section A "Notice of Callina for Bids"
Replace bid opening date June 30, 2004 with the new bid opening date July 7, 2004.
B. Modification to Division I. Section C "Proposal"
Replace page 1-21 from Addendum No.1 and replace with the new revised page 1-21:
New item 23 "Furnish and install 15 Kw 6.6 amp, 3 step, L-868 ferroresonant regulator
with 208 v input, 120 v control, including all associated work, complete in place- is
added.
C. Clarification to Contract Documents
1) Sign lamps shall be quartz.
2) Bidder shall submit shop drawings according with FAA standards for
retroreflective guidance signs concrete foundation.
3) Bidder may use retroreflective guidance sign manufacturer:
Allen Enterprises, Inc.
5659 Commerce Drive, Suite 10
Orlando FI 32839-2969
(407) 857-6778, Fax (407) 857-7993
or approved equal
D. Modification to Technical Specifications
Add new technical specification for new regulator, "Item L-109 Installation of Airport
Transformer Vault and Vault Equipment".
E. Response to Plan Holder's Questions
(see attachments)
Addendum No.2
Page 2
All items and conditions of the original contract documents shall remain unchanged.
Department Director or Designee
Date
Division Director of Designee
Date
Purchasing Supervisor (Designee)
Date
Addendum No.2
Page 3
BIDDER NAME:
AIRPORT NAME: FLORIDA KEYS MARATHON AIRPORT
PFC APP NO.: 8 AlP NO.: 3-12-0044-2004
FM ITEM NO. 41468419401
PROJECT DESCRIPTION: TAXIWAY LIGHTS (2 TIW) AND AIRFIELD GUIDANCE SIGN
SPEC ESTIMATED UNIT PRICE EXTENDED
ITEM ITEM DESCRIPTION UNIT QUANTITY IN TOTAL
No. NUMBERS
Furnish and Install cable junction box (size D,
L-867, class I, load bearing).
AT
20 L.110-5.3 Dollars EA 9
AND
Cents
Furnish and Install L-861 taxiway edge light
(Base mounted), complete In place
AT
21 L.125-5.1 Dollars EA 59
AND
Cents
Sodding
AT
22 T ~04-5.1 Dollars SY 2,240
AND
Cents
Furnish and Install 15 kw, 6.6 amp, 3-step, L.
828 terroresonant regulator with 208V Input,
120V control, Including all associated work,
complete In place
23 L-109-5.1 AT LS 1
Dollars
AND
Cents
TOTAL BID ITEMS 1 THROUGH 23 S
..
.
Alternates
I) Bidder shall submit price for alternate steel foundations (relocation or new sign location) that are used in lieu of concrete to
support a wide variety of structures as guidance signs, The foundation shall be fully galvanized after fabrication to provide
corrosion guarantee.
Increase or decrease original item unit price in the amount of:
a) Steel foundation for one module internally lighted guidance sign
$
b) Steel foundation for two modules internally lighted guidance sign
$
c) Steel foundation for three modules internally lighted guidance sign
s
1-21
Addendum No.2
Page 4
ITEM L-I09 INSTALLATION OF AIRPORT TRANSFORMER VAULT
AND VAULT EQUIPMENT
DESCRIPTION
109-1.1 This item shall consist of sel1Bwetiftg aR aH,eFt W&BBfeFMef i'Mllt 8f a J!,efHR8lMtlltlMtal 88WBiRg tAes8
1lI'8eiReak8BS ill aeeent_ee ':.>itA tAe llesigtl aRlllliMeBSi8BS S880\'8 iR t8e J!lMIl. TIUs '.I!:eR[ suY alse iIlelwlle the
iMtaUatieR 8f e8_wite ill R8er aRll fBtHlEiakell, J!a_Kg Ilfl.ll liglttiBg 8f tlte ':atHt af Metal 8all8iRg, IlRll the
iu'Bi.shiBg af aY iReilleRtals ReUSStlt'y te J!r8t1tlee a a8lRflletelllHlit. IR8lwlle1l8tl a seJ!8Nte I'M uller ~B item af as a
Sel'BflMe iteM -rAlere Ilfl. eJKB~ i"Mllt iB ta ~e lHiliBell BMY ~e the RmH.BhHlg vault equipment, wiring, electrical
buses, cable, conduit, potheads, and grounding systems. This work shall also include the painting of equipment and
conduit; the marking and labeling of equipment and the labeling or tagging of wires; the testing of the installation;
and the furnishing of all incidentals necessary to place it in operating condition as a completed unit to the
satisfaction of the Engineer.
EQUIPMENT AND MATERIALS
109-2.1 GENERAL.
a. Airport lighting equipment and materials covered by Federal Aviation Administration (FAA)
specifications shall be certified and listed under Advisory Circular (AC) 150/5345-53, Airport Lighting Equipment
Certification Program.
b. All other equipment and materials covered by other referenced specifications shall be subject to
acceptance through manufacturer's certification of compliance with the applicable specification when requested by
the Engineer.
CONSTRUCTION OF V AUL T AND PREFABRICATED METAL HOUSING
199 1.1 CQN<::Rl:TE. 'JBe 8eRluets fef the i"Mllt B8all ~e J!f8J!8Ai8Rell, J!la8etl, Ilfl.ll swell ill aleer_eo ,,:its IteM
P IilQI Efietufel PaAIMll CemeRt C8Rerete, wsiBg 3,'1 iIle8 (18 RlM) RtilnimtiIR siBe eaaF8e aggregate.
199 1.1 Ri:INFQIlCINC ~TEEl.. RoinfareiRg Btoel ~ars sRall ~e iRteFMelliate ef sweiural grade llefoFMoll ~'J'e
~aF8 ull s8aU meet tlte fe~iremeRt6 af AETH A ~ 1).
1991,1 RRI<::J(. RR8h shall eenfeffR t8 1.8TH C ~1, g,alle E"".
199 1.5 AERE~TQ~ CEUENT DUCT. I.S808t88 eeMeRt Ehiot alHI HttiRgs ORal! 80 iR aeearllaRee '::iMi fes, 8J!ee,
'.'1 C 571.
109-2.6 RIGID STEEL CONDUIT. Rigid steel conduit and fittings shall be in accordance with Underwriters
Laboratories Standard 6 and 514.
1991.7 l.ICIITINC. "alth er Metal R8ltsiRg ligRt Hntwea aliaBee efa \'aJ!eI'flFeBf~~8,
199 1.8 QUTl.ETE. CEHl\'8RieRee EHitl8tO aliellee h8e':)' Slit)' S\iflltm llRito 80BiglltHi fer illsltswial stlTi'ie8,
lQ9 1.9 S"'1TCHE~. Valllt €If metalll.lHlsiag light s'vitilk8s skall 88 siaglil Jl818 s":itekes,
199 1.1Q P.YNT.
Florida Keys Marathon Airport
L-109-1
Taxiway Lights (2 TiW) and
Airfield Guidance Sign
Addendum No, 2
Page 5
8. PfimlRg I'aint fer lHlgab:asii!les Metal BWHteeS sMll \:Ie higR seliM aY~'s I'riMer eeBlel'Hling te IT
P fifi1I;>.
b. 'White l'aiRt fer \:Ies)' ass i4RiBR eeata e8 !Mtal asli wees a\lHaeeB shall \:Ie r88S)" mines l'aiRt
eeftfeffnisg te CellllMfeial IteM DeOeRI'Mss). A ~Qfi7.
lI. Pl'imlsg I'aint fer 7('ees owrfa88B BRall \:Ie Mines e8 Hie je\:l \:If HiiBBiRg th.e aeeve 91'eeiMeS ',,..hite
l'aUtt \:Iy assing 1.';} I'int (Q.Qfi liter) eha',,: linBees eil te euh. galles (liter).
iI. Pamt fer tAe aeer, eeiliBg, ass inaise '..:allo sRall \:Ie is l18eerSaS88 ....-ith Fes. ~1'88. IT I!: 11n.
"'TallB MS 88iliag Bull \:Ie light guy ass Hie aeer BMll \:Ie Mesitmt gray.
lI. TIle reef seaMg oMIl "e Ret IlflI'Mlt IMtllRal is aeser88B8Il ',,..iHi .~Sg.1 D JRJJ.
109 1.11 mell yQl.l'.....CE RU~. High. ,'elt&ge "tIS oMll \:Ie otHSers '},'eight 3.'8 Uteh. (9 RlHl) WE se"llr fti"iRg er
it Mar "s WWMllS se"sr sahls ef Hie oiBe ass i"elt&ge ..tiRg 8l'eeiiiss.
109 1.11 RY~ C9~CTQ~. CeRfteetefEl Bhall "e simil.. te :QlU'Rsy T}l'e }JT (er slttl&l) fer llel'l'er ~ing.
CellDestefEl fer wvlMes "lIS eaele oRall "e eftAel'fel'er Bii!le ans ~s fer Hie BeMse _esilli.
109 1.U Rut ~UPPQRT~. :QlIS s8I'l'eR8 shall \:Ie oimil.. te '.'~estiJtgkevBe l'Je. jJ7R91 (er elttl&l), iBBvlatlli for
7,SQQ ':elte, siegle ellHIlI' ~e fer J "ek aM MelHMiRg.
109 1.1 i {:RQl.ijlig R\T~. ~elHli "88 shall lie 1.'g K 1.'1 aSR (J J( Ii IRIIt) I el"llr "lIS 11...
109-2.15 SQUARE DUCT. Duct shall be square similar to that manufactured by the Square D Company (or equal),
or the Trumbull Electric Manufacturing Company (or equal). The entire front of the duct on each section shall
consist of hinged or removable cover for ready access to the interior. The cross-section of the duct shall be not less
than 4 x 4 inches (I gg n I QQ mM) except where otherwise shown in the plans.
109-2.16 GROUND RODS. Ground rods shall be copper or copper clad of the length and diameter specified in the
plans.
109 1.17 PQ':rlIi:,W~. PeHielliB Bhall \:Ie siMilar te g86'V T)l'e }J, ~hefls C (er ellval), l:IRIeBs dlef'lrJisll Sl'eeiMes.
PeHieaM ohall "e fumiBRes ,":iHi I'lais iflflvlMef hBh.iagS ad ees8Hit ee8l'lisgB. PeHillaM BhaY M':e a "Mag set
leBO tAu the eit-evit "elt&ge,
199 1.tH PIQ:F AMRlC.4ATED 1\fET,~ IIglJ~INC. The I'fefa\:lFieates Metel RellBisg BRall \:Ie a ee8'IfRereially
a":ailahle tmit
109-2.19 FAA APPROVED EQUIPMENT. Certain items of airport lighting equipment installed m vaults are
covered by individual FAA equipment specifications. The specifications are listed below:
AC 150/5345-3 Specification for L-821 Panels for Remote Control of Airport Lighting
AC 150/5345-5 Circuit Selector Switch
AC 150/5345-7 Specification for L-824 Underground Electrical Cable for Airport Lighting Circuits
AC 150/5345-10 Specification for Constant Current Regulators and Regulator Monitors
AC 150/5345-13 Specification for L-841 Auxiliary Relay Cabinet Assembly for Pilot Control of Airport
Lighting Circuits.
109-2.20 OTHER ELECTRICAL EQUIPMENT. Constant current regulators, distribution transformers, oil
switches, cutouts, relays, terminal blocks, transfer relays, circuit breakers, and all other regularly used commercial
items of electrical equipment not covered by FAA equipment specifications shall conform to the applicable rulings
and standards of the Institute of Electrical and Electronic Engineers or the National Electrical Manufacturers
Association, When specified. test reports from a testing laboratory indicating that the equipment meets the
Florida Keys Marathon Airport
L-l09-2
Taxiway Lights (2 T/W) and
Airfield Guidance Sign
Addendum No, 2
Page 6
specifications shall be supplied. In all cases, equipment shall be new and a frrst-grade product. This equipment shall
be supplied in the quantities required for the specific project and shall incorporate the electrical and mechanical
characteristics specified in the proposal and plans.
109-2.21 WIRE. Wire in conduit rated up to 5,000 volts shall conform to AC 150/5345-7, Specification for L-824
Underground Electrical Cables for Airport Lighting Circuits, for rubber insulated neoprene covered wire, or Fed.
Spec. J-C-30, Type RHW, for rubber insulated fibrous covered wire. For ratings up to 600 volts, thermoplastic wire
conforming to Fed. Spec. J-C-30, Types TW, THW, and THWN, shall be used. The wires shall be of the type, size,
number of conductors, and voltage shown in the plans or in the proposal.
a. Control Circuits. Wire shall be not less than No. 12 A WG and shall be insulated for 600 volts. If
telephone control cable is specified, No. 19 A WG telephone cable conforming to the ICEA 8-85-625-1996
specification shall be used.
b. Power Circuits.
(1) 600 volts maximum - Wire shall be No.6 A WG or larger and insulated for at least 600
volts.
(2)
3,000 volts.
3,000 volts maximum - Wire shall be No.6 A WG or larger and insulated for at least
(3)
Over 3,000 volts - Wire shall be No.6 A WG or larger and insulated for at least the circuit
voltage.
CQ~J~TRUCTI9N ~g:TII9D~ CQN~TIWCTIgN OF'~ \la. T 4ViR
PRERYlRlCATED ~g:Tj~. 1I0lJ~INC
189;U {:EHERllll.., The CeBRlltef 8hall ee88ftet .e tl'888fefIMf 'I.'aHlt ef ,fllfalll'ie_llllB8tel BltI8iB8 at .1
lellaMeR Hulieatllli ift .e ,1&116. '.'attlt eeRBftllMeR 8hall 8e rewefeell eeRllntll, eBRerllt. B188eBrY, ef lll'i.k '.'1.'&11 a8
8pleifila. Thl IM.I BetlBUlg 8hall 81 pflftHlRlatllll IMMIM eRIle8we te 81 BvppHell ill .1 oiiJ. ope.iii.a. The
MlwMiR@ pall If ilBBf 1I11.ite, iRe.YatilR Mo.etle, Mil eiltliplMRt plaeeMeM 8I'e 8BB"''Il ill .e ,18M.
11I.e CBlMraetef 8haY eleM, gralle, BREI seell the area 8fetHlEl the '\'atHt If Me.l hBtlsiR@ fef alRiBiMtIIB IHStllRI18 ef IQ
Met (J M) BR all siEles. 11I.e slepe shall 8e Ret le8s thaR 1.'2 ill.eh pef feet (1Q MRl pef ~ away HeM the 'o'atllt er Metal
hell8iRg ill. all lIireeM8Il.s.
109 ~.:J FQlJNDATION A..1\ifD WMl..~.
a. ReiRfeFl!ed CeReF8te CeRstrtletin. The CelMraetef shall eeDBwet thB felll1E1atiBR all.8
7:alls in aeBBrElall.Be ,..:itA thB 8Btail8 SA€I....'8 ill. th8 plans. UIl.18sS €Ith8H..fSB spesiHB€l, intBFBal Mes shall 8B Bf tRB
M8eRamoal ~'IlB B€I that V:ABIl. tAB f€lfftUl arB FilRl€lV@€l tAB Bn8B eftRB tiBB BAall08 at IBaBt 1 mBR (2~ ~ 8BuatR ~e
eBIl.OrotB BwfaB8; the A€lIBB BAall Be flhlgge€lall.€l tuHSRB€l te prs\'ilRt €lisseleraMell., RBill.ferBing stBBI sRall BB plassEl,
as BAe'.'I.'8 ill. tRB 8ra','.'ill.gB, anil BilB\lfeil ill. p€lBitiell. te pfBVBll.t 8ioplaoBMBnt 8will.g tRB S81l.BfStB plaBelM.SRt.
TAB BntilFftal BwfllilBB €If tAB Benilflltll BAall Bll tAefe\lgRly '.v€lrlHlil 8\lRRg tAB "Iasmg 8pBratieR te fersB all 08arBB
aggrBgato fr81M. dlB Bwfase. TkefeygAly v:efl( tRB M8Har agaiRBt thB farms te preeYBB a SIM.88tR MniBR freB ReM air
P8BI(ots aREI R8ReYB8IM.B.
TAB Byrfas8 HIM ef all fl€linhle OW'Fa@BB BAall Bll fBM€lVllil Bllfartl ollttiRg eSBwo. :\8 BeBR aB diB "eiAtiBg 8as Bet
Byilieiently, tAll ilRtirB ByrfaBll iROisil aRe eytBise €If tAll ':Ilylt BAllll Be tkerellgkly .. llt ....itA "\ IltBr 8R8 N88B8 Vl'itA a
}le, III ellMeFURSlUft Shlftll, 8r e€jyal €j\lalitj' aBr88i':ll, BriRgiRg tAll owfaBe t8 a ~a8tB, All reAM. marlw 8RiI Jlf~BBtieRo
BAall Bll retHB':lls. TAl! olirfllee ~f8i1lleea oRall BB OtH88tR IlRa senoe 'l:itA8Iit ~itB er iHllg\llaritieo. Tko Rltlterialo
TRieR Allve BeeR gnHtRa iRtt'l 8 ~8stll sllriRg the roBBing ~r8e€'8S shall Bll 8~rlllla €If BFUBA@@ HftifllFRll.j' S':Br tAB BRtirs
Florida Keys Marathon Airport
L-I09-3
Taxiway Lights (2 TIW) and
Airfield Guidance Sign
Addendum No, 2
Page 7
swmee (eJleept die iMeRer sUffues diat II'S te lie ~aiMss shall ha':s all ~asts fllMso:IlS 8)' ')\'as&g 8sfe,e ~aiRRRg)
aBS ~el'lRittss ts resst FiRaI snteRsf [IRish shall 81l s8MliBss 8Y M8iBg '''eidi }Js. JQ SaMSNIlSltDl stsBel Sf aB Ilfttlal
ltHli'Y a8fti1i,..e. The IlWfass sMllBs M8SS lHHil ths s8tH'S swfass is sMssdi I18S lIftifsfRl iB sslsr,
h. RrieIl aRII <:IRerete CIBstraetisB. ','~SB this ~e ef IlSBfitfulReB is sp'liMIS, the
~"_RSR shall 8S eeBllretll eeMe_Bg te die seteils she'."'8 iB the pl8RB. 'Ris etltef llli8e sf dil foUR_RSB at die
AUI le':el shall 81l 81~:lles 1 I.'J iBehes (J7 10M) at 13 SllgfllllS, RRell ,,-:alls shall BIl g iBllhls (JOO s~ tMsI~ lais iB
f\BIRi-g hBS v..di s~'e~' sindt Iswes a hlassr eetif8e. RRek shall 81l lais in UMeBt IR8Rar (I ~llR Rt86sBr5 UMS8t
_S J p.... S_~ 7.idi fulllR8Mr 8es ans she':es jeilHe. All jeinte shall 81l ee""lltlllr MlleB OIitk MSflar, _d fuiBg
BRek sMll Be 8aell ~lH'glS ,..:ith MSMr M ',\'e,lr ~fegfilsses. JJI jeiBte shall Be l(g iBeh (9 IIHR) thiel~ entlRef jeiBte
tsells eeRea'/el _S iBtllRSI jsiBte swek A1i8R. Rsdi iBtllRSI _S IlrKIRSf 8RIll sarfaus shallie ell_IS _d Mil
RsIIs, ..IlM _S sdill .IMlte Mllss with 1R8.... "\l~eB spelliMe., a BSM.eHtg 1RiB1..1 pi8'MM MSNr Isls~
sMlli. lB... te di. 1R8..... ~tuI reiRfsfeHtg B8f811'g iBeB (9 IIHR) iB __t., illS 1J _IIt.S (J90 --) 1188, shall
il Silt v....ally iB th. U8tll ef dil 8Rek .I'all SB 8St MSIl th8R J fest (fig 'M) 1l18tl" te I'fsjeet J 1:<J ("~ IRIR)
iBIRIs iMs thl n81letl rssf slH. liMite fSf 8Yfl~Sl'tiBg die 8ReIPlo:sl'k s':" BSSN, OI".SOl'S, _ IS1l71N shall
eSMist sf WIS 1 f[ J Jl 1'8 _elt (I gg Jl If J[ 9 ~ steellftglss. liMete sMllil l'aiMI.lVith S8. Ie" ef flS lid
i'M" iRstellMisR, -. all Inl'SIlISI'8I18 shall 8e ~aiMes si_11I' te SSSN _B OIiB.n,' 5MB aA" iBst81laRl8,
',V_.S'.,,' sille l1li)' il ISBI..tl I'sHle. iB I'lus er I'relMt 888lretl M iBtlilatl. iB Wil I'lallS. .\11 Inpleli Sarflull
r"nU 1w:1 a Niillii Haisk IS sl'llme. ..ill reiRf8..s. ISB"ltS SSBfitfuIRS&. .~_A" Is...IIRs" all _tlRsI _Ii
!MltlRs, MUS sf wells ehallil SINBisli with a sekHisB sfMHftaRI Ilili _Ii lI.'a"I iB thll',s,e..e88 sf8st Illss ..1.__
1 ,ut a,iB te Ig}!laRll efll'M". .~ .aus sf dllereeslBll1 IsssI 1R8_ _. Rl8..... staiB _lIil fllM':'~ IIlIi dil
OI..lle i'1IWIk.llllull8 "A" .1... water,
'0 C....... U......,. ~.88....ti... '.',tkI8 tMs type sf .S.......18 is .,..i4i.~ thl
fe_liMil8 .MIl lie 18..,.. .sRfe-~-8 ts the 1l..iM S887}8 iB tit. }!I'---. 'Atl 188"'. --il"- __ .MIl II.
s.......lIs..s .. sklp.s 1Il1l1_11 I8Rie.. ts .~D.f <: 90 .. sMll .Ihull the 111"", j7-LII .. .th. Sklpl8
fI~.ll II)' thl .S88&.8.18 M shlWll _ thl 1'1888. ~t_"'ll 88.....18.1. p...ti.. shall J,I .111"1.11 (If this ~.,. If
wlrk _.hitliBs Bl8_ jlillte, reiRferlHtg st..1 fel IJKe88ieBfi iMe .eaf slai, It.. Pt..., fe, ..lfilf walls, if
S}!llliMI~ .Mlli. }!I1"'1Il. 811B.8t }!I188ter.
109 1..a RQOF. 'Ri8 rssf sMll B8 '8iBfersllll el8srstl M sRn.'8 in thl I'I_s. RsiMe'8Htg st..1 shall hi I'lallll as
SRI','.. iB tltl llra'J\'iRg 8ft. sSlw811 iB ~esiRsB te 1'18':IBt tlis~laeSMl8t sH:fHtg dil p8l1f'iBg sf thl le8lretl. 'Ris
le81retl shall III peal'811 MS8elithieall)' aB. sull Be kllB ef R8BS)'8SbS _i -:Bille. 'Ril IWfal1 shall ha"'1 a stlsl
.nillll flRisk _i shall BI sle,eli M SRe-r.'Il iB .s H,niBg. The lIB.sNills ef tits ISBf slah shall he MBisRed iB t.hs
saMS _DRer M S~llBiMSII fel o....lls.
gBe Bf1i8R BI MSI' ssat ef Bet a81'halt reef eBaRag shall 8e applioll te tIte tep swfass ef ths rSBf sla8. 'Ris 118phalt
IIl8tlRal shall h8 Rntsll te .t.<itbHt dil luge sl'ssiMsll 8~' dis maRHfaet1.trel aRIi iRlRtlllliatll~' 1~l'lisll te thl feBf. The
MRishsll ssat shall 88 eeR8BllellB e':Bf dis rBef swfaes aBs kOO flBM RBliBa)'e sBd 8listofB. EMsaN aBIi 8rMl8les ef
88phalt eB tlte FBBfellgss aBII 8ailllillg walls Bhallll8 fOMB~'ed,
191) 1.1 :n.QQR. Tlte AeBr sRall 88 r8infenl8d ilBR8fBtl! as BRB'Nfl. iR lRO EkS...:iRgB. Wh8R pfBSIRt, all sBEI, fBBte,
Fefus8, aRII eth8f ~81iBRa81B MSl8risI sRall 88 fBMs':8a flBM thl! sna HAli8f the A8sf t8 a El8pth ef g i88hBS (JQQ 1'MRl),
tmlsss a gl'8StSf IIs~th is 8JlseiMeli iB the iRViMltiBR fur 8ilis, This aIlla sRall 8e 8asl~1l8d . :itR mateRals eeBaietHtg sf
saBII, siBders, gt'ayel' ef steBll. Fill eh8ll 8e J!18e8E1 iR la) Bra Aet te 8H88l!1I 4 insRes (I Qg HUM) aBd sRall 8S tReFBHgRI)'
ee"",aetsB BY MlRlfJiBg Br Fellmg. A layer of 8HillliDg paller BRsllll8 llluea B':Of tR8 iilll'Rer te ~lasiRg 8BB8rote.
The Aeer swfas8s SRslI ha'ee a st081 ft;e"':led MRieR. tRe fleer BRall ho level Hmoso a EkaiB is Bp08iMO~ iB ',,"meR OSSB
the AB" sRall 88 piteR8E1 1,'4 iR8R (fi HUM) por feet dev.'8't:afEl te'::ani tRll lifaiR. :\ 1'4 meR (fi ~ aSI'Ralt fslt
8JlllsnsieR joiRt shsll he J!Ia88li 88F.Y8eD Aoor aRd f.eHR8atieR ',"slla, TR8 Aoer sRall 80 ~swoEl MeBslithisslly aBEI
s8all8e ffS8 sfH8Re) seMlls sRd ':BiliB.
109 J,8 Fl.OOR QRYl>J. If sHe':'8 iR tH@ plaRB, a QBBr MatH aRs sry ":@II BRalllll! iRBtallBs iR tRe Ol!Rt@r l!f tk@
Qeer ef tke ilitHipMeRt rBeM, TRe SF)' \':@II BRall he eJlea':ates 1 H 4 feet (129 It 129 em) a~1iafe aRa te a 8ilptR ef 1
fBilt (129 llm) h81B'" tkll HRiakll8 Q8er ille':atieR aRs sRall \;Ie \;IaekHIIes te tkil ele"atiBR 8f tho HRd8Feisll 8f tlte QB8r
Florida Keys Marathon Airport
L-I09-4
Taxiway Lights (2 TIW) and
Airfield Guidance Sign
Addendum NO.2
Page 8
'Ni. gt'a':el ,",'MeA shell all pass a J ineA (SO ~ MesR sie,'e aRtlshell all he ntemlltl SR a l.'~ iBeR (' ~ MeSR
~~.~. ~~ gr~:el ~aeltHl~ shell he pla~Bti iB ., meR (H~ ~ IMnilMM lar~N,. aRtI .e eMin sllRaee ~:;~ :;;.;~
~~l~~ ~~~ In.llr v.lth a lIleehtuHealtaMper sr ,"}ItA a Rlltltl t&Hlfler '::elgftlBg R8t less 1MR J~ p8 (l[
~ ~ . fa.. .... .h.t 1M.. IIout J' ._. ...IM. (JJ ~ .__ .Mj ..r I... ... I' .__ "'M' (~: =:
elll). 'Hie _iB inlet shell he set Allah in .e e8Reft!te A88r, T:Be MaiR shall ha':e a elur 8pe~ 8f RSt Ie
iBehes (JOO RHII) iB _aMeter.
109 J.' C9~m:~~ Dr Fl,QQg L~ Fg~.~TI9~. CSRtlllite shell he iBstelletl iB tAe AS8r anti t8r811gR the
~lIIl~8R walls iB at!88f_e~ 111. .e ~eteils SR8"~''R iB the p~8M. .~"ll \tIltlefgfs~tI e8Rtlllit shell ~e p~::~ :i:
~~~ e81Bfl8l11ltl. CSRtllllt shall he IB8talletl ',,'ItA a e8lif'lmg 8r Metal eSRtllllt aMl'tar AllSh ,':itA t _ _
!~~~~::~~ ~~ e8RtI~t shell he el8setl '.,1th a pil'e p~ t8 pre-:eRt .e elMNRu 8f (8leigR ~;;I'i~l tI~;;
eSlHlweh8R. S,UI e8RtltIIt elHHtlees shall he leA el8setl.
HU~ J.7 ~9QRS, QUI'8 shell lie Metel eld firill'l88f Class A tl88N eSM8fBliRg t8 fe~ellMMl 8f tAe }Tati8Ml
~llletRll Cde &lltlluallllutRllal estles.
~~~~ ~~{:. l1te A88~ uiliBg, anti iBsitlll '01'allfi 8f e8Relete 1l8IHlW.ti8R shall t:int 11. !i :18. a _tleRHig
w.aR'''' d:er 'J\'MI~ tAl C8RtNet8r s~ll.,plr ~':8 e8ate 8f~aHH as 1lI'l.~iii.tllIeleu-,\ .nu~t 1Mt iBt.'::::;..~ ~~:k
"rails R.lltl R8t 11. ~al8tlll. l1t1 ~nieRl~ !reaRI. shell IS8818t sf ltI',.I},1B8 tIn'8. ~S.. 8f 1.ltIllr a ::-;;.;~~_~_r
herAI8.8f 8r a S.kRi.R IRaAI lIy IbsS81vIBg J '8\18. (0.9 ~ sf _!ltISMUll A1l8SdilMI 8r iJUlI sw, _ _ I
gall8R (lit.~ 8f W&tlf. ~&8A IBM shall lie alln(ell ts .,. at 1188t 18 A811f8 1I1fore .1 Rlnt al'Pli=::~ ~:;: ~;
s888RII trlatiB! 18a' Me Uil~ tIl. slHIfa..s shall 111 lIN1lAIA IIIlB 8f all '''11_1. &lltI .8f8~' 1\ '.' I 81'
,.......r. pt-. fBf ~.1I8 -. ..(JiBs .hallll~ a IislH ..r .~18~ a,,"\-"I. 11)" tltl ~"IIf. 1=M AUf '~ .= :: :
...lIIIl 8fltY 1811r .'''71. 11)" tit. ~R8HI"" lhfore ,118_g, tIl. .1Iffa'1. ._11111 8y _. .1.... I , _ a
_1._11 111 61.=--..lIy d.l=~8 J.~ lifllUt (0.1" 1i..I'8~ Bf lip" '.'a_A _. 1.'J lif.... (O.Og~ Ii....) er;;..-.; .~
seR'R {liMr~ le'lliM 'All .In_.lsM .h8l~ 11. ."lilll ~;~I. 61.:--=~8' .\011 ."18, ~.IIs, _II =~~~;
.11_1. .. filM:. -Y NIl' If fire. 111M"''' _. .11811111 8F:la BaBlldy ... lal fiMsh 18. If .
1ll._laura... ._1111. !iW."R a'.... 88at Bf B81f1.i1R =-L~itiR8,liMef ,fIi8f tl 1ihBlI.~' _. 4:-:'A 88ate.
~~ ~ ~ ~I~~~ ,,~ ~~'IT(:Im~" l1t1 <:'8MraBtlr shall fimtiSR _II iBstell a -=-:-HIll 8f "'''8 tllif'leTl
e8R':'~IRBI stMlete iR .e -:Mllt r881ft. ~".1t8fe a BSRtrsl r88M is sl'uiiiBII, at llast W:8 tI..,IBJI 811tlets shall lie
iBstelle..
INSTALLATION OF EQUIPMENT IN VAULT OR PREFABRICATED METAL
HOUSING
109-3.10 GENERAL. The Contractor shall furnish, install, and connect all equipment, equipment accessories,
conduit, cables, wires, buses, grounds, and support necessary to insure a complete and operable electrical
distribution center for the airport lighting and signage system as specified herein and shown in the plans. When
specified, an emergency power supply and transfer switch shall be provided and installed.
The equipment installation and mounting shall comply with the requirements of the National Electrical Code and
local code agency having jurisdiction.
109-3.11 POWER SUPPLY EQUIPMENT. Transformers, regulators, booster transformers, and other power
supply equipment items shall be furnished and installed at the location shown in the plans or as directed by the
Engineer, The power supply equipment shall be set on steel "H" sections, "I" beams, channels, or concrete blocks to
provide a minimum space of I 1/2 inches (:r7 mm.) between the equipment and the floor, The equipment shall be
placed so as not to obstruct the oil sampling plugs of the oil filled units; and nameplates shall, so far as possible, not
be obscured.
If specified in the plans and specifications, equipment for an alternate power source or an emergency power
generator shalI be furnished and instalIed, The alternate power supply installation shall include all equipment,
Florida Keys Marathon Airport
L-109-5
Taxiway Lights (2 T/W) and
Airfield Guidance Sign
Addendum No, 2
Page 9
accessories, an automatic changeover switch, and all necessary wiring and connections. The emergency power
generator set shall be the size and type specified.
109-3.12 SWITCHGEAR AND PANELS. Oil switches, fused cutouts, relays, transfer switches, panels, panel
boards, and other similar items shall be furnished and installed at the location shown in the plans or as directed by
the Engineer. Wall or ceiling mounted items shall be attached to the wall or ceiling with galvanized bolts of not less
tl:an 3/8 inch ~ diameter engaging metal expansion shields or anchors in masonry or concrete vaults.
109-3.13 DUCT AND CONDUIT. The Contractor shall furnish and install square type exposed metallic ducts with
hinged covers for the control circuits in the vault. These shall be mounted along the walls behind all floor mounted
equipment and immediately below all wall mounted equipment. The hinged covers shall be placed to open from the
front side with the hinges at the front bottom
Wall brackets for square ducts shall be installed at all joints 2 feet (~g 81B) or more apart with intermediate brackets
as specified. Conduit shall be used between square ducts and equipment or between different items of equipment
when the equipment is designed for conduit connection. When the equipment is not designed for conduit connection,
conductors shall enter the square type control duct through insulating bushings in the duct or on the conduit risers.
109-3.14 CABLE ENTRANCE AND HIGH VOLTAGE BUS SYSTEM. Incoming underground cable from field
circuits and supply circuits will be installed outside the waIls of the regulator vault as a separate item under Item L-
108. The Contractor installing the vault equipment shall bring the cables from the trench or duct through the
entrance conduits into the vault and make the necessary electrical connections. For the incoming and outgoing high
voltage load circuits, the Contractor shall furnish and install rigid metallic vi conduit risers, surmounted by potheads,
from floor level to the level as shown in the plans.
The incoming high voltage power supply service to the vault shall enter below the floor of the vault and shall rise
from the floor level in a rigid metallic conduit riser, sunnounted by a pothead, as described above. Using insulated
high voltage cable, the incoming power service shall be connected from the pothead to the oil fused cutouts or to the
specified disconnecting switch or equipment. From the oil fused cutouts or disconnecting device, the insulated
service conductors shall be connected to the overhead voltage bus system of the vault. The high voltage bus system
shall utilize the materials specified and shall be mounted and installed in accordance with the requirements of the
National Electrical Code or the local code agency having jurisdiction.
109-3.15 WIRING AND CONNECTIONS. The Contractor shall make all necessary electrical connections in the
vault in accordance with the wiring diagrams furnished and as directed by the Engineer. In wiring to the terminal
blocks, the Contractor shall leave sufficient extra length on each control lead to make future changes in connections
at the terminal block. This shall be accomplished by running each control lead the longest way around the box to the
proper tenninal. Leads shall be neatly laced in place.
109-3.16 MARKING AND LABELING. All equipment, control wires, terminal blocks, etc., shall be tagged,
marked, or labeled as specified below:
a. Wire Identification. The Contractor shall furnish and install self-sticking wire labels or
identifying tags on all control wires at the point where they connect to the control equipment or to the terminal
blocks. Wire labels, if used, shall be of the self-sticking preprinted type and of the manufacturer's recommended size
for the wire involved. Identification markings designated in the plans shall be followed. Tags, if used, shall be of
fiber not less than 3/4 inch (U mm) in diameter and not less than 1/32 inch ~ thick. Identification markings
designated in the plans shall be stamped on tags by means of small tool dies. Each tag shall be securely tied to the
proper wire by a nonmetallic cord.
b. Labels. The Contractor shall stencil identifying labels on the cases of regulators,
breakers, and distribution and control relay cases with white oil paint as designated by the Engineer. The letters and
numerals shall be not less than 1 inch (15 mm) in height and shall be of proportionate width. The Contractor shall
also mark the correct circuit designations in accordance with the wiring diagram on the terminal marking strips
which are a part of each terminal block.
Florida Keys Marathon Airport
L-I09-6
Taxiway Lights (2 TIW) and
Airfield Guidance Sign
Addendum NO.2
Page 10
I
I
I
METHOD OF MEASUREMENT
A109-4.3 The quantity of vault or prefabricated metal housing equipment to be paid for under this item shall consist
of all equipment installed, connected, and accepted as a complete unit ready for operation. This will be for a L-828
ferroresonant regulator with,fa V input furnished and installed,per the size required. This item will include any
I and all cost associated with work required per the project drawings to make a complete and functional lighting
and signage system. This will include work in the existing panel box, the required wire and metal conduit
including all attachments,switches and switch boxes,and all other work required.
BASIS OF PAYMENT
I, 109-5.1 Payment will be made at the contract unit price for each completed and accepted
metal-keg equipment installation. This price shall be full compensation for furnishing all materials and for all
preparation, assembly, and installation of these materials, and for all labor, equipment, tools, and incidentals
Inecessary to complete the item.
Payment
/will be made under:
item I� 109 513 T.,,.tallation o f A:ilii
! . . .
Item L-109-5.1 Furnish and Install 15 kW, 6.6 Amp, 3-Step, L-828 Ferroresonant Regulator with 208 V. Input,
120 V Control,Including all Associated Work, Complete in place. —per lump sum
MATERIAL REQUIREMENTS
IAC 150/5345-3 Specification for L-821 Panels for Remote Control of Airport Lighting
AC 150/5345-5 Circuit Selector Switch
AC 150/5345-7 Specification for L-824 Underground Electrical Cable for Airport Lighting Circuits
AC 150/5345-10 Specification for Constant Current Regulators and Regulator Monitors
iAC 150/5315 13A Specification for L 811 Auxiliary Re ,
Lighting-C e e
I ANSI/ICEA
S-85-625-1996 Aircore, Polyethylene Insulated Copper Conductor.Telecommunications Cable
1 Florida Keys Marathon Airport L-l 09-7 Taxiway Lights(2 T/W) and
Airfield Guidance Sign
Addendum No. 2
IPage 11
.AJ!:TU .A. {j I 5
A~n{ C {j2
A~TU C 9Q
.\~nf g 2g:H
CeMMef8ial IteM
gllollRfJkeR A .\ JQ{j?
Fed. Spec. J-C-30
fea. SfJllI. IT l! ~g;
Fed. Spec. VV-C-571
~fJlllliMllakeR fer ];}llfeFHI.IlEi aREi Plain Qillllt Etll81 Q&f8 fer CeBllflltll RllWeFll8l1l11Rt
~fJll8iMllakeB fer QliilEiiBg Q,illl[ (EetiEi Ha8eDfY Ynite UaElll hill Clay er ~MIll~
(;eRllrBtll Ua8enry UBi~, Leila 811ar.Rg
AllfJRalt Reef CeakBg
Paintl ...\1I~Y8, :Rntsfier, Le....: '.'oe
Cable and VVire, Electrical (Power, Fixed Installation)
l!Rllftl8I, fleer 8&8 I;>eel[
Conduit and Fittings, Nonmetal, Rigid; (Asbestos-Cement or Fire-Clay Cement), (For
Electrical Purposes)
END OF ITEM L-I09
Florida Keys Marathon Airport
L-109-8
Taxiway Lights (2 T/W) and
Airfield Guidance Sign
Addendum NO.2
Page 12
TAXIWAY LIGHTS (2 TIW) AND
AIRFIELD GUIDANCE SIGN
FLORIDA KEYS MARATHON AIRPORT
PLAN HOLDER'S QUESTIONS
Addendum No.2
Page 13
,
Multi
ELECTRIC
AIRPORT LIGHTING . SHIPBOARD LIGHTING . WIRING DEVICES
/d?:- ~/V?J/ZH ~///~~
iJ '. l1~dM7JkM/ k- /lrrtfl()~
fle~ t!&1rJ fiR filM IJ1J ~
"0 ~m9 eaffi-{?X- ~ I()~j ~ tc ~Guf3
j)(dJi ~ c-{;).. Ie Ie. (( It /.. 'I /l1eAnCJeSCi?;Q"'
t~ --riere Q.A.e (ete.v e lta'.J -tD new ~ /G-tM &4-
n 0 b~ d (tC'~ .-(U..c ct-
,@) Afe reftadl ~ s~ F/JfI Qrf7.p;d} 0J q V\
c1fPYdlXdJ FAri. !W<-WJfidtJ~er /. - If ~~
W I1L> hIlC<. Qe c.){!u M.. l",-n ') .s i (1VLS {i;y w h-f =L
tUe ~cP YVLJ (fl~
~
~~
MULTI I!U!cnuc MfG,
..us WEST l.ME STKaT
CHCAOO, L 5012+1717
In]) 7ZZ.1!tOO FAX: (773) 7ZZ-5S!14
A. MAYES SAU!S,l Sl!IlVD., INc.
7477 NlW IT. 51
~.NY.1JOZ7
(315) 115_ FAll: (315) 1]~700
ART MAYES Addendum No.2
MARXl!1lNGMANAGER Page .14
__. ___ __...... ...._._..... ...~.a..&.a. ""llVIUU"LV...""Z....
[' L LlU) nLrov U1\Lt\J'CUU
141 00 1
811 Wilma Street
Longwood, FL 32750
(407) 331.1551
FLORIDA INDUSTRIAL ELECTRIC, INC.
7840 Professional Place
Tampa, FL 33637
(813) 980-6214
June 25. 2004
URS Corporation
7650 Corporate Center Drive
Suite 400
Miami, FL 33126
305-262-7466
305-261-4017 fax
Attn: Andres Gutierrez
Re: Florida Keys Marathon Airport
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Monroe County, Florida
Questions about plans and specifications:
1. The drawings are calling for a new 15kw regulator but there is no bid
item for this. Where do you propose to pay for the regulator?
2. Bid documents list alternates forsteel foundations for guidance signs.
There are no details or specifications for these items. Can you give
further details and specifications on what you are calling for?
3. Project performance is 60 calendar days. the delivery time for the
guidance signs and junction cans is 6 to 8 weeks lead time. This
poses a problem with time to complete the project. Can the
performance period be extended?
S~~~wY\
Terry Moon
Florida Industrial Electric, Inc.
Chief Estimator Airports
407-331-1551 ext. 103
A Subsidiary of IES ~IES www.les-co.com
Addendum No.2
Page 15
Response to Plan Holder's Questions (see attachment)
1) By: Multi Electric
Date: June 24, 2004
a) Response to Question 1: see Section C above
b) Response to Question 2: see Sections Band D above
c) Response to Question 3: Design according to AC 150/5345-44F
(FAA Advisory Circular)
2) By: Florida Industrial Electric, Inc.
(see attachment)
Date: June 25, 2004
a) Response to Question 1: see Section Band D above
b) Response to Question 2: Bidder shall submit steel foundation shop drawing
according to FAA standards. Contractor may use manufacturer:
Safe Foundation, Inc.
930 Glenwood Avenue
Ambridge, PA 15003
(724)266-8733, Fax (724) 266-8050
or approved equal
c) Response to Question 3: According with Special Provision No.2, page IV-22
and IV-23, URS will issue a notice to proceed (permit) allowing contractor to
order and delliver materials and equipment. During this phase the contract
time will not be affected.
Addendum No.2
Page 16
ADDENDUM No. 1
June 18,2004
To
Specifications and Other Contract Documents for
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Florida Keys Marathon Airport
Monroe County, Florida
A.I.P. No. 3-12-0044-2004
FM Item No. 41468419401
PFC No.8
TO ALL CONCERNED:
The following items are modifications and interpretations to the original contract documents. The
following items as provided hereinafter are now in effect and have the same force as if included
in the original documents.
Bidder shall acknowledge receipt of this addendum on the proposal form (Section C, page 1-16
and Section H, page 1-29).
Also, please sign this page of the addendum and return by fax (305) 281-4017 to conflnn
your receipt.
This Addendum No.1 consists of 11 total pages and 10 plan sheets (Cover, C-2, C-5, C-6, C-7,
C-9, C-10, C-11, C-12, and C-13).
FJo.,,~ ~..r/n'al ~,,~c ~.
C~Name /
'/4mU # ~JY
ignature
;:;:,({o// I/. Jf(;1I~/
Name
lI,et 7tflicJ;lr/
Title
Addendum No.1
Page 1
ADDENDUM No. 1
June 18, 2004
To
Specifications and Other Contract Documents for
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Florida Keys Marathon Airport
Monroe County, Florida
A.I.P. No. 3-12-0044-2004
FM Item No. 41468419401
PFC No.8
This addendum to the Contract Documents includes modifications to the following:
A. Modification to Division I "Bid Documents". Section C "ProDosal
In Attachment "A" (Schedule of Bid Items), replace pages 1-19 and 1-21 with the new
attached revised pages 1-19 and 1-21.
Notes: · On page 1-19, Item 13, Estimated Quantity (6) was changed to Z
· On page 1-21, Item 20, Item Description was changed from "Furnish and install
L-861 taxiway edge light (base mounted), complete in place", with "Furnish and
install L-861T LED elevated taxiwav edoe Iiaht (base mounted), comDlete in
Dlace".
B. Modification to Division V "Technical SDeClflcatlons"
Delete Item L-125, "Installation of Airport Lighting Systems" in its entirety and replace
with the attached revised technical specification, Item L-125. "Installation of Airoort
Liohtina Svstems". This basically modified quartz-incandescent fixtures with LED
fixtures.
C. Modification to Drawinas
Replace drawing sheets:
Cover, C-2, C-5, C-6, C-7, C-9, C-10, C-11, C-12 and C-13, with a new attached
revised sheets: Cover. C-2. C-5. C-6. C-7. C-9. C-10. C-11. C-12 and C-13. The
changes are indicated by a cloud.
All items and conditions of the original contract documents shall remain unchanged.
Department Director or Designee
Date
Division Director of Designee
Date
Purchasing Supervisor (Designee)
Date
Addendum No.1
Page 2
BIDDER NAME:
AIRPORT NAME: FLORIDA KEYS MARATHON AIRPORT
PFC APP NO.: 8 AlP NO.: 3-12.0044-2004
FM ITEM NO. 41468419401
PROJECT DESCRIPTION: TAXIWAY LIGHTS (2 TIW) AND AIRFIELD GUIDANCE SIGN
SPEC ESTIMATED UNIT PRICE EXTENDED
ITEM ITEM DESCRIPTION UNIT QUANTITY IN TOTAL
No. NUMBERS
Guidance sign, two module, single face, size
2, complete with foundation. This shall
Include new foundation, L-867 base, brick,
secondary extension lead cable, frangible
couplings, lamps, L-823 connectors, anchor
bolts, setting of anchor bolts, conduit, tether,
grounding Identification tag and all
10 L-100-G Incidentals. EA 15
AT
Dollars
AND
Cents
Guidance sign, three modules, single face,
size 2, complete with foundation. This shall
Include new foundation, L-887 base, brick,
secondary extension lead cable, frangible
couplings, a.mps, L-823 connectors, anchor
bolts, setting of MChor bolts, conduit, tether,
grounding identification tag and all
11 L-100-H Incidentals. EA 2
AT
Dollars
AND
Cents
Guidance sign, three modules, double face,
size 2, complete with foundation. This shall
Include new foundation, L-867 base, brick,
secondary extension lead cable, frangible
couplings, lamps, L-823 connectors, anchor
bolts, setting of anchor bolts, conduit, tether,
grounding Identification tag and all
12 L-100-l Incidentals. EA 1
AT
Dollars
AND
Cents
Retroreflectlve guidance sign. This shall
include new foundation, frangible coupling,
setting of anchor bolts, tag, and all
Incidentals, complete in place
13 L-100-J AT EA 7
Dollars
AND
Cents
1-19
Addendum NO.1
Page 3
BIDDER NAME:
AIRPORT NAME: FLORIDA KEYS MARATHON AIRPORT
PFC APP NO.: 8 AlP NO.: 3-12.0044-2004
FM ITEM NO. 41468419401
PROJECT DESCRIPTION: TAXIWAY LIGHTS (2 TIW) AND AIRFIELD GUIDANCE SIGN
SPEC ESTIMATED UNIT PRICE EXTENDED
ITEM No. ITEM DESCRIPTION UNIT QUANTITY IN TOTAL
NUMBERS
Furnish and Install cable Junction box (size 0,
L-867, class I, load bearing).
AT
20 L-110-5.3 Dollars EA 9
AND
Cents
Furnish and Install L-861T LED elevated
taxiway edge light (Base mounted), complete
In place
21 L-125-5.1 AT EA 59
Dolla,..
AND
Cents
Sodding
AT
22 T -804-a.1 Dollars SY 2,240
AND
Cents
TOTAL BID ITEMS 1 THROUGH 22 $
Alternates
I) Bidder shall submit price for alternate steel foundations (relocation or new sign location)
that are used in lieu of concrete to support a wide variety of structures as guidance signs.
The foundation shall be fully galvanized after fabrication to provide cOlTosion guarantee.
Increase or decrease original item unit price in the amount of:
a) Steel foundation for one module internally lighted
guidance sign $
b) Steel foundation for two modules internally lighted
guidance sign $
c) Steel foundation for three modules internally lighted
guidance sign $
1-21
Addendum No.1
Page 4
ITEM L-125 - INSTALLATION OF AIRPORT LIGHTING SYSTEMS
DESCRIPTION
125-1.1 This item shall consist of airport lighting systems furnished or relocated and
installed in accordance with this specification, the referenced specification, and the applicable
Advisory Circulars. The systems are installed at the location and in accordance with the
dimensions, design, and details shown in the plans. This item shall include the furnishing of all
equipment, materials, services, and incidentals necessary to place the systems in operation as
completed units to the satisfaction of the Engineer.
125-1.2 Additional details pertaining to a specific system covered In this item are
contained in the latest edition of Advisory Circulars listed below:
a. AC 150/5340-4, Installation Details for Runway Centerline and
Touchdown Zone Lighting Systems.
b. AC 150/5340-19, Taxiway Centerline Lighting System.
c. AC 150/5340-24, Runway and Taxiway Edge Lighting System.
d. AC 150/5345-46B Runway and Taxiway Light Fixtures
125-1.3 SUBMITTALS. Shop drawings of each airfield lighting component, indicating
FAA approval shall be submitted to the ArchitectJEngineer for review and approval and be
approved prior to ordering any materials for this item. This submittal shall include the proposed
method of installation for all airfield lighting components. The submittal shall include data on all
component parts of the item or system, and shall include the manufacturers list of recommended
spare parts. The data submitted shall be sufficient, in the opinion of the ArchitectJEngineer, to
determine compliance with the Contract Documents.
125-1.4 QUALIFICATIONS. The ArchitectJEngineer reserves the right to reject any
and all equipment, materials or procedures which, in the Architect/Engineer's opinion, does not
meet the system design and the standards and codes specified herein.
EQUIPMENT AND MATERIALS
125-2.1
GENERAL.
a.
Airport lighting equipment and materials covered by FAA specifications shall
have the prior approval of the Federal Aviation Administration, Airports Service,
Washington, D.C. 20591, and shall be listed in the latest edition of Advisory
Circular 150/5345-53B, Airport Lighting Equipment Certification Program.
Florida Keys Marathon Airport
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Taxiway Lights (2 TIW) and Airfield Guidance Sign
Addendum No.1
Page 5
b. All other equipment and materials covered by other referenced specifications shall
be subject to acceptance through the manufacturer's certification of compliance
with the applicable specification, when requested by the Engineer. In all cases,
equipment shall be new and a first-grade product.
c. List of equipment and materials required for a particular system are contained in
the applicable FAA Advisory Circulars.
125-2.2 TAPE. Rubber and plastic electrical tapes shall be Scotch Electrical Tape
Numbers 23 and 88, respectively, as manufactured by the Minnesota Mining and Manufacturing
Company, or an approved equal.
125-2.3 CONCRETE. Concrete shall conform to Florida Department of Transportation
(FDOT) "Specifications for Road and Bridge Construction" Section 345, Class I, with a
minimum 28-day compressive strength of 3000 psi.
The concrete supplier (ready-mix company) shall submit a certification to the Engineer prior to
start of work that all concrete delivered meets the requirements of Section 345 for Class I
concrete with a minimum 3000 psi compressive strength. Each truckload of ready-mix delivered
must be accompanied with the certification stipulated in Section 345-43. Failure to provide the
certifications shall result in the concrete being rejected.
125-2.4 CONDUIT. Rigid steel conduit and fittings shall conform to the requirements of
Underwriters Laboratories Standard 6,514 and 1252. Flexible metal conduit and fittings shall be
liquid-tight and shall conform to UL360, and comply with specification L-ll O.
125-2.5 SQUEEZE CONNECTORS. Squeeze connectors, if specified, shall be equal to
Crouse-Hinds Company, type CGB cable connector with neoprene rubber bushing or an
approved equal, and shall comply with specification L-I08.
125-2.6 TEES. Large radius bend tees, if specified, shall be equal to Crouse-Hinds
Company No. ET or equal.
125-2.7 HEAT SHRINKABLE TUBING KIT. Heat shrinkable tubing kits shall be
equal to type APL, as manufactured by Raychem Corporation or an approved equal, and shall
comply with specificaiton L-I08.
125-2.8 SAFETY SWITCHES. Safety switches shall be heavy duty, quick-make,
quick-break, with visible blades. Enclosure shall have interlocks to prevent operation when
cover is open and to prevent cover from being opened when switch is in "ON" position.
125-2.9 POWER ADAPTERS. Power adapters shall be self-protected, watertight and
designed for direct earth burial. Output voltage shall be 120 Volt AC or 120/240 volt AC as
required, and equal to ADB PA-2, PA-3 or PA-4.
Florida Keys Marathon Airport
L-125-2 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Addendum No.1
Page 6
125-2.10 GENERAL PURPOSE TRANSFORMERS. General purpose transformers
shall be dry type, two winding, in weatherproof enclosure and shall comply with NEMA ST-20
and UL 506. Rating shall be as indicated on Drawings.
125-2.11 LIGHTING CONTACTOR. Lighting Contactor shall be electrically held with
120 volt coil and solid neutral. Enclosure shall be NEMA 3R with "Hand-Off-Auto" selector
switch on cover. Rating of Contactor shall be as indicated. Photocell control shall be for use on
120 volt system and rated at 2000 watts.
125-2.12 LIGHT BASES. All light bases (base cans) shall meet the requirements of FAA
AC 150/5345-42C. The light bases shall be L-867 type for the non-load bearing units and L-868
for the load bearing units. The sizes of the units shall be as shown on the Plans and in this
specification. Telescoping base cans may be used for the L-867 non-load bearing base cans.
Two-piece base cans may be used where paving interferences require their use. All light bases,
transformer houses and junction boxes shall be Class 1, galvanized steel.
125-2.13 ISOLATION TRANSFORMER. The isolation transformers shal be L-830, 6.6
amp primary to 6.6 amp secondary, sized per the fixture manufacturer's recommendations and
conforming to AC 150/5345-47 A.
125-2.14
CABLES. Cables and connectors shall comply with specification L-I08.
125-2.15 FRANGIBLE COUPLINGS. All elevated items shall be installed on frangible
couplings in accordance with the respective Federal Aviation Administration Advisory Circular.
Frangible couplings shall be metallic and provide an electrical grounding patch between the
fixture and the base can.
125-2.16 LAMPS. Airfield lighting fixture lamps shall be LED (light emitting diode)
fixture of size and type to provide distribution and minimum output requirements of isocandela
curves shown for each size in AC 150/5345-46A. All airfield lighting fixtures shall be installed
with lamps.
Lamps shall be a generic standard design manufactured by at least two (2) of the following
manufacturers:
a. Airport Lighting Company
b. Siemens Airfield Solutions, Inc.
c. Thorn Airfield Lighting
d.
Honeywell Airport Systems
Other approved
e.
Proprietary lamps, that is, lamps intended to be used only for one manufacturer's product(s) and
that are manufactured for this sole purpose, are not acceptable.
Lamps shall be readily available from local commercial electrical supply dealers for assured
availability and supply to the airport.
Florida Keys Marathon Airport
L-125-3 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Addendum No.1
Page 7
125-2.17 COLORED FILTERS. Colored filters, or colored lenses, to be used for Airfield
Lighting Fixtures shall conform to the requirements of Military Specification MIL-C-250-50-
Type 1 and the applicable FAA Advisory Circulars.
125-2.18 CABLE IDENTIFICATION TAGS. The identification tags shall be 2-inch
diameter brass tags with the circuit identification stamped onto the tags, all as shown on the
plans and details. The identification shall be permanently stamped. Text height shall be 3/8 inch.
125-2.19 IDENTIFICATION TAPE. Non-magnetic electronically detectable
identification tape shall be installed in the trenches above the ducts, as and where shown for the
Plans.
125-2.20 REINFORCING STEEL. All reinforcng steel shall be deformed steel bars
conforming to ASTM A-615 grade 60.
125-2.21 DOL TING HARDWARE. All airfield bolting hardware shall be stainless steel
and shall meet FAA requirements. All bolts ~ inch and larger shall be hex head type. All bolts
smaller than ~ inch trade sixe shall be recessed Allen type. All bolted connections shall utilize
an anti-rotational locking type device. The base can cover and fixture mounting bolts shall
extend through the base can mounting flange into the base can a minimum of 0.5 inch. The bolts
shall have enough thread length so they do not shoulder out before the fixture is securely
tightened.
125-2.22 ANTI-SEIZE COMPOUND. The anti-seize compound shall be Ideal "Noalox"
or approved equal. Use Dow Coming Compound ill valve lubricant non-curing sealant to seal
between sections of base cans, spacer rings, adapter rings or fixtures.
125-2.23 STRAIN RELIEF CONNECTORS. Strain relief connectors shall be Liquid
Tight Thomas & Betts 2500 series with WMG-PG wire mesh cable grip or approved equal.
CONSTRUCTION METHODS
125-3.1 GENERAL. The installation and testing details for the systems shall be as
specified in the applicable Advisory Circulars or manufacturers specifications as approved by the
Engineer.
The contractor shall ascertain that all lighting system components furnished by him (including
FAA Approved Equipment) are compatible in all respects with each other and remainder of the
new/existing system. Any non-compatible components furnished by this contractor shall be
replaced by him, at no additional cost to the Airport sponsor, with a similar unit, approved by the
Engineer (different model or different manufacture) that is compatible with the remainder of the
airport lighting system.
Florida Keys Marathon Airport
L-125-4 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Addendum No.1
Page 8
Wiring diagrams shown on Drawings are generic and may not reflect actual field conditions or
specific equipment requirements. The Contractor shall verify field conditions and follow
instructions in installation manuals provided by equipment manufacturer and, if required, make
the necessary modifications to insure proper operation of equipment.
125-3.2 PLACING EQUIPMENT. All new or relocated equipment shall be installed at
the location indicated in the plans or as directed by the Engineer. All bolts or threaded parts,
such as breakable couplings, shall be greased with an antirust compound such as "Never-Seez."
125-3.3 OPERATING MANUALS. Operating manuals shall be submitted for all
principal items of electrical equipment. The submittal of manuals shall be submitted prior to
Final Acceptance. The manuals shall be complete with operational and repair part data on all
component devices in the principal equipment for which the manuals are submitted. The
Contractor shall also provide to the Owner's authorized representative instructions in the
operation and maintenance of the systems at such times as directed by the Owner and permit his
video taping of operating and maintenance instructions.
125-3.4 REMOVAL OF EXISTING L-861 EDGE LIGHT FIXTURES (STAKE
MOUNTED). The Contractor shall remove all existing L-861 stake mounted fixtures, including
concrete encased bases and transformers. The light fixtures shall be disposed off airport property
or may be used as spare parts for remaining stake mounted lights.
The existing concrete encased light base stake and any concrete encased L-830 transformers are
to be removed and disposed of off airport property by the Contractor.
All holes remaining after removal of the stake and related bases shall be filled with suitable
material and compacted to at least density and condition of the original material. In paved areas,
the existing pavement is to be sawcut and removed so as to make a square or rectangular hole
prior to backfill. The square or rectangular hole shall be backfilled and compacted as stated
above except the top one and a half inches (1.5") of backfill shall be asphalt conforming to
FDOT asphalt specifications or four inches (4") of concrete painted in black at the Contractor's
choice.
125-3.5 REMOVAL AND REINSTALLATION OF EXISTING L-861 EDGE
LIGHT FIXTURES (BASE MOUNTED). The Contractor shall remove and reinstall the
existing L-861 base mounted fixtures, including base stems, base plates, L-823 cord sets and L-
830-1 transformers. The fixtures shall be carefully removed so as not to damage the lens, fixture,
base stem/plate, L-823 cord set and transformers.
The existing cables shall be spliced together with an L-823 type connector and neatly coiled. The
base can shall be removed and disposed of off airport property.
Florida Keys Marathon Airport
L-12S-S May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Addendum No.1
Page 9
All holes remaining after removal of the base mounted light and related bases shall be filled with
suitable material and compacted to at least the density and condition of the original material. In
paved areas, the existing pavement is to be sawcut and removed so as to make a square or
rectangular hole prior to backfill. The square or rectangular hole shall be backfilled and
compacted as stated above except the top one and a half inches (1.5") of backfill shall be asphalt
conforming to FDOT asphalt specifications or four inches (4') of concrete painted in black at the
Contractor's choice.
125-3.6 INSTALLATION OF L-861T LED ELEVATED TAXIWAY EDGE LIGHT
FIXTURES (BASE MOUNTED). The Contractor shall install the L-861T base mounted
fixtures, including base stems, base plates, L-823 cord sets and L-830-1 transformers.
METHOD OF MEASUREMENT
125-4.1 The quantity of units to be paid for under this items shall be the number of each
type installed as completed units in place, ready for operation, including base accesories, backfill
and compact, and accepted by the Engineer.
BASIS OF PAYMENT
125-5.1 Payment will be made at the Contract unit price for each complete unit, that is
installed in place, removed including base, accessories, backfill and compact, relocated including
splicing of existing cables, transformers, foundation, base can, backfill and compact and
accepted by the Engineer. This price shall be full compensation for furnishing all materials and
for all preparation, assembly, and installation of these materials, and for all labor, equipment,
tools, and incidentals necessary to complete these items.
Payment will be made under:
Item L-125-5.1
Furnish and install L-861 T LED
elevated Taxiway Edge Lights (base
mounted), complete in place
Per each
Item L-125-5.2
Remove existing L-861 T Taxiway
Edge Lights, base mounted or stake
mounted
Per each
(N/A)
Item L-125-5.3
Relocate existing L-861 T taxiway
edge light base mounted, including
excavations, backfilling, and
accessories, complete in place
Per each
(N/A)
Florida Keys Marathon Airport
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Taxiway Lights (2 TIW) and Airfield Guidance Sign
Addendum No.1
Page 10
Underwriters
Laboratories
Underwriters
Laboratories
Underwriters
Laboratories
Underwriters
Laboratories
AC 150/5345-3
AC 150/5345-42
AC 150/5345-46
AC 150/5345-47
AC 150/5345-51
MATERIAL REQUIREMENTS
Rigid Metal Conduit - Standard 6
Liquid- Tight Flexible Conduit - Standard 360
Fittings for Conduit and Outlet Boxes - Standard 514
Intermediate Metal Conduit - Standard 1242
Specification For L-821 Panels For Remote Control of
Airport Lighting
Specification For Airport Light Base and Transformer
Housings, Junction Boxes and Accessories
Specification For Runway and Taxiway Light Fixtures
Isolation Transformers For Airport Lighting Equipment
Specification For Discharge Type Flashing Light
Equipment
END OF ITEM L-125
Florida Keys Marathon Airport
L-125-7 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Addendum No.1
Page 11
CONTRACT DOCUMENTS
TAXIWAY LIGHTS (2 TIW) AND AIRFIELD
GUIDANCE SIGN
FLORIDA KEYS MARATHON AIRPORT
MONROE COUNTY, FLORIDA
A.I.P. No. 3-12-0044-2004
FM Item No. 41468419401
PFC Application Nos. 8
URS Corporation Contract No.: 12638065.00000
Prepared for:
THE MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
MR. MURRAY E. NELSON, DISTRICT 5
DR. DAVID P. RICE, DISTRICT 4
MS. DIXIE M. SPEHAR, DISTRICT 1
MR. GEORGE NEUGENT, DISTRICT 2
MR. CHARLES "SONNY" McCOY, DISTRICT 3
MAYOR
MAYOR PRO TEM
COMMISSIONER
COMMISSIONER
COMMISSIONER
Prepared by:
URS CORPORATION
MAY 2004
TABLE OF CONTENTS
DIVISION I.............. ...... .... ........ ............ ... ..... ................. ....... BI D DOCUMENTS
III"ISION II ................................................................................... C:c)N1r~C:T
DIVISION III ............................................................... GENERAL PROVISIONS
DIVISION IV..................... ... ......... ....... ......... ....... ..... ....SPECIAL PROVISIONS
DIVISION V..................................................... TECHNICAL SPECIFICATIONS
BID DOCUMENTS
DIVISION I
BID DOCUMENTS
SECTION A - NOTICE OF CALLING FOR BIDS ............................................................1-2
SECTION B - INSTRUCTIONS TO BIDDERS ................................................................1-4
SECTION C - PROPOSAL AND SCHEDULE OF BID ITEMS ......................................1-14
SECTION 0 - BID BON 0 .. ............ ............. .................. .......... ....... .............. ....... ...........1-23
SECTION E - DRUG-FREE WORK PLACE..................................................................1-25
SECTION F - PRIME BIDDER'S QUALIFICATIONS....................................................1-26
SECTION G - DISCLOSURE OF LOBBY ACTIVITIES .................................................1-28
SECTION H - ACKNOWLEDGMENT OF RECEIPT OF ADDENDUM ..........................1-29
SECTION I - DISADVANTAGED BUSINESS ENTERPRISE PROGRAM ...................1-30
SECTION J - BIDDER'S AFFIDAVIT IN COMPLIANCE WITH THE
FLORIDA TRENCH SAFETY ACT .........................................................1-31
SECTION K - SWORN STATEMENT PURSUANT TO SECTION
287.133C3J(A), FLORIDA STATUTES, ON PUBLIC
ENTITY C RI M ES ................................................................................... .1-33
SECTION L - SWORN STATEMENT UNDER ORDINANCE NO. 10-1990 ..................1-36
SECTION M - CERTIFICATION OF NONSEGREGATED FACILlTIES.........................I-37
SECTION N - FEDERAL WAGES DECISION...............................................................I-38
SECTION 0 - CERTIFICATION REGARDING DEBARTMENT,
SUSPENSION, INELIGIBILITY, AND VOLUNTARY
EXCLUSION - 49 CFR PART 29 ............................................................1-42
1-1
SECTION A
NOTICE OF CALLING FOR BIDS
NOTICE IS HEREBY GIVEN TO PROSPECTIVE BIDDERS that on June 30th, 2004 at 11 :00 AM, the
Monroe County Purchasing Office will open sealed bids for the following:
Furnishing of all labor and materials and performing all work for constructing the following contract:
Taxiwav Liahts (2 T/W) and Airfield Guidance Sian
Florida Kevs Marathon Airoort
Monroe County, Florida
The major items of work for the contract will be as follows:
The overall objective is to develop the installation of taxiway edge lighting for access to shade
hangar and mosquito control apron located on the east side of the airport terminal. Also, this
project shall furnish and install new guidance sign system and perform all related work to update
lighting and signalization systems according to the plans.
Specifications and Bid Documents may be requested from DemandStar by Onvia at
www.demandstar.com or www.co.monroe.f1.us. or call toll-free at 1-800-711-1712. Technical questions
should be directed at the Engineer, URS Corporation, 7650 Corporate Center Drive, Suite 400, Miami,
Florida 33126-1220; Telephone (305) 262-7466, Fax (305) 261-4017.
Bidders must submit two (2) signed originals and one (1) complete copy of each bid in a sealed envelope
marked on the outside: "Sealed Bid for Taxiwav Lichts (2 T/W) and Airfield Guidance Sian", addressed
and delivered either in person or by mail, preferably by special delivery, registered mail to:
Purchasing Office
1100 Simonton Street, Room 2-213
Key West, Florida 33040
All bids must be received by the County Purchasing Office before 11 :00 AM June 30th , 2004. Any bids
received after this date and time will be automatically rejected. Faxed or emailed bids will also be
automatically rejected.
All bids must remain valid for a period of ninety (90) days. The Board will automatically reject the bid of
any person or affiliate who appears on the convicted vendor list prepared by the Department of General
Services, State of Florida, under Section 287.133(3)(d), F.S. (1997).
All bids, including the recommendation of the County Administrator and the requesting Department Head,
will be presented to the Board of County Commissioners of Monroe County, Florida, for final awarding or
otherwise. The Board reserves the right to reject any and all bids, to waive informalities in any or all bids,
and to re-advertise for bids; and to separately accept or reject any item or items of bid and to award
and/or negotiate a contract in the best interest of the County.
Dated at Key West this
day of
.2004.
Monroe County Purchasing Department
1-2
Bids must be submitted upon the forms contained in the Contract Documents.
Guarantee will be required with each bid as follows: At least 5% of the amount of the
bid shall be filed in the form of a certified check or bid bond payable to the Monroe
County Board of Commissioners.
A public construction bond will be required for 100% of the contract price.
Certification of Nonsegregated Facilities and Equal Opportunity Report Statements must
be signed as included in the bid proposal. Failure to complete these forms may be
grounds for rejecting bids.
No bids will be considered unless the bidder is properly qualified to submit a proposal
for this construction in accordance with all applicable laws of the State of Florida. This
shall include evidence of possession of a current license to perform this type of work.
Non-residents of the state, if a corporation, shall show evidence of qualification by the
Secretary of State to do business in Florida. General Contractor or Electrical Contractor
license is required.
All bidders submitting bids for construction, improvement, remodeling or repair of public
building, will furnish evidence that the bidder holds an appropriate current certificate or
registration per Ch. 489.113 FS, unless exempt under Ch. 489.103 FS.
A Pre-Bid Conference will be held on N/A local time, at the Florida Keys Marathon
Airport, Terminal Building, Airport Manager Conference Room. Attendance by
prospective bidders is not mandatory, but is highly recommended. The purpose of the
Conference will be to answer questions and to familiarize potential bidders with the
Project.
1-3
SECTION B
INSTRUCTIONS TO BIDDERS
1. CONTENTS OF CONTRACT DOCUMENTS:
Proposal forms are contained in these Contract Documents. All papers bound
with or attached to the Proposal Form are a part of the Contract and must not be
detached or altered.
A Bid Bond in the form of a cashier's check, certified check or surety bond in the
amount of not less than five percent (5%) of the total amount of bid submitted
shall accompany each proposal. The Bid Bond shall be made payable to Monroe
County Board of County Commissioner.
2. EXAMINATION OF CONTRACT DOCUMENTS AND SITE OF WORK:
The bidder shall examine carefully the site of the work and the Contract
Documents and he shall investigate and satisfy himself as to the conditions to be
encountered, as to the character, quality and quantity of work to be perfonned
and materials to be furnished and as to the requirements of the Contract.
Bidders shall familiarize themselves with all federal and state laws, local
ordinances and regulations which may in any manner affect the work or its
prosecution. The filing of a Proposal shall be presumptive evidence that the
bidder has complied with these requirements.
3. INTERPRETATION OF DOCUMENTS:
If any person contemplating submitting a bid for the proposed contract is in doubt
as to the meaning of any part of the proposed Contract Documents, he may
submit to the Engineer, URS Corporation, 7650 Corporate Center Drive, Suite
400, Miami, Florida, 33126-1220, a written request for an interpretation of the
proposed documents. Such interpretations will be made only by Addenda and a
copy of each Addendum will be mailed or delivered to each bidder receiving a set
of such Contract Documents. Requests for interpretation will be accepted UP to
fifteen (15) calendar days prior to the bid due date.
4. ADDENDA:
Any Addenda issued during the preparation of bids shall be included in the
Proposal and shall become a part of the Contract Documents. Subcontractor's
attention must be called to these changes as well as to the effect Addenda may
have on their work.
1-4
5. PREPARATION OF PROPOSAL:
Proposals shall be submitted on the Proposal Form contained in these Contract
Documents. Each blank space in the Proposal Form shall be filled in correctly
and the bidder shall state the price for which he proposes to do the work written
in ink. The bidder will be responsible for all errors or omissions in his Proposal.
Each bidder shall sign his Proposal correctly in ink. If the bidder is an individual,
his name and post office address must be shown. If a firm or partnership, the
name and post office address of each member of the firm or partnership must be
shown. If a corporation, the Proposal must designate the state under the laws of
which the corporation is chartered, the names, titles and business addresses of
its officers and the one signing the Proposal as agent of the firm or corporation
must furnish legal evidence that he has authority to such signature and that such
signature is binding upon the firm or corporation.
On the Proposal Form (Schedule of Bid Item sheets), the bidder shall enter in
words and figures a unit price and in figures the product (extension) of the unit
price and quantity in the appropriate column for each bid item exclusive of those
items for which a fixed contract unit price and extension are shown. On "lump
sum" items, the same amount shall be shown in both the unit price (words and
figures) and extension (figures only) columns. After all extensions are made, the
bidder shall total the extended amounts of the bid items and show his total of the
extended amounts of the bid items and show his total bid amount In the
appropriate place on the Proposal Form.
All figures shall be legibly shown in ink or typed. Any inter-lineation, erasure or
other alteration of a figure shall be initialed by the signer of the proposal. The
Owner will check the extension of each item given in the proposal and correct all
errors and discrepancies. In case of a discrepancy between a unit bid price and
the extension amount, the unit price will govern. In case of discrepancy between
the unit price in words and figures, the words shall govern. The sum of the
correct extension amounts will be the contract bid price.
6. ALTERNATE BIDS:
Where alternate designs are provided by the plans and proposal, the bidder shall
enter prices only on the items for the design alternate that will be most
economical for him to construct and other bid items that will be common for all
alternates. The bidder shall enter the words "No Bid" in the unit price column on
items for the design alternates not selected.
If any item on the proposal form permits a choice between alternate specified
types of materials, the bidder shall indicate by a checkmark the type of material
he proposes to use. If more than one type or none is checked, the Owner will
make the selection..
1-5
Where alternate designs are provided for which bids area called for on each
alternate, the bidder shall furnish bid prices for each of the alternates. Failure to
do this may be grounds for rejection of the proposal.
7. REJECTION OF PROPOSALS:
Proposals may be rejected if they show any alteration of form, additions not
called for, conditional or alternate bids or irregularities of any kind. Proposals in
which prices are obviously unbalanced may be rejected. The Owner reserves
the right to waive minor irregularities in any bid.
8. BID PRICE:
The price bid shall cover the cost of furnishing of all materials, tools, labor,
transportation, local, state and federal taxes, Old Age Benefits, Social Security,
services and equipment necessary to perform the work in full conformity with the
Contract Documents.
9. PRE-QUALlFICATION OF BIDDERS:
No proposal will be considered from any contractor unless he is licensed to do
work in the State of Florida and is properly qualified to submit a proposal for this
construction in accordance with all applicable laws of the State of Florida.
Bidder shall submit "Evidence of Competency", consisting of statements covering
the bidder's past experience on similar work, a list of equipment that would be
available, latest financial statement, and a list of key personnel. (See General
Provisions 20-02 and Section F "Prime Bidder's Qualification Form.)
10. AWARD OF CONTRACT:
The award of the contract, should it be awarded, will be made by the Owner to
the lowest responsible bidder whose proposal meets the requirements thereof.
The award, if made, will be made within ninety (90) days after opening of the
proposal but no award will be made until the responsibility of the bidder to whom
it is proposed to award the contract has been investigated. Notice of award will
be mailed by the Owner to the successful bidder at the address stated in his
proposal.
1-6
11. RETURN OF BID BOND:
All bid bonds except those of the two lowest qualified bidders will be returned
promptly after the tabulation of the bids has been made and in no case will a bid
bond be held longer than ninety (90) days without the bidder's written consent.
12. EXECUTION OF CONTRACT:
The successful bidder will be required to execute the contract and furnish bond
within fifteen (15) days of date of notice to award. In the case of a corporation,
the officer or agent to execute the contract must be designated in a power of
attorney executed by the Board of Directors and duly certified by the Secretary
and bearing the seal of the corporation. When the successful bidder is a
partnership, the power of attorney designating one member of the firm to execute
the contract shall be filed with the Owner. Such power of attorney must bear the
signature of the other members of the firm and must be executed before a
notary.
Any officer or agent signing on behalf of the surety company bonding the
contractor will be required to file a power of attorney with the bond executed and
will be required to affix the seal of the surety to said bond.
13. FAILURE TO EXECUTE CONTRACT:
Should the successful bidder fail or refuse to execute the contract and furnish
satisfactory bond within fifteen (15) days after notice of award has been issued
by the Owner, the bond filed with the proposal shall become the property of the
Owner. At his option, the Owner may then annul the award and award the
contract to the next lowest responsible bidder or reject all proposals and re-
advertise.
14. CONTRACT TIME:
The contractor shall begin work after receipt of the Notice to Proceed in
accordance with Paragraphs 80-02 and 80-03 of the General Provisions and
Special Provisions Nos. 2 and 3, and shall fully complete performance within
sixty (60) calendar days.
If the Contractor does not comply with the contract time, then liquidated damages
will apply, as per Special Provision NO.3.
1-7
15. CONTRACT CLOSE-OUT:
Subsequent to the final acceptance of this project by the Owner, the
requirements of Special Provision No.1., Section 25 "Project Documentation"
Subsection H. "Prerequisites to Substantial Completion" must be satisfied.
16. BID PROPOSAL SUBMISSION:
The Bid Proposal submitted for the work included in this project shall include the
following fully executed documents:
A. Bid Proposal Contract (Division I, Section C)
B. Schedule of Bid Items (Division I, Section C)
C. Bid Bond (Division I, Section D)
D. Drug-free Work Place (Division I, Section E)
E. Prime Bidder's Qualifications (Division I, Section F)
F. Disclosure of Lobby Activities (Division I, Section G)
G. Acknowledgment of Receipt of Addendum (Division I, Section H)
H. Disadvantaged Business Enterprise (Division I, Section I)
I. Bidder's Affidavit in Compliance With the Florida Trench Safety Act
(Division I, Section J)
J. Sworn Statement Under Section 287.133(3)(a) FLORIDA STATUTES, on
Public Entity Crimes (Division I, Section K)
K. Sworn Statement Under Ordinance No. 10-1990, Monroe County (Ethics
Clause) (Division I, Section L)
L. Certification of Nonsegregated Facilities (Division I, Section M)
M. Federal Wage Decision (Division I, Section N)
N. Certification regarding Department, Suspension, Ineligibility, and Voluntary
Exclusion-49 CFR Part 29 (Division I, Section 0)
o. Copy of Contractor's license for State of Florida (Division I, Section A)
P. Bidder's Statement on Insurance (Division 11/, Section 140)
1-8
17. MARKING AND MAILING BIDS:
Bids, with their guaranties, must be securely sealed in suitable envelopes,
addressed and marked on the outside as follows:
Purchasing Office
1100 Simonton Street
Room 2-213
Key West, Florida 33040
Taxiwav LiQhts (2 TIW) and Airfield Guidance Sign
Florida Kevs Marathon Airport
Bid Submission
Bids received prior to the time of opening will be securely kept, unopened. The
Owner will decide when the specified time has arrived and no bid received
thereafter will be considered. No responsibility will be attached to the Owner for
the premature opening of a bid not properly addressed and identified. Unless
specifically authorized, telegraphic bids will not be considered but modifications
by telegraph of bids already submitted will be considered if received prior to the
hour set for opening.
1-9
18. WITHDRAWAL OF BIDS:
Bids may be withdrawn on written or telegraphic request received from bidders
prior to the time fixed for opening. Negligence on the part of the bidder in
preparing the bid confers no right for the withdrawal of the bid after it has been
opened.
19. BIDDERS PRESENT:
At the time fixed for the opening of the bids, their contents will be made public for
the information of bidders and other properly interested parties who may be
present either in person or by representation.
20. BIDDERS INTERESTED IN MORE THAN ONE BID:
If more than one bid for each contract is offered by anyone party, by or in the
name of his or their clerk, partner or other person, all such bids may be rejected.
A party who has quoted prices on materials to bidders is not thereby disqualified
from quoting prices to other bidders or from submitting a bid directly for the
materials of work.
21. ERRORS IN BID:
Bidders or their authorized agents are expected to examine the maps, drawings,
specifications and all other instructions pertaining to the work, which will be open
to their inspection. Failure to do so will be at the bidder's own risk and he cannot
secure relief on the plea of error in the bid. In case of error in the extension of
prices, the unit price will govern.
22. CONTRACT AND BOND:
The bidder to whom award is made must, when required, enter into written
contract on the standard form as set out herein with satisfactory security in the
amount required, within the period specified or, if no period is specified, within
ten (10) days after the prescribed forms are presented to him for signature.
23. COLLUSION:
If there is any reason for believing that collusion exists among the bidders, any or
all proposals may be rejected and those participating in such collusion may be
barred from submitting bids on the same or other work.
24. SUBLETTING OR ASSIGNING OF CONTRACT:
(a) Limitations: The Contractor shall not sublet, assign, transfer,
1-10
convey, sell or otherwise dispose of any portion of the contract, his right,
title or interest therein, or his power to execute such contract, to any
person, firm or corporation without written consent of the Owner and such
written consent shall not be construed to relieve the Contractor of any
responsibility for the fulfillment of the contract. Unless otherwise
stipulated in the proposal or special provisions and with the assistance of
workmen under his immediate superintendence and reported on his
payroll, all contract work of a value not less than fifty percent (50%) of the
total contract amount, except that any items designated in the contract as
"Specialty Items" may be performed by subcontract may be deducted from
the total contract amount before computing the amount of work required to
be performed by the Contractor with his own organization.
(b) Subcontractor's Status: A subcontractor shall be recognized only in
the capacity of an employee or agent of the contractor and the Contractor
will be responsible to the Owner for all of the subcontractor's work,
including failures or omissions and his removal may be required by the
Engineer, as in the case of any employee.
25. PERMITS:
The County permit fees for the project are J 0.00 , which shall be an expense of
the Contractor. The county cautions bidders that the contractor shall also be
responsible for the permit fees of any state or federal agency having permitting
jurisdiction over the project, including but not limited to, the ACE, DNR, and DER.
26. PRE-SUBMITTALS:
Pre-submittal of data on various equipment, if required in the proposal, shall be
made by the bidder and approval obtained from the Engineer. This approved list
shall be the actual equipment used in the construction of this project if the
contract is awarded on the bid.
27. SHOP DRAWINGS:
Shop drawings will be reviewed by the Engineer for general conformance in
accordance with the contract documents. The Contractor shall check all shop
drawings in detail and stamp with his approval prior to submittal to the Engineer.
The Engineer's review of shop drawings shall not relieve the Contractor from his
responsibility for any deviations from the requirements of the contract
documents.
28. FLORIDA TRENCH SAFETY ACT:
In accordance with the provisions of the Florida Trench Safety Act, if applicable,
the bidder shall indicate in his bid his cost of compliance with the requirements of
1-11
the Florida Trench Safety Act and shall also complete and properly execute the
bidder's Affidavit in compliance with the provisions of the Florida Trench Safety
Act (Sections 553.60-553-64, Florida Statutes).
29. SCHEDULE OF WORK:
Contractor shall coordinate work items that may overlap with other work being
performed by other contractors. Each bidder shall take this into account and no
provision for re-mobilization or re-negotiation for time delay can be made.
Depending on the bids received, certain quantities may be increased or
decreased and no provision shall be made for re-negotiation (see Division I,
General Provisions, Section 40, for further information).
30. PROJECT FUNDING:
Work included in this proiect is beina funded in part by the use of Passenaer
Facility Charaes collected by Monroe County. in part from Federal funds under
the FAA Airport Improvement Proaram (AlP), and funds from the Wo~ Proiect
Improvement lWPI) Proaram administered by the Florida Deoartment of
Transportation (FOOT).
31. DISADVANTAGED BUSINESS ENTERPRISES ~ SUBCONTRACTOR
GOALS:
There are 13.3% DBE subcontractor goals for the FAA funding projects on this
contract. Should any DBE subcontractors be used on this contract, the
subcontractor's name, address, type of work performed and subcontract amount
shall be reported as part of the project close-out documentation submitted with
the information requested in Special Provision No.1, Section 25, "Project
Documentation".
32. PUBLIC ENTITY CRIME STATEMENT:
A person or affiliate who has been placed on the convicted vendor list following a
conviction for public entity crime may not submit a bid on a contract to provide
any goods or services to a public entity, may not submit a bid on a contract with a
public entity for the construction or repair of a public entity, may not be awarded
or perform work as a contractor, supplier, subcontractor, or consultant under a
contract with any public entity, and may not transact business with any public
entity in excess of the threshold amount provided in Section 287.017 of the
Florida Statutes, for CATEGORY TWO for a period of 36 months from the date of
being placed on the convicted vendor list.
1-12
33. DISADVANTAGED BUSINESS ENTERPRISE (DBE) POLICY
and OBLIGATION:
DBE POLICY: It is the policy of the Florida Department of Transportation that
disadvantaged business enterprises as defined in 49 CFR Part 26, as amended,
have the maximum opportunity to participate in the performance of contracts
financed in whole or in part with Department funds contract. The DBE
requirements of 49 CFR Part 26, as amended, apply to this contract.
DBE OBLIGATION: Monroe County and its contractors agree to ensure that
Disadvantaged Business Enterprises as defined in 49 CFR Part 26, as amended,
have the maximum opportunity to participate in the performance of contracts. In
this regard, all contractors shall take all necessary and reasonable steps in
accordance with 49 CFR Part 26, as amended, to ensure that the Disadvantaged
Business Enterprises have the maximum opportunity to compete for and perform
contracts. Grantees, recipients and their contractors shall not discriminate on the
basis of race, color, national origin or sex in the award and perfonnance of
Department assisted contracts.
The Disadvantaged Business Enterprise Program statements and certification
shall be fully completed and submitted as required by Section 150 of the
specifications. This form is provided in Division I, Bid Documents, Section I.
34. EQUAL EMPLOYMENT OPPORTUNITY: In connection with the carrying out of
this project, the contractor shall not discriminate against any employee or
applicant for employment because of race, age, creed, color, sex or national
origin. The contractor will take affirmative action to ensure that applicants are
employed, and that employees are treated during employment, without regard to
their race, age, creed, color, sex, or national origin. Such action shall include,
but not be limited to, the following: Employment upgrading, demotion, or transfer;
recruitm~nt or recruitment advertising; layoff or termination, rates of payor other
forms of compensation; and selection for training, including apprenticeship. The
contractor shall insert a similar provision in all subcontracts, except subcontracts
for standard commercial supplies or raw materials.
35. CERTIFICATION OF NONSEGREGATED FACILITIES: The Certification of
Nonsegregated Facilities as required by Section 120, shall be completed and
submitted with the bid proposal. This form is provided in Division I, Bid
Documents, Section M.
1-13
SECTION C
PROPOSAL
Contract
BID TO: Purchasing Office
1100 Simonton Street
Room 2-213
Key West, Florida 33040
BID FROM: Florida Industrial Electric, Inc.
811 Wilma Street
Lonawood, FL 32750
Submitted (Date): July 1,2004
The undersigned, as Bidder, hereby declares that he has examined the site of the work
and informed himself fully in regard to all conditions pertaining to the place where the
work is to be done; that he has examined the plans and specifications br the work and
contractual documents relative thereto, and has read all bid documents, Contract
Documents, General Provisions, Special Provisions and Specifications furnished: and
that he has satisfied himself relative to the work to be performed.
The Bidder proposes and agrees, if this proposal is accepted, to contract with the
Monroe County Board of Commissioners, in the form of contract specified, to furnish all
necessary materials, equipment, machinery, tools, apparatus, means of transportation
and labor necessary to and to complete the construction of:
Taxiway Liqhts (2 TNJ) and Airfield Guidance Siqn
Florida Keys Marathon Airport
Monroe County, Florida
in full and complete accordance with the shown, noted, described and reasonably
intended requirements of the plans, specifications and contract documents to the full
and entire satisfaction of the Monroe County Board of Commissioners, with a definite
understanding that no money will be allowed for extra work except a set forth in the
attached Contract Documents for the unit prices listed opposite each item.
1-14
BIDDOC-1.MAX
The Contractor shall complete the Schedule of Values included as Attachment "A". The
Schedule shall be added and the final total base bid amount will be:
$ Two Hundred Seventy One Thousand Five Hundred Two and ninety cents Dollars
(total base bid - words)
It is agreed that the description under each item, being briefly stated, implies, a/though it
does not mention, all incidentals and that the prices stated are intended to cover all
such work, materials and incidentals as constitute Bidder's obligations as described in
the specifications and any details not specifically mentioned, but evidently included in
the contract shall be compensated for in the item which most logically includes it.
The quantities for bid items listed on the attached Schedule of Bid Item sheets are
estimated quantities only for the purpose of comparing bids. Any difference between
these estimated quantities and actual quantities required for construction will not be
allowed as basis for claims by the Contractor for extra compensation. Compensation will
be based on the unit prices and actual construction quantities and may be modified as
stipulated by Sections 20-05 and 90-03 of the General Provisions.
The bidder further proposes and agrees hereby to commence the work with an
adequate force, plant and equipment at the time stated in the notice to the Contractor
from the Owner to proceed and fully complete performance within the time period stated
in the Instructions to Bidders from and after the date stated In the Notlce-to-Proceed.
The undersigned further agrees that in case of failure on his part to execute the said
contract and the bond within ten (10) consecutive calendar days after written notice
being given of the award of the contract, the check or bid bond in the amount as
specified herein accompanying this bid and the monies payable thereon, shall be paid
into the funds of the Monroe County Board of Commissioners as liquidated damages for
such failure; otherwise, the check or bid bond accompanying this proposal shall be
returned to the undersigned.
Monroe County's performance and obligation to pay under this Contract, is contingent
upon an annual appropriation by the BOCC.
Attached hereto is a certified check on the N/A
Bank of N/A
the sum of 5% Greatest Amount Bid dollars ($
made payable to the Monroe County Board of Commissioners,
or a bid bond for
5% GAB )
Checkmarks
V I have included Division I which entails the proposal forms.
/' ......-Schedule of Bid Items (Attachment "A").
.,/' Bid Bond
~ The Drug-Free Workplace form.
1-15
/' Pri~idderJs Qualifications:
./ List of major contracts in past 10 years
,.,/' ./ List of equipment and plant available for this project
./ ,/' Copy of latest financial statement
y _ Disclosure of Lobby Activities
././ Acknowledgement of Receipt of Addendum
,/ Disadjt8ntaged Business Enterprise Program
;K_ DBE Utilization Form "Attachment 1", Division III
/' DBE Letter of Intent "Attachment 2", Division III
v: Bidder's Affidavit in Compliance with Florida Trench Safety Act
,/ Sworn Statement Pursuant to Section 287.133(3)(a), Florida Statutes, on Public
Entity Crimes
~ Sworn Statement Under Ordinance No. 10-1990
"", Certification of Non-segregated Facilities
~ Federal Wage Decisiqn
~ Certification Regarding Debartment, Suspension, Ineli~jbility, and Voluntary
Exclusion - 49 CFR Part 29
~ Copy of Bidder's License for State of Florida, evidence of competency and
evidence of financial responsibility
v' Bidder's Statement on Insurance
(Checkmark items above as a reminder that thev are included.)
Mailing Address: 811 Wilma Street
Longwood, FL 32750
Phone Number:
407-331-1551
Date: July 1, 2004
Signed:
c;;?tJ/' If ~4vl/<=,"
Ronald H. Rothwell
(Name)
Witness:
Vice President/COO
" (Title)
,4df/~
v . (Seal)
1-16
BIDDOC-1,MAX
ATTACHMENT "A"
SCHEDULE OF BID ITEMS
TAXIWAY LIGHTS (2 TIW) AND AIRFIELD GUIDANCE SIGN
BIDDER NAME: Florida Inaustrlal Electric, Inc.
AIRPORT NAME: FLORIDA KEYS MARATHON AIRPORT
PFC APP NO.: 8 AlP NO.: 3-12-0044-2004
FM ITEM NO. 41468419401
PROJECT DESCRIPTION: TAXIWAY UGHTS (2 T/W) AND AlRAELD GUIDANCE SIGN
SPEC ESTIMATED UNlTPRlCE EXTENDED
ITEM No. ITEM DESCRlP110N UNIT QUANTITY IN TOTAL
NUMBERS
Mobilization
ATOne Thousand Seven Hundred
1 P-101-3.1 Dollars LS 1 1,700.00 1,700.00
AND Zero
Cents
Final IIIlIrklng (yellow with reflective beaeta at
100% application rate)
2 P-82o.5.1 AT Twenty Four SF 84 24.36 2,046.40
Dol...
AND Thirty Five
Cents
OUtline black paint (no nttlectlve buds)
AT Twenty Four
3 P-620-5.2 Dollars SF 160 24.36 3,896.00
AND Thirty Five
Cents
Remove ulatlng guidance elg" unit complete
with foundation. ThIs shall Include conc:ntte
foundation, reatore grading, salVage material
disposed of as directed by the engineer.
4 L-10o.A AT Three Hundred Forty EA 3 340.00 1,020.00
Dollars
AND Zero
Cents
Relocate existing gUidance sign unit
complete. This shall include existing pad
removal, salvage materials, restore grading,
newfoundatlon, L-867 base, brick, secondary
extension lead cable, connectors, and all
incidentals. 2,925.00 2,925.00
5 L,10o.B EA 1
ATTwo Thousand Nine Hundred
Twenty Five Dollars
AND Zero
Cents
1-17
BIDDER NAME: Florida Industrial Electric, Inc.
AIRPORT NAME: FLORIDA KEYS MARATHON AIRPORT
PFC APP NO.: 8 AlP NO.: 3-12-0044-2004
FM ITEM NO. 41468419401
PROJECT DESCRIPTION: TAXIWAY UGHTS (2 TIW) AND AlRRELD GUIDANCE SIGN
SPEC ESTIMATED UNT PRICE EXTENDED
ITEM No. ITEM DESCRIPTION UNIT QUANTITY IN TOTAL
NUMBERS
ExIsting guidance sign unit to be relocated
and modified, complete with foundation. This
shall Include concrete foundation, n_ panel,
circuit cable back to light fIxtu.... close circuit
loop, WlIterproof all underground
connectlons, restore grading, salvage
6 L.10G-C material disposed of as directed by the EA 2 4,000.00 8,000.00
Engineer.
AT Four Thousand
Dollars
AND Zero
Centa
Exlatlng Internally lighted guidance algn, one
module, to be modified
7 L.1OG-D AT Five Hundred Seventy Five EA 1
DoIIara 571.00 571.00
IHJ Zero
Cent.
existing Internally lighted guidance sign,
three moduJea, to be modified
8 L.10G-E ATOne Thousand Seven Hundred EA 2
Dollars 1,700.00 3,400.00
AND Zero
Cents
Guidance sign, one module, single face, size
2, complete with foundation. This shall
Include n_ founda,tlon, L-867 base, brick;
secondary extension lead cable, frangible
couplings, lamps, L-823 connecton, anchor
bolta, setting of anchor bolts, conduit, tether,
9 L-1OG-F groundln~ identification tag and all EA 7
Incldenta s. 2,235.00 15,646.00
ATTwo Thousand Two Hundred
Thirty Five Dollars
AND Zero
Cents
1-18
BIDDER NAME: Florlaa lnaUStrlal Electric, Inc.
AIRPORT NAME: FLORIDA KEYS MARATHON AIRPORT
PFC APP NO.: 8 AlP NO.: 3-12.0044-2004
FM ITEM NO. 41468419401
PROJECT DESCRIPTION: TAXTWAY UGHTS (2 TIW) AND AIRFIELD GUIDANCE SIGN
SPEC ESTIMATED UNIT PRICE EXTENDeD
ITEM ITEM DESCRIPTION UNIT IN
No. QUANTITY NUMBERS TOTAL
Guidance sign. two module, single face, size
2, complete with foundation. This shall
IDelude new foundation, L-867 base, brick,
secondary extension lead cable, frangible
couplings, lamps, 1.-823 connectors, anchor
bolts, setting of anchor bolts, conduit, tether,
10 L.100-G frroUndln~ Identification tag and all EA 15
ncldenta s. 3,436.00 61,62&.00
ATThree Thousand Four Hundred
Thirty Five Dollars
AND Zero
Cents
Guidance sign, th.... module&, single face,
siD 2, complete with foundation. This ahall
Include new foundation, L-II7 bue, brick,
sec:ondar'y .....alon IeIId cabl.. frangible
coupllngs,1ampa, 1,,823 connectors, ancf10r
boItI, aetIIng of anchor bolts, conduit, tether,
trou= IdentItIcatIon tag and all EA 2
11 L.100-H e1denta . 4,&8&.00 1,130.00
AT Four Tho....nd Five Hundred
Sixty Five Dollars
AND Zero
Cents
Guidance sign, three modules, double face,
size 2, complete with foundation. This shall
Include new foundation, 1.-867 base, brick,
secondary extension lead cable, frangible
coup/lngs, lamps, L-823 connectors, anchor
bolts, setting of anchor bolts, conduit, tether,
eroundln~ Identlflcatlon tag and all 1
12 L,10o.l ncldenta s. EA . 4,766.00 4,766.00
AT Four Thousand Seven Hundrec
Sixty Five Dollars
AND Zero
Cents
RetrorenectJve guidance sign. This shall
include new foundation, frangible coupling,
setting of ancho r bolts, tag, and all
incidentals, complete in place
13 L,10o.J ATOne Thousand One Hundred EA 7 1,100.00 7,700.00
Dollars
AND Zero
Cents
1-19
Addendum No.1
Page 3
BIDDER NAME: Florida Industrial Electric, Inc.
AIRPORT NAME: FLORIDA KEYS MARATHON AIRPORT
PFC APP NO.: 8 AlP NO.: 3-12-0044-2004
FM ITEM NO. 41468419401
PROJECT DESCRIPTION: TAXJWAY LIGHTS (2 T/W) AND AIRAELD GUIDANCE SIGN
SPEC ESTIMATED UNIT PRICE EXTENDED
ITEM No. ITEM DESCRIPTION UNrr QUANTIlY IN TOTAL
NUMBERS
ExIsting retroreflectlw guidance .Ign pane' to
be replaced
14 L.10G-K AT Five Hundred Sixty EA 10 680.00 &,600.00
Dollars
AND Zero
Cents
Cable trench
AT Three
15 L.1 08-5.1 Dollars LF 6,150 3.4& 21,217.&0
AN) Four Five
Cents
Fwnlsh ....d Instal cable (1/c, .. SKY, L-824,
type C). In trench, duct or conduit, complete
In plaoe
18 L-108-5.2 AT zero LF 12,000 0.11 8,800.00
Dol.....
AND Fifty Five
Cents
Furnish and Install counterpol.e wire (#6,
BSD copper atranded) 000 volt with ground
rods, complete In place.
17 L-108-S.3 AT Zero LF 6,150 0.8& 3,997.&0
Dollars
AND Sixty Five
Cents
1W2 Duct (2" PVC, ac:hedule 40, type I).
AT Three
18 L,11G-S.1 Dollars LF 5,600 3.75 21,000.00
AND Seventy Five
Cents
'1!N2 Concrete encased duct (2" PVC,
schedule 40, type I).
AT Sixteen 16.75 9,212.50
19 L,11G-5.2 Dollars LF 550
AND Seventy Five
Cents
1-20
BIDDER NAME: Florida Industrial Electric. Inc.
AIRPORT NAME: FLORIDA KEYS MARATHON AIRPORT
PFC APP NO.: 8 AlP NO,: 3.12.0044-2004
FM ITEM NO. 41468419401
PROJECT DESCRIPTION: TAXIWAY UGHTS (2 TIW) AND AlRAELD GUIDANCE SIGN
SPEC ESTIMATED UNIT PRICE EXTENDED
ITEM No. ITEM DESCRIPTION UNIT QUANmY IN TOTAL
NUMBERS
Furnish and Install cable Junction box (ala D.
L-887, c.... I, load bearing).
20 L.110~.3 AT Five Hundred Fifty EA 9 550.00 4,950.00
Dollars
AND Zero
Cents
Fumlah and lnatall L-881 taxiway edge light
(Base mounted), complete In place
AT Six Hundred Seventy Five
21 L-125-1S.1 Dolls... EA 59 675.00 39,821.00
AND Zero
Cents
80clcIng
AT Three
22 T.-.w.1 Dollars SY 2,240 3.10 8,944.00
AND Ten
Cents
Furnish and IMtalI15 kw, 8.8 amp, 3-at8p, L.
828 ferroreaonant regulator with 208V Input,
120V control,lncludlng an "Iodated work,
complete In place
23 L-1~.1 ATThlrteen Thousand Two LS 1 13,230.00 13,230.00
Hundred Thirty Dolla...
AND Zero
Cents
TOTAL BID ITEMS 1 THROUGH 23 $244,902.90 S
Alternates
I) Bidder shall submit price for alternate steel foundations (retocallon Of' new sign location) that are used In lieu of concrete to
support a wide variety of structures as guidance signs. The foundation shall be fully galvanized after fabrication to provide
corrosion guarantee.
Increase ~,lgInalltem unit price in the amount of:
a) Steel foundation for one module Internally lighted guidance sign
$ 3.700.00
b) Steel foundation for two modules internally lighted guidance sign
s 4,000.00
c) Steel foundation for three modules internally lighted guidance sign
s 4,800.00
1-21
Addendum No.2
Page 4
d)
Steel foundation for retroreflective guidance sign, L= 2'
to 3' $ 3,900.00
e)
Steel foundation for retroreflective guidance sign, L=
3.1' to 4' $ 4,400.00
f)
Steel foundation for retroreflective guidance sign, L=
4.1' to 5' $ 4,700.00
Note (1) Foundation manufacturer may require soil borings of the site prior to design and
construction; bidder shall include this cost in your analysis. A design calculation is required
to be submitted for thi substitute.
II) Bidder shall submit price for alternate stainless steel base can (L-868, no adjustable) for
signs, taxiway edge lights, and junction box that are used in lieu of galvaniZed steel base
can to prevent metal oxidation and corrosion.
Increase~original item unit price in the amount of:
a) Guidance sign stainless steel base can $ 340.00
b ) Taxiway edge light stainless steel
c) Stainless steel junction box
$ 340.00
$ 420.00
Note (2) In the event that the Owner decides to add alternate material, any of the above
unit prices may be used.
1-22
SECTION D
BID BOND
Contract
KNOW ALL MEN BY THESE PRESENTS, that we: FLORIDA INDUSTRIAL ELECTRIC. INC.
811 WILMA STREET. LONGWOOD. FL 32750 as Principal, hereinafter caled
the Principal, and FEDERAL INSURANCE COMPANY* a corporation duly
organized under the laws of the State of Florida, as Surety, hereinafter called the
Surety, are held and firmly bound unto the Monroe County Board of Commissioners as
Obligee, hereinafter called the Obligee, In the sum of:
FIVE PERCENT OF THE AMOUNT BID
dollars ($ 5% OF THE AMOUNT BID ), for the payment of which sum well and truly
to be made, the said Principal and the said Surety bind ourselves, our heirs, executors,
administrators. successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, the Principal has submitted a bid for:
TaxIwav Uah" (2 TIWl and Airfield Guidance Sian
Aor1da Kevs Marathon A1roort
Monroe County, Florida
NOW. THEREFORE, If the OblIgee shall accept the bid of the Principal shall enter Into a
contract with the Obligee In accordance with the terms of such bid and give such bond
or bonds as may be specified In the bidding or Contract Documents with good and
sufficient surety for the faithful performance of such contract and for the prompt
payment of labor and material fuml~hed In the prosecution thereof, or in the event of the
failure of the R1nclpal to enter such contract and give such bond or bonds, If the
Principal shall pay to the Obligee the difference not to exceed the penalty hereof
between the amount specified in said bid and such larger amount for which the Obligee
may in good faith contract with another party to perform the work .covered by said bid,
then this obligation shall be null and void, otherwise to remain in full force and effect.
PROVIDED further, that if the Principal shall submit the apparent lowest bid acceptable
to the Obligee but shall fall to meet DBE goals as set forth in the bid speclflcaUons, then
Principal shall, upon request of the Obligee, submit to Obligee such additional evidence
of Principal's good faith efforts to meet such goals in the manner and within the time
required In such specifications. Failure to supply such information as required shall
result in a forfeiture of this bid bond In the same manner and to the same degree as
though Obligee had accepted Principal's bid and Principal had thereafter failed or
refused to enter into the contract with Obligee as set forth in the Imrnediately preceding
paragraph.
1-23
* 1600 JFK BLVD., 4 PENN CENTER, PHILADELPHIA, PA 19103
Signed and sealed this 30TH
day of
JUNE
, 20..Qi..
FLORIDA INDUSTRIAL ELECTRIC, INC.
(Principal) (Seal)
(Witness)
~~~
(TItle)
FEDERAL INStr.-ANCE COMPANY
(Surety)
(Seal)
~~~... - . , \.... ....... - ~--
(WItness) STACEY L. ALBAN
RULED UNCONSTITUTIONAL
By:
Countersigned by:
WRENCE. ATl'ORNEY - IN - FACT ~
LICENSED FLORIDA NON-
RESIDENT AGENT
All bonds must be sIgned by a Florida resIdent agent a legal street address: Post
Offfce boxes are not acceptable. Bid Wfl not be considered unless the bid bond Is
signed by both Principal and Surety.
~24
SECTION E
DRUG-FREE WORKPLACE FORM
The undersigned Contractor, in accordance with Florida Statute 287.087, hereby
certifies that:
Florida Industrial Electric, Inc.
(Name of Business)
1 . Publish a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession or use of a controlled substance is prohibited
in the workplace and specifying the actions that will be taken against employees
for violations of such prohibition.
2. Inform such employees about the dangers of drug abuse in the workplace, the
business' policy of maintaining a drug-free workplace, any available drug
counseling, rehabilitation and employee assistance programs and the penalties
that may be imposed upon employees for drug abuse violations.
3. Give each employee engaged in providing the commodities or contractual
services that are under bid a copy of the statement specified in Sub-section (1).
4. In the statement specified In Sub-Section (1), notify the employees that as a
condition of working on the commodities or contractual services that are under
bid, the employee will abide by the terms of the statement and will notify the
employer of any conviction of or plea of guilty or nolo contendere to any violation
of Chapter 893 (Florida Statutes) or of any controlled substance law of the United
States or any state for a violation occurring in the workplace no later than five (5)
days after such conviction.
5. Impose a sanction on or require the satisfactory participation in a drug abuse
assistance or rehabilitation program if such is available in the employee's
community or any employee who is so convicted.
6. Make a good faith effort to continue to maintain a drug-free workplace through
implementation of this section.
As a person authorized to sign the statement, I certify that this firm complies fully with
the above requirements.
U2JJ //~R ~/~
Bidder's Signature
Ronald H Rothwell
Date: July 1, 2004
1-25
BIDDOC-1.MAX
SECTION F
PRIME BIDDER'S QUALIFICATIONS
Each contractor shall furnish with his bid the following completed and signed statements
on "evidence of competency" and "evidence of financial responsibility", which is in
accordance with General Provision 20-02.
1.
Name of Bidder: Florida Industrial Electric, Inc.
Business Address: 811 Wilma Street, Longwood, FL 32750
Telephone Number: 407-331-1551
When Organized: 1983
Where Incorporated: Florida
2.
3.
4.
5.
6.
How many years have y~u been engaged in the contracting business under the
present firm name? 21 Years
7.
What is the type of construction work in which you are principally engaged?
Electrical, Airfield Lighting, High Voltaae Work, DOT
8.
On separate sheet list major contracts in past 10 years.
9.
On separate sheet list equipment and plant available for this project.
10.
Enclose a copy of latest Financial Statement.
11. Credit Available for this Contract: $ 30,000,000.00
12. Contracts now in hand, Gross Amount: $ 55,000,000.00
13. Have you ever refused to sign a contract at your original bid? No
14. Have you ever been declared in default on a contract? No
15. On separate sheet, list the last five (5) projects over $500,000 on which the
contractor has worked, and telephone numbers.
16. Remarks:
(The above statements must be subscribed and sworn to before a Notary Public.)
1-26
BIDDOC-1.MAX
Date: July 1, 2004
Firm Name: Florida Industrial Electric, Inc.
By: Ronald H. Rothwell a~ flilIt.1Il.f?
Title: Vice President/COO
NotaryP~bIiC:~~~
fl...........................................~
C' ...,~ MiCHAeL J. SCHARF Ii
M Commission tI 000104895 i
~'O'; Expires 81712008 :
. DF~9 Bonded Ihrough :
i..(IIClO.432...2S4) Florida Notary Ass" Inc :
......................... .......... ......~~.. ..~..:
1-27
BIDDOC-1.MAX
SECTION G
DISCLOSURE OF LOBBY ACTIVITIES
Certification of Contracts. Grants. Loans and Cooperative Agreements
The undersigned certifies, to the best of his or her knowledge a nd belief, that:
(1) No Federal appropriated funds have been paid or will be paid by or on behalf of
the undersigned to any person for influencing or attempting to influence an officer
or employee of any agency, a member of Congress, an officer or employee of
Congress or an employee of a member of Congress in connection with the
awarding of any Federal contract, the making of any Federal Grant, the making
of any Federal loan, the entering into of any cooperative agreements and the
extension, continuation, renewal, amendment or modification of any Federal
contract, Grant, loan or cooperative agreement.
(2) If any funds other than Federal appropriate funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of
any agency, a member of Congress, an officer or employee of Congress or an
employee of a member of Congress in connection with this Federal contract,
Grant, loan, or cooperative agreement, the undersigned shall complete and
submit Standard Form-LLL, "Disclosure of Lobby Activities", in accordance with
its instructions.
(3) The undersigned shall require that the language of this certification be included in
the award documents for all sub-awards at all tiers (including subcontracts, sub-
grants ard contracts under Grants, loans and cooperative agreements) and that
all sub-recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by Section 1352, Title
31, U.S. Code. Any person who fails to file the required certification shall be subject to
a civil penalty of not less than $10,000 and not more than $100,000 for each such
failure.
Signed:(/2,d/ //~k""
Contractor's uthorized Representative
Ronald H Rothwell, VP, COO
Dated: July 1, 2004
1-28
BIDDOC-1.MAX
SECTION H
ACKNOWLEDGMENT OF RECEIPT OF ADDENDUM
Addendum Signature Date
No.
One ~ ////~~ ". /. 6118104
Two (Notice) ~ /. '# ~.ff u'
;...J~_ 6128104
Two 0~,L 'g ~// ,:/.,-:...., 6128104
.... ,
1-29
BIDDOC-1.MAX
SECTION I
DISADVANTAGED BUSINESS ENTERPRISE PROGRAM
Contract
(As Required by Division III, Section 150 of the General Provisions)
DBE Subcontractors
Names/Addresses/ldentity*
Traffic Control Products. Inc.
6614 Cannack Rd.
Tampa, Florida 33810
AIW, Inc.
4802 Old Winter Garden Rd.
Orlando, Florida 32811
Subcontract Work Item
Pavement Marking
MBE
Material Supply
MBE/Amerlcan Indian
Total Dollar Value of Subcontract Work
Total Dollar Value of Basic Bid
Total DBE Percent (Round to nearest 1/10 percent)
Dollar Value of
Subcontract Work
$8000.00
$37,036.00
$ 43,036.00
$ 244,902.90
17.6
%
*(Black, Hispanic, Asian American, American Indian, and other economically disadvantaged)
NOTE: Also, the bidder must include with the bid proposal fully completed the Attachment 1 _
"Disadvantaged Business Enterprise (DBE) Utilization", and Attachment 2 "Letter of Intent", shown on
Division III - Section 150-07 "Other Contract Provision".
1-30
SECTION J
BIDDER'S AFFIDAVIT IN COMPLIANCE WITH
FLORIDA TRENCH SAFETY ACT
(SECTION 553.60-553.64, FLORIDA STATUTES)
STATE OF FLORIDA )
)SS
COUNTY OF MONROE )
BEFORE ME, the undersigned authority. personally appeared
Ronald H. Rothwell
who, being duly sworn, deposes and says as follows:
That he is the duly authorized representative of
Florida Industrial Electric, Inc.
(Name of Bidder)
being its Vice P....ident/COO
(Owner) (Partner) (President or other Corporate Officer)
and as such, has full authority to execute this Bidder's Affidavit.
1 . The full legal name and business address of the person or entity submitting this
bid:
Florida Industrial Electric, Inc.
811 Wilma Street
Longwood, FL 32750
2. By submission of this bid and subsequent execution of this Contract, the
undersigned bidder certifies that as successful bidder (Contractor) all trench
excavation done within his control (by his own forces or by his subcontractors)
shall be accomplished in strict adherence with OSHA Trench Safety Standards
contained in 19 CFR, s.1926.650, Sub-part P, including all subsequent revisions
or updates to these Standards as adopted by the Department of Labor and
Employment Security.
3. The bidder acknowledges that included in the various items listed in the
Schedule of Prices Bid and in the Total Amount Bid are costs for complying with
1-31
BIDDOC-1.MAX
the Florida Trench Safety Act (Sections 553.60-553.64, Florida Statutes). The
bidder further identifies the costs to be summarized below:
Trench Safety Measure Unit of Unit Unit Extended
(Description) Measure Quantity Cost Cost
(LF, SY)
A None 0.00
B
C
D
TOTAL: $ 0.00
Signature of Authorized Representative:
C?~ 1/ a;e.L/ W:"N
Vice President
Title
July 1. 2004
Date
STATE OF FLORIDA
COUNTY OF: Seminole
The foregoing instrument was
,20M.., by I
of July
My Commission Expires
c .
rint name of Notary Public)
1-32
BIDDOC-1.MAX
SECTION K
SWORN STATEMENT PURSUANT TO SECTION 287.133(3)(a),
FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES
This form must be signed and sworn to in the presence of a Notary Public or other
official authorized to administer oaths.
1. This sworn statement is submitted with Bid, Proposal or Contract No.
AlP No. 3-12-0044-2004
for Taxiway Lights (2 T/W) and Airfield Guidance Sign
2. This sworn statement is submitted by Florida Industrial Electric, Inc.
(name of entity submitting swom statement)
whose business address is 811 Wilma Street, LongWOOd, FL 32750
and (if applicable) its Federal Employer Identification Number (FEIN) is:
59-3508913
(If the entity has no FEIN, include the Social Security Number of the individual
signing this sworn statement: .)
3.
My name is Ronald H. Rothwell
my (please print name of individual signing)
and
relationship to the entity named above is Vice President/COO
4. I understand that a "public entity crime", as defined in Paragraph 287.133(1)(g),
Florida Statutes, means a violation of any state or federal law by a person with
respect to and directly related to the transaction of business with any public entity
or with an agency or political subdivision of any other state or of the United
States, including, but not limited to, any bid or contract for goods or services to
be provided to any public entity or an agency or political subdivision of any other
state or of the United States and involving anti-trust, fraud, theft, bribery,
collusion, racketeering, conspiracy or material mis-representation.
5. I understand that "convicted" or "conviction", as defined in Paragraph
287.133(1 )(6), Florida Statutes, means a finding of guilt or a conviction of a
public entity crime with or without an adjudication of guilt in any federal or state
trial court of record relating to charges brought by indictment or information after
July 1, 1989, as a result of a jury verdict, non-jury trial or entry of a plea of guilty
or nolo contendere.
1-33
BIDDOC-1.MAX
6. I understand that an "affiliate", as defined in Paragraph 287.133(1)(a), Florida
Statutes, means:
a. A predecessor or successor of a person convicted of a public entity
crime; or
b. An entity under the control of any natural person who is active h
the management of the entity and who has been convicted of a public
entity crime. The term "affiliate" includes those officers, directors,
executives, partners, shareholders, employees, members and agents who
are active in the management of an affiliate. The ownership by one
person of shares constituting a controlling interest in another person or a
pooling of equipment or income among persons when not for fair market
value under an arm's length agreement, shall be a prima facie case that
one person controls another person. A person who knowingly enters into
a joint venture with a person who has been convicted of a public entity
crime in Florida during the preceding 36 months shall be considered an
affiliate.
7. I understand that a "person", as defined in Paragraph 287.133(1)(e), Florida
Statutes, means any natural person or entity organized under the laws of any
state or of the United States with the legal power to enter into a binding contract
and which bids or applies to bid on contracts for the provision of goods or
services let by a public entity or which otherwise transacts or applies to transact
business with a public entity. The term "person" includes those officers,
directors, executives, partners, shareholders, employees, members and agents
who are active in management of an entity.
8. Based on information and belief, the statement which I have marked below is
true in relation to the entity submitting this sworn statement. (Indicate which
statement applies.)
XXX Neither the entity submitting this sworn statement nor any of its officers,
directors, executives, partners, shareholders, employees, members or
agents who are active in the management of the entity, nor any affiliate of
the entity has been charged with and convicted of a public entity crime
subsequent to July 1, 1989.
The entity submitting this sworn statement or one or more of its officers,
directors, executives, partners, shareholders, employees, members or
agents who are active in the management of the entity or an affiliate of the
entity has been charged with and convicted of a public entity crime
subsequent to July 1, 1989, AND (please indicate which additional
statement applies)
There has been a proceeding concerning the conviction before a Hearing
1-34
BIDDOC-1.MAX
Officer of the State of Florida, Division of Administrative Hearings. The
Final Order entered by the Hearing Officer did not place the person or
affiliate on the convicted vendor list. (Please attach a copy of the Final
Order.)
The person or affiliate was placed on the convicted vendor list. There has
been a subsequent proceeding before a hearing officer of the State of
Florida, Division of Administrative Hearings. The Final Order entered by
the hearing officer determined that it was in the public interest to remove
the person or affiliate from the convicted vendor list. (Please attach a
copy of the Final Order.)
The person or affiliate has not been placed on the convicted vendor list.
(Please describe any action taken by or pending with the Department of
General Services.)
Signature of Authorized Representative:
{/2,J,/ u rmee; v,(L--
Vice P....,d.nt/COO
Title
July 1 J 2004
Date
STATE OF FLORIDA
COUNTY OF: Seminole
The foregoing instrument was acknowledged befo': m::his ~n~ of
2004_, by ~ ,~f J~a!' / L /
(Sole, or 0 atio or Partnership)
who is personally known to me or who has produced
as identITlcatJon and who did/did not take an oath.
Julv
/ /
1 ' I /1
( ,,' , , / -'---,
/)':{II~':' ./ "_'r'/j ,~ .
(Print name of Notary Public)
---
My Commission Expires
1-35
BIDDOC-1,MAX
SECTION L
SWORN STATEMENT UNDER ORDINANCE NO. 10-1990
MONROE COUNTY, FLORIDA
ETHICS CLAUSE
Florida Industrial Electric, Inc. warrants that he/it has not
employed, retained or otherwise had act on his/its behalf any former County officer or
employee in violation of Section 2 of Ordinance No. 10-1990 or any County officer or
employee in violation of Section 3 of Ordinance No. 10-1990. For breach or violation of
this provision the County may, in its discretion, terminate this Contract without liability
and may also, in its discretion, deduct from the Contract or purchase price or otherwise
recover the full amount of any fee, commission, percentage, gift or consideration paid to
the former County officer or employee.
V;Zb //@& VI/e_
(Signature)
Date: July 1, 2004
STATE 0 F: Florida
COUNTY OF: Seminole
PERSONALLY APPEARED B~FORE ~~~ undersigned authority:
who, after first being swo by me, affixed i her signature (name of individual signing)
in the sR _ p'ro~ded abo~7e 01) thi: 2nd day of .July . 20 04.
!.... .\~...~.~ ',;' . ,. ~. ... ..,.... ...... ........ ..... .......
: $.~.", P ':'" fo...ICHAE:L J. SCHARF :
i ifrn;,,:~ Commission # 000104695 :
: \~'O:*',pi Expires 617/2008 :
Irrt"i ~' .
: ~'lfn"'\\" tJOf1ded through :
i (IlOO-432-<1254) Florida N la As :
~.............................~..~ sn.. Inc. :
..................
My Commission Expires
1-36
BIDDOC-1.MAX
SECTION M
CERTIFICATION OF NONSEGREGATED FACILITIES
Contract
(As Required by Division III, Section 120 Subsection 120-02
Equal Employment Opportunity Requirements of the General Provisions)
The federally assisted construction contractor certifies that he does not maintain or
provide, for his ernployees, any segregated facilities at any of his establishments and
that he does not permit his employees to perform their services at any location, under
his control, where segregated facilities are maintained. The federally assisted
construction contractor certifies that he will not maintain or provide, for his employees,
segregated facifities at any of his establishments and that he will not permit his
employees to perform their services at any location, under his control, where
segregated facilities are maintained. The federally assisted construction contractor
agrees that a breach of this certification is a violation of the equal opportunity clause in
this contract. As used in this certification, the term "segregated facilities. means any
waiting rooms, work areas, restrooms and washrooms, restaurants and other eating
areas, timelocks, locker rooms and other storage or dressing areas, parking lots,
drinking fountains, recreation or entertainment areas, transportation, and housing
facilities provided for employees which are segregated by explicit directives or are in
fact segregated on the basis of race, color, religion, or national origin because of habit,
local custom, or any other reason. The federally assisted construction contractor
agrees that (except where he has obtained identical certifications from proposed
subcontractors for specific time periods) he will obtain identical certifications from
proposed subcontractors prior to the award of subcontractors exceeding $10,000 which
are not exempt from the provisions of the equal opportunity clause and that he will
retain such certifications in his files.
/7 nJ,/ /I t7tff:4v/,...
~n<;rt~ of Contractor
Ronald H Rothwell
Vice President/COO
Title
1-37
BIDDOC-1.MAX
SECTION N
FEDERAL WAGE DECISION
Use the latest publication or the attached publication dated 03/02/2001 (for Highway) if
that is the latest list issued for Monroe County.
1-38
BIDDOC-1.MAX
GENERAL DECISION FL010035 03/02/2001 FL35
Date: March 2, 2001
General Decision NUmber FLOI0035
Superseded General Dec~sion No. FL000035
State: Florida
Construction Type: HIGHWAY
County(ies) :
CHARLOTTE
DE SOTO
GLADES
HARDEE
HENDRY
HIGHLANDS
MONROE
OKEECHOBEE
HIGHWAY CONSTRUCTION PROJECTS (excluding tunnels; Building structures in rest
area projects; railroad construction; bascule, suspension and sprandrel arch
bridges designed for commercial naviga~ion; bridges involving marine
construction; other ma:or bridges) .
MOdification NUmber
o
Publication Date
03/02/2001
COUNTY (ies) :
CHARLOTTE
DE SOTO
GLADES
HARDEE
HENDRY
HIGHLANDS
MONROE
OKEECHOBEE
SUFL3001A 08/01/1993
BRICKLAYERS/MASON
CARPENTERS
CONCRETE FINISHERS
ELECTRICIANS
FENCE ERECTOR
FORM SETTER
IRONWORKERS:
Reinforcing
Struc~ura1
LABORERS:
Asphalt Raker
Unskilled
PAINTERS
POWER EQUIPMENT OPERATORS:
Asphalt Distributor
Asphalt Paving Machine
Asphalt Screed
Backhoe
300m-Auger
3u11dczer
Crane, Derrick, Dragline
Earthmover
Forklift
Front End Loaders:
1 cu. yard and under
over 1 cu. Yard
Gradall
Grademan
Rates
9.50
12.00
9.34
11.85
7.45
8.61
Fringes
13.83
12.94
7.80
6.69
7.92
8.01
9.28
8.48
8.92
7.95
10.30
12.56
7.75
7.50
7.91
7.94
9.00
7.15
1-39
BIDDOC-1.MAX
Guardrail Erector
Guardrail Post Driver
Mechanic
Milling Machine Grade Checker
Milling Machine
Motor Grader
Mulching Machine
Oiler, Greaseman
Pavement Striping Machine
Pavement Stripping Machine
Nozzleman
Pile Driver
Piledrivermen
Power Subgrade Mixer
Rollers:
Finish
Rough
Self-Prop. Rubber Tire
Scraper/Pan
Small Tool Operator
Tractor, Light
Trenching Machine
Widening Spreader Machine
SIGN ERECTOR
TRAFFIC CONTROL SPECI~IST
TRAFFIC SIGNALIZATION INSTALLER
TRAFFIC SIGNALIZATION MECHANIC
TRUCK DRIVERS:
Lowboy
Multi-Rear Axle
Single-Rear Axle
7.08
7.50
10.14
7.15
9.00
10.56
7.15
7.73
8.26
7.00
10.50
10.00
7.94
8.41
8.01
8.16
8.11
7.00
7.52
B.12
8.00
7.63
7.50
9.79
13.16
B .11
B.06
7.80
WELDERS--Receive rate prescribed =o~ craft performing operation to which
welding is incidental.
Unlisted classifications needed for work not included within the scope of the
~l~~Q;f;~~r;nn~ listed may be added after award only as provided in the labor
standards contract clauses (29 CFR 5.5 (a) (1) (v)) .
In the listing above, the "sun designation means that rates listed under that
identifier do not reflect collectively bargained wage and fringe benefit
rates. Other designations indicate unions wnose rates have been determined
to be prevailing.
WAGE ~E~ERMINATION APPEALS PROCESS
1.) Has there been an initial decision in the matter? This can be:
* an existing published wage determination,
* a survey unde~lying a wage determination,
* a Wage and Hour Division letter setting forth a position on a wage
determination ma~~er,
* a conformance (additional classification and ra~e)~uling
1-40
BIDDOC-1.MAX
On su::vey related rr.atters, initial contact, incl'..:.ding requests for summaries
of surveys, should be with the Wage and Hour Regional Office for the area i~
which the survey was conducted because those Regior..al Offi::es have
responsibility for the Davis-Bacon survey program, I: the response from this
initial contac~ ~s not satisfactory, then the process described in 2.)a~d 3.)
should be followed,
With regard to any other matter not yet ripe for the formal process described
here, initial contact should be with the Branch of Construction Wage
Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U. S. Department of Labor
200 Constitution Avenue, N. W.
Washington, D.C. 20210
2.) If ~he answer to the question in 1.) is yes, then an interested party
(those affected by the action) can request rev~ew and reconsideration from
the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7).
write to:
Wage and Hour Admin~strato::
U.S. Department of Labor
200 Constitution Avenue, N. W.
washington, D.C. 20210
7he request should be accompanied by a full
par~y's position and by any information
description, area prac~ice material, etc.)
relevant to the issue.
statement of the interested
(wage payment data, project
t~at the requestor considers
3.) If the decision of the Administrator is not favorable,
party may appeal directly to the Administrative Review Board
Wage Appeals Board). Write to:
an in~erested
(formerly the
Administrative Review Board
U. S. Department of Labor
200 Constitution Avenue, N. W.
Washington, D.C. 20210
4.) All decisions by the Administrative Review Board are final.
END OF GENERAL DECISION FL010035
1-41
BIDDOC-1.MAX
SECTION 0
CERTIFICATION REGARDING DEBARTMENT, SUSPENSION,
INELIGIBILITY, AND VOLUNTARY EXCLUSION. 49 CFR PART 29
(Version 1. 5/90)
The bidder/offerer certifies, by submission of this proposal or acceptance of this
contract, that neither it nor its principals is presently debarred, suspended, proposed for
debartment, declared ineligibility, or voluntarily excluded from participation in this
transaction by any Federal department or agency. .It further agrees by submitting this
. .
proposal that it will include this cause without modification in all lower tier transactions,
solicitations, proposals, contracts, and subcontracts. Where the bidder/offerer/contractor
any lower tier participant is unable to certify to this statement, it shall attach an
explanation to this solicitation/proposal.
e~ fi{i2/et/ w-
Ignature of Contract r
Ronald H Rothwell
Vice President/COO
Title
1-42
BIDDOC-1.MAX
CONTRACT
SECTION A
SECTION B
SECTION C
SECTION 0
DIVISION II
CONTRACT
- PUBLIC CONSTRUCTION BOND ............................................................11-2
- CERTIFICATE OF OWNER'S ATTORNEY (N/A) .....................................11-4
- ACKNOWLEDGMENT FOR CHANGE ORDERS .....................................11-5
- CONTRACT ............... .... ...... ......... ........... ............ ... .......................... ........11-6
11-1
BOND NO. 81967740
SECTION A
PUBLIC CONSTRUCTION BOND
.BythlsBond, We FLORIDA INDUSTRIAL ELECTRU:C. INC. as PrincJpal, whose
principal business address is 811 WILMA STREET. LONGWOOD. FL 32750 , as
corporation, as Surety, are bound to Monroe County hereinafter called County, in
the sum of U.S. Dollars $ 244.902.90 (Minimum 100% of total bid amount) for
payment which we bind ourselves, our heirs, personal representatives, successors, and
assigns, jointly and severally.
THE CONDITION OF THIS BOND is that if PrincJpal:
1. Performs the contract dated No"."" be-v 11 ,20 0,/ between Principal
and Countv for construction of Taxiway Liahts (2 TN.J) and Airfield Guidance Sign, the
Contract being made a part of this Bond by reference, at the times and in the manner
prescribed in the Contract.
2. Promptly make payments to all claimants, as defined in Section 255.05 (1), Florida
Statutes, supplying Principal with labor, materials, or supplies, used directly or indirectly
by Principal in the prosecution of the work provided for in the Contract, which Is made a
part of this bond by reference, and in the times and in the manner prescribed In the
Contract; and
3. Pays the County all losses, damages, expenses, costs and attorneys fees,
Including appellate proceedings, that County sustains because of a failure by Principal
under the Contract; and
4. Performs the guarantee of all work and materials furnished under the Contract for
the time specified in the Contract, then this Bond is void; otherwise it remains in full
force.
This bond is subject to the proviSions of Section 255.05, Florida Statues. Any changes
in or under the Contract Documents and compliance or non-compliance with any
formalities connected with the Contract or the changes does not affect Surety's
obligation under this Bond.
Principal agrees to record this Bond in the Official Records for Monroe County
before the commencement of the work subject of this Bond.
Date on Or fu be.... G ~
20 {) 4
,
11-2
GetS
PRINCIPAL: FLORIDA INDUSTRIAL ELECTRIC, INC.
Address: 811 WILMA STREET, LONGWOOD, FL 32750
By:
ey-in-Fact ANGELA J. LAWRENCE. .
ATTORNEY-IN-FACT & .
LICENSED NON-RESIDENT
FLORIDA AGENT
SURETY: FEDERAL INSURANCE COMPANY
Address: 1600 JFK BLVD., 4 PENN CENTER
PHILADELPHIA, PA 19103
.OJ
Claims against this Bond are subject to the notice and time provisions set forth in
Section 255.05, Florida Statutes.
11-3
This Notice pertains to the following Surety Bond Issued by a member Insurer of the Chubb Group of
Insurance Companies, Including Federal Insurance Company, Vigilant Insurance Company and
Pacific Indemnity Company.
Bond Number: 81967740
POLICYHOLDER DISCLOSURE NOTICE
TERRORISM RISK INSURANCE ACT OF 2002
You are hereby notified that pursuant to the Terrorism Risk Insurance Act of 2002 (the
"Act") effective November 26, 2002, we are making available to you coverage for losses
arising out of certain acts of international terrorism. Terrorism is defined as any act
certified by the Secretary of the Treasury, in concurrence with the Secretary of State and
the Attorney General of the United States, to be an act of terrorism; to be a violent act or
an act that is dangerous to human life, property or infrastructure; to have resulted in
damage within the United States, or outside the United States in the case of an air carrier
or vessel or the premises of a United States Mission; and to have been committed by an
individual or individuals acting on behalf of any foreign person or foreign interest, as part
of an effort to coerce the civilian population of the United States or to influence the
policy or affect the conduct of the United States Government by coercion. Coverage for
acts of terrorism is already included in the captioned Surety Bond.
You should know that, effective November 26, 2002, any losses caused by acts of
terrorism covered by your Surety Bond will be partially reimbursed by the United States
under the formula set forth in the Act. Under this formula, the United States of America
pays 90% of covered terrorism losses that exceed the statutorily established deductible to
be paid by the insurance company providing the coverage. The portion of your premium
that is attributable to coverage for such acts of terrorism is zero, because we could not
distinguish (and separately charge for) acts of terrorism from other causes of loss when
we calculated your premium.
If you have any questions about this notice, please contact your agent or broker.
K=
C....UBB
POWER
OF
ArroRNEY
F......,nau..... Company
VIgilant Inaur8nce Company
Pacific indemnity Company
AtIn: Surety Dep8rIment
15 Mountain VIew Road
Warren, NJ 07081
~ Chubb
~. SUrety
.1CnDw All" n.. ........ 1l18I FEDEJW.1N8URANCE COMPANY, In IncIIna CDIpOl1IdIoI.. VIGUNI' INSURANCE COMPANY, . New YorkClQlPCll1lllo...
and PACIFIC ItDEIINITY COMPANY,. WIIconIIn COlpOl1IIIoI.. do IICh henlby COI'IItIul8I1'1d appoint John W. Boyer, Melanie R.
Miller, John Wagner, Mareco U. Edwards, Angela J. Lawrence and Robert A. Chlada of
Bunt Valley, Maryland---------------------------------------------------------------___
Mllh M1hIIr true and lawful ~aat to execuee WIder IUCh d8IIgnaIIon In their IIMlIIInd to.. "'* COIpOnIte ..... to Ind deI\w for and on
IIIIr behd .. IUI8tf IhenIon or oIherwtM, bondIlnd undertlldnga II1d OIlIer wrlIIngI obligatory In the naIln thel80f (OIlIer Ih8n baI bondI) gI\wI or
executIId In .. CCUM of buIineII, and MY InIIru11enII amencIng or .rtng .. ....., Ind conaenII to the mocIIcaIIon or alt8ndIon of any InIIrument
........ to In AId bondI or obIgatIona.
In WItnHe Whenof, said FEDERAL MURANCI COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY,.. each
GICUI8d and attetted these pnIHnta - afftxed their corporate ..... on thlI 30th day of July, 2004 .
~d..~~9 -
STATE OF NEW JERSEY}
...
County d Some..
On" 30th dIlyof July, 2004 ,belenme,. NoIIIyPublcofNewJMey, petlIClIIIIyCIIM KMIrwtIC. WII'ldII, tome known
to beA8eIItMI SecretaIy of FEDERAL INSURANCE CCM.fIANY, VIGILANT INSURANCE COMPANY, IIId PACIFIC INDEMNITY COMPANY,the COI'IIpaIIIee whk:h...... lie
IaNgoIIIg Power of AlIomey, Ind the uId Kanndt C. WIndII being !IV me cUr 8WOIr!, cId dipole IIId Illy" he II~ Secnt8Iy of FEDERAL INSURANCE COfoPANY.
VIGUNT INSUFIANCE COMPANY, Irld PACIFIC INOEMNITY COMPANY Ind 1lIICMlI.. CCIIJIOfIdI.....IIelwof, 1Mll1Ie.... dbIH to.. b8goIng Poww of ADcImer..
8ucb CDIpCIfIIII....1nd MRllenIIlIdxed!IV ILII10rIIy of.. By-Lawa of MId~ IIIdIlat he I9*! MId Powwof AlIomey _AIIIIt8nt SecNIlIIy of said Comp.nee
.... dIoIIy; Ind tilt he III1CqUllnlld wII1 F'" E. RobertICll..1IId IcnoM him to be VIcI PIwIdInt of MId eom.-_ and flat...... of F.... E. RabII1IIon.
....... to said PoMr of AlIomey III In Ihe SIIfIUIne hIndwrIlIng of Frn E. RobertIan, and \VIa IlemD IllbecrIbed bV auIhortty of MId By-laM and In dIpolllfll'8 pIWIenCe.
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f ,~ 8(10 ,.
.~ It 8'E.~j
.' ,- \ CERTIFlCAnON
ExtMct~ ttMlsY:.t.&ws of FEDERAL INSURANCE COMPANY, VlGLANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY:
.AI powet'8 of attorney for and on behalf 01 the Company may and shall be executed In the name and on behalf of the ~, either by the
CheInnan or the President or a 'v1ce President or an AuIstant 'v1ce PNsIdent, jointly wlIh .. Secr8tary or an A8s/atant Sect8tary, under Ihefr
nItpedlve deslgnatlonl. The algnatunt 01 auch oftIcera may be engraved, prtnted or /Ithogr8phed. The 8lgnatu.. of each of the following olIIcera:
Chalnnan, Pnteldent, any VIce President, any AasIatant VIce President, any s.a.tary, MY Assistant Sect8tary and the seal of the ~ may
be aftIxed by facsimile to any pOwer of atIomey or to MY ce~ relating ther8to appointing AI8latant SecI'8tarlee or Attomeya-ln-FacI for
purpoe4I!f only of ex.cutlng IIId aIte8tlng bondI and undertaldllge Ind other wriIngI obligatory In .. natunt 1hef8of, II1d any IUCh power of
attorney or certllc:ate belUtng such facalmIle 8Ignatunt or fac:elmle seal .hat be veld and bIncIng upon the Company and any such power 10
IJt8CUt8d and certified by audl facsimile 8Ignatunt and facUnlle seallhal be vaDd and binding upon the Company wlIh reapect to any boOd or
undertalclng to which It ,. attached..
/, Kennech C. Wendel, Aaalstant Secretary of FEDERAl INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY
(the "CompanJee") do hereby certify that
(I) the foregoing extract of the By-Laws of the Co"1W11e8 Is tnJe and COmlCt,
(I) the c:on"anlel ant duly licensed and authorized to transact 8U~ buslnell In .. 50 of the United States 01 America and the DIItrtct 01
Columbla and are authorized by the U. S. Treasury Department; further, Federal and VIgilant are Rcenled In Puerto Rico and the U. S.
VIrgin Islands, and Fede....,. licensed In American Samoa, Guam, and each of the Province. of Canada except Prince Edward Island; and
(Ill) the foregoing Power of Attorney Is true, colT8Ot and In fuI ton>> and effect.
Given un<fer my hand and seals of said Companlet at Warren, NJ this (,- .\h
MARlA O. SCAROIGNO
Notary Public Stote of New Jersey
. . No. 2229781
CommIssIon Expires Sept. 25, 2004
#~j(~
' N ~
day of Or tclwv SlCrYf
~L4~
Kenneth C. Wendel, Auletant Secretary
IN THE EVENT yoU WISH TO NOnFY US OF A CLAIM, VERIFY THE AlITHENTIOITY OF THIS BOND OR
NOnFY US OF ANY OTHER MATTER, PLEASE CONTACT US AT ADDRESS LISTED ABOVE, OR BY
Tel hone 908 903-3485 Fax 908 903-3858 e-mail: sure Ochubb.com
.Rorm 1f.1o.cl221 (Ed. 4-1t) CONSeNT
SECTION B
CERTIFICATE OF OWNER'S ATTORNEY
THIS SECTION IS NOT INCLUDED
11-4
SECTION C
ACKNOWLEDGMENT FOR CHANGE ORDERS
TO: Monroe County Board of Commissioners
Key West, Florida
REF: Taxiway Liahts (2 TIW) and Airfield Guidance Sian
Florida Keys Marathon Airport
Gentlemen:
In order to avoid the necessity of extensive amendments to the referred contract, the
undersigned acknowledges hereby that the following conditions are those for which
change orders are allowed under the Bid Law:
1. Unusual and difficult circumstances which arose during the course of the
execution of the contract which could not have been reasonably foreseen.
2. Where competitive bidding for the new work for new money will work to the
serious detriment of the awarding authority.
3. Emergencies arising during the course of the work.
4. Changes or alterations provided for in the original bid and originals contract.
r::=lodcD~ -cJ.ur..Ivia.1 €(N.Jv.,C J ~.
Contractor
By:
Title:
11-5
SECTION D
CONTRACT TO
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Florida Keys Marathon Airport
THIS AGREEMENT made and entered into the ~'ay of riD Ve;t1~..P. Yi/lJ
by and between Florida Industrial Electric, Inc. Contractor,
and the Monroe County Board of Commissioners, Key West, Florida, Owner.
WITNESSETH:
That the Contractor, for the consideration hereinafter fully set out hereby agrees with
the Owner as follows:
1. That the Contractor, shall furnish all the materials, and perform all of the work in
the manner and form as provided by the following enumerated Instruction to
Bidders, Form of Proposal, General Provisions, Special Provisions, Technical
Specifications, Form of Contract, Form of Bond, Drawings and Addenda, which
are attached hereto and made a part hereof, as if fully contained herein, for the
construction of:
Taxiway Lights (2 TIW) and Airfield Guidance Sian
Florida Keys Marathon Airport
Monroe County, Florida
2. That the Contractor shall commence the work to be performed under this
agreement on a date to be specified in a written order of the Owner and shall
fully complete all work hereunder within sixty (60) calendar days from the Notice-
to-Proceed (Construction) as per Special Provision No.2.
3. The Owner hereby agrees to pay to the Contractor for the faithful performance of
the agreement, subject to additions and deductions as provided in the
specifications or proposal in lawful money of the United States as follows:
ApproximatelyTwo Hundred Forty-Four Thousand Nine Hundred Two and 90/1 00 Dollars
($ 244,902.90 ) in accordance with lump sum and unit prices set forth in the
proposal.
4. On or before the 15th day of each calendar month, the second party shall make
partial payment to the on the Contractor basis of a duly certified and approved
estimate of work performed during the preceding calendar month by the
Contractor, less ten percent (10%) of the amount of such estimate which is to be
11-6
retained by the Owner until all work has been performed strictly in accordance
with this agreement.
5. Upon submission by the Contractor of evidence satisfactory to the Owner that all
payrolls, material bills and other costs incurred by the Contractor in connection
with the construction of the work have been paid in full, final payment on account
of this agreement shall be made within twenty (20) days after the completion by
the Contractor of all work covered by this agreement and the acceptance of such
work by the Owner.
6. It is mutually agreed between the parties hereto that time is of the essence in this
contract and in the event the construction of the work is not completed within the
time herein specified, it is agreed that from the compensation otherwise to be
paid to the Contractor, the Owner may retain the amounts described in the
Liquidated Damages Section per day for each day thereafter, Sundays and
holidays included, that the work remains uncompleted, which sum shall represent
the actual damages which the Owner will have sustained per day by failure of the
Contractor to complete the work within the time stipulated and this sum is not a
penalty being the stipulated damages the Owner will have sustained in the event
of such default by the Contractor.
7. It is further mutually agreed between the parties hereto that if at any time after
the execution of this agreement and the surety bond hereto attached for its
faithful performance, the Owner shall deem the surety or sureties upon such
bond to be unsatisfactory, or if, for any reason, such bond ceases to be adequate
to cover the performance of the work, the Contractor shall, at its expense within
five (5) days after the receipt of notice from the Owner so to do, furnish an
additional bond or bonds in such form and amount and with such surety or
sureties as shall be satisfactory to the Owner. In such event, no further pa}'ment
to the Contractor shall be deemed to be due under this agreement;qntil suctf new
or additional security for the faithful performance of the work shall ~.furni~d in
manner and form satisfactory to the Owner. F=2; i- . 0
1
t:,:...;'~ _', :;:')
IN WITNESS WHEREOF the parties hereto have executed this agreemfilJ:~n t~ day
and date first above written in two (2) counterparts, each of which shall, WJ"lmut proof 01"'
accounting for the other counterpart, be deemed an original contract. ;::;-,:.,~
,,;:)U 7n I ~.~~
(Monroe/County Board of Co missioners)
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By:I/J J I{f r - ,_7 t~f~1 A "
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TN~"'<S": '~'j ';, .,
WI ......"""........... ""J
J., .:........". .....--.-... . h ' .'
x';'. '> ,.~...c_ '-,
'r. E , ClERK
fln,;,'JA ~JlAtW'Q / e.ltrfr,.c ~c.
(Contractor) \~
By: ~~.J ~ ..---'-t--... ~
Title:
f r'tSiV
President*
Title:
11-7
BY
DATE
WITNESS: ~//~
STATE OF FLORIDA
COUNTY OF ~h7l~/p
I, th.e undersigned authority, a Notary Public in and for said Coun~ and State h~~9.Y&.dcnir'() (
certify that {' __~ ~""'..,_~~ ,/,-;, whose name as 'P__c;rt'.dH r O~SI.r,.~
signed to the foregoing i trument and who is known to me, acknowledged before me
on this day that being informed of the contents of the within instrument, he, in his
capacity as such, executed the same voluntarily on the date the same bears date.
Given under my hand and seal this ~ ti day of CJc-~k-- , 20~.
~~~PUbIiC
rAa;~.~".-"'MiCHAELj:'S~
: I~~~ Commla8ion' DD01o.ee.
. i. .
. ~ ~ ExpI,.. 817I20OI
I '''for.;." Bonded Itwough
t~(~~::~~}...~.~.~~
* Who is authorized by the corporation to execute this contract.
11-8
GENERAL PROVISIONS
DIVISION III
GENERAL PROVISIONS
SECTION 10 - DEFINITION OF TERMS .........................................................................111-2
SECTION 20 - PROPOSAL REQUIREMENTS AND CONDITIONS................................ 111-8
SECTION 30 - AWARD AND EXECUTION OF CONTRACT ........................................111-12
SECTION 40 - SCOPE OF WORK ................................................................................111-14
SECTION 50 - CONTROL OF WORK ...........................................................................111-19
SECTION 60 - CONTROL OF MATERIALS ..................................................................111-27
SECTION 70 - LEGAL RELATIONS AND RESPONSIBILITY TO PUBLIC ..................111-31
SECTION 80 - PROSECUTION AND PROGRESS .......................................................111-44
SECTION 90 - MEASUREMENT AND PAYMENT ........................................................111-51
SECTION 100 - CONTRACTOR QUALITY CONTROL PROGRAM (N/A) ......................111-59
SECTION 110 - METHOD OF ESTIMATING PERCENTAGE OF MATERIALS
WITHIN SPECIFICATION LIMITS (PWL) (N/A) .....................................111-68
SECTION 120 - CONSTRUCTION CONTRACT CLAUSES AIRPORT
IMPROVEMENT PROGRAM .... ....... ....... ...... .................... .....................111-74
SECTION 130 - SAFETY AND HEALTH REGULATIONS FOR CONSTRUCTION ......111-100
SECTION 140 - GENERAL INSURANCE REQUIREMENTS FOR
CONTRACTORS AND SUBCONTRACTORS .....................................111-1 01
SECTION 150 - DISADVANTAGED BUSINESS ENTERPRISE PROGRAM ................111-109
111-1
DIVISION III - GENERAL PROVISIONS
SECTION 10
DEFINITION OF TERMS
Whenever the following terms are used in these specifications, in the Contract, in any
documents or other instruments pertaining to construction where these specifications
govern, the intent and meaning shall be interpreted as follows:
10-01 AASHTO. The American Association of State Highway and Transportation
Officials, the successor association to AASHO.
10-02 ACCESS ROAD. The right-of-way, the roadway and all improvements
constructed thereon connecting the airport to a public highway.
10-03 ADVERTISEMENT. A public announcement, as required by local law, inviting
bids for work to be performed and materials to be furnished.
10-04 ADDENDUM. A modification of the plans or other Contract documents issued by
the Engineer and distributed to prospective bidders prior to the opening of the proposal.
10-05 AlP. The Airport Improvement Program, a grant-in-aid program, administered by
the Federal Aviation Administration.
10-06 ADVISORY CIRCULAR. A document issued by the FAA containing informational
material and guidance, when referred to in the drawings (Plans) and Specifications,
advisory circulars shall have the same force as supplemental Specifications.
10-07 AIR OPERATIONS AREA. For the purpose of these specifications, the term air
operations area shall mean any area of the airport used or intended to be used for the
landing, takeoff, or surface maneuvering of aircraft, and contiguous safety areas. An air
operation area shall include such paved or unpaved areas that are used or intended to
be used for the landing, takeoff, or surface maneuvering or aircraft, and contiguous
safety areas that are used or intended to be used for the unobstructed movement of
aircraft in addition to its associated runway, taxiway, or apron.
10-08 AIRPORT. Airport means an area of land or water which is used or intended to
be used for the landing and takeoff of aircraft, and includes its buildings and facilities, if
any.
10-09 ASTM. The American Society for Testing and Materials.
10-10 AWARD. The acceptance, by the owner, of the successful bidder's proposal.
111-2
10-11 BID BOND (PROPOSAL GUARANTY). The security furnished with a proposal
to guarantee that the bidder will enter into a contract if his proposal is accepted by the
Owner.
10-12 BIDDER. Any individual, partnership, firm, or corporation, acting directly or
through a duly authorized representative, who submits a proposal for the work
contemplated.
10-13 BUILDING AREA. An area on the airport to be used, considered, or intended to
be used for airport buildings or other airport facilities or rights-of-way together with all
airport buildings and facilities located thereon.
10-14 CALENDAR DAY. Every day shown on the calendar.
10-15 CERTIFICATES OF COMPLIANCES. Written statements by the manufacturer
stating the material furnished is in conformance with the Specifications.
10-16 CHANGE ORDER. A written order to the Contractor covering changes in the
plans, specifications, or proposal quantities and establishing the basis of payment and
contract time adjustment, if any, for the work affected by such changes. The work,
covered by a change order, shall be within the scope of the contract.
10-17 CONTRACT. The written agreement covering the work to be performed. The
awarded contract shall include, but is not limited to: The Advertisement; The Contract
Form; The Proposal; The Performance Bond; The Payment Bond; any required
insurance certificates; The SpeCifications; The Plans, and any addenda issued to
bidders.
10-18 CONTRACT DOCUMENTS. The written agreement covering the work to be
performed. The awarded Contract shall include, but is not limited to: the Invitation for
Bids; the Bid Documents, the Contract form; the Proposal, the Schedule of Bid Items;
the Proposal Bond; the Contract Bond, the labor and Materials Bond; any required
insurance certificates; the General and Special Provisions; the Technical SpeCifications;
the Plans; any addenda issued to Bidders; and any Change Orders issued to the
Contractor.
10-19 CONTRACT ITEM (PAY ITEM). A specific unit of work for which a price is
provided in the contract.
10-20 CONTRACT TIME. The number of calendar days or working days, stated in the
proposal, allowed for completion of the contract, including authorized time extensions.
If a calendar date of completion is stated in the proposal, in lieu of a number of calendar
or working days, the contract shall be completed by that date.
111-3
10-21 CONTRACTOR. The individual, partnership, firm, or corporation primarily liable
for the acceptable performance of the work contracted and for the payment of all legal
debts pertaining to the work who acts directly or through lawful agents or employees to
complete the contract work.
10-22 DRAINAGE SYSTEM. The system of pipes, ditches, and structures by which
surface or subsurface waters are collected and conducted from the airport area.
10-23 ENGINEER. The individual, partnership, firm, or corporation duly authorized by
the owner (sponsor) to be responsible for engineering supervision of the contract work
and acting directly or through an authorized representative.
10-24 EQUIPMENT. All machinery, together with the necessary supplies for upkeep
and maintenance, and also all tools and apparatus necessary for the proper
construction and acceptable completion of the work.
10-25 EXTRA WORK. An item of work not provided for in the awarded contract as
previously modified by change order or supplemental agreement, but which is found by
the Engineer to be necessary to complete the work within the intended scope of the
contract as previously modified.
10-26 FAA. The Federal Aviation Administration of the U.S. Department of
Transportation. When used to designate a person, FAA shall mean the Administrator or
his/her duly authorized representative.
10-27 FOOT. The State of Florida Department of Transportation.
10-28 FEDERAL SPECIFICATIONS. The Federal Specifications and Standards, and
supplements, amendments, and indices thereto are prepared and issued by the General
Services Administration of the Federal Government.
10-29 INSPECTOR. An authorized representative of the Engineer assigned to make
all necessary inspections and/or tests of the work performed or being performed, or of
the materials furnished or being furnished by the Contractor.
10-30 INTENTION OF TERMS. Whenever, in these specifications or on the plans, the
words "directed," "required," "permitted," "ordered," "designated," "prescribed," or
words of the like import are used, it shall be understood that the direction, requirement,
permission, order, designation, or prescription of the Engineer is intended; and similarly,
the words "approved," "acceptable," "satisfactory," or words of like import, shall mean
approved by, or acceptable to, or satisfactory to the Engineer, subject in each case to
the final determination of the owner.
Any reference to a specific requirement of a numbered paragraph of the contract
specifications or a cited standard shall be interpreted to include all general requirements
of the entire section, specification item, or cited standard that may be pertinent to such
111-4
specific reference.
1 0-31 LABORATORY. The official testing laboratories of the owner or such other
laboratories as may be designated by the Engineer.
10-32 LIGHTING. A system of fixtures providing or controlling the light sources used
on or near the airport or within the airport buildings. The field lighting includes all
luminous signals, markers, floodlights, and illuminating devices used on or near the
airport or to aid in the operation of aircraft landing at, taking off from, or taxiing on the
airport surface.
10-33 MAJOR AND MINOR CONTRACT ITEMS. A major contract item shall be any
item that is listed in the proposal, the total cost of which is equal to or greater than 20
percent of the total amount of the award contract. All other items shall be considered
minor contract items.
10-34 MATERIALS. Any substance specified for use in the construction of the contract
work.
10-35 MIL SPECIFICATIONS. The Military Specifications and Standard, and indices
thereto, that are prepared and issued by the Department of Defense.
10-36 NOTICE TO PROCEED. A written notice to the Contractor to begin the actual
contract work on a previously agreed to date. If applicable, the Notice to Proceed shall
state the date on which the contract time begins.
10-37 OWNER (SPONSOR). The term owner shall mean the party of the first part or
the contracting agency signatory to the contract. For AlP contracts, the term sponsor
shall have the same meaning as the term owner.
10-38 PAVEMENT. The combined surface course, base course, and subbase course,
if any, considered as a single unit.
10-39 PAYMENT BOND. The approved form of security furnished by the Contractor
and his/her surety as a guaranty that he will pay in full all bills and accounts for
materials and labor used in the construction of the work.
10-40 PERFORMANCE BOND. The approved form of security furnished by the
Contractor and his/her surety as a guaranty that the Contractor will complete the work in
accordance with the terms of the contract.
10-41 PLANS. The official drawings or exact reproductions which show the location,
character, dimensions and details of the airport and the work to be done and which are
to be considered as a part of the contract, supplementary to the specifications.
111-5
10-42 PROJECT. The agreed scope of work for accomplishing specific airport
development with respect to a particular airport.
10-43 PROPOSAL. The written offer of the bidder (when submitted on the approved
proposal form) to perform the contemplated work and furnish the necessary materials in
accordance with the provisions of the plans and specifications.
10-44 PROPOSAL GUARANTY. The security furnished with a proposal to guarantee
that the bidder will enter into a contract if his/her proposal is accepted by the owner.
10-45 RUNWAY. The area on the airport prepared for the landing and takeoff of
aircraft.
10-46 SPECIAL PROVISIONS. The specific clauses setting forth conditions or
requirements peculiar to the project under consideration, covering work or material
involved in the proposal and estimate, which are not thoroughly or satisfactorily
stipulated in these Specifications.
10-47 SPECIFICATIONS. A part of the contract containing the written directions and
requirements for completing the contract work. Standards for specifying materials or
testing which are cited in the contract specifications by reference shall have the same
force and effect as if included in the contract physically.
10-48 SPONSOR. Shall mean the same as Owner.
10-49 SUBCONTRACTOR. Any individual, partnership or corporation supplying the
Contractor with labor, materials, and supplies, used directly or indirectly by the said
Contractor or subcontractor in the prosecution of the work.
10-50 STRUCTURES. Airport facilities such as bridges; culverts; catch basins, inlets,
retaining walls, cribbing; storm and sanitary sewer lines; water lines; underdrains;
electrical ducts, manholes, handholes, lighting fixtures and bases; transformers; flexible
and rigid pavements; navigational aids; buildings; vaults; and, other manmade features
of the airport that may be encountered in the work and not otherwise classified herein.
10-51 SUBGRADE. The soil which forms the pavement foundation.
10-52 SUPERINTENDENT. The Contractor's executive representative who is present
on the work during progress, authorized to receive and fulfill instructions from the
Engineer, and who shall supervise and direct the construction.
10-53 SUPPLEMENTAL AGREEMENT. A written agreement between the Contractor
and the owner covering: (1) work that would increase or decrease the total amount of
the awarded contract, or any major contract item, by more than 25 percent, such
increased or decreased work being within the scope of the originally awarded contract;
or (2) work that is not within the scope of the originally awarded contract.
111-6
10-54 SURETY. The corporation, partnership, or individual, other than the Contractor,
executing payment or performance bonds which are furnished to the owner by the
Contractor.
10-55 TAXIWAY. For the purpose of this document, the term taxiway means the
portion of the air operations area of an airport that has been designated by competent
airport authority for movement of aircraft to and from the airport's runways or aircraft
parking areas.
10-56 WORK. The furnishing of all labor, materials, tools, equipment, and incidentals
necessary or convenient to the Contractor's performance of all duties and obligations
imposed by the contract, plans, and specifications.
10-57 WORKING DAY. A working day shall be any day other than a legal holiday,
Saturday, or Sunday on which the normal working forces of the Contractor may proceed
with regular work for at least 6 hours toward completion of the contract. Unless work is
suspended for causes beyond the Contractor's control, Saturdays, Sundays and
holidays on which the Contractor's forces engage in regular work, requiring the
presence of an inspector, will be considered as working days.
END OF SECTION 10
111-7
SECTION 20
PROPOSAL REQUIREMENTS AND CONDITIONS
20-01 ADVERTISEMENT (Notice to Bidders). The owner, or his/her authorized
agent, shall publish the advertisement at such places and at such times as are required
by local law or ordinances. The published advertisement shall state the time and place
for submitting sealed proposals; a description of the proposed work; instructions to
bidders as to obtaining proposal forms, plans, and specifications; proposal guaranty
required; and the owner's right to reject any and all bids.
20-02 PREQUALlFICA TION OF BIDDERS. Each bidder shall furnish the owner
satisfactory evidence of his/her competency to perform the proposed work. Such
evidence of competency, unless otherwise specified, shall consist of statements
covering the bidder's past experience on similar work, a list of equipment that would be
available for the work, and a list of key personnel that would be available. In addition,
each bidder shall furnish the owner satisfactory evidence of his/her financial
responsibility. Such evidence of financial responsibility, unless otherwise specified,
shall consist of a confidential statement or report of the bidder's financial resources and
liabilities as of the last calendar year or the Contractor's last fiscal year. Such
statements or reports shall be certified by a public accountant. At the time of submitting
such financial statements or reports, the bidder shall further certify whether his/her
financial responsibility is approximately the same as stated or reported by the public
accountant. If the bidder's financial responsibility has changed, the bidder shall qualify
the public accountant's statement or report to reflect his/her (bidder's) true financial
condition at the time such qualified statement or report is submitted to the owner.
Unless otherwise specified, a bidder may submit evidence that he is prequalified with
the State Highway Division and is on the current "bidder's list" of the state in which the
proposed work is located. Such evidence of State Highway Division prequalification
may be submitted as evidence of financial responsibility in lieu of the certified
statements or reports hereinbefore specified.
Each bidder shall submit "evidence of competency" and "evidence of financial
responsibility" to the owner at the time of the bid openinq.
20-03 CONTENTS OF PROPOSAL FORMS. The owner shall furnish bidders with
proposal forms. All papers bound with or attached to the proposal forms are necessary
parts and must not be detached.
The plans specifications, and other documents designated in the proposal form shall be
considered a part of the proposal whether attached or not.
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20-04 ISSUANCE OF PROPOSAL FORMS. The owner reserves the right to refuse to
issue a proposal form to a prospective bidder should such bidder be in default for any of
the following reasons:
A. Failure to comply with any prequalification regulations of the owner, if such
regulations are cited, or otherwise included, in the proposal as a
requirement for bidding.
B. Failure to pay, or satisfactorily settle, all bills due for labor and materials
on fonner contracts in force (with the owner) at the time the owner issues
the proposal to a prospective bidder.
C. Contractor default under previous contracts with the owner.
D. Unsatisfactory work on previous contracts with the owner.
20-05 INTERPRETATION OF ESTIMATED PROPOSAL QUANTITIES. An estimate
of quantities of work to be done and materials to be furnished under these specifications
is given in the proposal. It is the result of careful calculations and is believed to be
correct. It is given only as a basis for comparison of proposals and the award of the
contract. The owner does not expressly or by implication agree that the actual
quantities involved will correspond exactly therewith; nor shall the bidder plead
misunderstanding or deception because of such estimates of quantities, or of the
character, location, or other conditions pertaining to the work. Payment to the
Contractor will be made only for the actual quantities of work perfonned or materials
furnished in accordance with the plans and specifications. It is understood that the
quantities may be increased or decreased as hereinafter provided in the subsection
titled ALTERATION OF WORK AND QUANTITIES of Section 40 without in any way
invalidating the unit bid prices.
20-06 EXAMINATION OF PLANS. SPECIFICATIONS. AND SITE. The bidder is
expected to carefully examine the site of the proposed work, the proposal, plans
specifications, and contract fonns. He shall satisfy himself as to the character, quality,
and quantities of work to be perfonned, materials to be furnished, and as to the
requirements of the proposed contract. The submission of a proposal shall be prima
facie evidence that the bidder has made such examination and is satisfied as to the
conditions to be encountered in performing the work and as to the requirements of the
proposed contract, plans, and specifications.
Boring logs and other records of subsurface investigations and tests are available for
inspection of bidders. It is understood and agreed that such subsurface information,
whether included in the plans, specifications, or otherwise made available to the bidder,
was obtained and is intended for the owner's design and estimating purposes only.
Such information has been made available for the convenience of all bidders. It is
further understood and agreed that each bidder is solely responsible for all
assumptions, deductions, or conclusions which he may make or obtain from his/her
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examination of the boring logs and other records of subsurface investigations and tests
that are furnished by the owner.
20-07 PREPARATION OF PROPOSAL. The bidder shall submit his/her proposal on
the forms furnished by the owner. All blank spaces in the proposal forms must be
correctly filled in where indicated for each and every item for which a quantity is given.
The bidder shall state the price (written in ink or typed) both in words and numerals for
which he proposes to do each pay item furnished in the proposal. In case of conflict
between words and numerals, the words, unless obviously incorrect, shall govern.
The bidder shall sign his/her proposal correctly and in ink. If the proposal is made by an
individual, his/her name and post office address must be shown. If made by a
partnership, the name and post office address of each member of the partnership must
be shown. If made by a corporation, the person signing the proposal shall give the
name of the state under the laws of which the corporation was chartered and the name,
titles, and business address of the president, secretary, and the treasurer. Anyone
signing a proposal as an agent shall file evidence of his/her authority to do so and that
the signature is binding upon the firm or corporation.
20-08 IRREGULAR PROPOSALS. Proposals shall be considered irregular for the
following reasons:
A. If the proposal is on a form other than that furnished by the owner, or if the
owner's form is altered, or if any part of the proposal form is detached.
B. If there are unauthorized additions, conditional or alternate pay items, or
irregularities of any kind which make the proposal incomplete, indefinite,
or otherwise ambiguous.
C. If the proposal does not contain a unit price for each pay item listed in the
proposal, except in the case of authorized alternate pay items, for which
the bidder is not required to furnish a unit price.
D. If the proposal contains unit prices that are obviously unbalanced.
E. If the proposal is not accompanied by the proposal guaranty specified by
the owner.
The owner reserves the right to reject any irregular proposal and the right to waive
technicalities if such waiver is in the best interest of the owner and conforms to local
laws and ordinances pertaining to the letting of construction contracts.
20-09 BID GUARANTEE. Each separate proposal shall be accompanied by a certified
check, or other specified acceptable collateral, in the amount specified in the proposal
form. Such check, or collateral, shall be made payable to the owner.
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20-10 DELIVERY OF PROPOSAL. Each proposal submitted shall be placed in a
sealed envelope plainly marked with the project number, location of airport, and name
and business address of the bidder on the outside. When sent by mail, preferably
registered, the sealed proposal, marked as indicated above, should be enclosed in an
additional envelope. No proposal will be considered unless received at the place
specified in the advertisement before the time specified for opening all bids. Proposals
received after the bid opening time shall be returned to the bidder unopened.
20-11 WITHDRAWAL OR REVISION OF PROPOSALS. A bidder may withdraw or
revise (by withdrawal of one proposal and submission of another) a proposal provided
that the bidder's request for withdrawal is received by the owner in writing or by
telegram before the time specified for opening bids. Revised proposals must be
received at the place specified in the advertisement before the time specified for
opening all bids.
20-12 PUBLIC OPENING OF PROPOSALS. Proposals shall be opened, and read,
publicly at the time and place specified in the advertisement. Bidders, their authorized
agents, and other interested persons are invited to attend. Proposals that have been
withdrawn (by written or telegraphic request) or received after the time specified for
opening bids shall be returned to the bidder unopened.
20-13 DISQUALIFICATION OF BIDDERS. A bidder shall be considered disqualified
for any of the following reasons:
A. Submitting more than one proposal from the same partnership, firm, or
corporation under the same or different name.
B. Evidence of collusion among bidders. Bidders participating in such
collusion shall be disqualified as bidders for any future work of the owner
until any such participating bidder has been reinstated by the owner as a
qualified bidder.
C. If the bidder is considered to be in "default" for any reason specified in the
subsection titled ISSUANCE OF PROPOSAL FORMS of this section.
END OF SECTION 20
111-11
SECTION 30
AWARD AND EXECUTION OF CONTRACT
30-01 CONSIDERATION OF PROPOSALS. After the proposals are publicly opened
and read, they will be compared on the basis of the summation of the products obtained
by multiplying the estimated quantities shown in the proposal by the unit bid prices. If a
bidder's proposal contains a discrepancy between unit bid prices written in words and
unit bid prices written in numbers, the unit price written in words shall govern.
Until the award of a contract is made, the owner reserves the right to reject a bidder's
proposal for any of the following reasons:
A. If the proposal 'is irregular as specified in the subsection titled
IRREGULAR PROPOSALS of Section 20.
B. If the bidder is disqualified for any of the reasons specified in the
subsection titled DISQUALIFICATION OF BIDDERS of Section 20.
In addition, until the award of a contract is made, the owner reserves the right to reject
any or all proposals, waive technicalities, if such waiver is in the best interest of the
owner and is in conformance with applicable state and local laws or regulations
pertaining to the letting of construction contracts; advertise for new proposals; or
proceed with the work otherwise. All such actions shall promote the owner's best
interests.
30-02 AWARD OF CONTRACT. The award of a contract, if it is to be awarded, shall
be made within 90 calendar days of the date specified for publicly opening proposals,
unless otherwise specified herein.
Award of the contract shall be made by the owner to the lowest, qualified bidder whose
proposal conforms to the cited requirements of the owner.
30-03 CANCELLATION OF AWARD. The owner reserves the right to cancel the
award without liability to the bidder, except return of proposal guaranty, at any time
before a contract has been fully executed by all parties and is approved by the owner in
accordance with the subsection titled APPROVAL OF CONTRACT of this section.
30-04 RETURN OF PROPOSAL GUARANTY. All proposal guaranties, except those
of the two lowest bidders, will be returned immediately after the owner has made a
comparison of bids as hereinbefore specified in the subsection titled CONSIDERATION
OF PROPOSALS of this section. Proposal guaranties of the two lowest bidders will be
retained by the owner until such time as an award is made, at which time, the
unsuccessful bidder's proposal guaranty will be returned. The successful bidder's
proposal guaranty will be returned as soon as the owner receives the contracts bonds
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as specified in the subsection titled REQUIREMENTS OF CONTRACT BONDS of this
section.
30-05 REQUIREMENTS OF CONTRACT BONDS. At the time of the execution of the
contract, the successful bidder shall furnish the owner a surety bond or bonds which
have been fully executed by the bidder and the surety guaranteeing the performance of
the work and the payment of all legal debts that may be incurred by reason of the
Contractor's performance of the work. The surety and the form of the bond or bonds
shall be acceptable to the owner. Unless otherwise specified in this subsection, the
surety bond or bonds shall be in a sum equal to the full amount of the contract.
30-06 EXECUTION OF CONTRACT. The successful bidder shall sign (execute) the
necessary agreements for entering into the contract and return such signed contract to
the owner, along with the fully executed surety bond or bonds specified in the
subsection titled REQUIREMENTS OF CONTRACT BONDS of this section, within 15
calendar days from the date mailed or otherwise delivered to the successful bidder. If
the contract is mailed, special handling is recommended.
30-07 APPROVAL OF CONTRACT. Upon receipt of the contract and contract bond or
bonds that have been executed by the successful bidder, the owner shall complete the
execution of the contract in accordance with local laws or ordinances, and return the
fully executed contract to the Contractor. Delivery of the fully executed contract to the
Contractor shall constitute the owner's approval to be bound by the successful bidder's
proposal and the terms of the contract.
30-08 FAILURE TO EXECUTE CONTRACT. Failure of the successful bidder to
execute the contract and furnish an acceptable surety bond or bonds within the 15
calendar day period specified in the subsection titled REQUIREMENTS OF
CONTRACT BONDS of this section shall be just cause for cancellation of the award
and forfeiture of the proposal guaranty, not as a penalty, but as liquidation of damages
to the owner.
END OF SECTION 30
111-13
SECTION 40
SCOPE OF WORK
40-01 INTENT OF CONTRACT. The intent of the contract is to provide for construction
and completion, in every detail, of the work described. It is further intended that the
Contractor shall furnish all labor, materials, equipment, tools, transportation, and
supplies required to complete the work in accordance with the plans, specifications, and
terms of the contract.
40-02 ALTERATION OF WORK AND QUANTITIES. The owner reserves and shall
have the right to make such alterations in the work as may be necessary or desirable to
complete the work originally intended in an acceptable manner. Unless otherwise
specified herein, the Engineer shall be and is hereby authorized to make such
alterations in the work as may increase or decrease the originally awarded contract
quantities, provided that the aggregate of such alterations does not change the total
contract cost or the total cost of any major contract item by more than 25 percent (total
cost being based on the unit prices and estimated quantities in the awarded contract).
Alterations which do not exceed the 25 percent limitation shall not invalidate the
contract nor release the surety, and the Contractor agrees to accept payment for such
alterations as if the altered work had been a part of the original contract. These
alterations which are for work within the general scope of the contract shall be covered
by "Change Orders" issued by the Engineer. Change orders for altered work shall
include extensions of contract time where, in the Engineer's opinion, such extensions
are commensurate with the amount and difficulty of added work.
Should the aggregate amount of altered work exceed the 25 percent limitation
hereinbefore specified, such excess altered work shall be covered by supplemental
agreement. If the owner and the Contractor are unable to agree on a unit adjustment
for any contract item that requires a supplemental agreement, the owner reserves the
right to terminate the contract with respect to the item and make other arrangements for
its completion.
The Contractor is advised that all supplemental agreements shall be approved by the
FAA and shall include valid wage determinations of the U.S. Secretary of Labor when
the amount of the supplemental agreement exceeds $2,000. However, if the Contractor
elects to waive the limitations on work that increases or decreases the originally
awarded contract or any major contract item by more than 25 percent, the supplemental
agreement shall be subject to the same U.S. Secretary of Labor wage determination as
was included in the originally awarded contract.
All supplemental agreements shall require consent of the Contractor's surety and
separate performance and payment bonds.
111-14
40-03 OMITTED ITEMS. The Engineer may, in the owner's best interest, omit from
the work any contract item, except major contract items. Major contract items may be
omitted by a supplemental agreement. Such omission of contract items shall not
invalidate any other contract provision or requirement.
Should a contract item be omitted or otherwise ordered to be nonperformed, the
Contractor shall be paid for all work performed toward completion of such item prior to
the date of the order to omit such item. Payment for work performed shall be in
accordance with the subsection titled PAYMENT FOR OMITTED ITEMS of Section 90.
40-04 EXTRA WORK. Should acceptable completion of the contract require the
Contractor to perform an item of work for which no basis of payment has been provided
in the original contract or previously issued change orders or supplemental agreements,
the same shall be called Extra Work. Extra work that is within the general scope of the
contract shall be covered by written change order. Change orders for such extra work
shall contain agreed unit prices for performing the change order work in accordance
with the requirements specified in the order, and shall contain any adjustment to the
contract time that, in the Engineer's opinion, is necessary for completion of such extra
work.
When determined by the Engineer to be in the owner's best interest, he may order the
Contractor to proceed with extra work by force account as provided in the subsection
titled PAYMENT FOR EXTRA AND FORCE ACCOUNT WORK of Section 90.
Extra work that is necessary for acceptable completion of the project, but is not within
the general scope of the work covered by the original contract shall be covered by a
Supplemental Agreement as hereinbefore defined in the subsection titled
SUPPLEMENTAL AGREEMENT of Section 10.
Any claim for payment of extra work that is not covered by written agreement (change
order or supplemental agreement) shall be rejected by the owner.
40-05 MAINTENANCE OF TRAFFIC. It is the explicit intention of the contract that the
safety of aircraft, as well as the Contractor's equipment and personnel, is the most
important consideration. It is understood and agreed that the Contractor shall provide
for the free and unobstructed movement of aircraft in the air operations areas of the
airport with respect to his/her own operations and the operations of all his/her
subcontractors as specified in the subsection titled LIMITATION OF OPERATIONS of
Section 80. It is further understood and agreed that the Contractor shall provide for the
uninterrupted operation of visual and electronic signals (including power supplies
thereto) used in the guidance of aircraft while operating to, from, and upon the airport as
specified in the subsection titled CONTRACTOR'S RESPONSIBILITY FOR UTILITY
SERVICE AND FACILITIES OF OTHERS in Section 70.
With respect to his/her own operations and the operations of all his/her subcontractors,
the Contractor shall provide marking, lighting, and other acceptable means of
111-15
identifying: personnel; equipment; vehicles; storage areas; and any work area or
condition that may be hazardous to the operation of aircraft, fire-rescue equipment, or
maintenance vehicles at the airport.
When the contract requires the maintenance of vehicular traffic on an existing road,
street, or highway during the Contractor's performance of work that is otherwise
provided for in the contract, plans, and specifications, the Contractor shall keep such
road, street, or highway open to all traffic and shall provide such maintenance as may
be required to accommodate traffic. The Contractor shall furnish erect, and maintain
barricades, warning signs, flagmen, and other traffic control devices in reasonable
conformity with the manual of Uniform Traffic Control Devices for Streets and Highways
(published by the United States Government Printing Office), unless otherwise specified
herein. The Contractor shall also construct and maintain in a safe condition any
temporary connections necessary for ingress to and egress from abutting property or
intersecting roads, streets or highways. Unless otherwise specified herein, the
Contractor will not be required to furnish snow removal for 3uch existing road, street, or
highway.
The Contractor shall make his/her own estimate of all labor, materials, equipment, and
incidentals necessary for providing the maintenance of aircraft and vehicular traffic as
specified in this subsection.
The cost of maintaining the aircraft and vehicular traffic specified in this subsection shall
not be measured or paid for directly, but shall be included in the various contract items.
40-06 REMOVAL OF EXISTING STRUCTURES. All existing structures encountered
within the established lines, grades, or grading sections shall be removed by the
Contractor, unless such existing structures are otherwise specified to be relocated,
adjusted up or down, salvaged, abandoned in place, reused in the work or to remain in
place. The cost of removing such existing structures shall not be measured or paid for
directly, but shall be included in the various contract items.
Should the Contractor encounter an existing structure (above or below ground) in the
work for which the disposition is not indicated on the plans, the Engineer shall be
notified prior to disturbing such structure. The disposition of existing structures so
encountered shall be immediately determined by the Engineer in accordance with the
provisions of the contract.
Except as provided in the subsection titled RIGHTS IN AND USE OF MATERIALS
FOUND IN THE WORK of this section, it is intended that all existing materials or
structures that may be encountered (within the lines, grades, or grading sections
established for completion of the work) shall be utilized in the work as otherwise
provided for in the contract and shall remain the property of the owner when so utilized
in the work.
111-16
40-07 RIGHTS IN AND USE OF MATERIALS FOUND IN THE WORK. Should the
Contractor encounter any material such as (but not restricted to) sand, stone, gravel,
slag, or concrete slabs within the established lines, grades, or grading sections, the use
of which is intended by the terms of the contract to be either embankment or waste, he
may at his/her option either:
A Use such material in another contract item, providing such use is
approved by the Engineer and is in conformance with the contract
specifications applicable to such use; or,
B. Remove such material from the site, upon written approval of the
Engineer; or
C. Use such material for his/her own temporary construction on site; or,
D. Use such material as intended by the terms of the contract.
Should the Contractor wish to exercise option A, B., or C., he shall request the
Engineer's approval in advance of such use.
Should the Engineer approve the Contractor's request to exercise option A., B., or C.,
the Contractor shall be paid for the excavation or removal of such material at the
applicable contract price. The Contractor shall replace, at hislher own expense, such
removed or excavated material with an agreed equal volume of material that is
acceptable for use in constructing embankment, backfills, or otherwise to the extent that
such replacement material is needed to complete the contract work. The Contractor
shall not be charged for his/her use of such material so used in the work or removed
from the site.
Should the Engineer approve the Contractor's exercise of option A, the Contractor shall
be paid, at the applicable contract price, for furnishing and installing such material in
accordance with requirements of the contract item in which the material is used.
It is understood and agreed that the Contractor shall make no claim for delays by
reason of his/her exercise of option A, B., or C.
The Contractor shall not excavate, remove, or otherwise disturb any material, structure,
or part of a structure which is located outside the lines, grades, or grading sections
established for the work, except where such excavation or removal is provided for in the
contract, plans, or specifications.
40-08 FINAL CLEANING UP. Upon completion of the work and before acceptance
and final payment will be made, the Contractor shall remove from the site all machinery,
equipment, surplus and discarded materials, rubbish, temporary structures, and stumps
or portions of trees. He shall cut all brush and woods within the limits indicated and
shall leave the site in a neat and presentable condition. Material cleared from the site
111-17
and deposited on adjacent property will not be considered as having been disposed of
satisfactorily, unless the Contractor has obtained the written permission of such
property owner.
END OF SECTION 40
111-18
SECTION 50
CONTROL OF WORK
50-01 AUTHORITY OF THE ENGINEER. The Engineer shall decide any and all
questions which may arise as to the quality and acceptability of materials furnished,
work performed, and as to the manner of performance and rate of progress of the work.
He shall decide all questions which may arise as to the interpretation of the
specifications or plans relating to the work, the fulfillment of the contract on the part of
the Contractor, and the rights of different Contractors on the project. The Engineer shall
determine the amount and quality of the several kinds of work performed and materials
furnished which are to be paid for the under contract.
50-02 CONFORMITY WITH PLANS AND SPECIFICATIONS. All work and all
materials furnished shall be in reasonably close conformity with the lines, grades,
grading sections, cross sections, dimensions, material requirements, and testing
requirements that are specified (including specified tolerances) in the contract, plans or
specifications.
If the Engineer finds the materials furnished, work performed, or the finished product not
within reasonably close conformity with the plans and specifications but that the portion
of the work affected will, in his/her opinion, result in a finished product having a level of
safety, economy, durability, and workmanship acceptable to the owner, he will advise
the owner of his/her determination that the affected work be accepted and remain in
place. In this event, the Engineer will document his/her determination and recommend
to the owner a basis of acceptance which will provide for an adjustment in the contract
price for the affected portion of the work. The Engineer's determination and
recommended contract price adjustments will be based on good engineering judgment
and such tests or retests of the affected work as are, in his/her opinion, needed.
Changes in the contract price shall be covered by contract modifications (change order
or supplemental agreement) as applicable.
If the Engineer finds the materials furnished, work performed, or the finished product are
not in reasonably close conformity with the plans and specifications and have resulted
in an unacceptable finished product, the affected work or materials shall be removed
and replaced or otherwise corrected by and at the expense of the Contractor in
accordance with the Engineer's written orders.
For the purpose of this subsection, the term "reasonably close conformity" shall not be
construed as waiving the Contractor's responsibility to complete the work in accordance
with the contract, plans, and specifications. The term shall not be construed as waiving
the Engineer's right to insist on strict compliance with the requirements of the contract,
plans, and specifications during the Contractor's prosecution of the work, when, in the
Engineer's opinion, such compliance is essential to provide an acceptable finished
portion of the work.
111-19
For the purpose of this subsection, the term "reasonably close conformity" is also
intended to provide the Engineer with the authority to use good engineering judgment in
his/her determinations as to acceptance of work that is not in strict conformity but will
provide a finished product equal to or better than that intended by the requirements of
the contract, plans and specifications.
For AlP contracts, the Engineer should advise the Sponsor if he accepts work that is not
in "reasonably close conformity" to the Contract, Plans, Specifications. The Sponsor will
in turn advise the FAA. Change orders or supplemental agreements must bear the
written approval of the FAA.
50-03 COORDINATION OF CONTRACT. PLANS. AND SPECIFICATIONS. The
contract, plans, specifications, and all referenced standards cited are essential parts of
the contract requirements. A requirement occurring in one is as binding as though
occurring in all. They are intended to be complementary and to describe and provide
for a complete work. In case of discrepancy, calculated dimensions will govern over
scaled dimensions; contract technical specifications shall govern over contract general
provisions, plans, cited standards for materials or testing, and cited FAA advisory
circulars; contract general provisions shall govern over plans, cited standards for
materials or testing, and cited FAA advisory circulars; plans shall govern over cited
standards for materials or testing and cited FAA advisory circulars.
The Contractor shall not take advantage of any apparent error or omission on the plans
or specifications. In the event the Contractor discovers any apparent error or
discrepancy, he shall immediately call upon the Engineer for his/her interpretation and
decision, and such decision shall be final.
50-04 COOPERATION OF CONTRACTOR. The Contractor will be supplied with two
copies each of the plans and specifications. He shall have available on the work at all
times one copy each of the plans and specifications. Additional copies of plans and
specifications may be obtained by the Contractor for the cost of reproduction.
The Contractor shall give constant attention to the work to facilitate the progress
thereof, and he shall cooperate with the Engineer and his/her inspectors and with other
contractors in every way possible. The Engineer shall allocate he work and designate
the sequence of construction in case of controversy between contractors. The
Contractor shall have a competent superintendent on the work at all times who is fully
authorized as his/her agent on the work. The superintendent shall be capable of
reading and thoroughly understanding the plans and specifications and shall receive
and fulfill instructions from the Engineer or his/her authorized representative.
50-05 COOPERATION BETWEEN CONTRACTORS. The owner reserves the right to
contract for and perform other or additional work on or near the work covered by this
contract.
111-20
When separate contracts are let within the limits of anyone project, each Contractor
shall conduct his/her work so as not to interfere with or hinder the progress of
completion of the work being performed by other Contractors. Contractors working on
the same project shall cooperate with each other as directed.
Each Contractor involved shall assume all liability, financial or otherwise, in connection
with his/her contract and shall protect and save harmless the owner from any and all
damages or claims that may arise because of inconvenience, delays, or loss
experienced by him because of the presence and operations of other Contractors
working within the limits of the same project.
The Contractor shall arrange his/her work and shall place and dispose of the materials
being used so as not to interfere with the operations of the other Contractors within the
limits of the same project. He shall join his/her work with that of the others in an
acceptable manner and shall perform it in proper sequence to that of the others.
50-06 CONSTRUCTION LAYOUT AND STAKES. The Engineer shall establish
horizontal and vertical control only. The Contractor must establish all layout required for
the construction of the work. Such stakes and markings as the Engineer may set for
either his/her own or the Contractor's guidance shall be preserved by the Contractor. In
case of negligence on the part of the Contractor, or his/her employees, resulting in the
destruction of such stakes or markings, an amount equal to the cost of replacing the
same may be deducted from subsequent estimates due the Contractor at the discretion
of the Engineer.
50-07 AUTOMATICALLY CONTROLLED EQUIPMENT. Whenever batching or mixing
plant equipment is required to be operated automatically under the contract and a
breakdown or malfunction of the automatic controls occurs, the equipment may be
operated manually or by other methods for a period 48 hours following the breakdown
or malfunction, provided this method of operations will product results which conform to
all other requirements of the contract.
50-08 AUTHORITY AND DUTIES OF INSPECTORS. Inspectors employed by the
owner shall be authorized to inspect all work done and all material furnished. Such
inspection may extend to all or any part of the work and to the preparation, fabrication,
or manufacture of the materials to be used. Inspectors are not authorized to revoke,
alter, or waive any provision of the contract. Inspectors are not authorized to issue
instructions contrary to the plans and specifications or to act as foreman for the
Contractor.
Inspectors employed by the owner are authorized to notify the Contractor or his/her
representatives of any failure of the work or materials to conform to the requirements of
the contract, plans, or specifications and to reject such nonconforming materials in
question until such issues can be referred to the Engineer for his/her decision.
111-21
50-09 INSPECTION OF THE WORK. All materials and each part or detail of the work
shall be subject to inspection by the Engineer. The Engineer shall be allowed access to
all parts of the work and shall be furnished with such information and assistance by the
Contractor as is required to make a complete and detailed inspection.
If the Engineer requests it, the Contractor, at any time before acceptance of the work,
shall remove or uncover such portions of the finished work as may be directed. After
examination, the Contractor shall restore said portions of the work to the standard
required by the specifications. Should the work thus exposed or examined prove
acceptable, the uncovering, or removing, and the replacing of the covering or making
good of the parts removed will be paid for as extra work; but should the work so
exposed or examined prove unacceptable, the uncovering, or removing, and the
replacing of the covering or making good of the parts removed will be at the Contractor's
expense.
Any work done or materials used without supervision or inspection by an authorized
representative of the owner may be ordered removed and replaced at the Contractor's
expense unless the owner's representative failed to inspect after having been given
reasonable notice in writing that the work was to be performed.
Should the contract work include relocation, adjustment, or any other modification to
existing facilities, not the property of the (contract) owner, authorized representatives of
the owners of such facilities shall have the right to inspect such work. Such inspection
shall in no sense make any facility owner a party to the contract, and shall in no way
interfere with the rights of the parties to this contract.
50-10 REMOVAL OF UNACCEPTABLE AND UNAUTHORIZED WORK. All work
which does not form to the requirements of the contract, plans, and specifications will be
considered unacceptable, unless otherwise determined acceptable by the Engineer as
provided in the subsection titled CONFORMITY WITH PLANS AND SPECIFICATIONS
of this section.
Unacceptable work, whether the result of poor workmanship, use of defective materials,
damage through carelessness, or any other cause found to exist prior to the final
acceptance of the work, shall be removed immediately and replaced in an acceptable
manner in accordance with the provisions of the subsection titled CONTRACTOR'S
RESPONSIBILITY FOR WORK of Section 70.
Work done contrary to the instructions of the Engineer, work done beyond the lines
shown on the plans or as given, except as herein specified, or any extra work done
without authority, will be considered as unauthorized and will not be paid for under the
provisions of the contract. Work so done may be ordered removed or replaced at the
Contractor's expense.
Upon failure on the part of the Contractor to comply forthwith with any order of the
Engineer made under the provisions of this subsection, the Engineer will have authority
111-22
to cause unacceptable work to be remedied or removed and replaced and unauthorized
work to be removed and to deduct the costs (incurred by the owner) from any monies
due or to become due the Contractor.
50-11 LOAD RESTRICTIONS. The Contractor shall comply with all legal load
restrictions in the hauling of materials on public roads beyond the limits of the work. A
special permit will not relieve the Contractor of liability for damage which may result
from the moving of material or equipment.
The operation of equipment of such weight or so loaded as to cause damage to
structures or to any other type of construction will not be permitted. Hauling of materials
over the base course or surface course under construction shall be limited as directed.
No loads will be permitted on a concrete pavement, base, or structure before the
expiration of the curing period. The Contractor shall be responsible for all damage done
by his/her hauling equipment and shall correct such damage at his/her own expense.
50-12 MAINTENANCE DURING CONSTRUCTION. The Contractor shall maintain the
work during construction and until the work is accepted. This maintenance shall
constitute continuous and effective work prosecuted day by day, with adequate
equipment and forces so that the work is maintained in satisfactory condition at all
times.
In the case of a contract for the placing of a course upon a course or subgrade
previously constructed, the Contractor shall maintain the previous course or subgrade
during all construction operations.
All costs of maintenance work during construction and before the project is accepted
shall be included in the unit prices bid on the various contract items, and the Contractor
will not be paid an additional amount for such work.
50-13 FAILURE TO MAINTAIN THE WORK. Should the Contractor at any time fail to
maintain the work as provided in the subsection titled MAINTENANCE DURING
CONSTRUCTION of this section, the Engineer shall immediately notify the Contractor
of such noncompliance. Such notification shall specify a reasonable time within which
the Contractor shall be required to remedy such unsatisfactory maintenance condition.
The time specified will give due consideration to the exigency that exists.
Should the Contractor fail to respond to the Engineer's notification, the Engineer may
suspend any work necessary for the owner to correct such unsatisfactory maintenance
condition, depending on the exigency that exists. Any maintenance cost incurred by the
owner, shall be deducted from monies due or to become due the Contractor.
50-14 PARTIAL ACCEPTANCE. If at any time during the prosecution of the project
the Contractor substantially completes a usable unit or portion of the work, the
occupancy of which will benefit the owner, he may request the Engineer to make final
inspection of that unit. If the Engineer finds upon inspection that the unit has been
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satisfactorily completed in compliance with the contract, he may accept it as being
completed, and the Contractor may be relieved of further responsibility for that unit.
Such partial acceptance and beneficial occupancy by the owner shall not void or alter
any provision of the contract.
50-15 FINAL ACCEPTANCE. Upon due notice from the Contractor of presumptive
completion of the entire project, the Engineer and owner will make an inspection. If all
construction provided for and contemplated by the contract is found to be completed in
accordance with the contract, plans, and specifications, such inspection shall constitute
the final inspection. The Engineer shall notify the Contractor in writing of final
acceptance as of the date of the final inspection.
If, however, the inspection discloses any work, in whole or in part, as being
unsatisfactory, the Engineer will give the Contractor the necessary instructions for
correction of same and the Contractor shall immediately comply with and execute such
instructions. Upon correction of the work, another inspection will be made which shall
constitute the final inspection, provided the work has been satisfactorily completed. In
such event, the Engineer will make the final acceptance and notify the Contractor in
writing of this acceptance as of the date of final inspection.
50-16 CLAIMS FOR ADJUSTMENT AND DISPUTES. If for any reason the Contractor
deems that additional compensation is due him for work or materials not clearly
provided for in the contract, plans, or specifications or previously authorized as extra
work, he shall notify the Engineer in writing of hislher intention to claim such additional
compensation before he begins the work on which he bases the claim. If such
notification is not given or the Engineer is not afforded proper opportunity by the
Contractor for keeping strict account of actual cost as required, then the Contractor
hereby agrees to waive any claim for such additional compensation. Such notice by the
Contractor and the fact that the Engineer has kept account of the cost of the work shall
not in any way be construed as proving or substantiating the validity of the claim. When
the work on which the claim for additional compensation is based has been completed,
the Contractor shall, within 10 calendar days, submit his/her written claim to the
Engineer who will present it to the owner for consideration in accordance with local laws
or ordinances.
Nothing in this subsection shall be construed as a waiver of the Contractor's right to
dispute final payment based on differences in measurements or computations.
50-17 WARRANTY AND GUARANTEE. The Contractor warrants to the Owner that all
materials furnished under this Contract shall be new unless specified and free of defects
and in conformance with Contract requirements. Any work not so conforming to these
standards may be considered defective.
If, within one year after the date of final acceptance of the work, or within such longer
period of time as may be prescribed by law or by the terms of any applicable special
guarantee required by the Contract, any of the work is found to be defective or not in
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accordance with Contract requirements, the Contractor shall correct it promptly after
receipt of written notice from the Owner to do so.
The obligations of the Contractor in this paragraph titled WARRANTY AND
GUARANTEE shall be in addition to and not in limitation of any obligations imposed
upon him by special guarantees required by the Contract or otherwise prescribed by
law.
50-18 CONTRACT CLOSE-OUT. SUbsequent to the final acceptance of this project by
the Engineer, the following requirements must be satisfied by the Contractor before final
payment can be made:
1. The Contractor must publicly advertise the NOTICE OF COMPLETION furnished
by the Engineer a minimum of once a week for four consecutive weeks.
2. The Contractor must execute copies of CONTRACTOR'S AFFIDAVIT OF
PAYMENT OF CLAIMS AND DEBTS on the form furnished by the Engineer.
3. The Contractor must have his Surety execute copies of CONSENT OF SURETY
TO FINAL PAYMENT on the form furnished by the Engineer.
4. The Contractor must furnish a letter on his letterhead acknowledging that
acceptance of final payment by the Contractor constitutes a waiver of all claims,
present or future, in connection with this project.
5. The Contractor must furnish a written guarantee on his letterhead covering all
defects in material and workmanship for a period of one year commencing on the
date of final acceptance.
6. If any purchase items have been incorporated in the work, the Contractor must
furnish a letter on his letterhead assigning those warranties to the OWNER.
Copies of said warranties shall be bound in one binder and submitted along with
the letter assignment.
7. In addition to the above, the Contractor shall provide all documents required in
Special Provision No.1, Section 25.
50-19 CONCEALED CONDITIONS. Should conditions be encountered below the
surface of the ground or should concealed or unknown conditions in an existing
structure vary to an unreasonable extent from the conditions indicated by the drawings
and Specifications, the Engineer shall be notified by the Contractor and instructions
shall be equitably adjusted upon claim of either party made within thirty (30) days after
the first observation of the conditions if shown on the drawings or attached to these
Specifications, are presented only as information that is available indicating certain
conditions found and limited to the exact locations and dates shown. Neither the Owner
nor the Engineer shall be responsible for making the determination of water table
111-25
variations prior to bidding and shall not assume that any water levels shown by the
aforesaid core boring data will necessarily be maintained at the level indicated.
50-20 RECORD SET DRAWINGS. The Contractor shall, without additional cost, keep
a separate copy of all Specifications, drawings, addenda, modifications, and shop
drawings at the site in good order and annotated currently to show all changes made
during the construction process. These shall be available to the Engineer for review of
record information thereon each month prior to approval of monthly application for
payment, and shall be delivered to him for the Owner upon completion of the Project.
Record information shall include but not be limited to record dimensions, finished
pavement grades, finished elevation of structures, record inverts, etc.
The Contractor shall, without additional cost, furnish to the Owner three (3) complete
sets of all maintenance manuals, parts lists, and operating instructions covering
materials, equipment and installations having moving parts. It is mandatory that all of
the aforesaid be delivered at the same time and with the materials, equipment, and
installations, so that proper installation and operation can be promptly made.
50-21 TERMINATION OF CONTRACTOR'S RESPONSIBILITY. The Contract will be
considered complete when all work has been completed and has been accepted by the
Owner. The Contractor will then be released from further obligation except as set forth
in his bond.
END OF SECTION 50
111-26
SECTION 60
CONTROL OF MATERIALS
60-01 SOURCE OF SUPPLY AND QUALITY REQUIREMENTS. The materials used
on the work shall conform to the requirements of the contract, plans, and specifications.
Unless otherwise specified, such materials that are manufactured or processed shall be
new (as compared to used or reprocessed).
In order to expedite the inspection and testing of materials, the Contractor shall furnish
complete statements to the Engineer as to the origin, composition, and manufacture of
all materials to be used in the work. Such statements shall be furnished promptly after
execution of the contract but, in all cases, prior to delivery of such materials.
At the Engineer's option, materials may be approved at the source of supply before
delivery is stated. If it is found after trial that sources of supply for previously approved
materials do not produce specified products, the Contractor shall furnish materials from
other sources.
The Contractor shall furnish airport lighting equipment that confonns to the
requirements of cited materials specifications. In addition, where an FAA specification
for airport lighting equipment is cited in the plans or specifications, the Contractor shall
furnish such equipment that is:
A. Listed in FAA Advisory Circular (AC) 150/5345-1, Approved Airport
Equipment, that is in effect on the date of advertisement; and,
B. Produced by the manufacturer qualified (by FAA) to produce such
specified and listed equipment.
The following airport lighting equipment is required for this contract and is to be
furnished by the Contractor in accordance with the requirements of this subsection:
EQUIPMENT NAME
CITED FAA SPECIFICATIONS
EFFECTIVE FAA AC OR APPROVAL LETTER FOR
EQUIPMENT AND MANUFACTURER
60-02 SAMPLES. TESTS, AND CITED SPECIFICATIONS. All materials used in the
work shall be inspected, tested, and approved by the Engineer before incorporation in
the work. Any work in which untested materials are used without approval or written
permission of the Engineer shall be performed at the Contractor's risk. Materials found
to be unacceptable and unauthorized will not be paid for and, if directed by the
Engineer, shall be removed at the Contractor's expense. Unless otherwise designated,
tests in accordance with the cited standard methods of AASHTO or ASTM which are
current on the date of advertisement for bids will be made by and at the expense of the
111-27
owner. Samples will be taken by a qualified representative of the owner. All materials
being used are subject to inspection, test, or rejection at any time prior to or during
incorporation into the work. Copies of all tests will be furnished to the Contractor's
representative at his/her request.
60-03 CERTIFICATION OF COMPLIANCE. The Engineer may permit the use, prior to
sampling and testing, of certain materials or assemblies when accompanied by
manufacturer's certificates of compliance stating that such materials or assemblies fully
comply with the requirements of the contract. The certificate shall be signed by the
manufacturer. Each lot of such materials or assemblies delivered to the work must be
accompanied by a certificate of compliance in which the lot is clearly identified.
Materials or assemblies used on the basis of certificates of compliance may be sampled
and tested at any time and if found not to be in conformity with contract requirements
will be subject to rejection whether in place or not.
The form and distribution of certificates of compliance shall be as approved by the
Engineer.
When a material or assembly is specified by "brand name or equal" and the Contractor
elects to furnish the specified "brand name," the Contractor shall be required to furnish
the manufacturer's certificate of compliance for each lot of such material or assembly
delivered to the work. Such certificate of compliance shall clearly identify each lot
delivered and shall certify as to:
A. Conformance to the specified performance, testing, quality or dimensional
requirements; and,
B. Suitability of the material or assembly for the use intended in the contract
work.
Should the Contractor propose to furnish an "or equal" material or assembly, he shall
furnish the manufacturer's certificates of compliance as hereinbefore described for the
specified brand name material or assembly. However, the Engineer shall be the sole
judge as to whether the proposed "or equal" is suitable for use in the work.
The Engineer reserves the right to refuse permission for use of materials or assemblies
on the basis of certificates of compliance.
60-04 PLANT INSPECTION. The Engineer or his/her authorized representative may
inspect, at its source, any specified material or assembly to be used in the work.
Manufacturing plants may be inspected from time to time for the purpose of determining
compliance with specified manufacturing methods or materials to be used in the work
and to obtain samples required for his/her acceptance of the material or assembly.
Should the Engineer conduct plant inspections, the following conditions shall exist:
111-28
A. The Engineer shall have the cooperation and assistance of the Contractor
and the producer with whom he has contracted for materials.
B. The Engineer shall have full entry at all reasonable times to such parts of
the plant that concern the manufacture or production of the materials
being furnished.
C. If required by the Engineer, the Contractor shall arrange for adequate
office or working space that may be reasonably needed for conducting
plant inspections. Office or working space should be conveniently located
with respect to the plant.
It is understood and agreed that the owner shall have the right to retest any material
which has been tested and approved at the source of supply after it has been delivered
to the site. The Engineer shall have the right to reject only material which, when
retested, does not meet the requirements of the contract, plans, or specifications.
60-05 REVIEW AND ACCEPTANCE OF MATERIALS. The Contractor shall furnish to
the Engineer for review, all Contractor's, subcontractor's and manufacturer's drawings,
which shall be deemed to include shop material lists and performance data, which may
be required by the Specifications, requested by the Engineer or otherwise necessary for
the proper execution of the work. At the time of each submission, the Contractor shall in
writing call the Engineer's attention to any deviations that the shop drawings may have
from the requirements of the Contract documents.
Where called for, the Contractor shall furnish two samples of each material, texture,
color, etc., clearly labeled as to name and quality of material, manufacturer and
application on the job.
No work requiring a shop drawing or sample submission shall be started until the
submission has been reviewed by the Engineer.
The Engineer's review of shop drawings or samples will not relieve the Contractor from
his responsibility for any deviations from the requirements of the Contract documents
unless the Contractor has in writing called for the Engineer's attention to such
deviations at the time of submission and the Engineer has given written comments on
the specific deviation, nor will it relieve the Contractor from errors or omissions in the
shop drawings.
60-06 ENGINEER'S FIELD OFFICE AND LABORATORY. When specified and
provided for as a contract item, the Contractor shall furnish a building for the exclusive
use of the Engineer as a field office and field testing laboratory. The building shall be
furnished and maintained by the Contractor as specified herein and shall become
property of the Contractor when the contract work is completed.
111-29
60-07 STORAGE OF MATERIALS. Materials shall be so stored as to assure the
preservation of their quality and fitness for the work. Stored materials, even though
approved before storage, may again be inspected prior to their use in the work. Stored
materials shall be located so as to facilitate their prompt inspection. The Contractor
shall coordinate the storage of all materials with the Engineer. Materials to be stored on
airport property shall not create an obstruction to air navigation nor shall they interfere
with the free and unobstructed movement of aircraft. Unless otherwise shown on the
plans, the storage of materials and the location of the Contractor's plant and parked
equipment or vehicles shall be as directed by the Engineer. Private property shall not
be used for storage purposes without written permission of the owner or lessee of such
property. The Contractor shall make all arrangements and bear all expenses for the
storage of materials on private property. Upon request, the Contractor shall furnish the
Engineer a copy of the property owner's permission.
All storage sites on private or airport property shall be restored to their original condition
by the Contractor at his/her entire expense, except as otherwise agreed to (in writing)
by the owner or lessee of the property.
60-08 UNACCEPTABLE MATERIALS. Any material or assembly that does not
conform to the requirements of the contract, plans, or specifications shall be considered
unacceptable and shall be rejected. The Contractor shall remove any rejected material
or assembly from the site of the work, unless otherwise instructed by the Engineer.
Rejected material or assembly, the defects of which have been corrected by the
Contractor, shall not be returned to the site of the work until such time as the Engineer
has approved its used in the work. Per Section 255.04, Florida Statutes, the use of
asbestos or asbestos-based fiber materials is prohibited in any buildings, construction of
which is commenced after September 30, 1983, which is financed with public funds or is
constructed for the express purpose of being leased to any governmental entity.
60-09 OWNER FURNISHED MATERIALS. The Contractor shall furnish all materials
required to complete the work, except those specified herein (if any) to be furnished by
the owner. Owner-furnished materials shall be made available to the Contractor at the
location specified herein.
All costs of handling, transportation from the specified location to the site of work,
storage, and installing owner-furnished materials shall be included in the unit price bid
for the contract item in which such owner-furnished material is used.
After any owner-furnished material has been delivered to the location specified, the
Contractor shall be responsible for any demurrage, damage, loss, or other deficiencies
which may occur during the Contractor's handling, storage, or use of such owner-
furnished material. The owner will deduct from any monies due or to become due the
Contractor any cost incurred by the owner in making good such loss due to the
Contractor's handling, storage, or use of owner-furnished materials.
END OF SECTION 60
111-30
SECTION 70
LEGAL REGULATIONS AND RESPONSIBILITY TO PUBLIC
70-01 LAWS TO BE OBSERVED. The Contractor shall keep fully informed of all
Federal and state laws, all local laws, ordinances, and regulations and all orders and
decrees of bodies or tribunals having any jurisdiction or authority, which in any manner
affect those engaged or employed on the work, or which in any way affect the conduct
of the work. He shall at all times observe and comply with all such laws, ordinances,
regulations, orders, and decrees; and shall protect and indemnify the owner and all
his/her officers, agents, or servants against any claim or liability arising from or based
on the violation of any such law, ordinance, regulation, order, or decree, whether by
himself or his/her employees.
70-02 PERMITS. LICENSES. AND TAXES. The Contractor shall procure all permits
and licenses, pay all charges, fees, and taxes, and give all notices necessary and
incidental to the due and lawful prosecution of the work.
70-03 PATENTED DEVICES. MATERIALS. AND PROCESSES. If the Contractor is
required or desires to use any design, device, material, or process covered by letters of
patent or copyright, he shall provide for such use by suitable legal agreement with the
patentee or owner. The Contractor and the surety shall indemnify and save harmless
the owner, any third party, or political subdivision from any and all claims for
infringement by reason of the use of any such patented design, device, material or
process, or any trademark or copyright, and shall indemnify the owner for any costs,
expenses, and damages which it may be obliged to pay by reason of an infringement, at
any time during the prosecution or after the completion of the work.
70-04 RESTORATION OF SURFACES DISTURBED BY OTHERS. The owner
reserves the right to authorize the construction, reconstruction, or maintenance of any
public or private utility service, FAA or National Oceanic and Atmospheric
Administration (NOAA) facility, or a utility service of another government agency at any
time during the progress of the work. To the extent that such construction,
reconstruction, or maintenance has been coordinated with the owner, such authorized
work (by others) is indicated as follows:
Owner (Utility or Other Facility)
Location (See Plan Sheet No.)
Person to Contact (Name, Title, Address and Phone)
Except as listed above, the Contractor shall not permit any individual, firm, or
corporation to excavate or otherwise disturb such utility services or facilities located
within the limits of the work without the written permission of the Engineer.
Should the owner of public or private utility service, FAA, or NOAA facility, or a utility
111-31
service of another government agency be authorized to construct, reconstruct, or
maintain such utility service or facility during the progress of the work, the Contractor
shall cooperate with such owners by arranging and performing the work in this contract
so as to facilitate such construction, reconstruction or maintenance by others whether or
not such work by others is listed above. When ordered as extra work by the Engineer,
the Contractor shall make all necessary repairs to the work which are due to such
authorized work by others, unless otherwise provided for in the contract, plans, or
specifications. It is understood and agreed that the Contractor shall not be entitled to
make any claim for damages due to such authorized work by others or for any delay to
the work resulting from such authorized work.
70-05 FEDERAL AID PARTICIPATION. For AlP contracts, the United States
Government has agreed to reimburse the owner for some portion of the contract costs.
Such reimbursement is made from time to time upon the owner's (sponsor's) request to
the FAA. In consideration of the United Sates Government's (FAA's) agreement with
the owner, the owner has included provisions in this contract pursuant to the
requirements of the Airport Improvement Act of 1982, as amended by the Airport and
Airway Safety and Capacity Expansion Act of 1987, and the Rules and Regulations of
the FAA that pertain to the work.
As required by the Act, the contract work is subject to the inspection and approval of
duly authorized representatives of the Administrator, FAA, and is further subject to
those provisions of the rules and regulations that are cited in the contract, plans, or
specifications.
No requirement of the Act, the rules and regulations implementing the Act, or this
contract shall be construed as making the Federal Government a party to the contract
nor will any such requirement interfere, in any way, with the rights of either party to the
contract.
70-06 SANITARY. HEALTH. AND SAFETY PROVISIONS. The Contractor shall
provide and maintain in a neat, sanitary condition such accommodations for the use of
his/her employees as may be necessary to comply with the requirements of the state
and local Board of Health, or of other bodies or tribunals having jurisdiction.
Attention is directed to Federal, state, and local laws, rules and regulations concerning
construction safety and health standards. The Contractor shall not require any worker
to work in surroundings or under conditions are unsanitary, hazardous, or dangerous to
his/her health or safety.
70-07 PUBLIC CONVENIENCE AND SAFETY. The Contractor shall control his/her
operations and those of his/her subcontractors and all suppliers, to assure the least
inconvenience to the traveling public. Under all circumstances, safety shall be the most
important consideration.
The Contractor shall maintain the free and unobstructed movement of aircraft and
111-32
vehicular traffic with respect to his/her own operations and those of his/her
subcontractors and all suppliers in accordance with the subsection titled
MAINTENANCE OF TRAFFIC of Section 40 hereinbefore specified and shall limit such
operations for the convenience and safety of the traveling public as specified in the
subsection titled LIMITATION OF OPERATIONS of Section 80 hereinafter.
70-08 BARRICADES. WARNING SIGNS. AND HAZARD MARKINGS. The
Contractor shall furnish, erect, and maintain all barricades, warning signs, and markings
for hazards necessary to protect the public and the work. When used during periods of
darkness, such barricades, warning signs, and hazard markings shall be suitably
illuminated.
For vehicular and pedestrian traffic, the Contractor shall furnish, erect, and maintain
barricades, warning signs, lights and other traffic control devices in reasonable
confonnity with the Manual of Unifonn Traffic Control Devices for Streets and Highways
(published by the United States Government Printing Office).
When the work requires closing an air operations area of the airport or portion of such
area, the Contractor shall furnish, erect, and maintain temporary markings and
associated lighting confonning to the requirements of AC 150/5340-1, 'Marking of Paved
Areas on Airports.
The Contractor shall furnish, erect, and maintain markings and associated lighting of
open trenches, excavations, temporary stockpiles, and his/her parked construction
equipment that may be hazardous to the operation of emergency fire-rescue or
maintenance vehicles on the airport in reasonable confonnance to AC 150/5370-2,
Operational Safety on Airports During Construction Activity.
The Contractor shall identify each motorized vehicle or piece of construction equipment
in reasonable confonnance to AC 150/5370-2.
The Contractor shall furnish and erect all barricades, warning signs, and markings for
hazards prior to commencing work which requires such erection and shall maintain the
barricades, warning signs, and markings for hazards until their dismantling is directed
by the Engineer.
Open-flame type lights shall not be permitted within the air operations areas of the
airport.
70-09 WORK ACCESS. Any haul roads, ditch crossings, storage areas, etc., that the
Contractor may require shall be constructed and maintained at the Contractor's
expense.
111-33
The Contractor shall not use runways, taxiways or other paved areas on the air
operations portions of the airport for access to and from the job site unless authorized
by the Owner. No equipment or vehicles will be allowed on the air operations portions of
the airport except as authorized by the Owner.
Any runways, taxiways or other paved areas damaged by the Contractor's vehicles or
equipment shall be required by the Contractor at no cost to the Owner.
From time to time when required, the Contractor shall move Contractor's vehicles or
equipment and men from along the edge of the runway/taxiway/apron to allow aircraft
operations on the pavement.
70-10 USE OF EXPLOSIVES. When the use of explosives is necessary for the
prosecution of the work, the Contractor shall exercise the utmost care not to endanger
life or property, including new work. The Contractor shall be responsible for all damage
resulting from the use of explosives.
All explosives shall be stored in a secure manner in compliance with all laws and
ordinances, and all such storage places shall be clearly marked. Where no local laws
or ordinances apply, storage shall be provided satisfactory to the Engineer and, in
general, not closer than 1,000 feet (300 m) from the work or from any building, road, or
other place of human occupancy. .
The Contractor shall notify each property owner and public utility company having
structures or facilities in proximity to the site of the work of his/her intention to use
explosives. Such notice shall be given sufficiently in advance to enable them to take
such steps as they may deem necessary to protect their property from injury.
The use of electrical blasting caps shall not be permitted on or within 1,000 feet (300 m)
of the airport property.
70-11 PROTECTION AND RESTORATION OF PROPERTY AND LANDSCAPE. The
Contractor shall be responsible for the preservation of all public and private property,
and shall protect carefully from disturbance or damage all land monuments and property
markers until the Engineer has witnessed or otherwise referenced their location and
shall not move them until directed.
The Contractor shall be responsible for all damage or injury to property of any
character, during the prosecution of the work, resulting from any act, omission, neglect,
or misconduct in his/her manner or method of executing the work, or at any time due to
defective work or materials, and said responsibility will not be released until the project
shall have been completed and accepted.
When or where any direct or indirect damage or injury is done to public or private
property by or on account of any act, omission, neglect, or misconduct in the execution
of the work, or in consequence of the nonexecution thereof by the Contractor, he shall
111-34
restore, at his/her own expense, such property to a condition similar or equal to that
existing before such damage or injury was done, by repairing, or otherwise restoring as
may be directed, or he shall make good such damage or injury in an acceptable
manner.
70-12 RESPONSIBILITY FOR DAMAGE CLAIMS. The Contractor shall indemnify
and save harmless the Engineer and the owner and their officers, and employees from
all suits actions, or claims of any character brought because of any injuries or damage
received or sustained by any person, persons, or property on account of the operations
of the Contractor; or on account of or in consequence of any neglect in safeguarding the
work; or through use of unacceptable materials in constructing the work; or because of
any act or omission, neglect, or misconduct of said Contractor; or because of any claims
or amounts recovered from any infringements of patent, trademark, or copyright; or from
any claims or amounts arising or recovered under the "Workmen's Compensation Act,"
or any other law, ordinance, order, or decree. Money due the Contractor under and by
virtue of his/her contract as may be considered necessary by the owner for such
purpose may be retained for the use of the owner or, in case no money is due, his/her
surety may be held until such suit or suits, action or actions, claim or claims for injuries
or damages as aforesaid shall have been settled and suitable evidence to that effect
furnished to the owner, except that money due the Contractor will not be withheld when
the Contractor produces satisfactory evidence that he is adequately protected by public
liability and property damage insurance.
70-13 THIRD PARTY BENEFICIARY CLAUSE. It is specifically agreed between the
parties executing the contract that it is not intended by any of the provisions of any part
of the contract to create the public or any member thereof a third party beneficiary or to
authorize anyone not a party to the contract to maintain a suit for personal injuries or
property damage pursuant to the terms or provisions of the contract.
70-14 OPENING SECTIONS OF THE WORK TO TRAFFIC. Should it be necessary
for the Contractor to complete portions of the contract work for the beneficial occupancy
of the owner prior to completion of the entire contract, such "phasing" of the work shall
be specified herein and indicated on the plans. When so specified, the Contractor shall
complete such portions of the work on or before the date specified or as otherwise
specified. The Contractor shall
make his/her own estimate of the difficulties involved in arranging his/her work to permit
such beneficial occupancy by the owner as described below:
Phase or Description
Required Date or Sequence of Owner's Beneficial Occupancy
Work Shown on Plan Sheet
Upon completion of any portion of the work listed above, such portion shall be accepted
by the owner in accordance with the subsection titled PARTIAL ACCEPTANCE of
Section 50.
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No portion of the work may be opened by the Contractor for public use until ordered by
the Engineer in writing. Should it become necessary to open a portion of the work to
public traffic on a temporary or intermittent basis, such openings shall be made when, in
the opinion of the Engineer, such portion of the work is in an acceptable condition to
support the intended traffic. Temporary or intermittent openings are considered to be
inherent in the work and shall not constitute either acceptance of the portion of the work
so opened or a waiver of any provision of the contract. Any damage to the portion of
the work so opened that is not attributable to traffic which is permitted by the owner
shall be repaired by the Contractor at his/her expense.
The Contractor shall make his/her own estimate of the inherent difficulties involved in
completing the work under the conditions herein described and shall not claim any
added compensation by reason of delay or increased cost due to opening a portion of
the contract work.
70-15 CONTRACTOR'S RESPONSIBILITY FOR WORK. Until the Engineer's final
written acceptance of the entire completed work, excepting only those portions of the
work accepted in accordance with the subsection titled PARTIAL ACCEPTANCE of
Section 50, the Contractor shall have the charge and care thereof and shall take every
precaution against injury or damage to any part due to the action of the elements or
from any other cause, whether arising from the execution or from the nonexecution of
the work. The Contractor shall rebuild, repair, restore, and make good all injuries or
damages to any portion of the work occasioned by any of the above causes before final
acceptance and shall bear the expense thereof except damage to the work due to
unforeseeable causes beyond the control of and without the fault or negligence of the
Contractor, including but not restricted to acts of God such as earthquake, tidal wave,
tornado, hurricane or other cataclysmic phenomenon of nature, or acts of the public
enemy or of government authorities.
If the work is suspended for any cause whatever, the Contractor shall be responsible for
the work and shall take such precautions necessary to prevent damage to the work.
The Contractor shall provide for normal drainage and shall erect necessary temporary
structures, signs, or other facilities at his/her expense. During such period of
suspension of work, the Contractor shall properly and continuously maintain in an
acceptable growing condition all living material in newly established planting, seedings,
and soddings furnished under his/her contract, and shall take adequate precautions to
protect new tree growth and other important vegetative growth against injury.
70-16 CONTRACTOR'S RESPONSIBILITY FOR UTILITY SERVICE AND
FACILITIES OF OTHERS. As provided in the subsection titled RESTORATION OF
SURFACES DISTURBED BY OTHERS of this section, the Contractor shall cooperate
with the owner of any public or private utility service, FAA or NOAA, or a utility service of
another government agency that may be authorized by the owner to construct,
reconstruct or maintain such utility services or facilities during the progress of the work.
In addition, the Contractor shall control his/her operations to prevent the unscheduled
interruption of such utility services and facilities.
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To the extent that such public or private utility services, FAA, or NOAA facilities, or utility
services of another governmental agency are known to exist within the limits of the
contract work, the approximate locations have been indicated on the plans and the
owners are indicated as follows:
Utility Service or Facility
Person to Contact (Name, Title, Address, & Phone)
Owner's Emergency Contact (Phone)
It is understood and agreed that the owner does not guarantee the accuracy or the
completeness of the location information relating to existing utility services, facilities, or
structures that may be shown on the plans or encountered in the work. Any inaccuracy
or omission in such information shall not relieve the Contractor of his/her responsibility
to protect such existing features from damage or unscheduled interruption of service.
It is further understood and agreed that the Contractor shall, upon execution of the
contract, notify the owners of all utility services or other facilities of his/her plan of
operations. Such notification shall be in writing addressed to THE PERSON TO
CONTACT as provided hereinbefore in this subsection and the subsection titled
RESTORATION OF SURFACES DISTURBED BY OTHERS of this section. A copy of
each notification shall be given to the Engineer.
In addition to the general written notification hereinbefore provided, it shall be the
responsibility of the Contractor to keep such individual owners advised of changes in
his/her plan of operations that would affect such owners.
Prior to commencing the work in the general vicinity of an existing utility service or
facility, the Contractor shall again notify each such owner of his/her plan of operation.
If, in the Contractor's opinion, the owner's assistance is needed to locate the utility
service or facility or the presence of a representative of the owner is desirable to
observe the work, such advice should be included in the notification. Such notification
shall be given by the most expeditious means to reach the utility owner's PERSON TO
CONTACT no later than two normal business days prior to the Contractor's
commencement of operations in such general vicinity. The Contractor shall furnish a
written summary of the notification to the Engineer.
The Contractor's failure to give the two day's notice hereinabove provided shall be
cause for the Engineer to suspend the Contractor's operations in the general vicinity of
a utility service or facility.
Where the outside limits of an underground utility service have been located and staked
on the ground, the Contractor shall be required to use excavation methods acceptable
to the Engineer within 3 feet (90 cm) of such outside limits at such points as may be
required to ensure protection from damage due to the Contractor's operations.
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Should the Contractor damage or interrupt the operation of a utility service or facility by
accident or otherwise, he shall immediately notify the proper authority and the Engineer
and shall take all reasonable measures to prevent further damage or interruption of
service. The Contractor, in such events, shall cooperate with the utility service or facility
owner and the Engineer continuously until such damage has been repaired and service
restored to the satisfaction of the utility or facility owner.
The Contractor shall bear all costs of damage and restoration of service to any utility
service or facility due to his/her operations whether or not due to negligence or accident.
The contract owner reserves the right to deduct such costs from any monies due or
which may become due the Contractor, or his/her surety.
70-17 fURNISHING RIGHTS-Of-WAY. The owner will be responsible for furnishing
all rights-of-way upon which the work is to be constructed in advance of the Contractor's
operations.
70-18 PERSONAL LIABILITY Of PUBLIC OffiCIALS. In carrying out any of the
contract provisions or in exercising any power or authority granted to him by this
contract, there shall be no liability upon the Engineer, his/her authorized
representatives, or any officials of the owner either personally or as an official of the
owner. It is understood that in such matters they act solely as agents and
representatives of the owner.
70-19 NO WAIVER Of LEGAL RIGHTS. Upon completion of the work, the owner will
expeditiously make final inspection and notify the Contractor of final acceptance. Such
final acceptance, however, shall not preclude or estop the owner from correcting any
measurement, estimate, or certificate made before or atter completion of the work, nor
shall the owner be precluded or estopped from recovering from the Contractor or his/her
surety, or both, such overpayment as may be sustained, or by failure on the part of the
Contractor to fulfill his/her obligations under the contract. A waiver on the part of the
owner of any breach of any part of the contract shall not be held to be a waiver of any
other or subsequent breach.
The Contractor, without prejudice to the terms of the contract, shall be liable to the
owner for latent defects, fraud, or such gross mistakes as may amount to fraud, or as
regards the owner's rights under any warranty or guaranty.
70-20 ENVIRONMENTAL PROTECTION. The Contractor shall comply with all
Federal, state, and local laws and regulations controlling pollution of the environment.
He shall take necessary precautions to prevent pollution of streams, lakes, ponds, and
reservoirs with fuels, oils, bitumens, chemicals, or other harmful materials and to
prevent pollution of the atmosphere from particulate and gaseous matter.
In the event of conflict between Federal, State or local laws, codes, ordinances, rules
and regulations concerning pollution control, the most restrictive applicable ones shall
apply. The Contractor shall pay special attention to the pollution control requirements of
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the several specifications. Work items which may cause excessive pollution and shall
be closely controlled by the Contractor are:
(a) Clearing, grubbing, burning or other disposal.
(b) Stripping, excavation, and embankment.
(c) Drainage and ditching.
(d) Aggregate production, handling and placing.
(e) Cement, lime or other stabilization.
(f) Concrete and bituminous materials handling, production, and paving.
(g) Seeding, fertilizing, mulching and use of herbicides or insecticides.
(h) Contractor's own housekeeping items; haul roads; sanitary facilities; water
supply; equipment fueling, servicing an cleaning; job clean up and disposal.
When the Contractor submits his tentative progress schedule in accordance with
PROSECUTION and PROGRESS, Section 80, he shall also submit for acceptance of
the Engineer, his schedules for accomplishment of temporary and pennanent erosion
control work, as are applicable for clearing, grading, structures at watercourses,
construction, and paving, and his proposed method of erosion control schedules and
methods of operations have been accepted by the Engineer.
All bituminous and Portland cement concrete Proportioning plants shall meet state
requirements.
The following listed stipulations shall apply to this Contract unless more restrictive ones
are specified by the Plans, special provisions, laws, codes, ordinance, etc. Cost of
pollution control shall be incidental to the appropriate work items unless otherwise
specified.
(1) Control of Water Pollution and Siltation.
a. All work of water pollution and siltation control is subject to inspection by
the local and/or state government enforcing agent.
b. All applicable regulations of Fish and Wildlife agencies and statutes
relating to the prevention and abatement of pollution shall be complied
with in the performance of the Contract.
c. Construction operations shall be conducted in such manner as to reduce
erosion to the practicable minimum and to prevent damaging siltation of
watercourses, streams, lakes or reservoirs. The surface area or erodible
land, either on or off the airport site, exposed to the elements by clearing,
grubbing or grading operations, including gravel pits, waste or disposal
areas and haul roads, at anyone time, for this Contract, shall be subject to
approval of the Engineer and the duration of such exposure prior to final
trimming and finishing of the areas shall have full authority to order the
suspension of grading and other operations pending adequate and proper
performance of trimming, finishing and maintenance work or to restrict the
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area of erodible land exposed to the elements.
d. Materials used for permanent erosion control measures shall meet the
requirements of the applicable Specifications. Gravel or stone, consisting
of durable particles of rock and containing only negligible quantities of
fines, shall be used for construction pads, haul roads and temporary roads
in or across streams.
e. Where called for on the Plans, a stilling basin shall be constructed to
prevent siltation in the steam from construction operations.
f. The disturbance of lands and waters that are outside the limits of
construction as staked is prohibited, except as found necessary and
approved by the Engineer.
g. The Contractor shall conduct his work in such manner as to prevent the
entry of fuels, oils, bituminous materials, chemicals, sewage or other
harmful materials into streams, rivers, lakes or reservoirs.
h. Water from aggregate washing or other operations containing sediment
shall be treated by filtration, by use of a settling basin or other means to
reduce the sediment content to a level acceptable to the local and/or state
governmental enforcing agent.
i. All waterways shall be cleared as soon as practicable of falsework, piling,
debris or other obstructions placed during construction operations and not
a part of the finished work. Care shall be taken during construction and
removal of such barriers to minimize the muddying of a stream.
j. The Contractor shall care for the temporary erosion and siltation control
measures during the period that the temporary measures are required and
for the permanent erosion control measures until the Contract has been
completed and accepted. Such care shall consist of the repair of areas
damaged by erosion, wind, fire or other causes.
k. Permanent and temporary erosion control work that is damaged due to the
Contractor's operations or where the work required is attributed to the
Contractor's negligence, carelessness or failure to install permanent
controls at the proper time, shall be repaired at the Contractor's expense.
(2) Open Burning of Combustible Wastes.
a. The Contractor shall obtain a burning permit from local authorities, where
applicable, prior to any burning.
b. All burning shall conform to the conditions of the permit, except that the
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conditions herein shall apply if they are more restrictive.
c. No tires, oils (except atomize fuels applied by approved equipment),
asphalt, paint, or coated metals shall be permitted in combustible waste
piles.
d. Burning will not be permitted within 1,000 feet of a residential or built-up
area nor within 100 feet of any standing timber or flammable growth
unless otherwise specified.
e. Burning shall not be permitted unless the prevailing wind is away from a
nearby town or built-up area.
f. Burning shall not be permitted during a local air inversion or other climatic
condition as would result in a pall of smoke over a nearby town or built-up
area.
g. Burning shall not be permitted when the danger of brush of forest fires is
made known by Federal, State, or local officials.
h. The size and number of fires shall be restricted to avoid the danger or
brush or forest fires. Burning shall be done under surveillance of a
watchman who shall have fire-fighting equipment and tools readily
available.
(3) Control of Other air Pollutants.
a. Minimum possible areas of open grading, borrow or aggregate excavation
shall be exposed at one time, consistent with the progress of the Work.
b. Grading areas shall be kept at proper moisture conditions.
c. Sand or dust blows shall be temporarily mulches, with or without seeding,
or otherwise controlled with stabilizing agents.
d. Temporary roads, haul routes, traffic or work areas shall be stabilized with
dust palliative, penetration asphalt, wood chips, or other approved
measures to prevent dust pollution.
e. Cements, fertilizers, chemicals, volatiles, etc., shall be stored in proper
containers or with proper coverings to prevent accidental discharge into
the air.
f. Aggregates bins, cement bins, and dry material batch trucks shall be
properly covered to prevent loss of material to the air.
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g. Drilling, grinding and sand blasting apparatus shall be equipped with
water, chemical, or vacuum dust controlling systems.
h. Applications of chemicals and bitumens shall be held to recommended
rates.
I. Bituminous mixing plants shall be equipped with dust collectors as noted
in the Specifications.
j. Quarrying, batching, and mixing operations and the transfer of material
between trucks, bins, or stockpiles shall be properly controlled to minimize
dust diffusion.
k. When necessary, certain operations shall be delayed until proper wind or
climatic conditions exist to dissipate or inhibit potential pollutants to the
satisfaction of the Engineer.
70-21 ARCHAEOLOGICAL AND HISTORICAL FINDINGS. Unless otherwise
specified in this subsection, the Contractor is advised that the site of the work is not
within any property, district, or site, and does not contain any building, structure, or
object listed in the current National Register of Historic Places published by the United
States Department of Interior.
Should the Contractor encounter, during his/her operations, any building, part of a
building, structure, or object which is incongruous with its surroundings, he shall
immediately cease operations in that location and notify the Engineer. The Engineer
will immediately investigate the Contractor's finding and will direct the Contractor to
either resume his/her operations or to suspend operations as directed.
Should the Engineer order suspension of the Contractor's operations in order to protect
an archaeological or historical finding, or order the Contractor to perform extra work,
such shall be covered by an appropriate contract modification (change order or
supplemental agreement) as provided in the subsection titled EXTRA WORK of Section
40 and the subsection titled PAYMENT FOR EXTRA WORK AND FORCE ACCOUNT
WORK of Section 90. If appropriate, the contract modification shall include an
extension of contract time in accordance with the subsection titled DETERMINATION
AND EXTENSION OF CONTRACT TIME of Section 80.
70-22 INSURANCE. The Contractor shall not commence work under this Contract until
he has obtained and provided insurance of the character specified in the special
provisions which will provide adequate protection to the Owner and the Contractor
against all liabilities, damages and accidents, nor shall he commence work until such
insurance has been approved by the Owner. Neither approval by the Owner, nor a
failure to disapprove insurance furnished by a Contractor shall release the Contractor of
full responsibility for liability, damages and accidents as set forth herein. The Contractor
shall maintain such required insurance in force during the life of this Contract, and no
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modification or change in insurance coverage and provisions shall be made without
thirty (30) days written advance notice to the Owner.
The Contractor shall furnish certificates of insurance to the Owner prior to commencing
any operations under this Contract, which certificates shall clearly indicate that the
Contractor has obtained insurance, in this type, amount and classification, in strict
compliance with this subsection.
70-23 SUBMITTAL OF WAGE RATE SUMMARY. It shall be a condition of this
Contract and shall be made a condition of all Sub-contractors entered into pursuant to
this Contract, that the Contractor and any Sub-Contractor will submit to the Owner
weekly, one copy of the Summary of Wage Rates.
END OF SECTION 70
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SECTION 80
PROSECUTION AND PROGReSS
80-01 SUBLETTING OF CONTRACT. The owner will not recognize any subcontractor
on the work. The Contractor shall at all times when work is in progress be represented
either in person, by a qualified superintendent, or by other designated, qualified
representative who is duly authorized to receive and execute orders of the Engineer.
Should the Contractor elect to assign his/her contract, said assignment shall be
concurred in by the surety, shall be presented for the consideration and approval of the
owner, and shall be consummated only on the written approval of the owner. In case of
approval, the Contractor shall file copies of all subcontracts with the Engineer.
80-02 PRE-CONSTRUCTION CONFERENCE. After the award of the Contract and
prior to the issuance of the "Notice to Proceed", a conference will be held to discuss the
"Notice to Proceed" date, to establish procedures for handling shop drawings and other
submissions and for processing applications for payment, and to establish a working
understanding between the parties as to the project.
80-03 NOTICE TO PROCEED. The notice to proceed shall state the date on which it is
expected the Contractor will begin the construction and from which date contract time
will be charged. The Contractor shall begin the work to be perfonned under the contract
within 10 days of the date set by the Engineer in the written notice to proceed, but in
any event, the Contractor shall notify the Engineer at least 24 hours in advance of the
time actual construction operations will begin.
80-04 PROSECUTION AND PROGRESS. Unless otherwise specified, the Contractor
shall submit his/her progress schedule for the Engineer's approval within 10 days after
the effective date of the notice to proceed. The Contractor's progress schedule, when
approved by the Engineer, may be used to establish major construction operations and
to check on the progress of the work. The Contractor shall provide sufficient materials,
equipment, and labor to guarantee the completion of the project in accordance with the
plans and specifications within the time set forth in the proposal.
If the Contractor falls significantly behind the submitted schedule, the Contractor shall,
upon the Engineer's request, submit a revised schedule for completion of the work
within the contract time and modify his/her operations to provide such additional
materials, equipment, and labor necessary to meet the revised schedule. Should the
prosecution of the work be discontinued for any reason, the Contractor shall notify the
Engineer at least 24 hours in advance of resuming operations.
For AlP contracts, the Contractor shall not commence any actual construction prior to
the date on which the notice to proceed is issued by the owner.
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80-05 LIMITATION OF OPERATIONS. The Contractor shall control his/her operations
and the operations of his/her subcontractors and all suppliers so as to provide for the
free and unobstructed movement of aircraft in the AIR OPERATIONS AREAS of the
airport.
When the work requires the Contractor to conduct his/her operations within an AIR
OPERATIONS AREA of the airport, the work shall be coordinated with airport
management (through the Engineer) at least 48 hours prior to commencement of such
work. The Contractor shall not close an AIR OPERATIONS AREA until so authorized
by the Engineer and until the necessary temporary marking and associated lighting is in
place as provided in the subsection titled BARRICADES, WARNING SIGNS, AND
HAZARD MARKINGS of Section 70.
When the contract work requires the Contractor to work within an AIR OPERATIONS
AREA of the airport on an intermittent basis (intermittent opening and closing of the AIR
OPERATIONS AREA), the Contractor shall maintain constant communications as
hereinafter specified; immediately obey all instructions to vacate the AIR OPERATIONS
AREA; immediately obey all instructions to resume work in such AIR OPERATIONS
AREA. Failure to maintain the specified communications or to obey instructions shall be
cause for suspension of the Contractor's operations in the AIR OPERATIONS AREA
until the satisfactory conditions are provided. The following AIR OPERATIONS AREA
(AOA) cannot be closed to operating aircraft to permit the Contractor's operations on a
continuous basis and will therefore be closed to aircraft operations intennittently as
follows:
AOA
TIME PERIODS AOA CAN BE CLOSED
TYPE OF COMMUNICATIONS REQUIRED WHEN WORKING IN AN AOA
CONTROL AUTHORITY
80-06 CHARACTER OF WORKERS, METHODS. AND EQUIPMENT. The Contractor
shall, at all times, employ sufficient labor and equipment for prosecuting the work to full
completion in the manner and time required by the contract, plans, and specifications.
All workers shall have sufficient skill and experience to perform properly the work
assigned to them. Workers engaged in special work or skilled work shall have sufficient
experience in such work and in the operation of the equipment required to perform the
work satisfactorily.
All equipment which is proposed to be used on the work shall be of sufficient size and in
such mechanical condition as to met requirements of the work and to produce a
satisfactory quality of work. Equipment used on any portion of the work shall be such
that no injury to previously completed work, adjacent property, or existing airport
facilities will result from its use.
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When the methods and equipment to be used by the Contractor in accomplishing the
work are not prescribed in the contract, the Contractor is free to use any methods or
equipment that will accomplish the work in conformity with the requirements of the
contract, plans, and specifications.
When the contract specifies the use of certain methods and equipment, such methods
and equipment shall be used unless others are authorized by the Engineer. If the
Contractor desires to use a method or type of equipment other than specified in the
contract, he may request authority from the Engineer to do so. The request shall be in
writing and shall include a full description of the methods and equipment proposed and
of the reasons for desiring to make the change. If approval is given, it will be on the
condition that the Contractor will be fully responsible for producing work in conformity
with contract requirements. If, after trial use of the substituted methods or equipment,
the Engineer determines that the work produced does not meet contract requirements,
the Contractor shall discontinue the use of the substitute method or equipment and shall
complete the remaining work with the specified methods and equipment. The
Contractor shall remove any deficient work and replace it with work of specified quality,
or take such other corrective action as the Engineer may direct. No change will be
made in basis of payment for the contract items involved nor in contract time as a result
of authorizing a change in methods or equipment under this subsection.
80-07 TEMPORARY SUSPENSION OF THE WORK. The Engineer shall have the
authority to suspend the work wholly, or in part, for such period or periods as he may
deem necessary, due to unsuitable weather, or such other conditions as are considered
unfavorable for the prosecution of the work, or for such time as is necessary due to the
failure on the part of the Contractor to carry out orders given or perform any or all
provisions of the contract.
In the event that the Contractor is ordered by the Engineer, in writing, to suspend work
for some unforeseen cause not otherwise provided for in the contract and over which
the Contractor has no control, the Contractor may be reimbursed for actual money
expended on the work during the period of shutdown. No allowance will be made for
anticipated profits. The period of shutdown shall be computed from the effective date of
the Engineer's order to suspend work to the effective date of the Engineer's order to
resume the work. Claims for such compensation shall be filed with the Engineer within
the time period stated in the Engineer's order to resume work. The Contractor shall
submit with his/her claim information substantiating the amount shown on the claim.
The Engineer will forward the Contractor's claim to the owner for consideration in
accordance with local laws or ordinances. No provision of this article shall be construed
as entitling the Contractor to compensation for delays due to inclement weather, for
suspensions made at the request of the Contractor, .or for any other delay provided for
in the contract, plans, or specifications.
If it should become necessary to suspend work for an indefinite period, the Contractor
shall store all materials in such manner that they will not become an obstruction nor
become damaged in any way. He shall take every precaution to prevent damage or
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deterioration of the work performed and provide for normal drainage of the work. The
Contractor shall erect temporary structures where necessary to provide for traffic on, to,
or from the airport.
80-08 DETERMINATION AND EXTENSION OF CONTRACT TIME. The number of
calendar or working days allowed for completion of the work shall be stated in the
proposal and contract and shall be known as the CONTRACT TIME.
Should the contract time require extension for reasons beyond the Contractor's control,
it shall be adjusted as follows:
A. CONTRACT TIME based on WORKING DAYS shall be calculated weekly by the
Engineer. The Engineer will furnish the Contractor a copy of his/her weekly
statement of the number of working days charged against the contract time
during the week and the number of working days currently specified for
completion of the contract (the original contract time plus the number of working
days, if any, that have been included in approved CHANGE ORDERS or
SUPPLEMENTAL AGREEMENTS covering EXTRA WORK).
The Engineer shall base his/her weekly statement of contract time charged on
the following considerations:
1) No time shall be charged for days on which the Contractor is
unable to proceed with the principal item of work under construction
at the time for at least 6 hours with the normal work force employed
on such principal item. Should the normal work force be on a
double-shift, 12 hours shall be used. Should the normal work force
be on a triple-shift, 18 hours shall apply. Conditions beyond the
Contractor's control such as strikes, lockouts, unusual delays in
transportation, temporary suspension of the principal item of work
under construction or temporary suspension of the entire work
which have been ordered by the Engineer for reasons not the fault
of the Contractor, shall not be charged against the contract time.
2) The Engineer will not make charges against the contract time prior
to the effective date of the notice to proceed.
3) The Engineer will begin charges against the contract time on the
first working day after the effective date of the notice to proceed.
4) The Engineer will not make charges against the contract time after
the date of final acceptance as defined in the subsection titled
FINAL ACCEPTANCE of Section 50.
5) The Contractor will be allowed 1 week in which to file a written
protest setting forth his/her objections to the Engineer's weekly
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statement. If no objection is filed within such specified time, the
weekly statement shall be considered as acceptable to the
Contractor.
The contract time (stated in the proposal) is based on the originally estimated
quantities as described in the subsection titled INTERPRETATION OF
ESTIMATED PROPOSAL QUANTITIES of Section 20. Should the satisfactory
completion of the contract require performance of work in greater quantities than
those estimated in the proposal, the contract time shall be increased in the same
proportion as the cost of the actually completed quantities bears to the cost of the
originally estimated quantities in the proposal. Such increase in contract time
shall not consider either the cost of work or the extension of contract time that
has been covered by change order or supplemental agreement and shall be
made at the time of final payment.
B. CONTRACT TIME based on CALENDAR DAYS shall consist of the number of
calendar days stated in the contract counting from the effective date of the notice
to proceed and including all Saturdays, Sundays, holidays, and nonwork days.
All calendar days elapsing between the effective dates of the Engineer's orders
to suspend and resume all work, due to causes not the fault of the Contractor,
shall be excluded.
At the time of final payment, the contract time shall be increased in the same
proportion as the cost of the actually completed quantities bears to the cost of the
originally estimated quantities in the proposal. Such increase in the contract time
shall not consider either cost of work or the extension of contract time that has
been covered by a change order or supplemental agreement. Charges against
the contract time will cease as of the date of final acceptance.
C. When the contract time is a specified completion date, it shall be the date on
which all contract work shall be substantially completed.
If the Contractor finds it impossible for reasons beyond his/her control to
complete the work within the contract time as specified, or as extended in
accordance with the provisions of this subsection, he may, at any time prior to
the expiration of the contract time as extended, make a written request to the
Engineer for an extension of time setting forth the reasons which he believes will
justify the granting of his/her request. The Contractor's plea that insufficient time
was specified is not a valid reason for extension of time. If the Engineer finds
that the work was delayed because of conditions beyond the control and without
the fault of the Contractor, he may extend the time for completion in such amount
as the conditions justify. The extended time for completion shall then be in full
force and effect, the same as though it were the original time for completion.
80-09 FAILURE TO COMPLETE ON TIME. For each calendar day or working day, as
specified in the contract, that any work remains uncompleted after the contract time
111-48
(including all extensions and adjustments as provided in the subsection titled
DETERMINATION AND EXTENSION OF CONTRACT TIME of this Section) the sum
specified in the contract and proposal as liquidated damages will be deducted from any
money due or to become due the Contractor or his/her surety. Such deducted sums
shall not be deducted as a penalty but shall be considered as liquidation of a
reasonable portion of damages that will be incurred by the owner should the Contractor
fail to complete the work in the time provided in his/her contract.
Permitting the Contractor to continue and finish the work or any part of it after the time
fixed for its completion, or after the date to which the time for completion may have
been extended, will in no way operate as a wavier on the part of the owner of any of its
rights under the contract.
80-10 DEFAULT AND TERMINATION OF CONTRACT. The Contractor shall be
considered in default of his/her contract and such default will be considered as cause
for the owner to terminate the contract for any of the following reasons if the Contractor:
A. Fails to begin the work under the contract within the time specified in the
"Notice to Proceed," or
B. Fails to perform the work or fails to provide sufficient workers, equipment
or materials to assure completion of work in accordance with the terms of
the contract, or
C. Performs the work unsuitably or neglects or refuses to remove materials
or to perform anew such work as may be rejected as unacceptable and
unsuitable, or
D. Discontinues the prosecution of the work, or
E. Fails to resume work which has been discontinued within a reasonable
time after notice to do so, or
F. Becomes insolvent or is declared bankrupt, or commits any act of
bankruptcy or insolvency, or
G. Allows any final judgment to stand against him unsatisfied for a period of
10 days, or
H. Makes an assignment for the benefit of creditors, or
I. For any other cause whatsoever, fails to carry on the work in an
acceptable manner.
Should the Engineer consider the Contractor in default of the contract for any reason
hereinbefore, he shall immediately give written notice to the Contractor and the
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Contractor's surety as to the reasons for considering the Contractor in default and the
owner's intentions to terminate the contract.
If the Contractor or surety, within a period of 10 days after such notice, does not
proceed in accordance therewith, then the owner will, upon written notification from the
Engineer of the facts of such delay, neglect, or default and the Contractor's failure to
comply with such notice, have full power and authority without violating the contract, to
take the prosecution of the work out of the hands of the Contractor. The owner may
appropriate or use any or all materials and equipment that have been mobilized for use
in the work and are acceptable and may enter into an agreement for the completion of
said contract according to the terms and provisions thereof, or use such other methods
as in the opinion of the Engineer will be required for the completion of said contract in
an acceptable manner.
All costs and charges incurred by the owner, together with the cost of completing the
work under contract, will be deducted from any monies due or which may become due
the Contractor. If such expense exceeds the sum which would have been payable
under the contract, then the Contractor and the surety shall be liable and shall pay to
the owner the amount of such excess.
80-11 TERMINATION FOR NATIONAL EMERGENCIES. The owner shall tenninate
the contract or portion thereof by written notice when the Contractor is prevented from
proceeding with the construction contract as a direct result of an Executive Order of the
President with respect to the prosecution of war or in the interest of national defense.
When the contract, or any portion thereof, is terminated before completion of all items of
work in the contract, payment will be made for the actual number of units or items of
work completed at the contract price or as mutually agreed for items of work partially
completed or not started. No claims or loss of anticipated profits shall be considered.
Reimbursement for organization of the work, and other overhead expenses, (when not
otherwise included in the contract) and moving equipment and materials to and from the
job will be considered, the intent being that an equitable settlement will be made with
the Contractor.
Acceptable materials, obtained or ordered by the Contractor for the work and that are
not incorporated in the work shall, at the option of the Contractor, be purchased from
the Contractor at actual cost as shown by receipted bills and actual cost records at such
points of delivery as may be designated by the Engineer.
Termination of the contract or a portion thereof shall neither relieve the Contractor of
his/her responsibilities for the completed work nor shall it relieve his/her surety of its
obligation for and concerning any just claim arising out of the work performed.
END OF SECTION 80
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SECTION 90
MEASUREMENT AND PAYMENT
90-01 MEASUREMENT OF QUANTITIES. All work completed under the contract will
be measured by the Engineer, or his/her authorized representatives, using United
States Customary Units of Measurement or the International System of Units.
The method of measurement and computations to be used in determination of
quantities of material furnished and of work performed under the contract will be those
methods generally recognized as conforming to good engineering practice.
Unless otherwise specified, longitudinal measurements for area computations will be
made horizontally, and no deductions will be made for individual fixtures (or leave-outs)
having an area of 9 square feet (0.8 square meter) or less. Unless otherwise specified,
transverse measurements for area computations will be the neat dimensions shown on
the plans or ordered in writing by the Engineer.
Structures will be measured according to neat lines shown on the plans or as altered to
fit field conditions.
Unless otherwise specified, all contract items which are measured by the linear foot
such as electrical ducts, conduits, pipe culverts, underdrains, and similar items shall be
measured parallel to the base or foundation upon which such items are placed.
In computing volumes of excavation the average end area method or other acceptable
methods will be used.
The thickness of plates and galvanized sheet used in the manufacture of corrugated
metal pipe, metal plate pipe culverts and arches, and metal cribbing will be specified
and measured in decimal fraction of inches.
The term "ton" will mean the short ton consisting of 2,000 pounds (907 kilograms)
avoirdupois. All materials which are measured or proportioned by weights shall be
weighed on accurate, approved scales by competent, qualified personnel at locations
designed by the Engineer. If material is shipped by rail, the car weight may be accepted
provided that only the actual weight of material be paid for. However, car weights will
not be acceptable for material to be passed through mixing plants. Trucks used to haul
material being paid for by weight shall be weighed empty daily at such times as the
Engineer directs, and each truck shall bear a plainly legible identification mark.
Materials to be measured by volume in the hauling vehicle shall be hauled in approved
vehicles and measured therein at the point of delivery. Vehicles for this purpose may
be of any size or type acceptable to the Engineer, provided that the body is of such
shape that the actual contents may be readily and accurately determined. All vehicles
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shall be loaded to at least their water level capacity, and all loads shall be leveled when
the vehicles arrive at the point of delivery.
When requested by the Contractor and approved by the Engineer in writing, material
specified to be measured by the cubic yard (cubic meter) may be weighed, and such
weights will be converted to cubic yards (cubic meters) for payment purposes. Factors
for conversion from weight measurement to volume measurement will be determined by
the Engineer and shall be agreed to by the Contractor before such method of
measurement of pay quantities is used.
Bituminous materials will be measured by the gallon (liter) or ton (kilogram). When
measured by volume, such volumes will be measured at 60 F (15 C) or will be corrected
to the volume at 60 F (15 C) using ASTM D 1250 for asphalts or ASTM 0 633 for tars.
Net certified scale weights or weights based on certified volumes in the case of rail
shipments will be used as a basis of measurement, subject to correction when
bituminous material has been lost from the car or the distributor, wasted, or otherwise
not incorporated in the work.
When bituminous materials are shipped by truck or transport, net certified weights by
volume, subject to correction for loss or foaming, may be used for computing quantities.
Cement will be measured by the ton (kilogram) or hundredweight (kilogram).
Timber will be measured by the thousand feet board measure (M.F.B.M.) actually
incorporated in the structure. Measurement will be based on nominal widths and
thicknesses and the extreme length of each piece.
The term "lump sum" when used as an item of payment will mean complete payment
for the work described in the contract.
When a complete structure or structural unit (in effect, "Iump sum" work) is specified as
the unit of measurement, the unit will be construed to include all necessary fittings and
accessories.
Rental of equipment will be measured by time in hours of actual working time and
necessary traveling time of the equipment within the limits of the work. Special
equipment ordered by the Engineer in connection with force account work will be
measured as agreed in the change order or supplemental agreement authorizing such
force account work as provided in the subsection titled PAYMENT FOR EXTRA AND
FORCE ACCOUNT WORK of this section.
When standard manufactured items are specified such as fence, wire, plates, rolled
shapes, pipe conduit, etc., and these items are identified by gage, unit weight, section
dimensions, etc., such identification will be considered to be nominal weights or
dimensions. Unless more stringently controlled by tolerances in cited specifications,
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manufacturing tolerances established by the industries involved will be accepted.
Scales for weighing materials which are required to be proportioned or measured and
paid for by weight shall be furnished, erected, and maintained by the Contractor, or be
certified permanently installed commercial scales.
Scales shall be accurate within one-half percent of the correct weight throughout the
range of use. The Contractor shall have the scales checked under the observation of
the inspector before beginning work and at such other times as requested. The
intervals shall be uniform in spacing throughout the graduated or marked length of the
beam or dial and shall not exceed one-tenth of 1 percent of the nominal rated capacity
of the scale, but not less than 1 pound (454 grams). The use of spring balances will not
be permitted.
Beams, dials, platforms, and other scale equipment shall be so arranged that the
operator and the inspector can safely and conveniently view them.
Scale installations shall have available ten standard 50-pound (2.3 kilogram) weights for
testing the weighing equipment or suitable weights and devices for other approved
equipment.
Scales must be tested for accuracy and serviced before use at a new site. Platform
scales shall be installed and maintained with the platform level and rigid bulkheads at
each end.
Scales "overweighing" (indicating more than correct weight) will not be permitted to
operate, and all materials received subsequent to the last previous correct weighting-
accuracy test will be reduced by the percentage of error in excess of one-half of 1
percent.
In the event inspection reveals the scales have been "underweighing" (indicating less
than correct weight), they shall be adjusted, and no additional payment to the
Contractor will be allowed for materials previously weighed and recorded.
All costs in connection with furnishing, installing, certifying, testing, and maintaining
scales; for furnishing check weights and scale house; and for all other items specified in
this subsection, for the weighing of materials for proportioning or payment, shall be
included in the unit contract prices for the various items of the project.
When the estimated quantities for a specific portion of the work are designated as the
pay quantities in the contract, they shall be the final quantities for which payment for
such specific portion of the work will be made, unless the dimensions of said portions of
the work shown on the plans are revised by the Engineer. If revised dimensions result
in an increase or decrease in the quantities of such work, the final quantities for
payment will be revised in the amount represented by the authorized changes in the
dimensions.
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90-02 SCOPE OF PAYMENT. The Contractor shall receive and accept compensation
provided for in the contract as full payment for furnishing all materials, for performing all
work under the contract in a complete and acceptable manner, and for all risk, loss,
damage, or expense of whatever character arising out of the nature of the work or the
prosecution thereof, subject to the provisions of the subsection titled NO WAIVER OF
LEGAL RIGHTS of Section 70.
When the "basis of payment" subsection of a technical specification requires that the
contract price (price bid) include compensation for certain work or material essential to
the item, this same work or material will not also be measured for payment under any
other contract item which may appear elsewhere in the contract, plans, or
specifications.
90-03 COMPENSATION FOR ALTERED QUANTITIES. When the accepted
quantities of work vary from the quantities in the proposal, the Contractor shall accept
as payment in full, so far as contract items are concerned, payment at the original
contract price for the accepted quantities of work actually completed and accepted. No
allowance, except as provided for in the subsection titled ALTERATION OF WORK
AND QUANTITIES of Section 40 will be made for any increased expense, loss of
expected reimbursement, or loss of anticipated profits suffered or claimed by the
Contractor which results directly from such alterations or indirectly from hislher
unbalanced allocation of overhead and profit among the contract items, or from any
other cause.
90-04 PAYMENT FOR OMITTED ITEMS. As specified in the subsection titled
OMITTED ITEMS of Section 40, the Engineer shall have the right to omit from the work
(order nonperformance) any contract item, except major contract items, in the best
interest of the owner.
Should the Engineer omit or order nonperformance of a contract item or portion of such
item from the work, the Contractor shall accept payment in full at the contract prices for
any work actually completed and acceptable prior to the Engineer's order to omit or
nonperform such contract item.
Acceptable materials ordered by the Contractor or delivered on the work prior to the
date of the Engineer's order will be paid for at the actual cost to the Contractor and shall
thereupon become the property of the owner.
In addition to the reimbursement hereinbefore provided, the Contractor shall be
reimbursed for all actual costs incurred for the purpose of performing the omitted
contract item prior to the date of the Engineer's order. Such additional costs incurred by
the Contractor must be directly related to the deleted contract item and shall be
supported by certified statements by the Contractor as to the nature the amount of such
costs.
90-05 PAYMENT FOR EXTRA AND FORCE ACCOUNT WORK. Extra work,
I" -54
performed in accordance with the subsection titled EXTRA WORK of Section 40, will be
paid for at the contract prices or agreed prices specified in the change order or
supplemental agreement authorizing the extra work. When the change order or
supplemental agreement authorizing the extra work requires that it be done by force
account, such force account shall be measured and paid for based on expended labor,
equipment, and materials plus a negotiated and agreed upon allowance for overhead
and profit.
A. Miscellaneous. No additional allowance will be made for general
superintendence, the use of small tools, or other costs for which no
specific allowance is herein provided.
B. Comparison of Record. The Contractor and the Engineer shall compare
records of the cost of force account work at the end of each day.
Agreement shall be indicated by signature of the Contractor and the
Engineer or their duly authorized representatives.
C. Statement. No payment will be made for work perfonned on a force
account basis until the Contractor has furnished the Engineer with
duplicate itemized statements of the cost of such force account work
detailed as follows:
1) Name, classification, date, daily hours, total hours, rate and
extension for each laborer and foreman.
2) Designation, dates, daily hours, total hours, rental rate, and
extension for each unit of machinery and equipment.
3) Quantities of materials, prices, and extensions.
4) Transportation of materials.
5) Cost of property damage, liability and workman's compensation
insurance premiums, unemployment insurance contributions, and
social security tax.
Statements shall be accompanied and supported by a receipted invoice for all materials
used and transportation charges. However, if materials used on the force account work
are not specifically purchased for such work but are taken from the Contractor's stock,
then in lieu of the invoices the Contractor shall furnish an affidavit certifying that such
materials were taken from his/her stock, that the quantity claimed was actually used,
and that the price and transportation claimed represent the actual cost to the
Contractor.
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90-06 PARTIAL PAYMENTS. Partial payments will be made at least once each month
as the work progresses. Said payments will be based upon estimates prepared by the
Engineer of the value of the work performed and matenals complete in place in
accordance with the contract, plans, and specifications. Such partial payments may
also include the delivered actual cost of those materials stockpiled and stored in
accordance with the subsection titled PAYMENT FOR MATERIALS ON HAND of this
section.
No partial payment will be made when the amount due the Contractor since the last
estimate amounts to less than five hundred dollars.
From the total of the amount determined to be payable on a partial payment, 10 percent
of such total amount will be deducted and retained by the owner until the final payment
is made, except as may be provided (at the Contractor's option) in the subsection titled
PAYMENT OF WITHHELD FUNDS of this section. The balance (90 percent) of the
amount payable, less all previous payments, shall be certified for payment. Should the
Contractor exercise his/her option, as provided in the subsection titled PAYMENT OF
WITHHELD FUNDS ofthis section, no such 10 percent retainage shall be deducted.
When not less than 95 percent of the work has been completed the Engineer may, at
his/her discretion and with the consent of the surety, prepare an estimate from which
will be retained an amount not less than twice the contract value or estimated cost,
whichever is greater, of the work remaining to be done. The remainder, less all
previous payments and deductions, will then be certified for payment to the Contractor.
It is understood and agreed that the Contractor shall not be entitled to demand or
receive partial payment based on quantities of work in excess of those provided in the
proposal or covered by approved change orders or supplemental agreements, except
when such excess quantities have been determined by the Engineer to be a part of the
final quantity for the item of work in question.
No partial payment shall bind the owner to the acceptance of any materials or work in
place as to quality or quantity. All partial payments are subject to correction at the time
of final payment as provided in the subsection titled ACCEPTANCE AND FINAL
PAYMENT of this section.
90-07 PAYMENT FOR MATERIALS ON HAND. Partial payments may be made to the
extent of the delivered cost of materials to be incorporated in the work, provided that
such materials meet the requirements of the contract, plans, and speCifications and are
delivered to acceptable sites on the airport property or at other sites in the vicinity that
are acceptable to the owner. Such delivered costs of stored or stockpiled materials may
be included in the next partial payment after the following conditions are met:
A. The material has been stored or stockpiled in a manner acceptable to the
Engineer at or on an approved site.
III-56
B. The Contractor has furnished the Engineer with acceptable evidence of
the quantity and quality of such stored or stockpiled materials.
C. The Contractor has furnished the Engineer with satisfactory evidence that
the material and transportation costs have been paid.
D. The Contractor has furnished the owner legal title (free of liens or
encumbrances of any kind) to the material so stored or stockpiled.
E. The Contractor has furnished the owner evidence that the material so
stored or stockpiled is insured against loss by damage to or
disappearance of such materials at anytime prior to use in the work.
It is understood and agreed that the transfer of title and the owner's payment for such
stored or stockpiled materials shall in no way relieve the Contractor of his/her
responsibility for furnishing and placing such materials in accordance with the
requirements of the contract, plans, and specifications.
In no case will the amount of partial payments for materials on hand exceed the contract
price for such materials or the contract price for the contract item in which the material is
intended to be used.
No partial payment will be made for stored or stockpiled living or perishable plant
materials.
The Contractor shall bear all costs associated with the partial payment of stored or
stockpiled materials in accordance with the provisions of this subsection.
90-08 PAYMENT OF WITHHELD FUNDS. At the Contractor's option, he/she may
request that the owner accept (in lieu of the 10 percent retainage on partial payments
described in the subsection titled PARTIAL PAYMENTS of this section) the Contractor's
deposits in escrow under the following conditions.
A. The Contractor shall bear all expenses of establishing and maintaining an
escrow account and escrow agreement acceptable to the owner.
B. The Contractor shall deposit to and maintain in such escrow only those
securities or bank certificates of deposit as are acceptable to the owner
and having a value not less than the 10 percent retainage that would
otherwise be withheld from partial payment.
C. The Contractor shall enter into an escrow agreement satisfactory to the
owner.
D. The Contractor shall obtain the written consent of the surety to such
agreement.
III-57
90-09 ACCEPTANCE AND FINAL PAYMENT. When the contract work has been
accepted in accordance with the requirements of the subsection titled FINAL
ACCEPTANCE of Section 50, the Engineer will prepare the final estimate of the items of
work actually performed. The Contractor shall approve the Engineer's final estimate or
advise the Engineer of his/her objections to the final estimate which are based on
disputes in measurements or computations of the final quantities to be paid under the
contract as amended by change order or supplemental agreement. The Contractor and
the Engineer shall resolve all disputes (if any) in the measurement and computation of
final quantities to be paid within 30 calendar days of the Contractor's receipt of the
Engineer's final estimate. If, after such 3D-day period, a dispute still exists, the
Contractor may approve the Engineer's estimate under protest of the quantities in
dispute, and such disputed quantities shall be considered by the owner as a claim in
accordance with the subsection titled CLAIMS FOR ADJUSTMENT AND DISPUTES of
Section 50.
After the Contractor has approved, or approved under protest, the Engineer's final
estimate, final payment will be processed based on the entire sum, or the undisputed
sum in case of approval under protest, determined to be due the Contractor less all
previous payments and all amounts to be deducted under the provisions of the contract.
All prior partial estimates and payments shall be subject to correction in the final
estimate and payment.
If the Contractor has filed a claim for additional compensation under the provisions of
the subsection titled CLAIMS FOR ADJUSTMENTS AND DISPUTES of Section 50 or
under the provisions of this subsection, such claims will be considered by the owner in
accordance with local laws or ordinances. Upon final adjudication of such claims, any
additional payment determined to be due the Contractor will be paid pursuant to a
supplemental final estimate.
END OF SECTION 90
III-58
SECTION 100
CONTRACTOR QUALITY CONTROL PROGRAM
100-01 GENERAL. When the specifications require a Contractor Quality Control
Program, the Contractor shall establish, provide, and maintain an effective Quality
Control Program that details the methods and procedures that will be taken to assure
that all materials and completed construction conform to contract plans, technical
specifications and other requirements, whether manufactured by the Contractor, or
procured from subcontractors or vendors. Although guidelines are established and
certain minimum requirements are specified herein and elsewhere in the contract
technical specifications, the Contractor shall assume full responsibility for accomplishing
the stated purpose.
The intent of this section is to enable the Contractor to establish a necessary level of
control that will:
A. Adequately provide for the production of acceptable quality materials.
B. Provide sufficient information to assure both the Contractor and the
Engineer that the specification requirements can be met.
C. Allow the Contractor as much latitude as possible to develop his or her
own standard of control.
The Contractor shall be prepared to discuss and present, at the preconstruction
conference, his/her understanding of the quality control requirements. The Contractor
shall not begin any construction or production of materials to be incorporated into the
completed work. until the Quality Control Program has been reviewed by the Engineer.
No partial payment will be made for materials subject to specific quality control
requirements until the Quality Control Program has been reviewed.
The quality control requirements contained in this section and elsewhere in the contract
technical specifications are in addition to and separate from the acceptance testing
requirements. Acceptance testing requirements are the responsibility of the Engineer.
100-02 DESCRIPTION OF PROGRAM.
A. General Description. The Contractor shall establish a Quality Control
Program to perform inspection and testing of all items of work required by
the technical specifications. including those performed by subcontractors.
This Quality Control Program shall ensure conformance to applicable
specifications and plans with respect to materials, workmanship,
construction, finish, and functional performance. The Quality Control
Program shall be effective for control of all construction work performed
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under this Contract and shall specifically include surveillance and tests
required by the technical specifications, in addition to other requirements
of this section and any other activities deemed necessary by the
Contractor to establish an effective level of quality control.
B. Quality Control Program. The Contractor shall describe the Quality
Control Program in a written document which shall be reviewed by the
Engineer prior to the start of any production, construction, or off-site
fabrication. The written Quality Control Program shall be submitted to the
Engineer for review at least seven (7) calendar days before the
Preconstruction Conference.
The Quality Control Program shall be organized to address, as a minimum, the following
items:
A. Quality control organization;
B. Project progress schedule;
C. Submittals schedule;
D. Inspection requirements;
E. Quality control testing plan;
F. Documentation of quality control activities; and
G. Requirements for corrective action when quality control and/or acceptance
criteria are not met.
The Contractor is encouraged to add any additional elements to the Quality Control
Program that he/she deems necessary to adequately control all production and/or
construction processes required by this contract.
100-03 QUALITY CONTROL ORGANIZATION. The Contractor's Quality Control
Program shall be implemented by the establishment of a separate quality control
organization. An organizational chart shall be developed to show all quality control
personnel and how these personnel integrate with other management/production and
construction functions and personnel.
The organizational chart shall identify all quality control staff by name and function, and
shall indicate the total staff required to implement all elements of the Quality Control
Program, including inspection and testing for each item of work. If necessary, different
technicians can be utilized for specific inspection and testing functions for different items
of work. If an outside organization or independent testing laboratory is used for
implementation of all or part of the Quality Control Program, the personnel assigned
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shall be subject to the qualification requirements of paragraph 100-03a and 100-03b.
The organizational chart shall indicate which personnel are Contractor employees and
which are provided by an outside organization.
The quality control organization shall consist of the following minimum personnel:
A. Program Administrator. The Program Administrator shall be a full-time
employee of the Contractor, or a consultant engaged by the Contractor.
The Program Administrator shall have a minimum of 5 years of experience
in airport and/or highway construction and shall have had prior quality
control experience on a project of comparable size and scope as the
contract.
Additional qualifications for the Program Administrator shall include at
least 1 of the following requirements:
1 ) Professional engineer with 1 year of airport paving experience
acceptable to the Engineer.
2) Engineer-in-training with 2 years of airport paving experience
acceptable to the Engineer.
3) An individual with 3 years of highway and/or airport paving
experience acceptable to the Engineer, with a Bachelor of Science
Degree in Civil Engineering, Civil Engineering Technology or
Construction.
4) Construction materials technician certified at level III by the
National Institute for Certification in Engineering Technologies
(NICET).
5) Highway materials technician certified at level III by NICET.
6) Highway construction technician certified at level III by NICET.
7) A NICET certified engineering technician in Civil Engineering
Technology with 5 years of highway and/or airport paving
experience acceptable to the Engineer.
The Program Administrator shall have full authority to institute any and all
actions necessary for the successful implementation of the Quality Control
Program to ensure compliance with the contract plans and technical
specifications. The Program Administrator shall report directly to a
responsible officer of the construction firm. The Program Administrator
may supervise the Quality Control Program on more than one project
provided that person can be at the job site within 2 hours after being
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notified of a problem.
B. Quality Control Technicians. A sufficient number of quality control
technicians necessary to adequately implement the Quality Control
Program shall be provided. These personnel shall be either engineers,
engineering technicians, or experienced craftsman with qualifications in
the appropriate field equivalent to NICET Level " or higher construction
materials technician or highway construction technician and shall have a
minimum of 2 years of experience in their area of expertise.
The quality control technicians shall report directly to the Program
Administrator and shall perform the following functions:
1) Inspection of all materials, construction, plant, and equipment for
conformance to the technical specifications, and as required by
Section 100-06.
2) Performance of all quality control tests as required by the technical
specifications and Section 100-07.
Certification at an equivalent level, by a state or nationally recognized
organization will be acceptable in lieu of NICET certification.
C. Staffing Levels. The Contractor shall provide sufficient qualified quality
control personnel to monitor each work activity at all times. Where
material is being produced in a plant for incorporation into the work,
separate plant and field technicians shall be provided at each plant and
field placement location. The scheduling and coordinating of all inspection
and testing must match the type and pace of work activity. The Quality
Control Program shall state where different technicians will be required for
different work elements.
100-04 PROJECT PROGRESS SCHEDULE. The Contractor shall submit a
coordinated construction schedule for all work activities. The schedule shall be
prepared as a network diagram in Critical Path Method (CPM), PERT, or other format,
or as otherwise specified in the contract. As a minimum, it shall provide information on
the sequence of work activities, milestone dates, and activity duration.
The Contractor shall maintain the work schedule and provide an update and analysis of
the progress schedule on a twice monthly basis, or as otherwise specified in the
contract. Submission of the work schedule shall not relieve the Contractor of overall
responsibility for scheduling, sequencing, and coordinating all work to comply with the
requirements of the contract.
100-05 SUBMITTALS SCHEDULE. The Contractor shall submit a detailed listing of all
submittals (e.g., mix designs, material certifications) and shop drawings required by the
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technical specifications. The listing can be developed in a spreadsheet format and shall
include:
A. Specification item number;
B. Item description;
C. Description of submittal;
D. Specification paragraph requiring submittal; and
E. Scheduled date of submittal.
100-06 INSPECTION REQUIREMENTS. Quality control inspection functions shall be
organized to provide inspections for all definable features of work, as detailed below.
All inspections shall be documented by the Contractor as specified by Section 100-07.
Inspections shall be performed daily to ensure continuing compliance with contract
requirements until completion of the particular feature of work. These shall include the
following minimum requirements:
A. During plant operation for material production, quality control test results
and periodic inspections shall be utilized to ensure the quality of
aggregates and other mix components, and to adjust and control mix
proportioning to meet the approved mix design and other requirements of
the technical specifications. All equipment utilized in proportioning and
mixing shall be inspected to ensure its proper operating condition. The
Quality Control Program shall detail how these and other quality control
functions will be accomplished and utilized.
B. During field operations, quality control test results and periodic inspections
shall be utilized to ensure the quality of all materials and workmanship. All
equipment utilized in placing, finishing, and compacting shall be inspected
to ensure its proper operating condition and to ensure that all such
operations are in conformance to the technical specifications and are
within the plan dimensions, lines, grades, and tolerances specified. The
Program shall document how these and other quality control functions will
be accomplished and utilized.
100-07 QUALITY CONTROL TESTING PLAN. As a part of the overall Quality Control
Program, the Contractor shall implement a quality control testing plan, as required by
the technical specifications. The testing plan shall include the minimum tests and test
frequencies required by each technical specification Item, as well as any additional
quality control tests that the Contractor deems necessary to adequately control
production and/or construction processes.
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The testing plan can be developed in a spreadsheet fashion and shall, as a minimum,
include the following:
A. Specification item number (e.g., P-401);
B. Item description (e.g., Plant Mix Bituminous Pavements);
C. Test type (e.g., gradation, grade, asphalt content);
D. Test standard (e.g., ASTM or AASHTO test number, as applicable);
E. Test frequency (e.g., as required by technical specifications or minimum
frequency when requirements are not stated);
F. Responsibility (e.g., plant technician); and
G. Control requirements (e.g., target, permissible deviations).
The testing plan shall contain a statistically-based procedure of random sampling for
acquiring test samples in accordance with ASTM 0 3665. The Engineer shall be
provided the opportunity to witness quality control sampling and testing.
All quality control test results shall be documented by the Contractor as required by
Section 100-08.
100-08 DOCUMENTATION. The Contractor shall maintain current quality control
records of all inspections and tests performed. These records shall include factual
evidence that the required inspections or tests have been performed, including type and
number of inspections or tests involved; results of inspections or tests; nature of
defects, deviations, causes for rejection, etc.; proposed remedial action; and corrective
actions taken.
These records must cover both conforming and defective or deficient features, and must
include a statement that all supplies and materials incorporated in the work. are in full
compliance with the terms of the contract. Legible copies of these records shall be
furnished to the Engineer daily. The records shall cover all work placed subsequent to
the previously furnished records and shall be verified and signed by the Contractor's
Program Administrator.
Specific Contractor quality control records required for the contract shall include, but are
not necessarily limited to, the following records:
A. Daily Inspection Reports. Each Contractor quality control technician shall
maintain a daily log of all inspections performed for both Contractor and
subcontractor operations on a form acceptable to the Engineer. These
technician's daily reports shall provide factual evidence that continuous
111-64
quality control inspections have been performed and shall, as a minimum,
include the following:
1) Technical specification item number and description;
2) Compliance with approved submittals;
3) Proper storage of materials and equipment;
4) Proper operation of all equipment;
5) Adherence to plans and technical specifications;
6) Review of quality control tests; and
7) Safety inspection.
The daily inspection reports shall identify inspections conducted, results of
inspections, location and nature of defects found, causes for rejection, and
remedial or corrective actions taken or proposed.
The daily inspection reports shall be signed by the responsible quality
control technician and the Program Administrator. The Engineer shall be
provided at least one copy of each daily inspection report on the work day
following the day of record.
B. Daily Test Reports. The Contractor shall be responsible for establishing a
system which will record all quality control test results. Daily test reports
shall document the following information:
1) Technical specification item number and description;
2) Test designation;
3) Location;
4) Date of test;
5) Control requirements;
6) Test results;
7) Causes for rejection;
8) Recommended remedial actions; and
111-65
9) Retests.
Test results from each day's work period shall be submitted to the
Engineer prior to the start of the next day's work period. When required by
the technical specifications, the Contractor shall maintain statistical quality
control charts. The daily test reports shall be signed by the responsible
quality control technician and the Program Administrator.
100-09 CORRECTIVE ACTION REQUIREMENTS. The Quality Control Program shall
indicate the appropriate action to be taken when a process is deemed, or believed, to
be out of control (out of tolerance) and detail what action will be taken to bring the
process into control. The requirements for corrective action shall include both general
requirements for operation of the Quality Control Program as a whole, and for individual
items of work contained in the technical specifications.
The Quality Control Program shall detail how the results of quality control inspections
and tests will be used for detennining the need for corrective action and shall contain
clear sets of rules to gauge when a process is out of control and the type of correction
to be taken to regain process control.
When applicable or required by the technical specifications, the Contractor shall
establish and utilize statistical quality control charts for individual quality control tests.
The requirements for corrective action shall be linked to the control charts.
100-10 SURVEILLANCE BY THE ENGINEER. All items of material and equipment
shall be subject to surveillance by the Engineer at the point of production, manufacture
or shipment to detennine if the Contractor, producer, manufacturer or shipper maintains
an adequate quality control system in contonnance with the requirements detailed
herein and the applicable technical specifications and plans. In addition, all items of
materials, equipment and work in place shall be subject to surveillance by the Engineer
at the site for the same purpose.
Surveillance by the Engineer does not relieve the Contractor of perfonning quality
control inspections ot either on-site or off-site Contractor's or subcontractor's work.
100-11 NONCOMPLIANCE.
A. The Engineer will notify the Contractor of any noncompliance with any of
the foregoing requirements. The Contractor shall, after receipt of such
notice, immediately take corrective action. Any notice, when delivered by
the Engineer or his/her authorized representative to the Contractor or
his/her authorized representative at the site of the work, shall be
considered sufficient notice.
B. In cases where quality control activities do not comply with either the
Contractor's Quality Control Program or the contract provisions, or where
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the Contractor fails to properly operate and maintain an effective Quality
Control Program, as determined by the Engineer, the Engineer may:
1 ) Order the Contractor to replace ineffective or unqualified quality
control personnel or subcontractors.
2) Order the Contractor to stop operations until appropriate corrective
action is taken.
END OF SECTION 100
111-67
SECTION 110
METHOD OF ESTIMATING PERCENTAGE OF
MATERIAL WITHIN SPECIFICATION LIMITS (PWL)
110-01 GENERAL. When the specifications provide for material to be sampled and tested on a
statistical basis, the material will be evaluated for acceptance in accordance with this section.
All test results for a lot will be analyzed statistically, using procedures to determine the total
estimated percent of the lot that is within specification limits. This concept, termed percent
within limits (PWL), is a statistically based evaluation method, whereby the PWL is computed on
a lot basis, using the average (X) and standard deviation (8n) of the specified number (n) of
sublot tests for the lot and the specification tolerance limits (L for lower and U for upper) for the
particular acceptance parameter. From these values, the respective Quality index(s) (QL for
Lower Quality Index and/or QU for Upper Quality Index) is computed and the PWL for the
specified n is determined from Table 1.
There is some degree of uncertainty (risk) in the measurement for acceptance because only a
small fraction of production material (the population) is sampled and tested. This uncertainty
exists because all portions of the production material have the same probability to be randomly
sampled. The Contractor's risk is the probability that material produced at the acceptable
quality level is rejected or subjected to a pay adjustment. The Owner's risk is the probability
that material produced at the rejectable quality level is accepted.
It is the intent of this section to inform the Contractor that, in order to consistently offset the
Contractor's risk for material evaluated, production quality (using population average and
popUlation standard deviation) must be maintained at the acceptable quality specified or higher.
In all cases, it is the responsibility of the Contractor to produce at quality levels that will meet the
specified acceptance criteria when sampled and tested at the frequencies specified.
110-02 METHOD FOR COMPUTING PWL. The computational sequence for computing the
PWL is as follows:
A. Divide the lot into n sublots in accordance with the acceptance requirements of
the specification.
B. Locate the sampling position within the sublot in accordance with the random
sampling requirements of the specification.
C. Make a measurement at each location, or take a test portion and make the
measurement on the test portion in accordance with the testing requirements of
the specification.
D. Average all sublot values within the lot to find X by using the following formula:
X = (x1 + x2 + x3 + . . .xn) / n
Where:
X = Average of all sublat values within a lot
x1, x2 = Individual sublat values
111-68
n = Number of sublats
E. Find the standard deviation Sn by use of the following formula:
Sn = SQRT[(d1*d1 + d2*d2 + d3*d3 +. . .dn*dn) / (n-1)]
Where:
Sn = standard deviation of the number of sublot values in the set
d1, d2 = deviations of the individual sublot values X1, X2 . . . from the
average value X
that is: d1 = (x1 - X), d2 = (xn - X) . . dn = (xn - X)
n = number of sublots
F. For single sided specification limits (Le., L only), compute the Lower Quality
Index QL by use of the following formula:
QL = (X - L) / Sn
Where:
L = specification lower tolerance limit
Estimate the percentage of material within limits (PWL) by entering Table 1 with QL, using the
column appropriate to the total number (n) of measurements. If the value of QL falls between
values shown on the table, use the next higher value of PWL.
G. For double sided specification limits (i.e. Land U), compute the Quality Indexes
QL and QU by use of the following formulas:
QL = (X - L) / Sn and QU = (U - X) / Sn
Where:
Land U = specification lower and upper tolerance limits
Estimate the percentage of material between the lower (L) and upper (U) tolerance limits (PWL)
by entering Table 1 separately with QL and QU, using the column appropriate to the total
number (n) of measurements, and determining the percent of material above PL and percent of
material below PU for each tolerance limit. If the values of QL fall between values shown on the
table, use the next higher value of PL or PU. Determine the PWL by use of the following
formula:
PWL = (PU + PL) - 100
Where:
PL = percent within lower specification limit
PU = percent within upper specification limit
EXAMPLE OF PWL CALCULATION
Project:
Test Item:
Example Project
Item P-401, Lot A.
A.
PWL Determination for Mat Density.
111-69
1 ) Density of four random cores taken from Lot A.
A-1 96.60
A-2 97.55
A-3 99.30
A-4 98.35
n=4
2) Calculate average density for the lot.
x = (x1 + x2 + x3 + . . xn) 1 n
x = (96.60 + 97.55 + 99.30 + 98.35) 1 4
x = 97.95 percent density
3) Calculate the standard deviation for the lot.
Sn = SQRT[ ( (96.60 - 97.95)*(96.60 - 97.95) +
(97.55 - 97.95)*(97.55 - 97.95) +
(99.30 - 97.95)*(99.30 - 97.95) +
(98.35 - 97.95)*(98.35 - 97.95)) 1 (4 - 1)]
Sn = SQRT[ (1.82 + 0.16 + 1.82 + 0.16) 13]
Sn = 1.15
4) Calculate the Lower Quality Index QL for the lot. (L=96.3)
QL = (X -L) 1 Sn
QL = (97.95 - 96.30) 11.15
QL = 1.4384
5) Determine PWL by entering Table 1 with QL= 1.44 and n= 4.
PWL = 98
B. PWL Determination for Air Voids.
1) Air Voids of four random samples taken from Lot A.
A-1 5.00
A-2 3.74
A-3 2.30
A-4 3.25
2) Calculate the average air voids for the lot.
111-70
x = (x1 + x + x3 . . n) / n
x = (5.00 + 3.74 + 2.30 + 3.25) /4
x = 3.57 percent
3) Calculate the standard deviation Sn for the lot.
Sn = SQRT[ ( (3.57 - 5.00)*(3.57 - 5.00) +
(3.57 - 3.74)*(3.57 - 3.74) +
(3.57 - 2.30)*(3.57 - 2.30) +
(3.57 - 3.25)*(3.57 - 3.25))/(4 - 1)]
Sn = SQRT[(2.04 + 0.03 + 1.62 + 0.10 ) /3]
Sn = 1.12
4) Calculate the Lower Quality Index QL for the lot. (L= 2.0)
QL = (X - L) / Sn
QL = (3.57 - 2.00) /1.12
QL = 1.3992
5) Determine PL by entering Table 1 with QL = 1.40 and n = 4.
PL = 97
6) Calculate the Upper Quality Index QU for the lot. (U= 5.0)
QU = (U - X) / Sn
QU = (5.00 - 3.57) /1.12
QU = 1.2702
7) Determine PU by entering Table 1 with QU = 1.27 and n = 4.
PU = 93
8) Calculate Air Voids PWL
PWL = (PL + PU) - 100
PWL = (97 + 93) - 100 = 90
111-71
TABLE 1. TABLE FOR ESTIMATING PERCENT OF LOT WITHIN LIMITS (PWL)
Percent Within Positive Values of Q (QL and QU)
Limits
(PL and PU) n=3 n=4 n=5 n=6 n=7 n=8
99 1.1541 1.4700 1.6714 1.8008 1.8888 1.9520
98 1 .1524 1 .4400 1.6016 1.6982 1.7612 1 .8053
97 1.1496 1 .41 00 1.5427 1.6181 1.6661 1.6993
96 1 .1456 1 .3800 1 .4897 1.5497 1.5871 1.6127
95 1.1405 1 .3500 1.4407 1.4887 1.5181 1 .5381
94 1.1342 1 .3200 1.3946 1 .4329 1 .4561 1.4716
93 1 .1269 1 .2900 1.3508 1.3810 1.3991 1.4112
92 1.1184 1 .2600 1.3088 1.3323 1.3461 1 .3554
91 1 .1 089 1 .2300 1 .2683 1.2860 1.2964 1 .3032
90 1.0982 1.2000 1 .2290 1.2419 1.2492 1 .2541
89 1.0864 1 .1700 1.1909 1.1995 1.2043 1.2075
88 1.0736 1 .1400 1 .1537 1.1587 1.1613 1.1630
87 1.0597 1.1100 1 .1173 1.1191 1.1199 1.1204
86 1 .0448 1 .0800 1.0817 1 .0808 1.0800 1.0794
85 1.0288 1.0500 1.0467 1.0435 1 .0413 1.0399
84 1.0119 1.0200 1.0124 1.0071 1.0037 1.0015
83 0.9939 0.9900 0.9785 0.9715 0.9672 0.9643
82 0.9749 0.9600 0.9452 0.9367 0.9325 0.9281
81 0.9550 0.9300 0.9123 0.9025 0.8966 0.8928
80 0.9342 0.9000 0.8799 0.8690 0.8625 0.8583
79 0.9124 0.8700 0.8478 0.8360 0.8291 0.8245
78 0.8897 0.8400 0.8160 0.8036 0.7962 0.7915
77 0.8662 0.8100 0.7846 0.7716 0.7640 0.7590
76 0.8417 0.7800 0.7535 0.7401 0.7322 0.7271
75 0.8165 0.7500 0.7226 0.7089 0.7009 0.6958
74 0.7904 0.7200 0.6921 0.6781 0.6701 0.6649
73 0.7636 0.6900 0.6617 0.6477 0.6396 0.6344
72 0.7360 0.6600 0.6316 0.6176 0.6095 0.6044
71 0.7077 0.6300 0.6016 0.5878 0.5798 0.5747
70 0.6787 0.6000 0.5719 0.5583 0.5504 0.5454
69 0.6490 0.5700 0.5423 0.5290 0.5213 0.5164
68 0.6187 0.5400 0.5129 0.4999 0.4924 0.4877
67 0.5878 0.5100 0.4836 0.4710 0.4638 0.4592
66 0.5563 0.4800 0.4545 0.4424 0.4354 0.4310
65 0.5242 0.4500 0.4255 0.4139 0.4073 0.4031
64 0.4916 0.4200 0.3967 0.3856 0.3793 0.3753
63 0.4586 0.3900 0.3679 0.3575 0.3515 0.3477
62 0.4251 0.3600 0.3392 0.3295 0.3239 0.3203
61 0.3911 0.3300 0.3107 0.3016 0.2964 0.2931
60 0.3568 0.3000 0.2822 0.2738 0.2691 0.2660
59 0.3222 0.2700 0.2537 0.2461 0.2418 0.2391
58 0.2872 0.2400 0.2254 0.2186 0.2147 0.2122
57 0.2519 0.2100 0.1971 0.1911 0.1877 0.1855
56 0.2164 0.1800 0.1688 0.1636 0.1607 0.1592
55 0.1806 0.1500 0.1408 0.1363 0.1338 0.1322
54 0.1447 0.1200 0.1125 0.1090 0.1070 0.1057
53 0.1087 0.0900 0.0843 0.0817 0.0802 0.0792
52 0.0725 0.0600 0.0562 0.0544 0.0534 0.0528
51 0.0363 0.0300 0.0281 0.0272 00267 0.0264
50 0.0 00 0.0 0.0 0.0 0.0
111-72
TABLE 1. TABLE FOR ESTIMATING PERCENT OF LOT WITHIN LIMITS (PWL)
Percent Within Negative Values of Q (QL and QU)
Limits
(PL and PU) n=3 n=4 n=5 n=6 n=7 n=8
49 -0.0363 -0.0300 -0.0281 -0.0272 -0.0267 -0.0264
48 -0.0725 -0.0600 -0.0562 -0.0544 -0.0534 -0.0528
47 -0.1087 -0.0900 -0.0843 -0.0817 -0.0802 -0.0792
46 -0.1447 -0.1200 -0.1125 -0.1090 -0.1070 -0.1057
45 -0.1806 -0.1500 -0.1408 -0.1363 -0.1338 -0.1322
44 -0.2164 -0.1800 -0.1688 -0.1636 -0.1607 -0.1592
43 -0.2519 -0.2100 -0.1971 -0.1911 -0.1877 -0.1855
42 -0.2872 -0.2400 -0.2254 -0.2186 -0.2147 -0.2122
41 -0.3222 -0.2700 -0.2537 -0.2461 -0.2418 -0.2391
40 -0.3568 -0.3000 -0.2822 -0.2738 -0.2691 -0.2660
39 -0.3911 -0.3300 -0.3107 -0.3016 -0.2964 -0.2931
38 -0.4251 -0.3600 -0.3392 -0.3295 -0.3239 -0.3203
37 -0.4586 -0.3900 -0.3679 -0.3575 -0.3515 -0.3477
36 -0.4916 -0.4200 -0.3967 -0.3856 -0.3793 -0.3753
35 -0.5242 -0.4500 -0.4255 -0.4139 -0.4073 -0.4031
34 -0.5563 -0.4800 -0.4545 -0.4424 -0.4354 -0.4310
33 -0.5878 -0.5100 -0.4836 -0.4710 -0.4638 -0.4592
32 -0.6187 -0.5400 -0.5129 -0.4999 -0.4924 -0.4877
31 -0.6490 -0.5700 -0.5423 -0.5290 -0.5213 -0.5164
30 -0.6787 -0.6000 -0.5719 -0.5583 -0.5504 -0.5454
29 -0.7077 -0.6300 -0.6016 -0.5878 -0.5798 -0.5747
28 -0.7360 -0.6600 -0.6316 -0.6176 -0.6095 -0.6044
27 -0.7636 -0.6900 -0.6617 -0.6477 -0.6396 -0.6344
26 -0.7904 -0.7200 -0.6921 -0.6781 -0.6701 -0.6649
25 -0.8165 -0.7500 -0.7226 -0.7089 -0.7009 -0.6958
24 -0.8417 -0.7800 -0.7535 -0.7401 -0.7322 -0.7271
23 -0.8662 -0.8100 -0.7846 -0.7716 -0.7640 -0.7590
22 -0.8897 -0.8400 -0.8160 -0.8036 -0.7962 -0.7915
21 -0.9124 -0.8700 -0.8478 -0.8360 -0.8291 -0.8245
20 -0.9342 -0.9000 -0.8799 -0.8690 -0.8625 -0.8583
19 -0.9550 -0.9300 -0.9123 -0.9025 -0.8966 -0.8928
18 -0.9749 -0.9600 -0.9452 -0.9367 -0.9325 -0.9281
17 -0.9939 -0.9900 -0.9785 -0.9715 -0.9672 -0.9643
16 -1.0119 -1.0200 -1.0124 -1.0071 -1.0037 -1.0015
15 -1.0288 -1.0500 -1.0467 -1.0435 -1.0413 -1.0399
14 -1.0448 -1.0800 -1.0817 -1.0808 -1.0800 -1.0794
13 -1.0597 -1 . 11 00 -1.1173 -1.1191 -1 . 1199 -1 . 1 204
12 -1.0736 -1 .1400 -1.1537 -1.1587 -1.1613 -1 . 1630
11 -1.0864 -1 .1700 -1 . 1909 -1 .1995 -1 .2043 -1.2075
10 -1.0982 -1.2000 -1.2290 -1.2419 -1.2492 -1.2541
9 -1.1089 -1.2300 -1 .2683 -1.2860 -1.2964 -1.3032
8 -1 . 1184 -1.2600 -1.3088 -1.3323 -1.3461 -1.3554
7 -1.1269 -1.2900 -1.3508 -1 .381 0 -1.3991 -1.4112
6 -1.1342 -1.3200 -1.3946 -1 .4329 -1.4561 -1.4716
5 -1.1405 -1.3500 -1.4407 -1.4887 -1.5181 -1.5381
4 -1.1456 -1.3800 -1.4897 -1.5497 -1.5871 -1.6127
3 -1 .1496 -1.4100 -1.5427 -1.6181 -1.6661 -1.6993
2 -1.1524 -1 .4400 -1.6016 -1.6982 -1.7612 -1.8053
1 -1 .1 541 -1.4700 -1.6714 -18008 -1.8888 -1.9520
111-73
SECTION 120
CONSTRUCTION CONTRACT CLAUSES
AIRPORT IMPROVEMENT PROGRAM
120-01 LABOR PROVISIONS
1. Each Sponsor entering into a Construction Contract over Two Thousand
Dollars ($2,000.00) for an Airport Development project is required to insert
in the Contract the following provisions from 29CFR 5.5. Each Contractor
is to include these provisions in each Construction Subcontract.
a. Minimum Wages
(1) All laborers and mechanics employed or working upon the
site of the work will be paid unconditionally and not less
often than once a week, and without subsequent deduction
or rebate on any account (except such payroll deductions as
are permitted by regulations issued by the Secretary of
Labor under the Copeland Act [29 CFR Part 3]), the full
amount of wages and bona fide fringe benefits (or cash
equivalents thereof) due at time of payment computed at
rates not less than those contained in the wage
determination of the Secretary of Labor which is attached
hereto and made a part hereof, regardless of any contractual
relationship which may be alleged to exist between the
Contractor and such laborers and mechanics. Contributions
made or costs reasonably anticipated for bona fide fringe
benefits under Section 1(b)(2) of the Davis-Bacon Act on
behalf of laborers or mechanics are considered wages paid
to laborers or mechanics, subject to the provisions of
subparagraph a.(4) below; also, regular contributions made
or costs incurred for more than a weekly period (but not less
often than quarterly) under plans, funds, programs which
cover the particular weekly period, are deemed to be
constructively made or incurred during such weekly period.
Such laborers and mechanics shall be paid the appropriate
wage rate and fringe benefits on the wage determination for
the classification of Work actually performed, without regard
to skill, except as provided in paragraph d. of this clause.
Laborers or mechanics performing work in more than one
classification may be compensated at the rate specified for
each classification for the time actually worked therein:
Provided, that the employer's payroll records accurately set
forth the time spent in each classification in which work is
111-74
performed. The wage determination (including any additional
classification and wage rates conformed under a.(2) of this
Section) and the Davis-Bacon poster (WH-1321) shall be
posted at all times by the Contractor and its subcontractors
at the site of the Work in a prominent and accessible place
where it can easily be seen by the workers.
(2)
(I)
The Contracting Officer shall require that any class of
laborers or mechanics which is not listed in the wage
determination and which is to be employed under the
Contract shall be classified in conformance with the
wage determination. The Contracting Officer shall
approve an additional classification and wage rate
and fringe benefits therefore only when the following
criteria have been met:
(A) The Work to be performed by the classification
requested is not performed by a classification
in the wage determination; and
(B) The classification is utilized in the area by the
construction industry; and
(C) The proposed wage rate, including any bona
fide fringe benefits, bears a reasonable
relationship to the wage rates contained in the
wage determination.
(ii) If the Contractor and the laborers and mechanics to
be employed in the classification (if known), or their
representatives, and the Contracting Officer agree on
the classification and wage rate (including the amount
designated for fringe benefits where appropriate), a
report of the action taken shall be sent by the
Contracting Officer to the Administrator of the Wage
and Hour Division, Employment Standards
Administration, U.S. Department of Labor,
Washington, D.C. 20210. The Administrator, or an
authorized representative, will approve, modify, or
disapprove every additional classification action within
thirty (30) days of receipt and so advise the
contracting officer or will notify the Contracting Officer
within the thirty (30) day period that additional time is
necessary. (Approved by the Office of Management
and Budget under OMB control number 1215-0140.)
111-75
(iii) In the event the Contractor, the laborers or mechanics
to be employed in the classification or their
representatives, and the Contracting Officer do not
agree on the proposed classification and wage rate
(including the amount designated for fringe benefits
where appropriate), the Contracting Officer shall refer
the questions, including the views of all interested
parties and the recommendation of the contracting
officer, to the Administrator for determination. The
Administrator, or an authorized representative, will
issue a determination within thirty (30) days of receipt
and so advise or notify the Contracting Officer within
the thirty (30) day period that additional time is
necessary. (Approved by the Office of Management
and Budget under OMB control number 1215-0140.)
(iv) The wage rate (including fringe benefits where
appropriate) determined pursuant to subparagraphs
(2)(ii) or (iii) of this paragraph, shall be paid to all
workers performing work in the classification under
this Contract from the first day on which work is
performed in the classification.
(3) Whenever the minimum wage rate prescribed in the Contract
for a class of laborers or mechanics includes a fringe benefit
which is not expressed as an hourly rate, the Contractor
shall either pay the benefit as stated in the wage
determination or shall pay another bona fide fringe benefit or
an hourly cash equivalent thereof.
(4) If the Contractor does not make payments to a trustee or
other third person, the Contractor may consider as part of
the wages of any laborer or mechanic the amount of any
costs reasonably anticipated in providing bona fide fringe
benefits under a plan or program, Provided, that the
Secretary of Labor has found, upon the written request of the
Contractor, that the applicable standards of the Davis-Bacon
Act have been met. The Secretary of Labor may require the
Contractor to set aside in a separate account assets for the
meeting of obligations under the Plan or Program.
(Approved by the Office of Management and Budget under
OMB control number 1215-0140.)
b. Withholding. The Federal Aviation Administration (FAA) shall
upon its own action or upon written request of an authorized
representative of the Department of Labor withhold or cause to be
111-76
withheld from the Contractor under this Contract or any other
Federal Contract with the same prime contractor, or any other
federally-assisted contract subject to Davis-Bacon prevailing wage
requirements, which is held by the same prime contractor, so much
of the accrued payments or advances as may be considered
necessary to pay laborers and mechanics, including apprentices,
trainees, and helpers, employed by the Contractor or any
subcontractor the full amount of wages required by the Contract. In
the event of failure to pay any laborer or mechanic, including any
apprentice, trainee or helper, employed or working on the site of
work, all or part of the wages required by the Contract, the FAA
may, after written notice to the Contractor, Sponsor, Applicant, or
Owner, take such action as may be necessary to cause the
suspension of any further payment, advance, or guarantee of funds
until such violations have ceased.
c. Payrolls and Basic Records.
(1) Payrolls and Basic Records relating thereto shall be
maintained by the Contractor during the course of the Work
and preserved for a period of three (3) years thereafter for all
laborers and mechanics working at the site of the Work.
Such records shall contain the name, address, and social
security number of each such worker, his or her correct
classification hourly rates of wages paid (including rates of
contributions or costs anticipated for bona fide fringe benefits
or cash equivalents thereof of the types described in section
1 (b)(2)(B) of the Davis-Bacon Act), daily and weekly number
of hours worked, deductions made and actual wages paid.
Whenever the Secretary of Labor has found under a( 4) of
this clause that the wages of any laborer or mechanic
include the amount of any costs reasonably anticipated in
providing benefits under a plan or program described in
section 1(b)(2)(B) of the Davis-Bacon Act, the Contractor
shall maintain records which show that the commitment to
provide such benefits is enforceable, that the Plan or
Program is financially responsible, and that the Plan or
Program has been communicated in writing to the laborers
or mechanics affected, and records which show the costs
anticipated or the actual costs incurred in providing such
benefits. Contractors employing apprentices or trainees
under approved programs shall maintain written evidence of
the registration of apprenticeship programs and certification
of trainee programs, the registration of the apprentices and
trainees, and the ratios and wage rates prescribed in the
applicable programs. (Approved by the Office of
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(2)
Management and Budget under OMB control number 1215-
0140 and 1215-0017.)
(I)
The Contractor shall submit weekly, for each week in
which any contract work is performed, a copy of all
payrolls to the Applicant, Sponsor, or Owner, as the
case may be, for transmission to the FAA. The
payrolls submitted shall set out accurately and
completely all of the information required to be
maintained under paragraph c(1) above. This
information may be submitted in any form desired.
Optional Form WH-347 is available for this purpose
and may be purchased from the Superintendent of
Documents (Federal Stock Number 029-005-00014-
1), U.S. Government Printing Office, Washington,
D.C. 20402. The prime Contractor is responsible for
the submission of copies of payrolls by all
subcontractors. (Approved by the Office of
Management and Budget under OMB control number
1215-0149.)
(ii) Each payroll submitted shall be accompanied by a
"Statement of Compliance," signed by the Contractor
or subcontractor or his or her agent who pays or
supervises the payment of the persons employed
under the Contract and shall certify the following:
(A) That the payroll for the payroll period contains
the information required to be maintained
under paragraph c( 1) above and that such
information is correct and complete;
(B) That each laborer and mechanic (including
each helper, apprentice and trainee) employed
on the Contract during the payroll period has
been paid the full weekly wages earned,
without rebate, either directly or indirectly and
that no deductions have been made either
directly or indirectly from the full wages earned,
other than permissible deductions as set forth
in Regulations 29 CFR Part 3;
(C) That each laborer or mechanic has been paid
not less than the applicable wage rates and
fringe benefits or cash equivalents for the
classification of work performed, as speCified in
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the applicable wage determination
incorporated into the Contract.
(iji) The weekly submission of a properly executed
certification set forth on the reverse side of Optional
Form WH-347 shall satisfy the requirement for
submission of the "Statement of Compliance" required
by paragraph c.(2)(b) of this section.
(iv) The falsification of any of the above certifications may
subject the Contractor or subcontractor to civil or
criminal prosecution under Section 1001 of Title 18
and Section 231 of Title 31 of the United States Code.
(3) The Contractor or subcontractor shall make the records
required under paragraph c.( 1) of this section available for
inspection, copying or transcription by authorized
representatives of the FAA or the Department of Labor, and
shall permit such representatives to interview employees
during working hours on the job. If the Contractor or
subcontractor fails to submit the required records or to make
them available, the Federal agency may, atter written notice
to the Contractor, sponsor, applicant or Owner, take such
action as may be necessary to cause the suspension of any
further payment, advance, or guarantee of funds.
Furthermore, failure to submit the required records upon
request or to make such records available may be grounds
for debarment action pursuant to 29 CFR 5.12.
d. Apprentices and Trainees
(1) Apprentices. Apprentices will be permitted to work at less
than the predetermined rate for the Work they performed
when they are employed pursuant to and individually
registered in a bona fide apprenticeship program registered
with the U.S. Department of Labor, Employment and
Training Administration, Bureau of Apprenticeship and
Training, or with a State Apprenticeship Agency recognized
by the bureau, or if a person is employed in his or her first
ninety (90) days of probationary employment as an
apprentice in such as apprenticeship program, who is not
individually registered in the program, but who has been
certified by the Bureau of Apprenticeship and Training or a
State Apprenticeship Agency (where appropriate) to be
eligible for probationary employment as an apprentice. The
allowable ratio of apprentices to journeymen on the job site
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in any craft classification shall not be greater than the ratio
permitted to the Contractor as to the entire work force under
the registered program.
Any worker listed on a payroll at an apprentice wage rate,
who is not registered or otherwise employed as stated
above, shall be paid not less than the applicable wage rate
on the wage determination for the classification of work
actually performed. In addition, any apprentice performing
work on the job site in excess of the ratio permitted under
the registered program shall be paid not less than the
applicable wage rate on the wage determination for the work
actually performed. Where a Contractor is performing
construction on a project in a locality other than that in which
its program is registered, the ratios and wage rates
(expressed in percentages of the journeyman's hourly rate)
specified in the Contractor's or subcontractor's registered
program shall be observed. Every apprentice must be paid
at not less than the rate specified in the registered program
for the apprentice's level of progress, expressed as a
percentage of the journeymen hourly rate specified in the
applicable wage determination. Apprentices shall be paid
fringe benefits in accordance with the provisions of the
apprenticeship program. If the apprenticeship program does
not specify fringe benefits, apprentices must be paid the full
amount of fringe benefits listed on the wage determination
for the applicable classification. If the Administrator
determines that a different practice prevails for the
applicable apprentice classification, fringes shall be paid in
accordance with that determination. In the event the Bureau
of Apprenticeship and Training, or a State Apprenticeship
Agency recognized by the Bureau, withdraws approval of an
apprenticeship program, the Contractor will no longer be
permitted to utilize apprentices at less than the applicable
predetermined rate for the Work performed until an
acceptable program is approved.
(2) Trainees. Except as provided in 29 CFR 5.16, trainees will
not be permitted to work at less than the predetermined rate
for the Work performed unless they are employed pursuant
to and individually registered in a program which has
received prior approval, evidenced by formal certification by
the U.S. Department of Labor, Employment and Training
Administration. The ratio of trainees to journeymen on the
job site shall not be greater that permitted under the Plan
approved by the Employment and Training Administration.
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Every trainee must be paid at not less than the rate specified
in the approved program for the trainee's level of progress,
expressed as a percentage of the journeyman hourly rate
specified in the applicable wage determination. Trainees
shall be paid fringe benefits in accordance with the
provisions of the trainee program. If the trainee program
does not mention fringe benefits, trainees shall be paid the
full amount of fringe benefits listed in the wage determination
unless the Administrator of the Wage and Hour Division
determines that there is an apprenticeship program
associated with the corresponding journeyman wage rate on
the wage determination which provides for less than full
fringe benefits for apprentices. Any employee listed on the
payroll at a trainee rate who is not registered and
participating in a training plan approved by the Employment
and Training Administration shall be paid not less than the
applicable wage rate on the wage determination for the
classification of work actually performed. In addition, any
trainee performing work on the job site in excess of the ratio
permitted under the registered program shall be paid not
less than the applicable wage rate on the wage
determination for the Work actually performed. In the event
the Employment and Training Administration withdraws
approval of a training program, the Contractor will no longer
be permitted to utilize trainees at less than the applicable
predetermined rate for the work performed until an
acceptable program is approved.
(3) Equal Employment Opportunity. The utilization of
apprentices, trainees and journeymen under this part shall
be in conformity with the Equal Employment Opportunity
requirements of Executive Order 11246, as amended, and
29 CFR Part 30.
e. Compliance with Copeland Act Requirements. The Contractor
shall comply with the requirements of 29 CFR Part 3, which are
incorporated by reference in this Contract.
f. Subcontracts. The Contractor or Subcontractor shall insert in any
subcontracts the clauses contained in paragraphs a through j of this
Contract and such other clauses as the FAA may by appropriate
instructions require, and also a clause requiring the subcontractors
to include these clauses in any lower tier subcontracts. The prime
contractor shall be responsible for the compliance by any
subcontractor or lower tier subcontractor with all the Contract
clauses in 29 CFR 5.5.
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g. Contract Termination: Debarment. A breach of the Contract
clauses in 29 CFR 5.5 may be grounds for termination of the
Contract, and for the debarment as a Contractor and a
subcontractor as provided in 29 CFR 5.12.
h. Compliance with Davis-Bacon and Related Act Requirements.
All rulings and interpretations of the Davis-Bacon and Related Acts
contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by
reference in this Contract.
I. Disputes Concerning Labor Standards. Disputes arising out of
the labor standards provisions of this Contract shall not be subject
to the general disputes clause of this Contract. Such disputes shall
be resolved in accordance with the procedures of the Department
of Labor set forth in 29 CFR Parts 5, 6 and 7. Disputes within the
meaning of this clause include disputes between the Contractor (or
any of its subcontractors) and the contracting agency, the U.S.
Department of Labor, or the employees of their representatives.
j. Certification of Eligibility.
(1) By entering into this Contract, the Contractor certifies that
neither it (nor he or she) nor any person or firm who has an
interest in the Contractor's firm is a person or firm ineligible
to be awarded Government contracts by virtue of section
3(a) of the Davis-Bacon Act or 29 CFR 5.12(a) (1).
(2) No part of this Contract shall be subcontracted to any person
or firm ineligible for award of a Government contract by
virtue of section 3(a) of the Davis-Bacon Act or 29 CFR
5.12(a)(1).
(3) The penalty for making false statements is prescribed in
Criminal Code, 18 U.S.C. 1001.
2. The following clauses in paragraphs a., b., c., d., and e. below, required by
the Contract Work Hours and Safety Standards Act, will also be inserted in
full in AlP Construction contracts in excess of Two Thousand Dollars
($2,000.00) in addition to the clauses required by 29 CFR 5.5 (a) or 4.6 of
Part 4 of Title 29. As used in the following, the term "laborers" and
"mechanics" include watchmen and guards.
a. Overtime Requirements. No Contractor or subcontractor
contracting for any part of the contract work which may require or
involve the employment of laborers or mechanics shall require or
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permit any such laborer or mechanic in any work week in which he
or she is employed on such work to work in excess of forty (40)
hours in such workweek unless such laborer or mechanic receives
compensation at a rate not less than one and one-half (1~) times
the basic rate of pay for all hours worked in excess of forty (40)
hours in such work week.
b. Violation; Liability for Unpaid Wages; Liquidated Damages. In
the event of any violation of the clause set forth in paragraph a.
above, the Contractor or any subcontractor responsible therefor
shall be liable for the unpaid wages. In addition, such Contractor
and subcontractor shall be liable to the United States (in the case of
work done under contract for the District of Columbia or a territory,
to such District or to such territory), for liquidated damages. Such
liquidated damages shall be computed with respect to each
individual laborer or mechanic, including watchmen and guards,
employed in violation of the clause set forth in paragraph a. above,
in the sum of ten dollars ($10.00) for each calendar day on which
such individual was required or permitted to work in excess of the
standard workweek of forty (40) hours without payment of the
overtime wages required by the clause set forth in paragraph a.
above.
c. Withholding for Unpaid Wages and Liquidated Damages. The
FAA shall upon its own action or upon written request of an
authorized representative of the Department of Labor withhold or
cause to be withheld, from any monies payable on account of work
performed by the Contractor or subcontractor under any such
contract or any other Federal contract with the same prime
contractor, or any other federally-assisted contract subject to the
Contract Work Hours and Safety Standards Act, which is held by
the same prime contractor, such sums as may be determined to be
necessary to satisfy any liabilities of such contractor or
subcontractor for unpaid wages and liquidated damages as
provided in the clause set forth in paragraph b. above.
d. Subcontracts. The Contractor or subcontractor shall insert in any
subcontracts the clauses set forth in paragraphs a. through d. and
also a clause requiring the subcontractor to include these clauses
in any lower tier subcontracts. The prime Contractor shall be
responsible for compliance by any subcontractor or lower tier
subcontractor with the clauses set forth in paragraphs a. through d.
e. Working Conditions. No contractor or subcontractor may require
any laborer and mechanic employed in the performance of any
contract to work in surroundings or under working conditions that
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are unsanitary, hazardous or dangerous to his health or safety as
determined under Construction Safety and Health Standards (29
CFR Part 1926) issued by the Department of labor.
3. In addition to the provisions in 1 and 2 above, for contracts in excess of
$2,000, the following is to be included in all contracts for work on airport
development projects involving labor:
Veterans Preference. In the employment of labor (except in executive,
administrative and supervisory positions), preference shall be given to
veterans of the Vietnam era and disabled veterans. However, this
preference shall apply only where the individuals are available and
qualified to perform the Work to which the employment relates.
120-02 EQUAL EMPLOYMENT OPPORTUNITY REQUIREMENTS
A. Standard Federal Eaual Emplovment OpPOrtunity Construction
Contract Specifications (Executive Order 11246. as amended).
1. As used in these Specifications:
a. "Covered area" means the geographical area described in the
solicitation from which this Contract resulted;
b. "Director" means Director, Office of Federal Contract Compliance
Programs (OFCCP), U.S. Department of labor, or any person of
whom the Director delegates authority;
c. "Employer Identification Number" means the Federal Social
Security number used on the Employer's Quarterly Federal Tax
Return, U.S. Treasury Department Form 941;
d. "Minority" includes:
1) Black (all persons having origins in any of the black African
racial groups not of Hispanic origin);
2) Hispanic (all persons of Mexican, Puerto Rican, Cuban,
Central or South American or other Spanish culture or origin
regardless of race);
3) Asian and Pacific Islander (all persons having origins in any
of the original peoples of the Far East, Southeast, Asia, the
Indian Subcontinent, or the Pacific Islands); and
4) American Indian or Alaskan native (all persons having
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origins in any of the original peoples of North America and
maintaining identifiable tribal affiliations through membership
and participation or community identification).
2. Whenever the Contractor, or any subcontractor at any tier, subcontracts a
portion of the Work involving any construction trade, it shall physically
include in each subcontract in excess of $10,000 (Ten Thousand Dollars)
the provisions of these Specifications and the notice which contains the
applicable goals for minority and female participation and which is set forth
in the solicitations from which this Contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a
Hometown Plan approved by the U.S. Department of Labor in the covered
area either individually or through an association, its affirmative action
obligations on all work in the plan area (including goals and timetables)
shall be in accordance with that plan for those trades which have unions
participating in the Plan. Contractors must be able to demonstrate their
participation in and compliance with the provisions of any such Hometown
Plan. Each Contractor or subcontractor participating in an approved plan
is individually required to comply with its obligations under the EEO clause
and to make a good faith effort to achieve each goal under the Plan in
each trade in which it has employees. The overall good faith performance
by other Contractors or subcontractors toward a goal in an approved plan
does not excuse any covered Contractor's or subcontractor's failure to
take good faith efforts to achieve the plan goals and timetables.
4. The Contractor shall implement the specific affirmative action standards
provided in paragraphs 7a through p of these Specifications. The goals
set forth in the solicitation from which this Contract resulted are expressed
as percentages of the local hours of employment and training of minority
and female utilization the Contractor should reasonably be able to achieve
in each construction trade in which it has employees in the covered area.
Covered construction contractors performing construction work in
geographical areas where they do not have a federal or federally assisted
construction contract shall apply the minority and female goals established
for the geographical area where the work is being performed. Goals are
published periodically in the Federal Register in notice form, and such
notices may be obtained from any Federal Contract Compliance Programs
office or from Federal Procurement contracting officers. The Contractor is
expected to make substantially uniform progress in meeting its goals in
each craft during the period specified.
5. Neither the provisions of any collective bargaining agreement nor the
failure by a union with whom the Contractor has a collective bargaining
agreement to refer either minorities or women shall excuse the
Contractor's obligations under these Specifications, Executive Order
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11246, as amended, or the regulations promulgated pursuant thereto.
6. In order for the nonworking training hours of apprentices and trainees to
be counted in meeting the goals, such apprentices and trainees must be
employed by the Contractor during the training period and the Contractor
must have made a commitment to employ the apprentices and trainees at
the completion of their training, subject to the availability of employment
opportunities. Trainees must be trained pursuant to training programs
approved by the U.S. Department of Labor.
7. The Contractor shall take specific affirmative actions to ensure EEO. The
evaluation of the Contractor's compliance with these Specifications shall
be based upon its effort to achieve maximum results from its actions. The
Contractor shall document these efforts fully and shall implement
affirmative action steps at least as extensive as the following:
a. Ensure and maintain a working environment free of harassment,
intimidation, and coercion at all sites, and in all facilities at which
the Contractor's employees are assigned to work. The Contractor,
where possible, will assign two or more women to each
construction project. The Contractor shall specifically ensure that
all foremen, superintendents, and other onsite supervisory
personnel are aware of and carry out the Contractor's obligation to
maintain such a working environment, with specific attention to
minority or female individuals working at such sites or in such
facilities.
b. Establish and maintain a current list of minority and female
recruitment sources, provide written notification to minority and
female recruitment sources and to community organizations when
the Contractor on its unions have employment opportunities
available, and maintain a record of the organization's responses.
c. Maintain a current file of the names, addresses and telephone
numbers of each minority and female off-the-street applicant and
minority or female referral from a union, a recruitment source, a
community organization and of what action was taken with respect
to each such individual. If such individual was sent to the union
hiring hall for referral and was not referred back to the Contractor
by the union or, if referred, not employed by the Contractor, this
shall be documented in the file with the reason therefore along with
whatever additional actions the Contractor may have taken.
d. Provide immediate written notification to the Director when the
union or unions with which the Contractor has a collective
bargaining agreement has not referred to the Contractor a minority
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person or woman sent by the Contractor, or when the Contractor
has other information that the union referral process has impeded
the Contractor's efforts to meet its obligations.
e. Develop on-the-job training opportunities and/or participate in
training programs for the area which expressly includes minorities
and women, including upgrading programs and apprenticeship and
trainee programs relevant to the Contractor's employment needs,
especially those programs funded or approved by the Department
of Labor. The Contractor shall provide notice of these programs to
the sources complied under 7b above.
f. Disseminate the Contractor's EEO policy by providing notice of the
policy to unions and training programs and requesting their
cooperation in assisting the Contractor in meeting its EEO
obligations; by including it in any policy manual and collective
bargaining agreement; by publicizing it in the company newspaper,
annual report, etc.; by specific review of the policy with all
management personnel and with all minority and female employees
at least once a year; and by posting the company EEO policy on
bulletin boards accessible to all employees at each location where
construction work is performed.
g. Review, at least annually, the Company's EEO policy and
affirmative action obligations under these Specifications with all
employees having any responsibility for hiring, assignment, layoff,
termination, or other employment decisions including specific
review of these items with onsite supervisory personnel such as
superintendents, general foremen, etc., prior to the initiation of
construction work on any job site. A written record shall be made
and maintained identifying the time and place of these meetings,
persons attending, subject matter discussed, and disposition of the
subject matter.
h. Disseminate the Contractor's EEO policy externally by including it in
any advertising in the news media, specifically including minority
and female news media, and providing written notification to and
discussing the Contractor's EEO policy with other Contractors and
subcontractors with whom the Contractor does or anticipates doing
business.
I. Direct its recruitment efforts, both oral and written, to minority,
female, and community organizations, to schools with minority and
female students; and to minority and female recruitment and
training organizations serving the Contractor's recruitment area and
employment needs. Not later than one month prior to the date for
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the acceptance of applications for apprenticeship or other training
by any recruitment source, the Contractor shall send written
notification to organizations, such as the above, describing the
openings, screening procedures, and tests to be used in the
selection process.
j. Encourage present minority female employees to recruit other
minority persons and women and, where reasonable, provide after
school, summer, and vacation employment to minority and female
youth both on the site and in other areas of a Contractor's work
force.
k. Validate all tests and other selection requirements where there is
an obligation to do so under 41 CFR Part 60-3.
I. Conduct, at least annually, an inventory and evaluation, at least of
all minority and female personnel, for promotional opportunities and
encourage these employees to seek or to prepare for, through
appropriate training, etc., such opportunities.
m. Ensure that seniority practices, job classifications, work
assignments, and other personnel practices do not have a
discriminatory effect by continually monitoring all personnel and
employment related activities to ensure that the EEO policy and the
Contractor's obligations under these Specifications are being
carried out.
n. Ensure that all facilities and company activities are nonsegregated
except that separate or single-user toilet and necessary changing
facilities shall be provided to assure privacy between the sexes.
o. Document and maintain a record of all solicitations of offers for
subcontracts from minority and female construction contractors and
suppliers, including circulation of solicitations to minority and female
contractor associations and other business associations.
p. Conduct a review, at least annually, of all supervisors, adherence to
and performance under the Contractor's EEO policies and
affirmative action obligations.
8. Contractors are encouraged to participate in voluntary associations which
assist in fulfilling one or more of their affirmative action obligations (7a
through p). The efforts of a contractor association, joint contractor-union,
contractor-community, or other similar groups of which the Contractor is a
member and participant, may be asserted as fulfilling anyone or more of
its obligations under 7a through p of these SpeCifications provided that the
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Contractor actively participates in the group, makes every effort to assure
that the group has a positive impact on the employment of minorities and
women in the industry, ensures that the concrete benefits of the program
are reflected in the Contractor's minority and female work force
participation, makes a good faith effort to meet its individual goals and
timetables, and can provide access to documentation which demonstrates
the effectiveness of actions taken on behalf of the Contractor. The
obligation to comply, however, is the Contractor's and failure of such a
group to fulfill an obligation shall not be a defense for the Contractor's
noncompliance.
9. A single goal for minorities and a separate single goal for women have
been established. The Contractor, however, is required to provide EEO
and to take affirmative action for all minority groups, both male and
female, and all women, both minority and non-minority. Consequently, the
Contractor may be in violation of the executive order if a particular group is
employed in a substantially disparate manner (for example, even though
the Contractor has achieved its goals for women generally, the Contractor
may be in violation of the executive order if a specific minority group of
women is under utilized).
10. The Contractor shall not use the goals and timetables or affirmative action
standards to discriminate against any person because of race, color,
religion, sex, or national origin.
11. The Contractor shall not enter into any subcontract with any person or firm
debarred from government contracts pursuant to Executive Order 11246,
as amended.
12. The Contractor shall carry out such sanctions and penalties for violation of
these Specifications and of the Equal Opportunity Clause, including
suspension, termination, and cancellation of existing subcontracts as may
be imposed or ordered pursuant to Executive Order 11246, as amended,
and its implementing regulations, by the OFCCP. Any contractor who fails
to carry out such sanctions and penalties shall be in violation of these
Specifications and Executive Order 11246, as amended.
13. The Contractor, in fulfilling its obligations under these Specifications, shall
implement specific affirmative action steps, at least as extensive as those
standards prescribed in paragraph 7 of these Specifications, so as to
achieve maximum results from its efforts to ensure equal employment
opportunity. If the Contractor fails to comply with the requirements of the
executive order, the implementing regulations, or these Specifications, the
Director shall proceed in accordance with 41 CFR 60-4.8.
14. The Contractor shall designate a responsible official to monitor all
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employment related activity to ensure that the company EEO policy is
being carried out, to submit reports relating to the provisions hereof as
may be required by the government, and to keep records. Records shall
at least include for each employee, the name, address, telephone number,
construction trade, union affiliation, if any, employee identification number
when assigned, social security number, race, sex, status (e.g., mechanic,
apprentice, trainee, helper, or laborer), dates of changes in status, hours
worked per week in the indicated trade, rate of pay, and locations at which
the work was performed. Records shall be maintained in an easily
understandable and retrievable form; however, to the degree that existing
records satisfy this requirement, contractors shall not be required to
maintain separate records.
15. Nothing herein provided shall be construed as a limitation upon the
application of other laws which establish different standards of compliance
or upon the application of requirements for the hiring of local or other area
residents (e.g., those under the Public Works Employment Act of 1977
and the Community Development Block Grant Program).
B. Contractor Contractual Reauirements. During the performance of this
Contract, the Contractor, for itself, its assignees and successors in interest
(hereinafter referred to as the "Contractor") agrees as follows:
1. COMPLIANCE WITH REGULATIONS. The Contractor shall comply with
the Regulations relative to nondiscrimination in federally assisted
programs of the Department of Transportation (hereinafter, "DOT") Title
49, Code of Federal Regulations, Part 21, as they may be amended from
time to time (hereinafter referred to as the Regulations), which are herein
incorporated by reference and made a part of this Contract.
2. NONDISCRIMINATION. The Contractor, with regard to the Work
performed by it during the Contract, shall not discriminate on the grounds
of race, color, or national origin in the selection and retention of
subcontractors, including procurements of materials and leases of
equipment. The Contractor shall not participate either directly or indirectly
in the discrimination prohibited by Section 21.5 of the Regulations,
including employment practices when the Contract covers a program set
forth in Appendix 3 of the regulations.
3. SOLICITATIONS FOR SUBCONTRACTS, INCLUDING PROCUREMENT
OF MATERIALS AND EQUIPMENT. In all solicitations either by
competitive bidding or negotiation made by the Contractor for work to be
performed under a subcontract, including procurements of materials or
leases of equipment, each potential subcontractor or supplier shall be
notified by the Contractor of the Contractor's obligation under this Contract
and the Regulations relative to nondiscrimination on the grounds of race,
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color, or national origin.
4. INFORMATION AND REPORTS. The Contractor shall provide all
information and reports required by the Regulations or Directives issued
pursuant thereto and shall permit access to its books, records, accounts,
other sources of information, and its facilities as may be determined by the
Sponsor or the FAA to be pertinent to ascertain compliance with such
regulations, orders, and instructions. Where any information required of a
Contractor is in the exclusive possession of another who fails or refuses to
furnish this information, the Contractor shall so certify to the Sponsor or
the FAA, as appropriate, and shall set forth what efforts it has made to
obtain the information.
5. SANCTIONS FOR NONCOMPLIANCE. In the event of the Contractor's
noncompliance with the nondiscrimination provisions of this Contract, the
sponsor shall impose such Contract sanctions as it or the FAA may
determine to be appropriate, including, but not limited to:
a. Withholding of payments to the Contractor under the Contract until
the Contractor complies, and/or
b. Cancellation, termination, or suspension of the Contract, in whole
or in part.
6. INCORPORATION OF PROVISIONS. The Contractor shall include the
provisions of Paragraphs 1. through 5. in every subcontract, including
procurements of materials and leases of equipment, unless exempt by the
Regulations or directives issued pursuant thereto. The Contractor shall
take such action with respect to any subcontract or procurement as the
Sponsor or the FAA may direct as a means of enforcing such provisions
including sanctions for noncompliance. Provided, however, that in the
event a Contractor becomes involved in, or is threatened with, litigation
with a subcontractor or supplier as a result of such direction, the
Contractor may request the Sponsor to enter into such litigation to protect
the interests of the Sponsor and, in addition, the Contractor may request
the United States to enter into such litigation to protect the interests of the
United States.
C. Eaual Emplovment Opportunity Clause. During the performance of this
Contract the Contractor agrees as follows:
1. The Contractor will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, or national origin. The
Contractor will take affirmative action to insure that applicants are
employed and that employees are treated during employment without
regard to their race, color, religion, sex, or national origin. Such action
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shall include, but not be limited to the following: employment, upgrading,
demotion, or transfer; recruitment or recruitment advertising; layoff or
termination, rates of payor other forms of compensation; and selection for
training, including apprenticeship. The Contractor agrees to post in
conspicuous places available to employees and applicants for
employment, notices to be provided setting forth the provisions of this
nondiscrimination clause.
2. The Contractor will, in all solicitations or advertisements for employees
placed by or on behalf of the Contractor, state that all qualified applicants
will receive consideration for employment without regard to race, color,
religion, sex, or national origin.
3. The Contractor will send, to each labor union or representative of workers
with which he has a collective bargaining agreement or other contract or
understanding, a notice to be provided advising that said labor union or
workers' representatives of the Contractor's commitments under this
section and shall post copies of the notice in conspicuous places available
to employees and applicants for employment.
4. The Contractor will comply with all provisions of Executive Order 11246,
as amended, of September 24, 1965, and of the rules, regulations, and
relevant orders of the Secretary of Labor.
5. The Contractor will furnish all infonnation and reports required by
Executive Order 11246, as amended, of September 24, 1965, and by
rules, regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will penn it access to his books, records, and accounts by the
FAA and the Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations and orders.
6. In the event of the Contractor's noncompliance with the nondiscrimination
clauses of this Contract or with any of the said rules, regulations, or
orders, this Contract may be canceled, terminated, or suspended in whole
or in part and the Contractor may be declared ineligible for further
Government contracts or federally assisted construction contracts in
accordance with procedures authorized in Executive Order 11246, as
amended, of September 24, 1965, and such other sanctions may be
imposed and remedies invoked as provided in Executive Order 11246, as
amended, of September 24, 1965, or by rule, regulation, or order of the
Secretary of Labor, or as otherwise provided by law.
7. The Contractor will include the portion of the sentence immediately
preceding pafagraph 1. and the provisions of Paragraph 1. through 7. in
every subcontract Of purchase order unless exempted by rules,
regulations, or orders of the Secretary of Labor issued pursuant to Section
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204 of Executive Order 11246, as amended, of September 24, 1965, so
that such provisions will be binding upon each subcontractor or vendor.
The Contractor will take such action with respect to any subcontract or
purchase order as the FAA may direct as a means of enforcing such
provisions, including sanctions for noncompliance; provided, however, that
in the event a Contractor becomes involved in, or is threatened with,
litigation with a subcontractor or vendor as a result of such direction by the
FAA, the Contractor may request the United States to enter into such
litigation to protect the interests of the United States.
D. Notice to be Posted. The "Equal Employment Opportunity is the Law" poster is
to be posted by the Contractor in a conspicuous place available to employees
and applicants for employment as required by paragraphs 1. and 3. of the EEO
clause. Copies of this poster will be furnished to contractors at the Pre-
Construction Conference.
E. Notice of Requirement for Affirmative Action to Ensure Equal Employment
Opportunity (Executive Order 11246. as Amended).
1. The Offerer's or Bidder's attention is called to the "Equal Opportunity
Clause" and the "Standard Federal Equal Employment Opportunity
Construction Contract Specifications" set forth herein.
2. The goals and timetables for minority and female participation, expressed
in percentage terms for the Contractor's aggregate work force in each
trace on all construction work in the covered area are as follows:
Timetables
Goals for minority
participation for
each trade 30.4 %
Goals for Female
participation in
each trade 6.9 %
These goals are applicable to all the Contractor's construction work
(whether or not it is Federal or Federally assisted) performed in the
covered area. If the Contractor performs construction work in a
geographical area located outside of the covered area, it shall apply the.
goals established for such geographical area where the work is actually
performed. With regard to this second area, the Contractor also is subject
to the goals for both its Federally involved and nonfederally involved
construction.
The Contractor's compliance with the executive order and the regulations
in 41 CFR Part 60-4 shall be based on its implementation of the Equal
Opportunity Clause, specifications set forth in 41 CFR 60-40.3(a), and its
efforts to meet the goals. The hours of minority and female employment
and training must be substantially uniform throughout the length of the
Contract, and in each trade, and the Contractor shall make a good faith
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effort to employ minority and women evenly on each of its projects. The
transfer of minority or female employees or trainees from contractor to
contractor or from female employees or trainees from contractor to
contractor or from project to project, for the sole purpose of meeting the
Contractor's goals, shall be a violation of the Contract, the Executive
Order, and the regulations in 41 CFR Part 60-4. Compliance with the
goals will be measured against the total work hours performed.
3. The Contractor shall provide written notification to the Director, OFCCP,
within ten (10) working days of award of any construction subcontract in
excess of $10,000 (Ten Thousand Dollars) at any tier of construction
subcontract in excess of $10,000 (Ten Thousand Dollars) at any tier of
construction work under the Contract resulting from this solicitation. The
notification shall list the name, address, telephone number of the
subcontractor; employer identification number of the subcontractor,
estimated dollar amount of the subcontracts; estimated starting and
completion dates of the subcontract; and the geographical area in which
the subcontract is to be performed.
4. As used in this notice and in the Contract resulting from this solicitation,
the "covered area" is in Marathon. Monroe County, State of Florida.
F. Reauired Reports.
1. Monthly Employment Utilization Reports (SF 257). This Report is to be
prepared on Form CC 257 (Rev. 9-78) and sent to the Area Office,
Federal Contract Compliance Program (OFCCP) that serves the
geographical area in which this project is located. The Report is due by
the fifth day of each month after work has commenced. The Contractor will
be advised further regarding this Report including the address of the
OFCCP Area Office, at the Pre-Construction Conference.
2. Annual EEO-1 Report. Contractors/subcontractors working on Federally-
assisted airport construction projects are required to file with the sponsor
annually, on or before March 31, complete and accurate reports on
Standard Form 100 (Employee Information Report, EEO-1). The first such
report is required within thirty (30) days after award unless the
Contractor/subcontractor has submitted such a report within twelve (12)
months preceding the date of award (the FAA or Department of Labor,
OFCCP can designate other intervals). This form is normally furnished
based on a mailing list, but can be obtained from the Equal Employment
Opportunity Commission (EEOC) - Survey Division, 2401 E. St., NW,
Washington, D.C. 20507 or by calling (703) 756-6020. This report is
required if a Contractor or subcontractor meets all of the following
conditions:
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a. Nonexempt. Contractors/subcontractors are not exempt based on
41 CFR 60-1.5, and
b. Number of Employees. Has fifty (50) or more employees,
c. Contractor/Subcontractor. Is a prime contractor or first tier
subcontractor, and
d. Dollar Level. There is a contract, subcontract, or purchase order
amounting to $50,000 (Fifty Thousand Dollars) or more or serves
as a depository of government funds in any amount, or is a financial
institution which is an issuing and paying agent for U.S. Savings
Bonds and Savings Notes. Some subcontractors below the first tier
who work at the site are required to file if they meet the
requirements of41 CFR 60-1.7.
3. Records. The FAA or Department of Labor OFCCP may require a
Contractor to keep employment or other records and to furnish, in the form
requested within reasonable limits, such information as necessary.
G. Re uirement for Certification of Nonse re ated Facilities.
1. Notice to Prospective Federally Assisted Construction Contractors.
a. Certification of Nonsegregated Facilities must be submitted prior to
the award of a federally assisted construction contract exceeding
$10,000 (Ten Thousand Dollars) which is not exempt from the
Provisions of the equal opportunity clause.
b. Contractors receiving federally assisted construction contract
awards exceeding $10,000 (Ten Thousand Dollars) which are not
exempt from the Provisions of the Equal Opportunity Clause will be
required to provide for the forwarding of the following notice to
prospective subcontractors for supplies and construction contracts
where the subcontracts exceed $10,000 (Ten Thousand Dollars)
and are not exempt from the provisions of the Equal Opportunity
Clause.
2. Notice to Prospective Subcontractors of Requirement for Certification of
Nonsegregated Facilities.
a. A Certificate of Nonsegregated Facilities must be submitted prior to
the award of subcontract exceeding $10,000 (Ten Thousand
Dollars) which is not exempt from the provisions of the Equal
Opportunity Clause.
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b. Contractors receIving federally assisted construction contract
awards exceeding $10,000 (Ten Thousand Dollars) which are not
exempt from the provisions of the equal opportunity clause will be
required to provide for the forwarding of the following notice to
prospective subcontractors for supplied and construction contracts
where the subcontracts exceed $10,000 (Ten Thousand Dollars)
and are not exempt from the provisions of the equal opportunity
clause.
NOTE TO THE CONTRACTOR: This Certification is not required here if completed,
signed and furnished to the Owner with the Proposal.
Certification of Non-SeGreGated Facilities
The Construction Contractor certifies that he does not maintain or provide, for his
employees segregated facilities at any of his establishments and that he does not
permit his employees to perform their services at any location, under his control where
segregated facilities are maintained. The Construction Contractor further certifies that
he will not maintain or provide, for his employees segregated facilities at any of his
establishments and that he will not permit his employees to perform their services at
any location, under his control where segregated facilities are maintained. The
construction contractor agrees that a breach of this certification is a violation of the
equal opportunity clause in this Contract. As used in this certification, the term
"segregated facilities" means any waiting rooms, work areas, restrooms and
washrooms, restaurants and other eating areas, timeclocks, locker rooms and other
storage and dressing areas, parking lots, drinking fountains, recreation or entertainment
areas, transportation, and housing facilities provided for employees which are
segregated by explicit directives or are in fact segregated on the basis of race, color,
religion, or national origin because of habit, local customs, or any other reason. The
Construction Contractor agrees that (except where he has obtained identical
certifications from proposed subcontractors for specific time periods) he will obtain
identical certifications from proposed subcontractors prior to the award of subcontracts
exceeding $10,000 (Ten Thousand Dollars) which are not exempt from the provisions of
the Equal Opportunity Clause and that he will retain such certifications in his files.
Signature of Contractor
Title
120-03 MISCELLANEOUS CONTRACT PROVISIONS
1. Airport Improvement Program Project (AlP). The Work in this Contract
is included in AlP Project No. 3-12-0044-2004 which is being undertaken
and accomplished by the Owner in accordance with the terms and
conditions of a grant agreement between the Owner and the United
111-96
States, under the Airport and Airway Improvement Act of 1982 and Part
152 of the Federal Aviation Regulations (14 CFR Part 152), pursuant to
which the United States has agreed to pay a certain percentage of the
costs of the Project that are determined to be allowable project costs
under that Act. The United States is not a party to this Contract and no
reference in this Contract to the FAA or any representative thereof, or to
any rights granted to the FAA or any representative thereof, or the United
States, by the Contract, makes the United States a party to this Contract.
2. Consent to Assignment. The Contractor shall obtain the prior written
consent of the OWNER to any proposed assignment of any interest in or
part of this Contract.
3. Veterans Preference. In the employment of labor (except in executive,
administrative, and supervisory positions), the Contractor shall give
preference to veterans of the Vietnam era and disabled veterans as
defined in Section 515(c)(1) and (2) of the Airport and Airway
Improvement Act of 1982.
4. FAA Inspection and Review. The Contractor shall allow any authorized
representative of the FAA to inspect and review any work or materials
used in the perfonnance of this Contract.
5. Foreign Trade Restrictions. The Contractor or subcontractors, by
submission of an offer and/or execution of a Contract, certifies that it:
a. is not owned or controlled by one or more citizens or nationals of a
foreign country included in the list of countries that discriminates
against U.S. finns published by the Office of the United States
Trade Representative (USTR);
b. has not knowingly entered into any Contract or subcontract for this
project with a Contractor that is a citizen or national of a foreign
country on said list, or is owned or controlled directly or indirectly by
one or more citizens or nationals of a foreign country on said list.
c. has not procured any product nor subcontracted for the supply of
any product for use on the Project that is produced in a foreign
country on said list.
Unless the restrictions of this clause are waived by the Secretary of
Transportation in accordance with 49 CFR 30.17, no Contract shall be
awarded to a contractor or subcontractor who is unable to certify to the
above. If the Contractor knowingly procures or subcontracts for the supply
of any product or service of a foreign country on the said list for use on the
Project, the FAA may direct, through the Sponsor, cancellation of the
111-97
Contract at no cost to the Government.
Further, the Contractor agrees that, if awarded a Contract resulting from
this solicitation, it will incorporate this provision for certification without
modification in each Contract and in all lower tier subcontracts. The
Contractor may rely upon the certification of a prospective subcontractor
unless it has knowledge that the certification is erroneous.
The Contractor shall provide immediate written notice to the Sponsor if the
Contractor learns that its certification or that of a subcontractor was
erroneous when submitted or has become erroneous by reason of
changed circumstances. The subcontractor agrees to provide immediate
written notice to the Contractor, if at any time it learns that its certification
was erroneous by reason of changed circumstances.
This certification is a material representation of fact upon which reliance
was placed when making the award. If it is later determined that the
Contractor or subcontractor knowingly rendered an erroneous certification,
the FAA may direct, through the Sponsor, cancellation of the Contract or
subcontract for default at no cost to the Government.
Nothing contained in the foregoing shall be construed to require
establishment of a system of records in order to render, in good faith, the
certification required by this provision. The knowledge and information of
a Contractor is not required to exceed that which is normally possessed by
a prudent person in the ordinary course of business dealings.
This certification concerns a matter within the jurisdiction of an agency of
the United States of America and the making of a false, fictitious, or
fraudulent certification may render the maker subject to prosecution under
Title 18, United States Code, Section 1001.
6. Subcontracts. The Contractor shall insure in each of his subcontracts
the provisions contained in Paragraphs A., C., and D. of this section and
also a clause requiring the subcontractors to include these provisions in
any lower tier subcontractors which they may enter into, together with a
clause requiring this insertion in any further subcontracts that may in turn
be made.
7. Clean Air and Water Pollution Control Requirements for All
Construction Contracts and Subcontracts Exceeding $100,000 (One
Hundred Thousand Dollars).
Contractors agree:
a. That any facility to be used in the performance of the Contract or to
111-98
benefit from the Contract is not listed on the Environmental
Protection Agency (EPA) List of Violating Facilities.
b. To comply with all the requirements of Section 114 of the Clean Air
Act and Section 308 of the Federal Water Pollution Control Act and
all regulations issued thereunder.
c. That as a condition for award of a Contract, they will notify the
awarding official of the receipt of any communication from the EPA
indicating that a facility to be utilized for performance of or benefit
from the Contract is under consideration to be listed on the EPA
List of Violating Facilities.
d. To include in any subcontract which exceeds $100,000 (One
Hundred Thousand Dollars), the requirements of (a), (b), and (c)
above.
STANDARD CLAUSE FOR SOLICITATIONS. CONTRACTS. AND SUBCONTRACTS
REQUIRED FOR 49 CFR PART 29
Certification Regarding debarment, Suspension, ineligibility, and voluntary Exclusion:
The Bidder/Offeror certifies, by submission of this proposal or acceptance of this
Contract, that neither it nor its principals is presently debarred, suspended,
proposed for debarment, declared ineligible, or voluntarily excluded for
participation in this transaction by any Federal department or agency. It further
agrees by submitting this proposal that it will include this clause without
modification in all lower tier transactions, solicitations, proposals, contracts and
subcontracts. Where the Bidder/Offer/Contractor or any lower tier participant is
unable to certify to this statement, it shall attach an explanation to this
solicitation/proposal.
END OF SECTION 120
111-99
SECTION 130
SAFETY AND HEALTH REGULATIONS FOR CONSTRUCTION
The Contractor shall comply with the Department of Labor Safety and Health
Regulations for construction promulgated under the Occupational Safety and Health Act
of 1970 (PL91-596) and under Section 107 of the Contract Work Hours and Safety
Standards Act (PL91-54).
The Contractor alone shall be responsible for the safety, efficiency and adequacy of his
plant, appliances and methods of construction and for any damages which may result
from their failure or their improper construction, maintenance or operations.
The Contractor will be required to comply with the latest edition of Advisory Circular No.
150/5370-2E "Operational Safety on Airports During Construction". In addition, the
Contractor will be required to comply with all Safety and Security Requirements
stipulated in the Contractor's Safety and Security Requirements stated on Plans.
END OF SECTION 130
111-100
SECTION 140
GENERAL INSURANCE REQUIREMENTS FOR
CONTRACTORS AND SUBCONTRACTORS
Prior to the commencement of work governed by this contract (including the pre-staging
of personnel and material), the Contractor shall obtain, at his/her own expense,
insurance as specified in the attached schedules, which are made part of this contract.
The Contractor will also ensure that the insurance obtained will extend protection to all
subcontractors engaged by the Contractor. As an alternative, the Contractor may
require all subcontractors to obtain insurance consiste nt with the attached schedules.
The Contractor will not be permitted to commence work governed by this contract
(including pre-staging of personnel and material) until sa:isfactory evidence of the
required insurance has been furnished to the County as specified below. Delays in the
commencement of work resulting from the failure of the Contractor to provide
satisfactory evidence of the required insurance shall not extend deadlines specified in
this contract and any penalties and failure to perform assessments shall be imposed as
if the work commenced on the specified date and time, except for the Contractor's
failure to provide satisfactory evidence.
The Contractor shall maintain the required insurance throughout the entire term of this
contract and any extensions specified in any attached schedules. Failure to comply
with this provision may result in the immediate suspension of all work until the required
insurance has been reinstated or replaced. Delays in the completion of the work
resulting from the failure of the Contractor to maintain the required insurance shall not
extend deadlines specified in this contract and any penalties and failure to perform
assessments shall be imposed as if the work had not been suspended, except for the
Contractor's failure to maintain the required insurance.
The Contractor shall provide to the County as satisfactory evidence of the required
insurance either:
Certificate of Insurance, or
A certified copy of the actual insurance policy.
The County, at its sole option, has the right to request a certified copy of any or all
insurance policies required by this contract.
All insurance policies must specify that they are not subject to cancellation, non-
renewal, material change or reduction in coverage unless a minimum of thirty (30) days'
prior notification is given to the County by the insurer.
The acceptance and/or approval of the Contractor's insurance shall not be construed as
relieving the Contractor from any liability or obligation assumed under this contract or
imposed by law.
111-101
BIDDOC-1.MAX
The Monroe County Board of County Commissioners, its employees and officials will be
included as "Additional Insureds" on all policies, except for Workers' Compensation.
In addition, the County will be named as an Additional Insured and Loss Payee on all
policies covering County-owned property.
Any deviations from these General Insurance Requirements must be requested in
writing on the County prepared form entitled "Request for Waiver of Insurance
Requirements" and approved by Monroe County's Risk Manager.
To assist in the development of your proposal, the insurance coverages marked with an
"X" will be required in the event an award is made to your firm. Please review this form
with your insurance agent and have him sign it in the place provided. It is also required
that the bidder sign the form and submit it with each proposal.
WORKERS' COMPENSATION & EMPLOYER'S LIABILITY
Workers' Compensation Statutory Limits
WC1 Employer's Liability $100,000/$500,000/$100,000
WC2 Employer's Liability $500,000/$500,000/$500,000
WC3 X Employer's liability $1,000,000/$1,000,000/$1,000,000
WCUSLH U.S. Longshoremen & Harbor
Workers Act Same as Employer's Liability
WCJA Federal Jones Act Same as Employer's Liability
GENERAL LIABILITY
As a minimum, the required general liability coverages will include:
- Premises Operations - Products and Completed Operations
- Blanket Contractual - Personal injury
- Expanded Definition of Property Damage
Required Limits:
GL1 $100,000/person; $300,000/occurrence
$ 50,000 property damage or
$300,000 combined single limit
GL2 $250,000/person; $500,000/occurrence
$ 50,000 property damage or
$500,000 combined single limit
111-102
BIDDOC-1.MAX
$ 500,000/person; $1 ,OOO,OOO/occurrence
GL3 $ 100,000 property damage or
$1,000,000 combined single limit
GL4 X $5,000,000 combined single limited
Required Endorsement:
GLXCU X Underground, Explosion & Collapse (XCU)
GLUQ Liquor Liability
All endorsements are required to have the same limits as the basic policy.
VEHICLE LIABILITY
As a minimum, coverage should extend to liability for:
- Owned, Non-owned and hired vehicles
Required Limits:
VLI $ 50,000/person; $100,000/occurrence
$ 25,000 property damage or
$100,000 combined single limit
VL2 $100, OOO/person; $300, OOO/occurrence
$ 50,000 property damage or
$300,000 combined single limit
VL3 $ 500,000/person; $1 ,OOO,OOO/occurrence
$ 100,000 property damage or
$1,000,000 combined single limit
VL4 X $5,000,000 combined single limit
111-103
BIDDOC-1.MAX
MISCELLANEOUS COVERAGES
BR1 Builders' Risk Limits Equal to the risk completed project
BR2 Builders' Risk Limits Equal to the risk completed project
MVC Motor Truck Cargo Limits Equal to the max. value of anyone shipment
PR01 Professional Liability $250,000/occurrence
PR02 $500,000/occurrence
PR03 $1,OOO,OOO/occurrence
POL1 Pollution liability $500,000/occurrence
POL2 $1,OOO,000/occurrence
POL3 $51000,OOO/occurrence
ED1 Employee $10,000
ED2 Dishonesty $100,000
GK1 Garage $300,000 ($25,OOOlvehicle)
GK2 Keepers $500,000 ($100,000Ivehicle)
GK3 $1,000,000 ($250,000Ivehicle)
MED1 Medical $500,000/$1,000,000 Agg.
MED2 Professional $1,000,000/$3,000,000 Agg.
MED3 $5,000,000/$10,000,000 Agg.
IF Installation Floater Max. Value of Equip. Installed
VLP1 Hazardous $300,000 (Requires MCS-90)
VLP2 Cargo $500,000 (Requires MCS-90)
VLP3 Transporter $1,000,000 (Requires MCS-90)
Bll Bailee Liability Max. value of property
HKL1 Hangarkeepers' liability $300,000
HKL2 $500,000
HKL3 $1,000,000
AIR1 Aircraft Liability 525,000,000
AIR2 $1,000,000
AIR3 $1,000,000
AE01 Architects' Errors & Omissions $250,000/occurrence/$500,000 Agg.
AE02 S500,000/occurrence/S1 ,000,000 Agg.
AE03 51 ,000,000/occurrence/$3,000,000 Agg.
111-104
BIDDOC-1.MAX
06/29/2004 12:07 FA~,~073310444
.'
FL IND ELEe ORLANDO
i4l 009
INSURANCE AGENT'S STATEMENT
1 have reviewed the above requirements with the bidder named below. The fOllowing
deductibles apply to the corresponding policy:
POLICY
DEDUCTIBLES
$2,500
GL257291163-General Liability
i'WC25729111S-Workers Comp
$10.000
Liability policies are:
fi] Occurrence
o Claims Made
Rnupn, Mi~lette & Britt, Inc.
Insurance Agency
,014... QGBu~
~ ..
BIDDER'S STATEMENT
I understand the insurance that will be mandatory if awarded the contract and will
comply in full with all the requirements.
Florida.lndustrial.Electric, Inc.
Bidder
~vc .
Signature ~~
111-105
WORKERS' COMPENSATION
INSURANCE REQUIREMENTS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Prior to the commencement of work gavemed by this contract, the Contractor shall obtain
Workers' Compensation Insurance with limits sufficient to respond to the applicable state's
statutes.
In addition, the Contractor shall obtain Employers' Liability Insurance with limits of not less than:
$1,000,000 Bodily Injury by Accident
$1,000,000 Bodily Injury by Disease, policy limits
$1,000,000 Bodily Injury by Disease, each employee
Coverage shall be maintained throughout the entire term of the contract.
Coverage shall be provided by a company or companies authorized to transact business in the
state of Florida and the company or companies must maintain a minimum rating of AV1 as
assigned by the A.M. Best Company.
If the Contractor has been approved by the Florida Department of Labor as an authorized self-
insurer, the County shall recognize and honor the Contractor's status. The Contractor may I be
required to submit a Letter of Authorization issued by the Department of Labor and a Certificate
of Insurance providing details on the Contractor's Excess Insurance Program.
If the Contractor participates in a self-insurance fund, a Certificate of Insurance will be required.
In addition, the Contractor may be required to submit updated financial statements from the fund
upon request from the County.
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BIDDOC-1.MAX
GENERAL LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Prior to the commencement of work gavemed by this contract, the Contractor shall obtain
General Liability Insurance. Coverage shall be maintained throughout the life of the contract
and include, as a minimum:
- Premises Operations
- Products and Completed Operations
- Blanket Contractual Liability
- Personal Injury Liability
- Expanded Definition of Property Damage
The minimum limits acceptable shall be:
$5,000,000 Combined Single Limit (CSL)
If split limits are provided, the minimum limits acceptable shall be:
$1,000,000 per person
$5,000,000 per occurrence
$ 100,000 property damage
An Occurrence Form policy is preferred. If coverage is provided on a Claims Made policy, its
provisions should include coverage for claims filed on or after the effective date of this contract.
In addition, the period for which claims may be reported should extend for a minimum of twelve
(12) months following the acceptance of work by the County.
The Monroe County Board of County Commissioners shall be named as .Additional Insured on
all policies issued to satisfy the above requirements.
111-107
BIDDOC-1.MAX
VEHICLE LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Recognizing that the work governed by this contract requires the use of vehicles, the
Contractor, prior to the commencement of work shall obtain Vehicle Uability Insurance.
Coverage shall be maintained throughout the life of the contract and include, as a minimum,
liability coverage for:
· Owned, Non-Owned and Hired Vehicles
The minimum limits acceptable shall be:
$5,000,000 Combined Single Limit (CSL)
If split limits are provided, the minimum limits acceptable shall be:
$1,000,000 per person
$5,000,000 per occurrence
$ 100,000 property damage
The Monroe County Board of County Commissioners shall be named as Additional Insured on
all policies issued to satisfy the above requirements.
111-108
BIDDOC-1.MAX
150.01
150.02
SECTION 150
DISADVANTAGED BUSINESS ENTERPRISE PROGRAM
DEFINITIONS OF TERMS
The terms used in this program have the meaning defined in 49 CFR
Section 26.5.
OBJECTIVES/POLICY STATEMENT (Sub-section 26.1,26.23)
The County has established a Disadvantaged Business Enterprise (DBE)
program in accordance with regulations of the U.S. Department of
Transportation (DOT), 49 CFR Part 26. The County has received Federal
financial assistance from the Department of Transportation, and as a
condition of receiving this assistance, the County has signed an
assurance that it will comply with 49 CFR Part 26.
It is the policy of the County to ensure that DBEs, as defined in part 26,
have an equal opportunity to receive and participate in DOT-assisted
contracts. It is also their -
To ensure nondiscrimination in the award and administration of
DOT assisted contracts;
To create a level playing field on which DBEs can compete fairly for
DOT assisted contracts;
To ensure that the DBE Program is narrowly tailored in accordance
with applicable law;
To ensure that only firms that fully meet 49 CFR Part 26 eligibility
standards are permitted to participate as DBEs;
To help remove barriers to the participation of DBEs in DOT
assisted contracts; and
To assist the development of firms that can complete successfully
in the market place outside the DBE Program.
The Airport Manager has been delegated as the DBE Liaison Officer. In
that capacity, the Airport Manager is responsible for implementing all
aspects of the DBE program. Implementation of the DBE program is
accorded the same priority as compliance with all other legal obligations
incurred by the County in its financial assistance agreements with the
Department of Transportation.
111-109
150.03
150.04
150.05
NON-DISCRIMINATION (Section 26.7)
The County will never exclude any person from participation in, deny any
person the benefits of, or otherwise discriminate against anyone in
connection with the award and performance of any contract covered by 49
CFR Part 26 on the basis of race, color, sex, or national origin.
In administering its DBE program, the County will not, directly or through
contractual or other arrangements, use criteria or methods of
administration that have the effect of defeating or substantially impairing
accomplishment of the objectives of the DBE program with respect to
individuals of a particular race, color, sex, or national origin.
DBE PROGRAM UPDATES (Section 26.21 )
We will continue to carry out this program until all funds from DOT
financial assistance have been expended. We will provide to DOT updates
representing significant changes in the program.
FEDERAL FINANCIAL ASSISTANCE AGREEMENT ASSURANCE
(Section 26.13)
The County has signed the following assurance, applicable to all DOT-
assisted contracts and their administration:
The County shall not discriminate on the basis of race, color,
national origin, or sex in the award and performance of any DOT
assisted contract or in the administration of its DBE Program or the
requirements of 49 CFR part 26. The recipient shall take all
necessary and reasonable steps under 49 CFR part 26 to ensure
nondiscrimination in the award and administration of DOT assisted
contracts. The recipient's DBE Program, as required by 49 CFR
part 26 and as approved by DOT, is incorporated by reference in
this agreement.
Implementation of this program is a legal obligation and failure to
carry out its terms shall be treated as a violation of this agreement.
Upon notification to the County of its failure to carry out its
approved program, the Department may impose sanctions as
provided for under part 26 and may, in appropriate cases, refer the
matter for enforcement under 18 U.S.C. 1001 and/or the Program
Fraud Civil Remedies Act of 1986 (31 US.C. 3801 et seq.)
111-110
150.06
150-07
REQUIRED CONTRACT CLAUSES (Sub-section 26.13, 26.29)
Contract Assurance
We will ensure that the following clause is placed in every DOT-assisted
contract and subcontract:
The contractor or subcontractor shall not discriminate on the basis
of race, color, national origin, or sex in the performance of this
contract. The contractor shall carry out applicable requirements of
49 CFR part 26 in the award and administration of DOT-assisted
contracts. Failure by the contractor to carry out these requirements
is a material breach of this contract, which may result in the
termination of this contract or such other remedy as the recipient
deems appropriate.
Promot Payment
We will include the following clause in each DOT-assisted prime contract:
The prime contractor agrees to pay each subcontractor under this
prime contract no later than thirty (30) days from the receipt of each
payment the prime contractor receives from the County. The prime
contractor agrees further to return retainage payments to each
subcontractor within thirty (30) days after the subcontractor's work
is satisfactorily completed. Any delay or postponement of payment
from the above referenced time frame may occur only for good
cause following written approval of the County. This clause applies
to both DBE and non-DBE subcontractors.
OTHER CONTRACT PROVISIONS
1 . Bidders List
If the recipient's DBE program provides for collecting information for
a bidders list by using a contract clause, the recipient should devise
an appropriate clause and include it in each DOT-assisted contract.
DOT's "Sample DBE Program" interpreting 49 CFR Section 26.11
lists various methods by which a recipient can collect information
for a bidders list. Use of a contract clause is one such method.
Recipients that choose to use another method would not include
such a clause in their DOT-assisted contracts.
111-111
2. Good faith efforts
In accordance with 49 CFR Section 26.51, the recipient must meet the
maximum feasible portion of their overall goal through race-neutral means
of facilitating DBE participation. The recipient is not required to set a
contract goal on every DOT-assisted contract, but must set contract goals
that will cumulatively result in meeting any portion of the overall goal the
recipient does not project meeting through the use of race-neutral means.
Contract goals may be established only on those DOT-assisted contracts
having sub-contracting possibilities.
When a contract goal is established pursuant to the recipient's DBE
program, the sample bid specification set forth below can be used to notify
bidders/offerors of the requirements to make good faith efforts. The forms
that follow the specification can be used to collect information necessary
to determine whether the bidder/offeror has satisfied these requirements.
The sample specification is intended for use in both nonconstruction and
construction contracts for which a contract goal has been established.
Thus, it can be included in invitations for bid for construction, in requests
for architectural/engineering and other professional services, and in other
covered solicitation documents.
The requirements of 49 CFR Part 26, Regulations of the U.S.
Department of Transportation, apply to this contract. It is the policy
of the County to practice nondiscrimination based on race, color,
sex, or national origin in the award or performance of this contract.
All firms qualifying under this solicitation are encouraged to submit
bids/proposals. Award of this contract will be conditioned upon
satisfying the requirements of this bid specification. These
requirements apply to all bidders/offerors, including those who
qualify as a DBE. The bidder/offeror shall make good faith efforts,
as defined in Appendix A, 49 CFR Part 26 (Attachment 1), to meet
the contract goal for DBE participation in the performance of this
contract.
The bidder/offeror will be required to submit the following
information: (1) the names and addresses of DBE firms that will
participate in the contract; (2) a description of the work that each
DBE firm will perform; (3) the dollar amount of the participation of
each DBE firm participating; (4) written documentation of the
bidder/offeror's commitment to use a DBE subcontractor whose
participation it submits to meet the contract goal; (5) written
confirmation from the DBE that it is participating in the contract as
provided in the commitment made under (4) and (5) if the contract
goal is not met. evidence of good faith efforts.
111-112
DBE participation in this contract may be in form of a prime
contract, subcontract, joint venture, or another arrangement that
qualifies under 49 CFR Sections 26.55, "How is DBE participation
counted toward goals?" or 26.53(g), both of which are included as
Attachment 2.
111-113
ATTACHMENT 1
DISADVANTAGED BUSINESS ENTERPRISE (DBE)
UTILIZATION
The undersigned bidder/offeror has satisfied the requirements of the bid specification in
the following manner (please check the appropriate space):
The bidder/offeror is committed to a minimum of
utilization on this contract.
% DBE
The bidder/offeror (if unable to meet the DBE goal of %) is
commited to a minimum of % DBE utilization on this contract and submits
documentation demonstrating good faith efforts.
Name of bidder/offeror's finn:
State Registration No.
By
Signature
Title
111-114
e,
ATTACHMENT 2
LETTER OF INTENT
City:
Lo~od
State: Florida
Zip: 32160
Name of DBE firm:
Traffic Control Products of Florida. Inc.
Address: 551.c. Carmack Road
CIty:
TamDa
State: Florida
Zip: 33110
Telephone: 40'7-121478
Description of work to be performed by DBE finn:
Pavement Marklna and' RemovaL
The bidder/offeror Is committed to utUi%lng the above-named DBE firm for the "%
descnbed above. The estimated dollar value of this work is $ I'M- OVO f4- Oct? q7
Affirmation
The above-named DaE firm affirms that it will perfonn the portion of the contract for the
estimated dollar values as stated al;>ov~.
By ~~tu)u ~1~J~
(Signature)
f>ff$~ ~
(Title)
If the bldderJoffel'or does not receive award of the prime contract, any and all
representations In this Letter of Intant and Affirmation shall be null and void.
(Submit this page for each DBE subcontractor.)
/1[-115
8 'd Ot99'oN
~dl 'OO~d lOi:!lNOJ J! :lj~dl
WdLt:S t006 '6 'Ior
ATTACHMInIT 2
LETTER OF INTENT
Name of bidder/offeror's firm: Florid. Ind_trial Electric, Inc.
Address:' 811 Wilma Street
City:
longwood
State: Florida
ZIp: 32750
Name of CBE 81m:
AM. Inc.
Address: 4102 Old Winter Garden ROItd. Suit. G. BldG. B
City:
Orlllndo
Slale: Florida
Zip: 32811
Telephone: ..7-621-4576
Description of work to be performed by DeE firm:
SUDDIY of E~ Mate.......
The bidder/offeror is committed to utllz(ng the above-named OBE fIr'n\ for the work
described above. The estimated dollar value of this work is $ :3 -Z 03:5:0::/
,
Affirmation
If the bl rfofferor dOGS not receive award of the prime contract, any and all
represenbtions in this letter of Intent and Affinnatlon shall be nun and void.
(SUbmit this page for each DBE sUbcontractor.)
"'.115
SPECIAL PROVISIONS
DIVISION IV
SPECIAL PROVISIONS
SP-1 - PROJECT GENERAL REQUIREMENTS ...............................................................IV-2
SP-2 - NOTICE TO PROCEED, CONSTRUCTION
PHASING AND WORK SEQUENCING................................................................IV_22
SP-3 - CONTRACT TIME AND LIQUIDATED DAMAGES..............................................IV_25
SP-4 - PROTECTION OF AIRPORT CABLES, CONTROLS, NAVAlDS
AND WEATHER BUREAU FACILITIES ..............................................................IV-26
SP-5 - RESIDENT PROJECT REPRESENT ATIVE.........................................................IV.28
SP-6 - SAFETY AND SECURITY REQUIREMENTS ......................................................IV-29
SP-7 - LIST OF DRAWINGS ...........................................................................................1V-34
SP-S - RESIDENT ENGINEER'S (RPR) OFFICE (N/A) ..................................................IV-35
SP-9 - TEMPORARY FACILITIES ..................................................................................IV.36
SP-1 0 _ DEWATERING .....................................................................................................IV-41
SP-11 - PRECEDENCE OF DOCUMENTS .......................................................................IV-42
SP-12 - FINAL PAY REQUESTS AND RELATED FORMS ..............................................IV-43
SP-13 - SOIL BORING REPORT AND LABORATORY TESTING (N/A) ..........................IV-44
IV-1
SPECIAL PROVISION NO.1
PRO-JECT GENERAL REQUIREMENTS
1. WORK LOCATION. Florida Keys Marathon Airport is located approximately two
miles northeast of the city of Marathon, Florida, on U.S. Highway No.1. The
airport teminal has one active runway, 7-25 being 100 feet in width and 5,006
feet in length. Airport property ranges in elevation from 0 to 7 feet above mean
sea level.
2. SCOPE OF WORK. The overall objective is to develop the installation of taxiway
edge lighting for access to shade hangar and mosquito control apron located on
the east side of the airport terminal. Also, this project shall furnish and install new
guidance sign system and perform the related work to update lighting and
signalization systems according to the the plans.
3. WORK PHASING AND SEQUENCING. Work phasing and sequencing
requirements are stipulated in Special Provision No.2 included hereinafter.
4. TIME OF COMPLETION AND LIQUIDATED DAMAGES. Work included in this
contract shall be completed within sixty (60) calendar days as stipulated in
Special Provision Nos. 2 and 3.
5. PLANS. The plans included in this contract are listed in Special Provision No.7.
6. LOCATION OF EXISTING UNDERGROUND CABLES AND STRUCTURES. All
existing cables, light fixtures, signs and related structures are to be protected by
the Contractor in accordance with the provisions contained in Special Provision
NO.4.
7. PROTECTION OF EXISTING PAVEMENTS AND STRUCTURES. The
Contractor shall be responsible for methods, means, materials and procedures
necessary to protect all existing facilities, property, asphalt and concrete
pavements, structures, equipment, and finishes from any and all damage
whatsoever arising from the execution or non-execution of the work of this
project.
The Contractor shall take all necessary precautions to protect asphalt and
concrete pavement surfaces when steel threaded equipment or vehicles are
used. Rubber tires or treads shall be used wherever possible.
All conflicts discovered between existing underground utilities or structures and
new structures and other foundation work shall be immediately brought to the
attention of the Engineer who will then issue directions regarding a solution to the
conflict(s).
IV-2
8. CONSTRUCTION LAYOUT AND STAKES. Contractor shall furnish all lines,
grades and measurements necessary for the proper prosecution and control of
the work and contracted for under these specifications.
The project layout surveying may be accomplished during daylight hours
provided the Contractor meets the following conditions:
A. The Contractor shall notify the Engineer and Airport Manager forty-eight
(48) hours in advance with dates and times surveying will be started so a
NOT AM can be issued.
B. No vehicles or heavy equipment shall be within 200' of the centeriine of
Runway 7-25 or within 73' of any active taxiway centeriine during the time
the survey work is being accomplished.
C. Only men and Ahand tools@ will be allowed within 125' of Runway 7-25
centeriine, at the turn arounds and TNV's connectors.
D. Survey party members shall be equipped with hand-held radios and shall
continuously monitor the UNICOM and airiine radio frequencies and pull
back men and survey equipment to a point 125' from the runway
centeriine during aircraft operations.
E. No survey men or equipment will be allowed on the runway (100' wide) or
taxiway (50' wide). Pavement during survey work periods will not be
allowed unless authorized by the Engineer.
F. No survey work shall be accomplished without the presence of the
Engineer or his authorized representative.
9. VERIFICATION OF EXISTING CONDITIONS. Prior to bidding and commencing
with construction, the Contractor shall familiarize himself as to the existing
conditions. Should the Contractor discover any inaccuracies, errors or omissions
between the actual existina conditions and the Contract Documents, he shall
within fifteen (15) calendar days prior to Bid Openina, notify the Enaineer in
writina. Submission of Bid by the Contractor shall be held as an acceptance of
the existing conditions by the Contractor.
IV-3
10. SAFETY AND PROTECTION.
A. General Project Safety: Inasmuch as each work area will be accessible
to and used by the public, the Owner and other companies doing business
at the Airport during the construction period, it is the Contractor's
responsibility to maintain each work area in a safe, hazard free condition
at all times. Should the Owner find the area unsafe at any time, they will
notify the Contractor, and the Contractor shall take whatever steps
necessary to remedy the unsafe condition. Should the Contractor not be
immediately available for corrective action, the Owner will remedy the
problem and the Contractor shall reimburse the Owner for the expense of
such correction.
B. Airfield and Security: This Project will take place within the secured
(fenced) airfield area of the Airport. When the Contractor enters upon said
secured area, the Contractor shall conduct all work in confonnance with
the Safety and Security requirements included in Special Provision No.6.
C. Protection of Property: Fixed structures, equipment, paving,
landscaping and vehicles (automobiles, trucks, etc.) shall be protected
with drop cloths, shielding and other appropriate measures to ensure
maximum protection of all property and vehicles.
11. PRE-CONSTRUCTION CONFERENCE. Before beginning work at the site, the
Contractor shall attend a pre-construction conference and bring with him the
superintendent employed for this project. In the event the Contractor is unable to
attend, he shall send a letter of introduction with the superintendent in which he
advises the superintendent's full name and states that he is assigned to the
project and will be in full responsible charge. This conference will be called by
the Engineer or Resident Project Representative (RPR), who will arrange for the
Owner's representative and other interested parties to be present. At this time,
all parties will discuss the project under contract and prepare a program of
procedure in keeping with requirements of the drawings and specifications. The
superintendent will henceforth make every effort to expeditiously coordinate all
phases of the work, including the required reporting procedure, to obtain the end
result within the full purpose and intent of the drawings and specifications for the
project.
12. COORDINATION AND PROGRESS MEETINGS
A. General: The Engineer or RPR will prepare a written memorandum on
required coordination activities. Included will be such items as required
notices, reports, and attendance at meetings. This memorandum will be
distributed to each entity performing work at the project site.
IV-4
B. Weekly Coordination and Progress Meetings: The Engineer or RPR
will hold weekly general project coordination and progress meetings at
regularly scheduled times convenient for all parties involved. These
meetings are in addition to specific meetings held for other purposes, such
as special project meetings and special pre-installation meetings. The
Engineer or RPR will require representation at each meeting by every
party currently involved in coordination or planning for the work of the
entire project. Meetings will be conducted in a manner which will resolve
coordination problems.
C. The Engineer or RPR will record results of the meeting and distribute
copies to everyone in attendance and to others affected by decisions or
actions resulting from each meeting.
13. ADMINISTRA TIVE/SUPERVISORY PERSONNEL. The Contractor shall provide
a full-time Project Management Team consisting of a Project Superintendent
and other supervisory personnel for the duration of the Project. The names and
qualifications of this team for this work shall be submitted to the Owner as part of
the Bidder Qualification Form. They shall have a minimum of five (5) years of
experience on suitable projects of equal difficulty. The Project Superintendent
shall be at the construction site at all periods when work is in progress. This
person shall have full authority to act in the Contractor's behalf. It is agreed and
understood that, if requested in writing by the Owner, the Contractor shall replace
any member of the team with another meeting the required qualifications within
three (3) days of the receipt of the request.
14. SPECIAL REPORTS.
A. Reporting Unusual Events: When an event of an unusual and
significant nature occurs at the site, Contractor shall prepare and submit a
special report to the Engineer. List chain of events, persons participating,
response by the Contractor's personnel, an evaluation of the results or
effects and similar pertinent information. Advise the Owner and Engineer
as soon as pOSSible when such events are known.
B. Submit special reports directly to the Owner within one day of occurrence.
Submit a copy of the report to the Engineer and other entities that are
affected by the occurrence within one day of the occurrence.
15. SCHEDULE OF WORK
A. Prepare and submit, in triplicate, for the Engineer's information, progress
schedules for the work.
IV-5
B. Progress schedules shall relate to the entire project to the extent required
by the Contract Documents and shall provide for expeditious and
practicable execution of the work.
C. Progress schedules shall be updated monthly.
D. Percent complete shall be based on actual construction in place or dollar
volume of the work. If dollar volume of the work reflects the greater
percent complete, the maximum percent complete shall in no case exceed
5 percent of the value of the in-place construction.
16. PROGRESS SCHEDULE.
A. Preliminary Schedule: Within 15 days after date of Notice of Award and
Acceptance, the Contractor shall submit his preliminary network phasing
diagram (Preliminary Schedule) indicating a comprehensive overview of
the Project including an activity line for each of the work segments to be
performed at the site.
1 ) Arrange the schedule to indicate required sequencing of work and
to show time allowances for submittals, inspections, and similar
time margins.
2) The submitted schedule shall be reviewed by the Engineer and
Owner for conformance to Critical Dates and overall project
completion time criteria. Lack of this information will be cause for
rejection of the schedule.
3) Following initial submittal of schedule to and response by the
Engineer, print and distribute the Progress Schedule to entities with
a need-to-know responsibility, including three (3) copies to the
Engineer. Post in temporary office space. Revise at intervals
matching payment requests, and redistribute and repost. Provide
copies required with payment requests.
17. MAINTENANCE OF SCHEDULE. The Contractor's Progress Schedule must be
updated on a monthly basis, and a copy thereof submitted with each of the
Contractor's Applications for Payment. The updated Progress Schedule shall not
only indicate revisions to the Schedule for upcoming work but show "as-built"
schedule progress data. The Engineer will not recommend for payment, by the
Owner, an Application for Payment without the Contractor's submission of a
Monthly Schedule Update.
A. If the Contractor's Monthly Schedule Update reflects, or the
Engineer determines, that the Contractor is at least ten percent
IV-6
(10%) behind the original Progress Schedule or fourteen (14) or
more calendar days behind the original Progress Schedule for:
1) the work as a whole;
2) a major Contract item;
3) an item of work which is on the critical path; or
4) an item of work not on the original critical path that, because
of the delay or anticipated delay became a critical path item;
then the Contractor must submit with the Monthly Schedule Update
his proposed plan for bringing the work back on schedule and
completing the Work within the Contract time.
B. The Progress Schedule shall be coordinated by the Owner's Project
Administrator with the overall schedule for the Airport Projects. The
Contractor is required to revise the Progress Schedule promptly in
accordance with the conditions of the work, subject to approval by
the Owner's Project Coordinator and the Engineer.
C. The Contractor shall comply fully with all time and other
requirements of the Contract Documents. Recommendation of an
Application of Payment of the Engineer and payment thereon by
the Owner, without the submission of a Monthly Schedule Update,
shall not constitute a waiver of the requirements of such updates,
nor shall it relieve the Contractor from the obligation to complete
the Work within the Contract Time.
D. Should a review of work indicate a critical path (milestone) item has
fallen behind the approved schedule; at the option of the Engineer;
funds equal to the established liquidated damages for the number
of calendar days behind schedule will be withheld until that critical
path item is brought back on schedule.
18. CHANGES IN THE SCHEDULE.
A. Minor Changes: Each week, prior to the weekly coordination
meeting, during the time of the contract, the Contractor shall notify
the Engineer of any minor changes that are anticipated in the
schedule for the following week.
B. Major Changes: If for any reason, a major change in the approved
schedule is anticipated, the Contractor shall make the necessary
IV-7
changes to the schedule and resubmit the revised schedule for
approval.
Copies of the approved schedule shall be posted in the Contractor's
field office with completed work identified in colored pencil.
19. MAINTENANCE OF TRAFFIC.
A. The Contractor shall not obstruct nor create a hazard to any traffic
during the prosecution of the work and shall be responsible for
repair of all damage to existing pavement or facilities caused by his
operations.
B. Beginning date of Contractor's Responsibility: the Contractor's
responsibility for maintenance of traffic shall begin on the day he
starts the work and continue until Final Completion and Acceptance
of the Project.
C. Sections Not Requiring Traffic Maintenance: the Contractor will not
be required to maintain traffic over those portions of the Project
where no work is to be accomplished or where construction
operations will not affect aircraft operations. The Contractor,
however, shall not obstruct nor create a hazard to any traffic during
the prosecution of the work and shall be responsible for repair of
any damage to existing pavement or facilities caused by his
operations.
D. Traffic During Construction: All construction vehicles are required
to use existing traffic routes. Normal traffic lanes are not to be used
as staging areas for arriving delivery vehicles. The Contractor's
employees shall utilize the designated Contractor employee parking
area.
E. Contractor Signing: The Contractor may furnish and install
construction traffic directional signs along the existing traffic route.
The signs shall depict Contractor's logo or name, directional arrows
and "deliveries". Signs shall be of sufficient size to have 8" high
message and shall be located at each decision point. All signs and
their locations shall be approved by the Engineer and Owner. NO
OTHER SIGNS ARE PERMITTED.
F. Material Deliveries: The Contractor shall make his own material
and equipment deliveries. No deliveries shall be made by vendors
or suppliers without escort by a representative of the Contractor.
IV-8
G. Notification: On days when construction traffic is expected to be
extra heavy or when oversized pieces of equipment are to be
delivered, give minimum forty-eight (48) hours notice to the
Engineer.
H. All Contractor's material orders for delivery to the work site will use
as a delivery address, the street name and number assigned to the
access point onto the airport. The name FLORIDA KEYS
MARATHON AIRPORT" shall not be used in the delivery address
at any time. This will preclude delivery trucks from entering into
aircraft operations areas inadvertently. All Contractor material
orders for the work site shall be delivered to the areas designated
as the Contractor's receiving area. All deliveries shall be made only
during the Contractor's working hours.
I. Interference Request:
1) The Contractor shall be responsible for notifying the Owner
in writing and securing approval for any and all interruptions
or interference with traffic (pedestrian, automobile, or other
necessary function of the Airport or any of the Airlines).
2) The request shall include a traffic control plan indicating
barricades, lighting and flagmen where required.
3) Such notification shall be made as soon as possible but in
no case less than 48 hours prior to interference.
4) It is suggested that the Contractor utilize a standard form
addressed to the Owner with a blank space for a description
of the interference, the exact area affected, the exact times
and dates the interference will take place and blanks for the
Owner's approval. The forms shall be submitted in dupli-
cate. No interference will be allowed until the Contractor has
received back a copy of the approved interference request
form.
J. Personnel Traffic:
1) General: All construction personnel shall be restricted to
construction areas. They shall wear shirts with sleeves and
long pants at all times.
2) Use of Public Areas: The Contractor's workmen shall not
utilize public areas for taking their "work breaks" or "lunch
breaks". Areas for this purpose can be designated by the
IV-9
Owner upon request. No Public Toilets shall be used by any
workmen at any time.
20. DAILY CLEAN-UP AND TRASH REMOVAL.
A. Debris from this work shall be promptly removed from the site at
least daily. It shall not be allowed to become a hazard to the safety
of the public.
B. The Contractor shall be responsible for clean-up and trash removal.
Accumulation of trash and debris will not be allowed and the
Engineer or RPR may at any time direct the Contractor to
immediately remove his trash and debris from the site of the work
when in the opinion of the Owner such trash constitutes a nuisance
or in any way hinders the work or the Airports operations. If the
Contractor should fail to remove his trash and debris from the site
of the work in a timely manner, the Owner may have this work
performed and deduct the cost of such from Contractor's payment.
21. CLEANING AND PROTECTION.
A. General: During handling and installation of work at the project site, clean
and protect work in progress and adjoining work on the basis of
continuous daily maintenance. Apply protective covering on installed work
to ensure freedom from damage or deterioration.
B. Clean and perform maintenance on installed work as frequently as
necessary through the remainder of the construction period. Adjust and
lubricate operable components to ensure operability without damaging
effects.
C. Limiting Exposure of Work: To the extent possible through appropriate
control and protection methods, supervise performance of the work in
such a manner and by such means which will ensure that none of the
work, whether completed or in progress, will be subjected to harmful,
dangerous, damaging or otherwise deleterious exposure during the
construction period. Such exposures include, where applicable, but not by
way of limitation the following:
1) Excessive static or dynamic loading
2) Excessive internal or external pressures
3) Solvents
4) Chemicals
IV-10
5) Light
6) Puncture
7) Abrasion
8) Heavy Traffic
9) Soiling
10) Combustion
11) Improper shipping or handling
12) Theft
13) Vandalism
D. Protection at Openings: Contractor shall provide protection at all openings
in structures and finishes to maintain the building weather and dust tight.
All protection shall be of solid material and substantial so that it will not be
disturbed by wind and weather normal to the area and season, and also
tight fitting to prevent noise infiltration.
E. Protection of Improvements:
1) Damage to Existing Facilities: Existing surfaces and materials of
the Owner's property not requiring work by the Contract Documents
that is damaged by the Contractor's operations shall be
immediately repaired. Repaired surfaces and materials shall match
existing adjacent undamaged surfaces and materials. Repair work
shall be coordinated with the Engineer and Owner with regard to
time and method.
2) Accidental Demolition: All structures or parts thereof that may
become damaged due to accident or Contractor's error shall be
restored to their original condition at no cost to the Owner.
Materials and equipment being used in the repair or replacement
resulting from damage shall be new and shall perform at the
manufacturer's published capacities. If the existing equipment or
materials cannot be identified, or if unavailable, the selection of the
replacement will be subject to approval by the Engineer in writing.
F. Overhead Protection
IV-11
1) No cranes or other construction equipment shall cross over non-
construction personnel, their travel ways or ride systems.
2) The plan of operation of cranes and other hoisting equipment shall
be established in writing by the Contractor. This plan of operation
shall be subject to approval by the Engineer.
22. CONSERVATION AND SALVAGE
A. General: It is a requirement for supervision and administration of the Work
that construction operations be carried out with the maximum possible
consideration given to conservation of energy, water and materials. In
addition, maximum consideration shall be given to salvaging materials and
equipment involved in performance of the work but not incorporated
therein. Refer to other sections for required disposition of salvaged
materials which are the Owner's property.
23. TESTING COST BORNE BY OWNER. Unless otherwise specified herein, all
initial construction "acceptance" testing costs shall be borne by the Owner. An
independent testing laboratory selected and responsible to the Engineer shall
perform all "acceptance" testing required by the technical specifications or as
directed by the Owner and/or the Engineer.
24. TESTING COST BORNE BY CONTRACTOR. The Contractor shall bear the
cost of testing under the following conditions:
A. If substitute materials or equipment are proposed by the Contractor, he
shall pay the cost of all tests which may be necessary to satisfy the
Engineer that specification requirements are satisfied. The Contractor
shall pay for the Engineer's time spent in review and administrating such
proposed substitution.
B. If materials or workmanship are used which fail to meet specification
requirements, the Contractor shall pay the cost of all testing deemed
necessary by the Engineer to determine the safety or suitability of the
material or element.
C. The Contractor shall pay for all testing costs including, but not limited to,
power, fuel, and equipment cost which may be required for complete
testing of all equipment and systems for proper operation.
D. The Contractor shall pay for all testing required for materials, job mix
designs, equipment, structures and related items included in all shop
drawings and other submittals as required by the Technical Specifications
to be submitted and approved by the Engineer prior to construction.
IV-12
25. PROJECT DOCUMENTATION.
A. Project Drawings: The successful Contractor will be furnished, at no
charge, four (4) copies of drawings and specifications. Additional copies
may be purchased at actual cost of reproduction.
A field set of drawings and specifications shall remain on the job site at all
times and shall be available at all times to the Engineer. The field set
shall be continuously updated to reflect the "as-built" condition of all work
included in this Contract.
The Contractor shall immediately include plainly and conspicuously on the
field set of drawings, and at appropriate paragraphs in the specifications,
all changes or corrections made by addenda and change orders as they
are issued.
Approved copies of all shop drawings and other submittals are to be kept
on the job site at all times and shall be available at all times to the
Engineer.
Changes and deviations from the existing conditions shall be submitted in
writing for approval by the Engineer or Owner prior to installation. In no
case shall any unspecified equipment or materials be installed without
prior approval by the Engineer.
B. Record Documents:
1) Definition: Record copies are defined to include those documents
or copies relating directly to performance of the work, which the
Contractor is required to prepare or maintain for the Owner's
records, recording the work as actually performed. In particular,
record copies show changes in the work in relation to the way in
which shown and specified by the original contract documents; and
show additional information of value to the Owner's records, but not
indicated by the original Contract Documents. Record copies
include newly-prepared drawings (if any are specified), marked-up
copies of contract drawings, shop drawings, specifications,
addenda and change orders, marked-up product data submittals,
record samples, field records for variable and concealed conditions
such as excavations and foundations, and miscellaneous record
information on work which is otherwise recorded only schematically
or not at all.
2) Record Drawings: The Contractor shall maintain a set of Record
Drawings at the job site. These shall be kept legible and current
and shall be available for inspection at all times by the Engineer.
IV-13
Show all changes or work added on these Record Drawings in a
contrasting color.
a) Mark-up Procedure: During progress of the work, maintain a
white-print set (blue-line or black-line) of contract drawings
and shop drawings, with mark-up of actual installations
which vary substantially from the work as originally shown.
Mark whatever drawing is most capable of showing actual
physical condition, fully and accurately. Where shop
drawings are marked up, mark cross-reference on contract
drawings at corresponding location. Mark with erasable
colored pencil, using separate colors where feasible to
distinguish between changes for different categories of work
at the same general location. Mark-up important additional
information which was either shown schematically or omitted
from original drawings. Give particular attention to
information on work concealed, which would be difficult to
identify or measure and record at a later date. Note
alternate numbers, change order numbers and similar
identification. Require each person preparing the mark-up to
initial and date the mark-up and indicate the name of the
firm. Label each sheet "PROJECT RECORD" in 1-1/2 inch
high letters.
In showing changes in the work use the same legends as
used on the original drawings. Indicate exact locations by
dimensions and exact elevations by job datum. Give
dimensions from a permanent point.
b) Preparation of Record Drawings: In preparation for
certification of substantial completion on the last major
portion of the work, review the completed mark-up of record
drawings and shop drawings with the Engineer. The
Engineer will then proceed with preparation of a full set of
corrected contract drawings. The Engineer will date each
updated drawing and label each sheet "PROJECT
RECORD" in 1-1/2 inch high letters. Printing as required
herein is the responsibility of the Engineer.
c) Copies, Distribution: Upon completion of record drawings,
the Engineer shall prepare blue-line or black-line prints of
each drawing, regardless of whether changes and additional
information were recorded thereon. The Engineer shall then
organize into manageable sets, bind with durable paper
cover sheets, and print suitable titles and dates. The mark-
up set of prints maintained during the construction period
IV-14
shall be bound in the same manner. The Engineer will retain
one copy set. At the completion of the project, the Engineer
shall submit one set of prints, with changes noted thereon, to
the Owner.
3) Record Drawings shall contain the names, addresses and phone
numbers of the General Contractor and the major sub-contractors.
4) The Engineer shall be the sole judge of the acceptability of the
Record Drawings. Receipt and acceptance of the As-Built
drawings is a pre-requisite for Final Payment.
C. Record Specifications
1) During progress of the work, maintain one copy of specifications,
including addenda, change orders and similar modifications issued
in printed form during construction, mark-up variations (of
substance) in actual work in comparison with text of specifications
and modifications as issued. Give particular attention to
substitutions, selection of options, and similar information on work
where it is concealed or cannot otherwise be readily discerned at a
later date by direct observation. Note related record drawing
information and product data where applicable. Upon completion of
the mark-up, submit to the Engineer for the Owner's records. Label
the front cover "PROJECT RECORD" in 1-1/2 inch high letters.
2) Where the manual is printed on one side of the page only, mark
variations on blank left-hand pages of the Project Manual, facing
printed right-hand pages containing original text affected by
variation.
D. Record Product Data
During progress of the work, maintain one copy of each product data
submittal, and mark-up significant variations in the actual work in
comparison with submitted information. Include both variations in product
as delivered to site, and variations from manufacturer's instructions and
recommendations for installation. Give particular attention to concealed
products and portions of the work which cannot otherwise be readily
discerned at a later date by direct observation. Note related change
orders and mark-up of record drawings and specifications. Upon
completion of the mark-up, submit the complete set of product data
submittals to Engineer for the Owner's records. Label each data
submittal "PROJECT RECORD" in 1-1/2 inch high letters.
IV-15
E. Record Sample Submittal
Immediately prior to the date(s) of substantial completion, the Engineer
and Owner's personnel will meet with the Contractor on site, and will
determine if any of the submitted samples maintained by the Contractor
during progress of the work are to be transmitted to the Owner for record
purposes. Comply with the Engineer's instructions for packaging,
identification marking, and delivery to the Owner's sample storage space.
Dispose of other samples in the manner specified for disposal of surplus
and waste materials, unless otherwise indicated by the Engineer.
F. Miscellaneous Record Submittals
Refer to other sections of these specifications for requirements of
miscellaneous record-keeping and submittals in connection with actual
performance of the work. Immediately prior to the date(s) of substantial
completion, complete miscellaneous records and place in good order,
properly identified and bound or filed, ready for continued use and
reference. Submit to the Engineer for the Owner's records. Categories of
requirements resulting in miscellaneous work records are recognized to
include, but are not limited to, the following:
1) Required field records on excavations, foundations underground
construction, wells and similar work.
2) Surveys by a Registered Land Surveyor establishing lines and
elevations of finished construction.
3) Inspection and Test Reports: Where not processed as shop
drawings or product data.
4) Asphalt or PCC concrete pavement or backfill mix design record
and/or certifications.
5) Concrete mix certifications.
6) Manufacturer's certifications that all fence component materials
conform to specified ASTM specifications. Certifications shall be
accompanied by reports containing the test results for which the
certifications are made.
G. Project Close-out
Project close-out is hereby defined to include general requirements near
end of Contract Time, in preparation for final acceptance, final payment,
normal termination of contract, occupancy by the Owner and similar
IV-16
actions evidencing completion of the work. Specific requirements for
individual units of work are specified in other sections. Time of close-out
is directly related to substantial completion, and therefore may be a single
time period for the entire work or a series of time periods for individual
parts of the work which have been certified as substantially complete at
different dates. The time variation, if any, shall be applicable to other
provisions of this section.
H. Prerequisites to Substantial Completion
1 ) Prior to requesting the Engineer's inspection for certification of
substantial completion, for either the entire work or portions thereof,
complete the following and list known exceptions in request:
a) In progress payment request coincident with, or first
following the date claimed, show 100% completion for the
portion of work claimed as "substantially completed", or list
incomplete items, value of incompleteness, and reasons for
being incomplete.
b) Include supporting documentation for completion as
indicated in the Contract Documents.
c) Submit statement showing accounting of changes to the
Contract Sum.
d) Advise the Owner of pending insurance change-over
requirements.
e) Obtain and submit releases enabling the Owner's full and
unrestricted use of the work and access to services and
utilities I including, where required, occupancy permits,
operating certificates, and similar releases.
f) Deliver tools, spare parts, extra stocks of materials, removed
light fixtures, transformers and similar physical items to the
Owner.
g) Make final change-over of locks and transmit keys to the
Owner, and advise Owner's personnel of change-over in
security provisions.
h) Complete start-up testing of systems, and instructions of
Owner's operating-maintenance personnel. Discontinue, or
change over and remove from project site, temporary
facilities and services, along with construction tools and
facilities, mock-ups, barricades and similar elements.
IV-17
2) Inspection Procedures: Upon receipt of the Contractor's request,
the Engineer will proceed with inspection or advise the Contractor
of prerequisites not fulfilled. Following initial inspection, the
Engineer will prepare a Certificate of Substantial Completion or
advise the Contractor of work which must be performed prior to
issuance of the Certificate and will perform a repeat inspection
when requested and assured by the Contractor that the work has
been substantially completed. Results of the completed inspection
will form an initial "punchlist" for final acceptance.
I. Prerequisites to Final Acceptance
1 ) Prior to requesting the Engineer's final inspection for certification of
final acceptance as required by the General Provisions, the
Contractor shall complete the following and list known exceptions in
the request:
a. Submit certified copy of the Engineer's final punchlist of
itemized work to be completed or corrected, stating that
each item has been completed or otherwise resolved for
acceptance, endorsed and dated by the Engineer.
b. Complete final cleaning up requirements. including touch-up
of marred surfaces.
c. Touch-up and otherwise repair and restore marred exposed
finishes.
2) Re-inspection Procedures: Following Substantial Completion, the
Contractor shall correct or remedy all Punchlist items to the
satisfaction of the Engineer and Owner within a two (2) week period
after the Date of Substantial Completion. If subsequent inspections
are necessary after the two week period in order to eliminate all
deficiencies, the cost of all subsequent inspections with respect to
the Owner and Engineer's time shall be paid by the Contractor.
When ready, the Contractor shall request in writing a final
inspection of the work. Upon completion of reinspection, the
Engineer will prepare a Certificate of Final Acceptance or advise
the Contractor of work not completed or obligations not fulfilled as
required for Final Acceptance. If necessary, the procedures will be
repeated.
J. Prerequisites to Final Payment
IV-18
1) Final Payment: Final Payment will be made after final acceptance
of the project by the Engineer and Owner upon request by the
Contractor on condition that the Contractor:
a) Furnish properly executed complete releases of lien from all
material men and subcontractors who have furnished
materials or labor for the Work and submit supporting
documentation not previously submitted and accepted.
Include certificates of insurance for products and completed
operations where required.
b) Furnish the Contractor's Affidavit of Release of Liens (2
copies) that all material men and subcontractors have been
paid in full. In the event they have not been paid in full, the
Owner shall retain a sufficient sum to pay them in full and at
his option may make direct payment as provided in Chapter
713, Florida Statutes, as amended, to obtain complete
releases of lien. This authorization to make a direct payment
is not an acknowledgement or waiver by the Owner that an
unpaid Subcontractor Material man may seek payment from
the Owner rather than from the Public Construction Bond
Surety as required by Sect. 255.05, F.S.
c) Furnish Contractor's Affidavit of Debts and Claims (2
copies).
d) Furnish required sets of record drawings and maintenance
and operating instructions of new mechanical equipment.
e) Furnish guarantees signed by subcontractors, material
suppliers, and countersigned by the Contractor for operating
equipment.
f) Submit specific warranties, workmanship-maintenance
bonds, maintenance agreements, final certifications and
similar documents.
g) Furnish a signed guarantee, in form acceptable to Engineer
and Owner agreeing to repair or replace as decided by the
Engineer, all work and materials that prove defective within
one (1) year (or more) from the date of final acceptance,
including restoration of all other work damaged in making
such repairs or replacements.
h) Furnish consent of Surety to final payment.
IV-19
i) Submit updated final statement, accounting for final changes
to Contract Sum.
j) Submit evidence of final, continuing insurance coverage
complying with insurance requirements.
k) Certify that all Social Security, Unemployment and all other
taxes (City, State, Federal Government) have been paid.
I) Provide receipt, as applicable, of affidavits certifying all labor
standards of local, State, or Federal requirements have been
complied with by the Contractor.
m) Submit actual DBE participation percentages.
K. Record Document Submittals
Specific requirements for record documents are shown in the section,
PROJECT RECORD DOCUMENTS. Other requirements are indicated in
the General Provisions. General submittal requirements are indicated in
"Submittals" sections. Do not use record documents for construction
purposes; protect from deterioration and loss in a secure, fire-resistive
location; provide access to record documents for the Engineer's reference
during normal working hours.
1 ) Record Drawings: The Engineer shall organize record drawing
sheets into manageable sets, bind with durable paper cover sheets,
and print suitable titles, dates and other identification on cover of
each set.
2) Record Specifications: Upon completion of mark-up, submit to the
Engineer for the Owner's records.
3) Record Product Data: Upon completion of mark-up, submit a
complete set to the Engineer for the Owner's records.
4) Record Sample Submittal: Comply with the Engineer's instructions
for packaging, identification, marking, and delivery to the Owner's
sample storage space.
5) Miscellaneous Record Submittals: Complete miscellaneous
records and place in good order, properly identified and bound or
filed, ready for continued use and reference. Submit to the
Engineer for the Owner's records.
IV-20
6) Maintenance Manuals: Complete, place in order, properly identify
and submit to the Engineer for the Owner's records.
L. Close-out Procedures
General Operating and Maintenance Instructions: Arrange for each
installer of work requiring continuing maintenance or operation, to meet
with the Owner's personnel at the project site to provide basic instructions
needed for proper operation and maintenance of the entire work. Include
instructions by manufacturer's representatives where installers are not
expert in the required procedures. Review maintenance manuals, record
documentation and materials, lubricants, fuel, identification system, control
sequences, hazards, cleaning and similar procedures and facilities. For
operational equipment, demonstrate start-up, shut-down, emergency
operations, safety, economy, efficiency adjustments, and similar
operations. Review maintenance and operations in relation with
applicable warranties, agreements to maintain bonds, and similar
continuing commitments. Permit owner employees to video tape
operating and maintenance instructions.
26. FINAL CLEANING.
A. Provide final cleaning of the work, at the time indicated, consisting of
cleaning each surface or unit of work to normal "clean" condition.
B. Removal of Protection: Remove temporary protection devices and
facilities which were installed during the course of the work to protect
previous completed work during the remainder of the construction period.
C. Compliances: Comply with safety standards and governing regulations for
cleaning operations. Do not burn waste materials at site, nor bury debris
or excess materials on Owner's property. Do not discharge volatile or
other harmful or dangerous materials into drainage systems. Remove
waste materials from site and dispose of in a lawful manner.
Where extra materials of value remain after the completion of the
associated work have become the Owner's property, dispose of these as
directed by the Owner.
IV-21
SPECIAL PROVISION NO.2
NOTICE TO PROCEED, CONSTRUCTION
PHASING AND WORK SEQUENCING
NOTICE TO PROCEED
To avoid the Contractor from being held responsible for delays in obtaining the
necessary permits, and having these delays deducted from the total calendar days
provided in the contract to complete construction, two (2) Notice to Proceeds will be
issued as follows:
1. Notice to Proceed (Permits)
A Notice to Proceed will be issued ten (10) days after award of contract, for the
Contractor to pursue obtaining the necessary permits.
This Notice to Proceed shall allow the Contractor to obtain any necessary
construction permits which will be required to accomplish the work. Also, during
this notice, the Contractor shall order and deliver materials, equipment and
supplies needed to complete the work. No on-site construction activities shall be
accomplished and the Airport shall remain open to aircraft operations during this
time.
2. Notice to Proceed (Construction)
The Contractor shall submit a construction progress schedule to the Engineer in
accordance with Section 16 of Special Provision No.1. The progress schedule
shall indicate the phasing and work sequencing anticipated to be accomplished
by the Contractor. No actual work shall begin until the construction progress
schedule has been approved by the Engineer.
Only after the Contractor has obtained all the necessary permits, will the Notice
to Proceed be issued, which shall state the date on which it is expected the
Contractor will begin the construction and from which date contract time will be
charged.
WORK SEQUENCING
The work included in this Contract shall be accomplished in accordance with, but not
limited to, the following work sequencing:
Notice to Proceed (Permit)
1. Obtain permits as required for construction.
IV-22
2. Prepare and transmit all required shop drawings, submittals and certifications as
required by the Contract Documents to the Engineer for review and approval.
3. Place orders for the purchase and delivery of equipment, materials and supplies
required to complete the work in accordance with the Contract Documents.
4. Prepare his staging area and establish haul routes.
5. Mobilize equipment, materials and supplies in Contractor's staging area. No
men, equipment, materials or supplies will be allowed outside the staging area
during this time unless otherwise authorized by the Engineer.
Notice to Proceed (Construction)
This phase shall include all the construction activities necessary to complete the
work in accordance with the contract documents. Sixty (60) calendar days will be
allowed to complete the work in its entirety.
Construction work under this project will be accomplished during the daytime
unless otherwise shown on the plans. The construction work included in this
project has to be done as shown on the plans.
Work to be performed:
1 ) The Contractor shall give the engineer or resident project representative
(RPR) 48 hours advanced written notice prior to starting work in any area
so the appropriate notams may be issued by the airport.
2) Place barricades as shown on the plans, if applicable.
3) The Contractor must provide his authorized personnel with radios
operating on the local ground control frequency of 122.8 for clearance
instructions relating to airport safety.
4) Information shown on the drawings has been prepared from the most
reliable data available. However, it shall be the responsibility of the
contractor to determine the location, character and depth of any existing
utilities, at no additional cost to the owner.
5) Extreme caution shall be exercised to prevent damage to existing utilities.
Repairs to existing utilities necessitated because of damage caused by
contractor's activities shall be at the expense of the contractor.
6) Construction shall be performed in such a manner as to provide a
minimum of inconvenience to the users of the area.
IV-23
7) The Contractor shall have available at all times appropriate sweeping and
vacuuming equipment to remove any dust or debris. An inspeciton shall
be performed by the owner representative to insure the runway and
taxiway are clear of any debris.
8) Excavation within three (3) feet of FAA or any other existing cables shall
be by hand-digging.
9) FAA power and control cables shall be protected from heavy equipment
operation by steel boilerplate or other approved method.
10) Contractor shall remove, relocate or replace the existing signs and install
the new signs according to the plans.
11) Contractor shall remove, relocate or replace the existing taxiway lights and
install the new taxiway lights according to thp. plans.
12) Connect taxiway lights and signs to the existing MITL according to the
plans.
13) All signs and taxiway lights system shall be in operation at all times.
Upon completion of the work, and before final payment, the contractor shall
remove all equipment, surplus, discarded materials and rubbish.
During the week of Fantasy Fest (October 31) and New Year week the contractor
shall coordinate with the airport manager, RPR, and FBO's to isolate his work in
some specific areas. The airport manager may instruct the Contractor to stop the
work during this time. No additional time and/or cost will be granted to the
Contractor.
The contractor shall have a total of sixty (60) consecutive calendar days from the
issuances of the Notice-to-Proceed (Construction) to complete all work
associated with this project.
IV-24
SPECIAL PROVISION NO.3
CONTRACT TIME AND LIQUIDATED DAMAGES
CONTRACT TIME
NOTICE TO PROCEED DESCRIPTION CONTRACT TIME TO
COMPLETE
This notice shall allow the Contractor to obtain any necessary
construction permits required to accomplish the work. Also,
NOTICE TO PROCEED during this time, the Contractor shall order and deliver materials, A.SAP.
(PERMITS) equipment and supplies needed to complete the work. No on.slte
construction activities shall be accomplished and the Airport
shall remain open to aircraft operations during the stage.
NOTICE TO PROCEED Installation of a new airfield guidance sign and new taxiway edge Maximum U
(CONSTRUCTION) lights. Calendar Days
TOTAL CONTRACT TIME:
Schematic Construction Scheduling and Staging are included In the pians with the work
and operatlona' constraints for informal PUrpoHl only. They are intended to represent MaxImum 60
viable construction sequences which the Contractor may elect to implement The Calendar Days
Contractor shall ultimately be responsible for submittal of a detailed construction
schedule to the AJE for review and approval.
LIQUIDATED DAMAGES
If the work is not completed in accordance with the Contract, the Contractor will be
assessed liquidated damages listed below for each calendar day the work overruns the
allotted contract time.
NOTICE TO PROCEED
LIQUIDATED DAMAGES
Notice to Proceed
(Permit)
None (no on-site construction) activity is being
accomplished this time.
Notice to Proceed
(Construction)
Airfield quidance siqns and taxiwav edqe liqhts.
If the Contractor fails to achieve final completion
within the 60 calendar days fixed therefore by the
Engineer in its partial certificate of substantial
completion, the Contractor shall pay the owner
the sum of $500.00 per day, thereafter for each
and every calendar day of unexcused delay in
achieving final completion beyond the date set
forth herein for final completion of this work.
IV-25
SPECIAL PROVISION NO.4
PROTECTION OF AIRPORT CABLES. CONTROLS. NAVAIDS
AND WEATHER BUREAU FACILITIES
A. The Contractor is hereby informed that there may be installed on the Airport FAA
NAVAIOS including, without limitation, airfield lighting systems, electric cables
and controls relating to such NAVAIOS and facilities. Such NAVAIOS and other
facilities and electric cables must be fully protected during the entire construction
time. Work under this contract can be accomplished in the vicinity of these
facilities and cables only at approved periods of time.
Approval is subject to withdrawal at any time because of change in the weather,
emergency conditions on the existing airfield areas, anticipation of emergency
conditions, and for any other reason determined by the Resident Project
Representative (RPR) acting under the orders and instructions of the airport
management and the designated FAA representative. Any instructions to this
contractor to clear any given area at any time by the RPR or the Airport
Management shall be immediately executed. Construction work will be
commenced in the cleared area only when additional instructions are issued by
the Engineer.
B. Power and control cables leading to and from any FAA NAVAIOS and other
facilities have been located and shown from best available information and are
approximate. The Contractor shall verify actual locations. Through the entire
time of this construction, the Contractor shall not allow any construction
equipment to cross power and control cables leading to and from any FAA
NAVAl OS or other facilities without first protecting the cable with steel boiler
plate, or similar structural devices, on three (3') feet either side of the marked
cable route. All excavation within three (3') feet of existing cables shall be
accomplished by hand digging only.
C. This Special Provision intends to make perfectly clear the need for protection of
FAA NAVAIOS and other facilities and cables by this contractor at all times.
O. The Contractor shall immediately repair, at his own expense, with identical
material by skilled workmen, any underground cables serving FAA NAVAIOS and
other airport facilities, which are damaged by his workmen, equipment, or work.
Prior approval of the FAA must be obtained for the materials, workmen, time of
day or night, method of repairs, and for any temporary or permanent repairs the
Contractor proposed to make to any FAA NAVAIOS and facilities damaged by
the Contractor. Prior approval of the Engineer must be obtained for the
materials, workmen, time of day or night, and for the method of repairs for any
temporary or permanent repairs the Contractor proposes to make to any other
airport facilities and cables damaged by this Contractor. If any repair requires
IV-26
splicing, it shall be spliced at the direction of the Engineer. No work shall be
backfilled or covered prior to approval by the Engineer.
E. The Contractor shall have a sufficient supply of extra cable, connectors, splice
kits and light fixtures on site to temporarily jump around damaged or cut cables
and fixtures if necessary to make the existing runway/taxiway/NAVAIDS systems
operational during scheduled aircraft operation periods.
IV-27
SPECIAL PROVISION NO.5
RESIDENT PROJECT REPRESENTATIVE
1. ON-SITE OBSERVATION. The Resident Project Observation for this contract
shall be performed by the Engineer or his duly authorized representative.
2. DUTIES OF RESIDENT PROJECT REPRESENTATIVE (RPR). The RPR'S
Inspector's duties and responsibilities are to:
a. Monitor performance of the Contractor; require correction of work that
does not meet plans and specifications; and report serious problems to
the Engineer and Owner.
b. Determine test sites/locations, coordinate and supervise testing.
c. Interpret plans and specification details.
d. Resolve minor construction problems.
e. Maintain project records.
f. Review and approve requests for payment to the Contractor.
g. Conduct day-to-day construction observations.
h. Maintain a project diary on a daily basis.
I. Maintain up-to-date records on quantities of work performed and
quantities of materials in place.
j. Contact Engineer for advice and assistance when needed and when major
problems arise.
k. Recommend to the Engineer when a Change Order or Supplemental
Agreement is required.
3. OFFICE. See Special Provision No.8 for Resident Engineer's (RPR) Office.
IV-28
SPECIAL PROVISION NO.6
SAFETY AND SECURITY REQUIREMENTS
1. SAFETY REQUIREMENTS
A. Construction Seauencina. All construction being accomplished under this
contract shall be in accordance with the sequencing indicated on the
drawings.
B. Radio Communications. When working in an Air Operations Area (AOA) ,
whether closed or not, the Contractor shall maintain communications by
two-way radio with the Airport Radio Frequency during all hours of Radio
Frequency operations. The Contractor's radios shall be capable of
operating on the ground control frequency assigned to the Radio
Frequency. The radio operator shall be trained on the use of the radio,
including the terminology normally used on airports for ground control
communications. If the Contractor is operating in more than one general
area on the airport at the same time, additional radios shall be provided to
allow coordination of work activities with the Airport Frequency.
In addition to the above requirements for radios for use by Contractor's
personnel, the Contractor shall provide a similar two-way radio for
exclusive use by the Resident Inspector during normal working hours
throughout the contract time period.
C. Construction Activitv and Aircraft Movements. During the time that the
Contractor is performing some work, the Airport will remain in use by
aircraft except as provided herein. To the extent feasible and convenient,
in the opinion of the Engineer, the use by aircraft of runways and taxiways
adjacent to areas where the Contractor is working will be so scheduled as
to reduce disturbance to the Contractor's operations. Aircraft operations,
unless otherwise specified in the contract specifications, shall always have
priority over any and all of the Contractor's operations and the Contractor
shall not allow his employees, sub-contractors, material men or any other
persons over whom he has control, to enter or remain upon or allow any
plant or materials to be brought or remain upon any part of the airport
which, in the opinion of the Engineer, would be a hazardous location.
Should aprons, runways or taxiways be required for use of aircraft and
should the Engineer or Resident Inspector deem the Contractor to be too
close to the portion used by aircraft for safety, he may in his sole
discretion order the Contractor to suspend his operations, remove his
personnel, plant, equipment and materials to a safe distance and stand by
until the runway and taxiways are no longer required for use by aircraft.
IV-29
D. Limitations of Construction
1) All Contractor vehicles that are authorized to operate on the Airport
outside of the designated construction area limits or haul routes as
specified on the plans and in the active Aircraft Operations Area
(AOA) shall display in full view (3600) above the vehicle a 3' x 3' or
larger orange and white checkerboard flag, each checkerboard
color being l' square. Any vehicle operating in the active AOA
during the hours of darkness shall be equipped with a flashing
amber (yellow) dome-type light mounted on top of the vehicle
display in full view (3600) and of such intensity to conform to local
codes for maintenance and emergency vehicles.
2) All Contractor vehicles that are required to cross active runways,
taxiways and approach clear zones shall do so under direct control
of a flagman. The flagman shall be trained and instructed by
Airport Operations in the regulations governing operations on the
AOA and the Airport. The flagman shall remain with his vehicle at
all times. All aircraft traffic on runways, taxiways and aprons shall
have priority over Contractor's traffic. In the event that flagman is
not available, the Contractor must provide his authorized personnel
with radios operating on the local ground control frequency of 122.8
for clearance when crossing active runways or taxiways.
3) No runway, taxiway apron or aircraft roadway shall be closed
without written approval of the Airport Manager to enable necessary
Notices to Airman (NOTAM) or advisories to airport service or
tenants. A minimum of 48 hours notice of requested closing shall
be directed to the Engineer who will coordinate the request with the
Airport Manager.
4) Any construction activity within 200' of an active runway centerline
or 73' from an active taxiway centerline or open excavations in
excess of three inches (3") deep within the above areas will require
closure of the affected runway or taxiway unless otherwise
approved by the Airport Manager. Closure requires the same
provisions as Paragraph 3) above.
5) Open flames, welding or torch-cutting operations are prohibited
unless adequate fire and safety precautions have been taken and
the procedure approved by the Airport Manager.
6) Stockpiled material shall be constrained in a manner to prevent
movement resulting from aircraft blast or wind conditions in excess
of 10 knots.
IV-30
7) Open trenches, excavation and stockpiled material located in the
AOA shall be prominently marked with flags and lighted by
approved light units during hours of visibility and darkness.
8) Contractor to provide barricades across pavement to isolate
construction activities from aircraft operating areas at locations as
determined by the Resident Inspector. Barricades to be orange
and white striped 8" x 8" timber, low-silhouette type barricades with
battery operated red flashing lights or approved equal. Each
barricade shall have a minimum of two flashing lights with the
intensity of the lights being of such brightness so as to be readily
identified during darkness periods. Barricades to be spaced
approximately 20' on centers. Barricades to be sandbagged as
necessary to prevent from being blown over. Barricades shall be
removed at individual locations as paving in the area is completed.
Cost of barricades shall be incidental and included in the
mobilization cost.
9) During runway closures, the Contractor shall provide temporary
runway closure markers (lighted X) on each runway end (over
runway numerals) in accordance with the special provisions of
these specifications unless otherwise approved by the Engineer.
10) The Contractor shall keep all active airfield pavement clear of all
debris, stones and other materials during construction. All active
pavement shall be cleaned and inspected by the Contractor's
superintendent prior to release of work crews after each shift of
work.
11) All construction barricades shall be inspected by the Contractor's
superintendent prior to release of work crews after each work shift
to ensure barricades are properly placed and lighted for non-work
hours.
12) Equipment, materials, open trenches, excavation and stockpiled
material will not be allowed within 200' of centerline of active
runways or within 73' of active taxiways after work operations are
ceased each work shift. Coverings for open trenches must be of
such strength as to support the weight of a 60,000 pound gross
weight aircraft on an FAA dual-gear type undercarriage.
13) All existing facilities, equipment (runway/taxiway lights, visual aids,
NAVAIDS, etc.) and underground utilities shall be carefully
protected by the Contractor. Any damage to these items caused by
IV-31
the Contractor or Sub-Contractors shall be immediately repaired
and restored to a condition similar or equal to the original condition.
E. Payment. No separate payment shall be made for the safety
requirements stated above. All costs necessary to provide these items or
services shall be included in other bid items quoted in the Bid Proposal.
2. SECURITY REQUIREMENTS
A. General Intent. The Contractor shall comply with all security requirements
specified herein. The Contractor shall designate in writing the name of his
Contractor Security Officer (CSO). The CSO shall represent the
Contractor on the security requirements of the contract.
B. Construction Security Committee. The committee shall be established by
the Manager or Director concurrent with the life of this contract to monitor,
coordinate and adopt new security procedures relating to this contract.
Meeting shall be scheduled by the Manager or Director. Committee
membership shall include the CSO, the Manager or Director and such
other personnel as the Manager or Director may designate.
C Contractor Personnel Security Orientation. The CSO shall be responsible
for briefing all contractor personnel on these requirements and, from time
to time, other security provisions adopted by the Construction Security
Committee. All new contractor employees shall be briefed on these
requirements prior to working in the construction area.
D. Access to the Site. Contractor's access to the site shall be as shown on
the plans. No other access points shall be allowed unless approved by
the Manager or Director. All contractor traffic authorized to enter the site
shall be operated by personnel experienced in the route or guided by
contractor personnel. The Contractor shall be responsible for traffic
control to and from the various construction areas on airport property. The
Contractor shall be responsible for immediate clean-up of any debris
deposited along any route resulting from his construction traffic.
Directional signing at the access point and along the delivery route to the
storage area or work sites shall be as directed by the Resident Project
Engineer or Representative.
E. Materials Delivery to the Site. All Contractor's material deliveries to the
site shall enter the airport only at designated gates and such deliveries
shall be escorted to the construction site by experienced contractor
personnel. This will preclude delivery trucks from entering into the airport
or taking short cuts through the perimeter gates and entering into aircraft
operation areas inadvertently.
IV-32
F. Identification - Vehicles. The Contractor shall establish and maintain a list
of contractor and sub-contractor vehicles authorized to operate on the site.
Vehicle permits shall be assigned in a manner to assure positive control of
all vehicles at all times. Each vehicle shall display a large company sign
on both sides of vehicles. The CSO shall maintain a current list of
companies authorized to enter and conduct work on the airport.
Employee personal vehicles shall be parked in designated areas. These
vehicles shall not enter the airfield at any time. All vehicles and equipment
entering the job site shall display the company's logo and/or name.
G. Identification - Personnel. The Contractor's onsite personnel shall be
badged with identification from the Florida Keys Marathon Airport. The
contractors supervisors shall submit to a criminal history fingerprints check
from the FBI via the Florida Keys Marathon Airport Security manager. All
supervisors shall be required to attend an Airport Orientation seminar
presented by the airport operations and security unit. All other non-
supervisory personnel of the contractor and subcontractor shall be issued
a construction worker security badge supplied by the Florida Keys
Marathon Airport, said badges will be issued to the Head Contractor for
said project. The head contractor shall maintain a master list of all
personnel issued said contractor security badges. The list shall be made
available for the airport security unit inspection during all hours of
construction on the airport. All personnel shall wear their badges on the
outermost portion of their garment above their waist at all times while on
the airport property. The contractor shall comply with all instructions
issued by the airport security unit. The contractor shall provide the airport
with the name and a 24 hour contact number for its security officer. Upon
the completion of the FBI check, the contractor's issued full airport access
badge for the EYW (SIDA) will act as escorts to all other personnel. The
definition of escort will be explained during the airport training seminar.
H. ManaQer or Director. The work on the Florida Keys Marathon Airport shall
be under the direction of the Airport Manager or his authorized agent(s).
I. Construction Area Limits. The limits of construction, material storage
areas, equipment storage area, parking area and other areas defined as
required for the Contractor's exclusive use during construction shall be
marked. The Contractor shall erect and maintain around the perimeter of
these areas suitable fencing marking and/or warning devices visible for
day/night use.
J. Contractor shall maintain security at all times during construction.
K. Payment. No separate payment for the above security requirements shall
be made. All costs necessary to cover these items and services shall be
included as part of other bid items quoted in the Bid Proposal.
IV-33
SPECIAL PROVISION NO.7
LIST OF DRAWINGS
The drawings which show the location, character, dimensions and details of the work to
be done and which are to be considered as a part of the contract supplementary to the
specifications are as follows:
Sheet No.
C-1
C-2
C-3
C-4
C-5
C-6
C-7
C-8
C-9
C-10
C-11
C-12
C-13
C-14
Description
Cover Sheet
Summary of Quantities, Safety & Security Requirements
Project Layout Plan & General Notes
Signage Layout Plan
Signage Layout Plan
Signage Layout Plan
Signage & Taxiway Lighting Layout Plan
Signage & Taxiway Lighting Layout Plan
Airfield Informational Signs Details
Airfield I nformational Signs Details
Sign Schedule
Airfield Lighting & Guidance Sign Details
General Lighting Notes
Electrical Details and Electrical Vault Plan
IV-34
SPECIAL PROVISION NO.8
RESIDENT ENGINEER'S (RPR) OFFICE
THIS SECTION IS NOT APPLICABLE
IV-35
SPECIAL PROVISION NO.9
TEMPORARY FACILITIES
1. GENERAL DEFINITIONS
A. This section specifies certain minimum temporary facilities to be provided
regardless of methods and means selected for performance of the work
but not by way of limitation and not assured for compliance with governing
regulations. Use of alternate temporary facilities may be permitted subject
to the Engineer's and Owner's approval and acceptance.
B. Energy Considerations: Administer the use of temporary facilities in a
manner which conserves energy but without delaying work or endangering
persons or property; comply with reasonable requests by the Engineer
and Owner.
C. Costs: Except as otherwise indicated, costs associated with temporary
facilities are the Contractor's. Temporary facilities remain the property and
responsibility of the Contractor.
D. Dust Control: Adequate measures shall be taken to prevent the transfer of
dust to other areas of the airport complex.
E. Noise Control: Where work is being conducted in or adjacent to occupied
areas, the Contractor shall make every effort to keep construction noise to
a minimum.
F. Fire Protection: In addition to temporary water service for construction
and the placing of permanent fire protection facilities in operating condition
at earliest feasible date, provide fire extinguishers of types and sizes
recommended by NFPA or any other governing authority or agency.
Provide Type A extinguishers in field offices and for similar exposures,
Type ABC in construction areas. Locate extinguishers near each
entrance. Prohibit smoking except in marked, non-hazardous areas.
Smoking in existing premises is prohibited.
G. Environmental Protection: Review exposure to possible environmental
problems with the Engineer and Owner. Establish procedures and
discipline among tradesmen and provide needed facilities which will
protect against environmental problems (pollution of air, water and soil,
excessive noise and similar problems).
IV-36
2. TEMPORARY PROTECTION
Provide facilities and services as necessary to effectively protect project from
losses and persons from injury during the course of construction.
The existing utilities shall not be modified for use by the Contractor. Do not
interrupt existing services serving occupied or used facilities except when
authorized in writing by the Owner. Provide temporary services during
interruptions to existing utilities as acceptable to the Owner.
The Contractor shall furnish electrical and water utilities as required and provide
temporary power, telephone and system connections where required by the
Owner to continue operation of existing equipment or systems during
construction.
3. TEMPORARY STAGING/STORAGE AREAS
A. The Contractor may provide a trailer or prototype building field office for
his own use. The location of the field office or building must be approved
by the Engineer and Owner. All costs for connection to utilities shall be
paid for by the Contractor. Water, electric and telephone will be available
on site.
Equipment not in use during construction, nights and/or holidays shall be
parked in areas designated by the Engineer and Owner. Construction
workers' private vehicles shall be parked within the areas.
B. During construction, the Contractor shall maintain these areas in a neat
condition.
The Contractor's vehicles, equipment and materials shall be stored in the
areas designated by the Engineer. Upon completion of the work, the
staging and storage areas shall be cleaned up and returned to their
original condition to the satisfaction of the Owner. Remove all construction
fencing and barricades from the project site. No special payment will be
made for clean-up and restoration of the storage area.
Personal vehicles will not be permitted beyond the Contractor's parking
area. Drivers of vehicles being operated beyond this area shall be subject
to loss of permission to enter the construction site.
C. If additional storage areas are needed, the Contractor may request it from
the Engineer. The request will be reviewed on the basis of what is to be
stored and the area needed. The Contractor shall provide any necessary
fencing and/or security.
IV-37
4. TEMPORARY CONSTRUCTION FACILITIES
A. Access to the work area: Contractor shall provide access to the Work
Area (Means and Methods) prior to construction. This access shall comply
with all governing regulations. Contractor shall obtain a specific permit for
this temporary access if it is required by any regulatory agency. The cost
of the access with all associated permits are the Contractor's
responsibility.
B. De-watering: Maintain construction work free of water accumulation. Do
not endanger the work or adjacent properties.
C. Miscellaneous Facilities: Provide miscellaneous facilities as needed
including ladders, runways, shoring, scaffolding, railing, bracing, barriers,
closures, platforms, temporary partitions and similar items.
5. TEMPORARY SUPPORT FACILITIES
A. General: Provide facilities and services as may be needed to properly
support the primary construction process and meet governing regulations.
B. Drinking Water: Provide either pipe-connected potable water fountains or
electric cooled bottled water fountains or insulated potable water
containers in work areas spaced so that personnel at the site will travel no
more than 300 feet.
C. Toilets: Furnish adequate temporary sanitary facilities within the
Contractor's staging and storage areas located on the drawings for the
use of workmen during the entire period of construction. Temporary
facilities shall be furnished at a minimum ratio of one toilet for each 25
workmen or as required by local governing code, whichever is greater.
The toilets shall be portable, chemical type or water-borne type connected
to an approved existing sanitary sewer.
Toilets shall be placed or installed in conformity with local governing code
requirements and shall be enclosed in a weather-tight, fly-proof building
with a self-closing door. The building shall be tied down to prevent
overturning by wind. Provide standard, roll-type toilet paper holder and a
supply of standard, roll-type toilet tissue.
The premises shall be thoroughly disinfected at least twice each week.
Provide means for locking the door from the outside and keep locked at all
times except during hours that workmen are at the project site.
IV-38
6. TEMPORARY UTILITY SERVICES
A. The Contractor shall coordinate the requirements for temporary utilities
with the Owner and shall install at the Contractor's expense all necessary
utilities in a safe, acceptable manner. Should leaks, breaks, etc. occur
during installation or use, the Contractor shall immediately notify the
appropriate utility personnel and promptly repair the utility so as to keep
disruption of service to a minimum.
B. The Contractor shall provide temporary wiring if required. All wiring shall
meet all safety requirements of the National Electrical Code, Florida
Department of Commerce, Bureau of Workmens' Compensation or local
requirements. In addition, all wire shall be so sized that it is not
overloaded according to the National Electrical Code and all wire used
shall be fused to adequately protect that wire according to the Code
referred to.
C. The Contractor shall provide all temporary lines and connections from
existing sources of water as required for the work. The Contractor is
responsible for proper drainage of water used.
D. The Contractor shall furnish all temporary wiring, piping connections and
other apparatus that is needed to operate the utilities and shall remove all
evidence of same when work is complete.
E. The Contractor is responsible for obtaining and paying for all utilities that
he requires at the project site.
7. STAGING. STOCKPILE AND SPOIL AREAS
The staging area(s) depicted on the plans shall be used to house the
Contractor's and Resident Project Representative Inspector's offices and to store
all idle equipment, supplies and construction materials (other than bulk materials
such as aggregate, sand and soil).
The Contractor may erect and maintain throughout the life of this contract, at his
expense, a six-foot high fence of chain link fabric around the perimeter of each
staging area used. He may also install vehicle and pedestrian gates as
necessary to provide adequate ingress/egress.
Additionally, the perimeter of any staging area which abuts an active operation
pavement shall be marked with red flashing barricades no more than 50 feet
apart.
Upon completion of all work, remove all construction fencing and barricades from
the project site.
IV-39
The Contractor's vehicles, equipment and materials shall be stored in the area
designated on the plans. Upon completion of the work, the storage area shall be
cleaned up and returned to its original condition to the satisfaction of the Owner.
Personal vehicles will not be permitted beyond the Contractor's parking area.
Drivers of vehicles being operated beyond this area shall be subject to loss of
permission to enter the construction site.
Equipment not in use during construction, nights and/or holidays will be parked in
the Contractor's staging area. Exceptions will only be approved by the Engineer
when absolutely necessary. Parking of construction workers' private vehicles
shall also be within the staging area construction fence.
Stockpile areas shall be used to store all bulk materials needed for the project
and mayor may not be fenced at the Contractor's option. However, yellow
flashing barricades shall be installed where potential conflicts with air or ground
vehicular traffic might occur.
Separate stockpiles shall be created for the project construction. Separate
stockpiles shall be created for structural soil and topsoil. Stockpiles shall not
penetrate the FAR Part 77 imaginary surfaces.
All other waste material, including rubble and debris, shall be removed from the
Airport at the Contractor's expense.
No stockpile areas to store all bulk materials for the project are provided. All
material removed by excavation, such as concrete, asphalt or limerock, trash,
rubbish and vegetation shall be transported off the Airport limits when it is taken
up. It will not be stockpiled on Airport property.
The Contractor shall provide all necessary temporary environmental controls as
required by laws, regulations or as directed by the Engineer (including, but not
limited to: hay bales, siltation fence I etc.) to protect the environment from erosion
of any stockpile areas.
The cost for these temporary environmental controls shall be considered
ncidental to the project.
IV-40
SPECIAL PROVISION NO.1 0
DEWATERING
Dewatering operations and any permits necessary to complete any portion of this
project, including, but not limited to, trench excavation, backfill, installation of edge light
fixtures, junction boxes, conduit and the installation of new cables in existing ducts shall
be considered incidental to the bid item for which de-watering may be necessary.
No separate payment will be made for the cost of dewatering.
IV-41
SPECIAL PROVISION NO. 11
PRECEDENCE OF DOCUMENTS
1. GENERAL. The Bid Documents, Contract, Special Provisions, General
Provisions, Specifications, Plans and all referenced Standards cited in these
documents are essential parts of the contract requirements. A requirement
occurring in one is as binding as though occurring in all. They are intended to be
complementary to describe and provide for a complete work.
2. ORDER OF PRECEDENCE. In case of conflicts within the above-mentioned
documents, the order of precedence shall be as follows:
A. Bid Documents (Division I)(including any and all Addenda)
B. Contract (Division II)
C. Special Provisions (Division IV)
D. Technical Specifications (Division V)
E. General Provisions (Division III)
F. Plans (large scale detail drawings over smaller scale general drawings)
IV-42
SPECIAL PROVISION NO. 12
FINAL PAY REQUESTS AND RELATED FORMS
In addition to the requirements for payments (Partial and Final) stipulated in General
Provisions (Division III) Section 90 MEASUREMENT AND PAYMENT and in Special
Provision NO.1 PROJECT GENERAL REQUIREMENTS Section 25 (Division IV).
All pay requests shall be prepared by the Contractor within the time frames stipulated in
the County Procedures unless otherwise approved by the Engineer and Owner.
Pay Requests and related fonns shall be submitted in one (1) original and one (1) copy
to the Engineer, unless otherwise instructed by him. Contractor shall use Monroe
County Application for Payment fonn (see attachment), and shall provide related fonns
from the American Institute of Architects, such as:
X Change Order (Fonn G-701)
X Certificate of Substantial Completion (Fonn G-704)
X Contractor's Affidavit of Payment of Debts and Claims (Fonn G-706)
X Contractor's Affidavit of Release of Liens (Fonn G-706A)
X Consent of Surety to Final Payment (Fonn G-707)
IV-43
SPECIAL PROVISION NO. 13
SOIL BORING REPORT AND LABORATORY TESTING
THIS SECTION IS NOT APPLICABLE
IV-44
ATTACHMENTS
IV-45
APPLICATION
FOR PAYMENT
FORM
IV-46
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ACORD". CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DDNYYY)
6/29/2004
I PRODUCER - . THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Bowen, Miclette & Britt, Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
1111 North Loop West HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
I Suite 400
Houston TX 77008
INSURERS AFFORDING COVERAGE NAIC#
'~SURED INSURER A: Continental Casualty Co. 20443
I Florida Industrial Electric, Inc. INSURER B: RSUI Indemnity 22314
811 Wilma Street INSURER C: Transportation Insurance Comp 20494
~ongwood FL 32750 INSURER D: American Cas. Co. of Reading, 20427
I INSURER E:
COVERAGES
he Policies of Insurance listed below have been issued to the insured named above for the policy period indicated.
otwithstanding any requirement, term or condition of any contract or other document with respect to which this
I~ertificate may be issued or may pertain, the insurance afforded by the policies described herein is subject to all
the terms, exclusions and conditions of such policies. ACl:!reClate limits shown may have been reduced by paid claims.
II~~: ~~~~ POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRAnON LIMITS
~ ~NERAL LIABILITY GL257291163 11/1/2003 11/1/2004 EACH OCCURRENCE $ 1,000,000
I X COMMERCIAL GENERAl LIABILITY PREMISES lEa occurencal $ 250,000
I CLAIMS MADE ~ OCCUR MED EXP (Anyone penIOfIl $ 5,000
- PERSONAL & ADV INJURY $ 1,000,000
I - GENERAL AGGREGATE $2,000,000
~'L AGGRE~ LIMIT APnS PER: PRODUCTS - COMP/OP AGG $2,000,000
POLICY X P,f-R;: LOC
~ ~TOMOBlLE LIABILITY BUA257291177 11/1/2003 11/1/2004 COMBINED SINGLE LIMIT $ 1,000,000
I ~ ANY AUTO (Ea accident)
- ALL OWNED AUTOS BOOIL Y INJURY
(Per penIOfI) $
- SCHEDULED AUTOS
I X HIRED AUTOS BODILY INJURY
X (Per accident) $
- NON-DWNED AUTOS
PROPERTY DAMAGE $
(Per accident)
~RAGE LIABILITY AUTO ONLY - EA ACCIDENT $
ANY AUTO OTHER THAN EA ACC $
AUTO ONLY: AGG $
'B :KJESSiUMBRELLA LIABILITY NHN022763 11/1/2003 11/1/2004 EACH OCCURRENCE $ 5,000,000
X OCCUR 0 CLAIMS MADE AGGREGATE $5,000,000
$
~ DEDUCTIBLE S
X RETENTION S 10000 $
, WORKERS COMPENSAnON AND WC257291115 11/1/2003 11/1/2004 X I T~~~Ii;lgs I IO:~-
I EMPLOYERS' LIABILITY WC2572911320S 11/1/2003 11/1/2004 $ 1,000,000
~ ANY PROPRIETOR/PARTNER/EXECUTIVE EL. EACH ACCIDENT
OFFICER/MEMBER EXCLUDED? E.L. DISEASE - EA EMPLOYEE $1,000,000
~~E~I~t~Rt>g~~~NS below : E L. DISEASE. POLICY LIMIT sl,OOO,OOO
OTHER I
~SCRIPnoN OF OPERA nONS I LOCA nONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS
" Taxiway Lights (2 T!W) and Airfield Guidance Sign. Florida Keys Marathon Airpor:
The Monroe County Board of County Commissioners. its employees and officials are named as Additional Insureds on
General Liability and Auto as required by written contract.
ERTIFICATE HOLDER
CANCELLATION
ce Monroe Coun:y Board of Co~~ty Commiss~o~ers
1100 Simonton Street, Roo~ 2~2:3
Key West FS 33040
s~o~ld a~y of tte desc~~bed ~olicies be cancelled be ore
:~e exp:r~:~~~ da~~ :~er~Q~. :~e i5S~~~g c~~pa~y ~::
~~de3v2r :0 ~a:l ~J days Nr:~:e~ ~c::~e :8 :r.e =~r:~ :=a:e
~o:der ~a~ed :2 :~~ :e~:, ~~: ~a:l~re :0 ~a:: 3~C~ ~c::=e
stall :~pose ~o oD::ga::~n or ::ab~l::y 0: a~y <l~d ~po~
-~g =o~pa~y, ::5 age~:s ~r re?rese~:a::ves.
CORD 25 (2001/08)
POWER
OF
ATTORNEY
Federal Insurance Company
Vigilant Insurance Company
Pacific Indemnity Company
Attn: Surety Department
15 Mountain View Road
Warren, NJ 07059
~ Chubb
~ Surety
Know All by TheM Pruents. That FEDERAL INSURANCE COMPANY, an Indiana corporation, VIGILANT INSURANCE COMPANY, a New Yolt( corporation,
and PACIFIC INDEMNITY COMPANY, a Wisconsin corporation, do each hereby constitute and appoint John W. Boyer, Melanie R.
Miller, John Wagner, Mareco U. Edwards and Angela J. Lawrence of Hunt Valley,
Maryland----------------------------------------------------------------------
each as their true and lawful Attorney-in-Fact to execute under such designation in their names and to affix their corporate seals to and delive'r for and on
their behalf as surety thereon or otherwise, bonds and undertakings and other writings obligatory in the nature thereof (other than bail bonds) given or
executed in the course of business, and any instruments amending or altering the same, and consents to the modification or alteration of any instrument
refernd to in said bonds or obligations.
In Witneu Whereof, said FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY have each
executed and attested these presents and affixed their corporate seals on this 21 s t day of A P r i 1 , 2 0 0 4
~aAA.J~1-
'Kenneth C. Wendel, Assistant Secretary
~{~-h_ -
~
F E. Robertson, vice resident
STATE OF NEW JERSEY} sa.
County of Somerset
en IhIlI 21 s t day 01 Ap r i 1 , 2 0 0 4 , before me, a Notary PublIc of New JenJey, pel'8OflIIIy came Kennell C. Wendel, to me known
to be A8IIItn Secretary of FEDERAL INSURANCE COMPANY. VIGIlANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY, .. CCIIIlp8I.... which 8ll8CUIIld Ihe
fcngong Power 01 AlIlImIy, end htllld Kennell C. WendII being by me cUy awom, lid depo8e and say that he Is AIII8tant Sec:mary 01 FEDERAL INSURANCE COMPANY,
VIGILANT INSURANCE COMPANY, end PACIFIC INDEMNITY COMPANY end 1cnowlI.. corpora" ..... hr8of, flat .. ..... atIxed 10 .. tonlgaIng Power 01 ADDrney are
euch CllI1MlI'*..... end _1Mr8Io atIxed by auIlOfIty 01.. By-Lawa 0I1IId CorIlpInI.-; and that he __1IId Power 01 AlIamey _A8IIItInt Secretary oIl11dCompenles
.. .. ...e.arIly, end hit he II acquIInIId wlII F'" E. RobertIoI.. end IcnowlI '*" 10 be VIce ~ 0I1IId CompeI_ and .... .. ___ 01 Frri E. Robet18cn.
IIId Power 01 AlIlImIy II In the gII1UIne '-'dwrIIng 01 FIWlk E. RaberIIIon, and was thereIo IUbecdbed by ~ 0I1IId Bv-Lawa and In cMpOI..lt'a preeence.
Karen A. Price
Nmary Public State of New Jersey
No. 2231647
Commission Expires Oct~U004
\;Cft IIFlCAnoN
Extract from the By-Laws of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY:
-AI powers of attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the Company, either by the
ChaIrmen or the PI'88ident or a VIce President or an Asalstant Vice President, jointly with the Secretary or an Assistant Secretary, under their
respecII\Ie deeignatIona. The signature of such officers may be engraved, printed or Iilhographed. The signature of each of the following officers:
ChaIrman, President, any Vice President, any Assistant VIce President, any Secretary, any Assistant Secretary and the seal of the Gon1>any may
be afftxed by facsimile to any pOwer of attorney or to any certificate relating thereto appointing Assistant Secretaries or Attomeys-in-Fact for
purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such power of
attorney or cerIIlIcate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so
execul8d and certified by such facsinile signature and facsimile seal shall be valid and binding upon the ~y with respect to any bond or
undertaking to which it is attached."
I, Kenneth C. Wendel, Assistant Secretary of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY
(the ~; do hereby certify that
(i) the foregoing Bxtract of the By-Laws of the Con1>anies is true and correct,
(Ii) the Companies are duly licensed and authorized to transact surety business in all 50 of the United States of America and the District of
Columbia and are authorized by the U. S. Treasury Department; further, Federal and Vigilant arB licensed in Puerto Rico and the U. S.
Virgin Islands, and Fede'ral is licensed in American Samoa, Guam, and each of the Provinces of Canada except Prince Edward Island; and
(iii) the foregoing Power of Attorney is true, correct and in full force and effect.
Given under my hand and seals of said ColT1>anies at WalTen, NJ this ~~ day of .3,-,,-,,", c..... , ~ 0(:) '-\
~flU-
Notary Public
4/Y<<zd!~ Ak~
Kenneth C, Wendel. Assist nt Secretary
IN THE EVENT YOU WISH TO NOTIFY US OF A CLAIM, VERIFY THE AUTHENTICITY OF THIS BOND OR
NOTIFY US OF ANY OTHER MATTER, PLEASE CONTACT US AT ADDRESS LISTED ABOVE, OR BY
Telephone (908) 903-3485 Fax (908) 903-3656 e-mail: surety@chubb.com
Form 15-10.<<!25 (Ed. 4-119) CONSENT
Alii 144 7 219
STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
ELECTRICAL CONTRACTORS LICENSING BOARD SEQ#L04061102395
FS.
ROTHWELL, RONALD H
PLORIDA INDUSTRIAL ELEC INC
226 N SCOTT
SANFORD PL 32771
JEB BUSH
GOVERNOR
DISPLAY AS REQUIRED BY LAW
DIANE CARR
SBCRETARY
ADDENDUM No.1
June 18, 2004-
To
Specifications and Other Contract Documents for
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Florida Keys Marathon Airport
Monroe County, Florida
A.I.P. No. 3-12-0044-2004
FM Item No. 41468419401
PFC No.8
TO ALL CONCERNED:
The following items are modifications and interpretations to the original contract documents. The
following items as provided hereinafter are now in effect and have the same force as if included
In the original documents.
Bidder shall acknowledge receipt of this addendum on the proposal form (Section C, page ~ 16
and Section H, page 1-29).
Also, please sign this page of the addendum and return by fax (305) 261-4017 to confirm
your receipt.
This Addendum No. 1 consists of 11 total pages and 10 plan sheets (Cover, C-2, C-5, C-6, e-""
C-9, 0.10, 0.11, G-12, and 0.13).
URS Corporation
....-
,
C', KR-/s<5
~,; afJIICAc."T (5 R-
Title
Addendum No. 1
Page 1
ADDENDUM No.2
June 28, 2004
To
Specifications and Other Contract Documents for
Taxiway Lights (2 TMJ) and Airfield Guidance Sign
Florida Keys Marathon Airport
Monroe County, Florida
AJ.P. No. 3-12-0044-2004
FM Item No. 41468419401
PFC No.8
TO ALL CONCERNED:
The following items are modifications and interpretations to the original contract documents. The
following items as ~rovided hereinafter are now in effect and have the same force as if included
in the original documents.
Bidder shall acknowledge receipt of this addendum on the proposal form (Section C, page 1-16
and Section H, page 1-29).
Also, please sign this page of the addendum and return by fax (305) 261-4017 to confirm
your receipt.
This Addendum NO.2 consists of 16 total pages.
URS Corporation
C., ;t1:-/5~
fo,if1C/lC7tJ1L-
.
~vN
Title
Addendum NO.2
Page 1
FLORIDA INDUSTRIAL ELECTRIC, INC.
7840 ProCessional Place
INTRODUCTION Tampa, FL 33637
(813) 980-6214
811 Wilma Street
Longwood,FL 32750
(407) 331-1551
Florida Industrial Electric, Inc., a subsidiary of Integrated Electrical Services, was
incorporated in 1983. Weare a merit shop electrical contractor with the capability to
perfonn all phases of electrical construction. However, we specialize in the following
areas:
.
Transportation: Roadwav & Airfield
· Signalization
· Highway Signs & Structures
· Roadway Lighting
· Intelligent Traffic System (ITS)
· Runwayffaxiway Lighting & Signage for Military & Civilian
Airfields
· FAA Certified Guidance System Installation
· Airfield Vault & Tower Construction & Modifications
.
Industrial Electric:
· Substation Construction & Modifications
· Power Plant & CO-Generation Facilities
· Overhead & Underground Distribution
· Factory & Warehouse Construction & Modifications
· Water & Wastewater Plant Construction
· PCB Change-out & Retrofit
· Airfield Terminal Construction
· Industrial Control Systems
· Medium & High Voltage installation, splicing, terminating &
testing, and lead splicing
Integrated Electrical Services was founded in 1997, with headquarters in Houston, Texas.
IES is a premier provider of electrical and communications contracting solutions to the
commercial, industrial, residential and service markets. IES has more than 170 locations
across the U.S., and more than 13,000 skilled service professionals.
With our base of support reaching coast to coast, we have the ability to draw on resources
from over 50 affiliate companies for equipment, supplies and manpower necessary to
perfonn all aspects of electrical construction, not just in Florida, but around the country.
FIE presently employs in excess of 225 electricians, operators, linemen, and office staff in
our Orlando and Tampa, Florida offices. We take great pride in our ability to deliver
completed projects ahead of schedule with the highest quality workmanship. FIE offers
complete contracting services including preliminary estimates, cost plus, unit price,
negotiated and hard bid contracts.
If there are any questions please contact Conrad Eigenmann. Jr.. President or Ron
Rothwell, Sr. Vice President at 407-331-] 551.
A Subsidiary of Its ;:'~IES
,\ \\ w.irs-co.com
Page I of 22
QUALIFICA TIONS
Contracting Interests:
Industrial Electrical Installations,
Including: Airport Runway and
Lighting Projects, Power
Generation, High Voltage
Transmission and Distribution
Systems, Transportation Projects,
Heavy Commercial Projects.
Bonding Agent:
Willis of Maryland, Inc.
10 North Park Drive, Suite 400
Hunt Valley, MD 21030
Phone: 410-527-7245
Fax: 410-527-7274
Contact: Angela Lawrence
Contacts for Inquiries:
Surety Company:
Conrad D. Eigenmann, Jr.,
President
Ronald H. Rothwell, VP and
COO
Lawrence LaBelle,
Secretary/Treasurer
Federal Insurance Company
The Chubb Group
15 Mountain View Road
Warren, New Jersey 07059
Bonding Capacity:
Contractors License:
$ 70,000,000.00
FL. EC-OOO 1 063
FL. CGC 1505668
GA. EN212999
AL. 1913
NC. 24774-U
Bank Reference:
Wachovia Bank
1525 West W. T. Harris Blvd.
Charlotte, North Carolina 28262
Credit Information Exchange V A-
7350
Phone: 800-590-7868 ext. 609
Fax: 800-273-3824
Federal ID Number:
59-3508913
Duns Number:
EEO/Safety Program:
15-080-3633
Rating: 3A2
Yes
Cage Code:
OJ6Y8
Drug Free Workplace:
Yes
Union Affiliation:
None - Open Shop
Page 2 of 22
QUALIFICA TIONS
Trade References:
Credit References:
Hubbard Construction Co.
PO Box 547217
Orlando, Florida 32854-7217
Phone: 407-645-5500
Fax: 407-623-3865
Contact: Ernie Wolfe
Action Bolt & Tool Co.
PO Box 12156
Lake Park, Florida 33403
Phone: 407-245-7066
Fax: 407-245-7794
Contact: Patrina
Martin K Eby Construction Co.
7285 Estapona Circle
PO Box 300639
Fern Park, Florida 32730
Phone: 407-331-3100
Contact: Dean Harris
Maddux Supply Co.
PO Box 568647
Orlando, Florida 32856
Phone: 407-857-0650
Fax: 407-857-6044
Contact: Gary Lesnick
Hewitt Contracting Co.
PO Box 490697
Leesburg, Florida 34749
Phone: 352-787-5651
Rexel Consolidated
4680 L.B. Mcleod Rd.
Orlando, Florida 32811
Phone: 407-849-6532
Fax: 407-472-0531
Contact: Hector
John Carlo
4201 Ridgeway Lane
Lakeland, Florida 33803
Phone: 863-666-9845
Contact: David Ammon
Hughes Supply Co.
PO Box 4981
Orlando, FL 32802
Phone: 407-841-4710
Fax: 407-843-3212
Contact: Craig Eddington
Jones Brothers, Inc.
725 Primera Blvd., Suite 140
Lake Mary, Florida 32746
Phone: 407-804-5540
Contact: Timothy Cook
Page 3 of 2.2
KEY PERSONNEL
"-""--."-"-...~~P.-.~.~--.------_-____..__...E.Q~!J'-9_~___------.---------------~EsB_'sr'!_g_~_______._.__.L_~EAR~___
High Voltage, Power Generation, Airports, I
_fQ!:!,-ad .E.[g~.!1-'!!<!.I'!~___Er~~ide!l.L____T.r:.~.!1~eortati~n. -S~:----___~__L~_!Year~__.
High Voltage, Power Generation, Airports, '
Ronald Rothwell Vice President Transportation, Etc. i 32 Years
I
i
I
J.W. Hunte' P'l>jectlBnmch Manage'Heavy Highway & Civil Construction I 20 Yea..
'--"-reg Rothwell Project ~e' IAirpO~ & Industrial Construction I 2' Yea..
-B:::~_L~:::::: r::~:::::::s~:~~___I--~:::
......--"'Y!I.ll~-'!!.~!~~_.._.__._~.__.J~!()j~.c::!..M!I!:!!'Ig~r...---.LI:!~"!yy.tii9b_Yt'!'I't_g().r:!l)!rLJc::t_i_~r:!____...._.._____.___ ..._ -_?1...Y_~_l:I~~_.....
I
I
;Industrial & Commercial Construction
28 Years
Tedd Davis
Su rintendent
28 Years
Michele Buck
13 Years
, i
i______-.I~i!Y.MQOn__._ I Ch~e.L~l)!!'.1:!~J().r-t.lrpPn!itijg~_~()_~~9~.!.fg!!l.!!ler~i!L!.!!l~ustri~L_ -~_Y_~~!l)..._
. Robert Accordino . Chief Estimator Indust. !Hi9h Volta.9~'--gommercial & Industrial I 30 Years
I
Nathan Burda Chief Estimator DOT:I!:!<:lul)!~~I~ tle~vytligbYt'ay_C()nl)tl1Jcti()"i 1 0 Years
Page -t of 22
INDUSTRIAL PROJECTS
Proiect Details Contract Amount
Orange County Convention Center, Phase V Expansion $12,200,00
Orlando, Florida
15KV High Voltage Infrastructure, Generators, Electrical
Installation, Power and Lighting
Owner: Orange County Convention Center
Contractor: Hunt / Clark / Construct Two Joint Venture
Contact: Mike Sincavage, P: 407-210-6301
Super Hero Island- Hulk Coaster $3,225,000
Universal Studios, Orlando, Florida
Install MCC, VFD, Ride Controls & Rockbestos Cable
Owner: Universal Studios
Contractor: Contruct Two Construction Managers
Contact: Derrick Wallace, P: 407-295-9812
Refurbish Launch Pad "B" 52,205,000
Kennedy Space Center, Florida
Electrical and Mechanical Installations
Owner: NASA
Contractor: Lockheed Space Operations (CM)
Contact: Oliver Rye, P: 321-861-1157
Orlando International Airport Air Traffic Control Tower $1,571,000
Orlando, Florida
Electrical, Power, and Controls for World's Tallest A TCT (350')
Owner: Greater Orlando Aviation Authority
Contractor: Hensel Phelps Construction Co.
Contact: Scott Downing, P: 407-856-2400
Water Conserv II $1,424,270
Orlando, Florida
Purchase, Install & Acceptance Testing of 3 Emergency
Generators to Support the 5-KV Emergency System
Owner: City of Orlando
Contractor: Florida Industrial Electric. Inc.
Contact: Ed Klem, P: 407-761-5753
Generator Addition $ 713,103
E.W.R.F., Orange County, Florida
Furnish & Install 1550-KW Generator. Switchgear & Controls
Owner: Orange County Utilities Department
Contractor: Florida Industrial Electric. Inc.
Contact: Robert Murphy. P: .+07-836-6813
Page" of 22
INDUSTRIAL PROJECTS
Proiect Details Contract Amount
Electrical Installation $ 557,270
Cape Canaveral Air Force Station, Florida
Electrical Installation, Replace Oil Circuit Breakers
Owner: Department of the Air Force
Contractor: Pan American World Services
Contact: Ed Tobin, P: 321-867-4405
Disney's Boardwalk Resort $ 471,434
Walt Disney World, Florida
Underground Ductbanks, Manholes and Handholes
Owner: Disney Development Co.
Contractor: Hubbard Construction Co
Contact: Ernest Wolfe, P: 407-645-5500
Jacksonville Automated Skyway System $ 462,000
Jacksonville, Florida
Fabricate Switch Control Panels & Power Distribution Panels
Owner: City of Jacksonville
Contractor: Bombardier, Inc.
Contact: Bip, P: 407 855-5074
0& C Building $ 276,000
Kennedy Space Center, Florida
Electrical Installation, Replace Halon Suppression System
Owner: NASA, (CM: EG&G of Florida)
Contractor: Britt's Air Conditioning and Heating
Contact: Don Ackerman P: 321-867-7842
Factory Expansion $ 268,000
Orlando, Florida
Bus Ducts, Switchgear, Lighting
Owner: Frito-Lay, Inc.
Contractor: Whiting-Turner, Inc.
Contact:
Edgecomb Central Energy Plant $ 209,458
Hillsborough County, Florida
Fixtures, Conduit, Telephone/Data. Fire Alarm & Security
Owner: Hillsborough County BOCC
Contractor: JA Jones
Contact: Rick Fur. P: 813-3 I 8-9184
Page b of 22
-,- -,
,..;,,,,,,,,,,.,~
-
AIRPORT PROJECTS
Proiect Details
Regional Airport Airfield Lighting Improvement
Gainesville International Airport, Florida
Owner: Gainesville-Alachua Airport Authority
Contractor: Florida Industrial Electric
Contact: Craig Hedgecock, P: 352-373-0249
Completion Date: July 2002
BP-294 Apron & Taxiway Construction
Orlando International Airport, Florida
Owner: Greater Orlando Aviation Authority
Contractor: John Carlo
Contact: David Ammon, P: 863-666-9845
Completion Date: October 200 I
Sarasota/Bradenton Runway Extension
Sarasota/Bradenton Airport, Florida
Owner: Sarasota/Manatee Airport Authority
Contractor: Hewitt Contracting
Contact: Sherman Manley, P: 352-787-5651
Completion Date: April 2002
Taxiway "A"
Columbia Metropolitan Airport, S. Carolina
Owner: Columbia Metropolitan Airport Authority
Contractor: REA Construction
Contact: Mickey Ross, P: 803-791-1295
Completion Date: June 2002
H2000-02 Signs and P API
Herlong Airport, Jacksonville Florida
Owner: Jacksonville Airport Authority
Contractor: Florida Industrial Electric
Contact: Larry Elkins, P: 904-219-6528
Completion Date: April 2002
Contract Amount
$1,831,575
$1,590,721
$1,548,990
$1,415,508
$ 238,416
Page 7 of ~~
~:Ftj\~,~,;~~~~\,
.~) ';:~I~~Nff(;;:rt1" ~il~:i.o':;$~ 1~~;;",),,~~'f~' A'~;,,~_:~~';~,; '~.~,
\!"W-":"'";"'c:C':;-I'(!l; " '\
1:'
AIRPORT PROJECTS
Proiect Details Contract Amount
Install PAPI and Runways 18-36 and 9R-27L $ 223,801
Sanford Airport, Sanford Florida
Owner: Sanford Airport Authority
Contractor: Florida International Airport
Contact: Jack Dow, P: 407-585-4006
Completion Date: March 2002
MALSR Bainbridge Airport, Runway 27 $ 172,668
Decatur County Industrial Air Park, Georgia
Owner: Decatur County Board of Commissioners
Contractor: Florida Industrial Electric
Contact: Alan Thomas, P: 229-248-3031
Completion Date: November 2001
Install Visual Aids, P API $ 110,100
Jacksonville International Airport
Owner: Jacksonville Airport Authority
Contractor: Florida Industrial Electric
Contact: Cecil Poston, P: 904-741-2227
Completion Date: April 2002
Runwayffaxiway $ 73,473
Panama City Airport, Panama City Florida
Owner: Panama City-Bay County Airport & Industrial District
Contractor: Costello Construction
Contact: Robert Majka, P: 860-666-3311
Completion Date: May 2002
Page 8 of 22
POWER GENERATION & HIGH VOLTAGE
PROJECTS
Proiect Details
Contract Amount
Team Classic Golf Complex
Orange County National Golf Course, Florida
Install 15-KV Underground 3 Phase 4/0 Loop Distribution
System Including HV Switches and Transformers
Owner: Orange County, Florida
Contractor: Parsons, Brincherhoff, Quade & Douglas
Contact: Galand Beard, P: 407-587-7800
$4,200,000
Replace Transformers & Oil Reclosers
North & South Substation, Patrick AFS, Florida
Replace 2 I O-MV A Transformers, 18 Vacuum Rec10sers
And Pole Line Work
Owner: Department of the Air Force
Contractor: Pan American Services/Johnson Controls
Contact: Ed Tobin, P: 321-867-4405
$2,000,000
Replace PCB Transformers Base Wide
Camp Lejeune, N. Carolina
Replace All PCB Transformers With Associated Overhead
And Underground Conductors.
Owner: US Marine Corps
Contractor: Florida Industrial Electric
Contact:
$1,271,000
125MV A Co-Generation Plant
Orlando, Florida
Total Electrical Installation
City of Orlando
Contractor: Air Products & Chemicals
Contact: Ed Klem, P: 407-761-5753
$1,200,000
Page 9 of 22
POWER GENERATION & HIGH VOLTAGE
PROJECTS
Proiect Details
Contract Amount
Coronado Springs
Walt Disney World, Florida
Installation of Underground Infrastructure
Owner: Disney Development Co.
Contractor: Hubbard Construction Co.
Contact: Ernest Wolfe, P: 407-645-5500
$1,103,000
Power Distribution
Stanton Energy Center, Orlando, Florida
Sites and Services Power Distribution
Owner: Orlando Utilities Commission
Contractor: Florida Industrial Electric, Inc.
Contact:
$ 902,000
Substation & Transformer
Cape Canaveral Air Force Station, Florida
Replace Substation Switch and 25MV A Transfonner
Owner: Department of Air Force
Contractor: Pan Am World Services
Contact: Ed Tobin, P: 321-867-4405
$ 765,304
Substation Renovation
Cape Canaveral Air Force Station, Florida
Replace OCBS, Controls and Switches
Owner: Department of Air Force
Contractor: Pan Am World Services
Contact: Ed Tobin, P: 321-867-4405
$ 572,308
Overhead Electric Distribution System
Marine Corps Recruit Depot, Parris Island, S. Carolina
Replace 5-KV & 15-KV Overhead Distribution Base wide,
660 Wood & Concrete Poles and 80,000 Lbs 4/0 Overhead
Copper Conductor.
Owner: Department of the Navy
Contractor: Florida Industrial Electric, Inc.
Contact:
$ 559,000
Page 1001'22
INTELLIGENT TRANSPORTATION SYSTEMS
PROJECT EXPERIENCE
Proiect Details
Contract Amount
1-4 Design-Build Interim Auxiliary Lanes
Orange & Seminole Co., Florida (1/02 - 12/03)
ITS System Including: Cameras, Fiber Optic Conduit System
& Manholes, Variable Message Signs. Overhead Lighted Truss
& Cantilever, Traffic Signal System, Loops, & Street Lighting
Owner: Florida Department of Transportation
Contractor: Hubbard Construction Co.
Contact: Rob Brown, P: 407-897-6689
$14,980,866
Goldenrod Road Extension, Project No. 903
Orange Co., Florida (4/01 - 2/03)
Communication System Including: Fiber Optic Conduit System &
Manholes, Electrical Manholes & Duct Bank. Overhead Lighted
Truss & Cantilever, Traffic Signals & Loops, Street Lighting
Owner: Orlando/Orange County Expressway Authority
Contractor: Jones Bros., Inc.
Contact: Timothy Cook, P: 407-804-5540
$ 3,372,047
Lymmo Project
Orlando, Florida (4/96 - 6/98)
Bus Route Computerization With Software and Monitoring
Including: Voice and Visual Message Systems and
Coordination and Integration of Traffic Signal Systems.
Owner: City of Orlando:
Contractor: Hubbard Construction Co.
Contact: Ernie Wolfe, P: 407 645-5500
S 3,137,832
SR 429 Western Beltway, Project No. 75320-3460-603
Orange County, Florida (8/98 - 11/00)
Fiber Optic Conduit System & Manholes, Fiber Optic Cable,
Variable Message Signs, Overhead Lighted Truss & Cantilever,
Traffic Signals & Loops, Street Lighting
Owner: Orlando/Orange County Expressway Authority
Contractor: Hubbard Construction Co.
Contact: Ernie Wolfe, P: 407645-5500
$ 2,112,061
Computerized Traffic Signal System
Greensboro, North Carolina
Installed New Controller Assemblies, Modified Existing
Units and Installed Overhead and Underground Interconnect.
Owner: North Carolina Department of Transportation
Contractor: Florida Industrial Electric, Inc.
Contact: NCDOT. P: 919 733-7174
$ 1,668,000
Page II of::'::'
INTELLIGENT TRANSPORTATION SYSTEMS
PROJECT EXPERIENCE
Proiect Details Contract Amount
SR 429 Western Beltway, Project No. 75320-3460-604 $ 1,557,197
Orange County, Florida (2/99 - 10/00)
Fiber Optic Conduit System & Manholes, Fiber Optic Cable,
Variable Message Signs, Traffic Signals & Loops,
Overhead Lighted Truss & Cantilever, Street Lighting
Owner: Orlando/Orange County Expressway Authority
Contractor: Granite Construction Co.
Contact: Granite Construction, P: 770-650-1771
SR 429 Western Beltway, Project No. 75320-3460-602 $ 1,424,214
Orange County, Florida (1/99 -10/00)
Fiber Optic Conduit System & Manholes Traffic Signals &
Loops, Overhead Lighted Truss & Cantilever Signs, Street Lighting
Owner: Orlando/Orange County Expressway Authority
Contractor: Hubbard Construction Co.
Contact: Ernie Wolfe, P: 407645-5500
SR 9A - Baymeadows to 1-295 S 1,141,997
Jacksonville, Florida (8/98 - 6/01)
ITS Conduit & Boxes, Overhead Cantilever Signs,
High Mast Ann Poles, Street Lighting
Owner: Florida Department of Transportation
Contractor: Hubbard Construction Co.
Contact: Ernie Wolfe, P: 407 645-5500
SR 429 Western Beltway, Project No. 75320-3460-654A $ 955,206
Orange County, Florida (8/01- 12/02)
Fiber Optic Conduit System & Manholes, Variable
Message Signs, Traffic Signals & Loops, Overhead
Lighted Truss & Cantilever, Street Lighting
Owner: Orlando/Orange County Expressway Authority
Contractor: Jones Bros., Inc.
Contact: Timothy Cook, P: 407-804-5540
Computerized Traffic Signal System $ 929,295
SRIO (US-90), Lake City, Florida (5/98 - 6/99)
Installed Fiber Optic Interconnect Between Intersections That
Are Controlled From a Central Computer Station Via Modem,
Included the Development and Implementation of Software.
Owner: Florida Department of Transportation
Contractor: Anderson Columbia Construction Co.
Contact: F.M. Lynch, P: 904-752-3300
Pag~ 12 of 22
INTELLIGENT TRANSPORTATION SYSTEMS
PROJECT EXPERIENCE
Proiect Details
Contract Amount
SR 429 Western Beltway, Project No. 75320-3460-601
Orange County, Florida (4/99 -12/00)
Fiber Optic Conduit System & Manholes, Fiber Optic
Cable, Traffic Signals & Loops, Overhead Lighted
Truss & Cantilever Signs, Street Lighting
Owner: Orlando/Orange County Expressway Authority
Contractor: Hubbard Construction Co.
Contact: Ernie Wolfe, P: 407 645-5500
$ 882,652
SR 26 - Traffic Signals System
Alachua County, Florida (4/98 - 4/00)
Signals (Pedestrian & Traffic), Loops, Mast Arms
ACT SS Controller Assembly
Owner: Florida Department of Transportation
Contractor: John C Hipp Construction Co.
Contact: Hipp Construction, P: 386-462-2047
$ 817,147
West Bay Drive Intersection Improvements
City of Largo, Pinellas County, Florida (8/00 - 10/01)
Installation of Traffic Signals, Loop Assemblies, Mast Arms,
Pedestrian Signals, Light Poles and Conduit
Owner: Florida Department of Transportation
Contractor: Ajax Paving Industries, Inc.
Contact: Roger Owen, P: 727-581-1888
$ 801,823
SR 429 Western Beltway, Project No. 75320-3460-607
Orange County, Florida (4/99 -10/00)
Fiber Optic Conduit System & Manholes, Signals:
Traffic & Pedestrian, Loops, Overhead Lighted Truss
& Cantilever Signs, Street Lighting
Owner: Orlando/Orange County Expressway Authority
Contractor: Granite Construction Co.
Contact: Granite Construction, P: 770-650-1771
$ 742,162
Lake Underhill Rd. - Lockheed Martin Loop Rd.
Orange County, Florida (12/00 - 2/02)
Computerized Traffic Signal System Including:
Fiber Optic Cable, Traffic Signals, Loops and Video Detection
Owner: LMC Properties
Contractor: Hubbard Construction Co,
Contact: Ernie Wolfe, P: 407645-5500
$ 512,258
Page 13 of 22
INTELLIGENT TRANSPORTATION SYSTEMS
PROJECT EXPERIENCE
Proiect Details
Contract Amount
Changeable Message Signs, Orange County, Florida
EastlWest Expressway Highway and Bee Line Highway (6/97 - 3/02)
Installed Remote Activated CMS Drum Signs at Toll Plazas.
Owner: Orlando/Orange County Expressway Authority
Contractor: Florida Industrial Electric, Inc.
Contact: Allan Henning, P: 407 275-9994
$ 504,041
Interstate 4 Variable Message Signs
Osceola Parkway and World Drive
Installed 4 Variable Message Signs With Fiber Optic
Interconnect. Connected to FHP Office Via Modem.
Owner: Florida Department of Transportation
Contractor: Florida Industrial Electric, Inc.
Contact: Greg Floyd, P: 407 737-2241
$ 356,000
SR 429 Western Beltway, Project No. 75320-3460-600
Orange County, Florida (8/01 - 12/02)
Fiber Optic Conduit System and Manholes
Owner: Orlando/Orange County Expressway Authority
Contractor: Granite Construction Co.
Contact: Granite Construction, P: 770-650- 1771
$ 249,061
SR 417 Toll Facilities Project 2, Sections 1 & 2
Seminole County, Florida (2/02 - 5/02)
Furnish and Install Changeable Message Signs (CMS)
Owner: Florida Department of Transportation
Contractor: Martin K Eby Construction Co., Inc.
Contact: Dale Willis, P: 407-298-7562
$ 195,419
Highway 528 Variable Message Sign
Orange County, Florida (8/98 - 10/99)
Installed Variable Message Signs With Fiber Optic
Interconnect. Includes a Multi- Year Maintenance Contract.
Owner: Orlando/Orange County Expressway Authority
Contractor: Florida Industrial Electric, Inc.
Contact: Allan Henning, P: 407275-9994
$ 178,377
Page 1-1 () r 22
. : .0' I',
,,' ,',
; i ' ~,
J :!,:'
- t<,
ROADWAY LIGHTING, SIGNAGE &
SIGNALIZA TION
Proiect Details
Contract Amount
Goldenrod Road Extension #903
Highway Lighting, Signage and Signalization
Owner: Expressway Authority, Florida
Contractor: Jones Brothers Construction
Contact: Tim Cook, P: 407-804-5540
$3,005,000
Southern Connector 450
Orange County, Florida
Highway Lighting, Signage and Signalization
Owner: Orlando/Orange County Expressway Authority
Contractor: Astaldi Construction Corp., Inc.
Contact: Sonny Easstep, P: 954 423-8510
$2,074,109
Seminole Connector Extension 3300
Seminole County, Florida
Toll Plaza, Highway Lighting, Signage and Signalization
Owner: Florida Turnpike Authority
Contractor: Hubbard Construction Corp., Inc.
Contact: Ernest Wolfe, P: 407-645-5500
$1,566,000
US 92 Tomoka/Clyde Morris
Volusia County, Florida
Highway Lighting, Signage and Signalization
Owner: Florida Department of Transportation
Contractor: Martin Paving Co., Inc.
Contact: Calvin Martin, P: 386 761-8383
$1,326,888
Roadway Improvements 1-295
1-10 to 103rd St., Duval County, Florida
Highway Lighting, Signage and Signalization
Owner: Florida Department of Transportation
Contractor: Hubbard Construction Corp., Inc.
Contact: Ernest Wolfe, P: 407-645-5500
$1,289,734
East-West Expressway Project 250
Orange County, Florida
Highway Lighting, Signage and Signalization
Owner: Orlando/Orange County Expressway Authority
Contractor: Astaldi Construction Corp.. Inc.
Contact: Sonny Easstep. P: 954 4:23-85] 0
$1,158,231
Pag.: I:; or 22
ROADWAY LIGHTING, SIGNAGE &
SIGNALIZA TION
Proiect Details
Contract Amount
SR 417, Central Florida Greenway
Sanford, Florida
Highway Lighting, Signage and Signalization
Owner: Florida Department of Transportation
Contractor: Martin K Eby Construction
Contact: Dale Willis, P: 407-321-1145
$1,026,778
South Access Road
Orlando International Airport, Orlando, Florida
Highway Lighting, Signage and Signalization
Owner: Greater Orlando Aviation Authority
Contractor: Hubbard Construction Corp., Inc.
Contact: Ernest Wolfe, P: 407-645-5500
$ 967,615
OOCEA SR429 Part C
Orange County, Florida
Highway Lighting, Signage and Signalization
Owner: Orlando Orange County Expressway Authority
Contractor: Jones Brothers Construction
Contact: Tim Cook, P: 407-804-5540
$ 950,711
SR 417-So. Connector Extension
Orange County, Florida
Highway Lighting, Signage and Signalization
Owner: Florida Turnpike Authority
Contractor: The Hardaway Company
Contact: Jack Hossman
$ 862,392
1-4 & SR 535 Interchange
Orange County, Florida
Highway Lighting, Signage and Signalization
Owner: Florida Department of Transportation
Contractor: Hubbard Construction Corp., Inc.
Contact: Ernest Wolfe, P: 407-645-5500
$ 840,187
Lake Underhill Road Intersection Improvement
Orange County, Florida
Highway Lighting, Signage and Signalization
Owner: Lockheed Martin
Contractor: Hubbard Construction Corp.. Inc.
Contact: Ernest Wolfe. P: 407-6-+5-5500
$ 515,236
Page J 6 of 22
WATER & WASTEWATER TREATMENT PLANTS
Proiect Details
Contract Amount
Eastern Regional Water Plant
Orange County, Florida
Install MCC, Generators and Instrumentation
Owner: Orange County
Contractor: Danis Heavy Construction
Contact: P: 727-548-5504
$5,485,000
South Regional WWTP
Boynton Beach, Florida
Install MCC, VFD, Generator and Instrumentation
Owner: City of Boynton Beach
Contractor: Milmar Construction
Contact: P: 904-768-2300
$4,006,000
Iron Bridge Wastewater Treatment Plant
Orlando, Florida
Install MCC, Generators and Instrumentation
Owner: City of Orlando, Florida
Contractor: Martin K. Eby Construction Company, Inc.
Contact: Ed Klem, P: 407-761-5753
$3,860,000
Sandlake WWTP
Orange County, Florida
Install MCC, VFD, Generators and Instrumentation
Owner: Orange County, Florida
Contractor: Danis Shook, Inc.
Contact: P: 407-226-1724
$3,700,000
Conway Water Treatment Plant
Orlando, Florida
Install MCC, Generator and Instrumentation
Owner: Orlando Utilities Commission
Contractor: Vogel Brothers Building Company
Contact: P: 608-241-5454
$3,210,748
Page 17 of 22
WATER & WASTEWATER TREATMENT PLANTS
Proiect Details Contract Amount
South Cross Bayou Water Reclaim Facility $1,832,000
Pinellas County, Florida
Install MCC, VFD and Instrumentation
Owner: Pinellas County, Florida
Contractor: Great Monument Construction
Contact: P: 727-464-3251
Hollywood Water Treatment Plant Upgrade $1,459,000
Hollywood, Florida
Install MCC, Ductbanks and Instrumentation
Owner: City of Hollywood, Florida
Contractor: The Poole & Kent Co.
Contact: P: 305-325-1930
Conserve II, Contract 14 $1,350,000
Orlando, Florida
Install Underground HV Cables, Telemetry, Pump Stations
Owner: City of Orlando, Florida
Contractor: Hall Contracting Co.
Contact: Ed Klem, P: 407-761-5753
Miramar RO Plant 1,253,000
Miramar, Florida
Install Underground Electrical System, MCC, VFD, Generators
Owner: City of Miramar, Florida
Contractor: Elkins Construction Inc.
Contact: P: 904-353-6500
Titusville South A WT Plant $ 922,600
Titusville, Florida
Install MCC, VFD, Generator and Instrumentation
Owner: City of Titusville, Florida
Contractor: Wharton-Smith, Inc.
Contact: P: 407-298-2502
Page 18 of22
MAJOR CONSTRUCTION PROJECTS IN PROGRESS
3)
4)
1)
Project Name:
General Contractor:
Contract Amount:
Percent Complete:
Completion Date:
2)
Project Name:
General Contractor:
Contract Amount:
Percent Complete:
Completion Date:
Project Name:
General Contractor:
Contract Amount:
Percent Complete:
Completion Date:
Project Name:
General Contractor:
Contract Amount:
Percent Complete:
1-4 DesignJBuild Interim Auxiliary Lanes
Hubbard Construction Co.
$14,980,000.00
95%
January 2004
Orlando International Airport - Airport Bridge
Hubbard Construction Co.
$2,099,623.00
75%
December 2004
Orlando Int. Airport Security CCTV Upgrade
Florida Industrial Elec:ric, Inc (Prime Contr.)
$3,500,000.00
%
November 2004
Eastern Regional Water Reclamation Facility
Encore Construction Co.
$2,625,000.00
%
Completion Date:
Page 19 of::::
CUSTOMER LIST
Adtranz
Ajax Paving Industries
A vcon Engineering
Army Corps of Engineers
City of Casselberry, Florida
City of Orlando, Florida
Clark Construction Group, Inc.
Danis Construction
Eby Construction, Inc.
Encore Construction Company
Evans Engineering
Florida Department of Transportation
Florida National Guard
General Dynamics
Hensel Phelps Construction Co.
Hubbard Construction, Inc.
Hunt Construction Group
IMDC Engineering
John Carlo, Inc.
Jones Brothers, Inc.
Lane Construction Corporation
Lockheed Aerospace
Martin Marietta
Minute Maid Orange Juice
NASA
Odebrecht Contractors of Florida
Orange County, Florida
Orlando Orange County Expressway Authority
Orlando Paving
Orlando Utilities Commission
P.B. Water
Pirelli Cable Manufacturer
Seminole County, Florida
Siemens Westinghouse
Skanska USA
Southland Construction, Inc.
Turner Construction
US Air Force
Cape Canaveral AFS
Eglin AFB
Homestead AFB
McDill AFB
Patrick AFB
US Department of Justice
US Marine Corps
Camp Lejeune \1CB
Parris Island \1CRD
Page 20 of 22
CUSTOMER LIST
New River MCAS.
Beauford MCAS
US Navy
Jacksonville NAS
Universal Studios, Florida
University of Central Florida
University of Florida
URS Corporation
V.E. Whitehurst
Veterans Administration
Walbridge Contracting, Inc.
Walt Disney World, Inc.
WOFL TV 35 Orlando, Florida
W &1 Construction, Inc.
Woodard & Curran.
Page ~ I of ~~
Government Client List
Florida Department Of Transportation - District 5
719 S. Woodland Boulevard
Deland, FL 32720
Fred Ferrell
386-943-5309
Orlando-Orange County Expressway Authority
525 South Magnolia Avenue
Orlando, Florida 32801
Ben Dreiling
904-943-5523
Orange County, .Florida
2010 E Michigan Street
Orlando, Florida 32806
Don Mullen
407-836-7481
City of Orlando, Florida
400 South Orange A venue
Orlando, FL 32802-4990
Ed Klem
407-761-5753
Page 22 of 22
F.I.E. EQUIPMENT LIST
AIR COMPRESSORS
Item Unit Year Make/Model Serial Number
1 AC-1 Air Compressor- Ingersol Rand 180 143217U84923
2 AC-2 1984 JOY Air Compressor 169107
3 AC-3 1985 Atlas Copco Air Compressor
4 AC-4 1997 Sullivan Air Comoressor 243026
5 AC-5 1997 Sullivan Air Comoressor 243028
6 AC-6 1995 Air ComDressor 179000
7 AC-7 1996 185 CFM Diesel Air Compressor 184690
8 AC-8 1996 Sullivan-185 Air ComDressor 214184
BACKHOES
Item Unit Year AfakeIModel Serial Number
1 BH-5 CAT 426C Backhoe 6XN01096
2 BH-6 CAT 426C Backhoe 01YROO477
3 BH-7 CAT 416C Backhoe 4ZN07353
4 BH-8 CAT 416C Backhoe 5YN06002
5 BH-9 1999 John Deere 310 0 Backhoe 819926
6 BH-10 CAT 426C Backhoe 1YR02152
TRENCHERS
Item Unit Year AfakeIModel Serial Number
1 TR-2 Vermeer V-450 Trencher 1000605
2 TR-3 Vermeer V-455 Trencher 1000476
3 TR-4 Vermeer 450 Trencher 248
4 TR-6 Vermeer Rockwheel Trencher
5 TR-9 Vermeer V-5750 Trencher 1VRM08229T1000251
6 TR-10 Vermeer Trencher
7 TR-11 Vermeer V-5740 Trencher 1VEMU82Z1X1000752
8 TR-12 Vermeer V-855 Trencher with Plow 1VRT112PX21000904
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM lO-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended September 30, 2003
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission File Number 1-13783
INTEGRATED ELECTRICAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State of other jurisdiction of
incorporation or organization)
76-0542208
(I.R.S. Employer
Identification No.)
1800 West Loop South
Suite 500
Houston, Texas
(Address of principal executive offices)
77027
(Zip Code)
Registrant's telephone number, including area code: (713) 860-1500
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Common Stock, par value $.0 I per share
Name of each exchanl!:e on which registered
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the Registrant (I) has filed all reports required to be filed by Section 13 or
15( d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days. Yes -LLNo_
Indicate by checkmark if disclosure of delinquent filings pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of the Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form IO-K.
Yes No_--X-
As of November 20,2003, there were outstanding 38,229,744 shares of common stock of the Registrant. The
aggregate rmrket value on such date of the voting stock of the Registrant held by non-affiliates was an estimated
$208.0 million.
DOCUMENT INCORPORATED BY REFERENCE
The information called for by Part 1lI of this Form 100K is incorporated by reference from the Proxy Statement
for the Annual Meeting of Stockholders of the Company to be held January 22,2004.
FORM lOoK
INTEGRATED ELECfRlCAL SERVICES, INe.
Table of Contents
Item PART I
I BUSINESS
2 PROPERTIffi
3 LEGAL PROCEEDINGS
4 SUBMISSION OF MA TIERS TO A VOTE OF SECURITY HOLDERS
4A EXECUTIVE OFFICERS
PART II
5
MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MA TIERS
SELECTED FINANCIAL DATA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
FINANCIAL STATEMENTS AND SUPPLEMENT ARYDA T A
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
CONTROLS AND PROCEDURES
6
7
7A
8
9
9A
PART ill
10
11
12
13
14
DIRECfORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
EXECUTIVE COMPENSATION
SECURITY OWNERSIDP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
CERTAIN RELATIONSIDPS AND RELATED TRANSACTIONS
PRINCIPAL ACCOUNTANT FEES AND SERVICES
PART IV
15
EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
Paee
3
18
18
18
18
20
21
22
34
35
65
65
66
66
66
66
66
66
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form IO-K includes certain statements, including statements relating to the
Company's expectations of its future operating results, that may be deemed to be "forward-looking statements"
within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21 E of the Securities
Exchange Act of 1934, as amended and the Priyate Securities Litigation Act of 1995. Statements that include the
words "except," "intend," "plan," "believe," "project," "anticipate," "will" and similar statements of a future or
forward-looking nature identify "forward-looking" statements. These statements are based on the Company's
expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially
from those set forth in the statements. Such risks and uncertainties include, but are not limited to, the inherent
uncertainties in estimating future results, fluctuations in operating results because of variations in levels of
construction, changes in general economic conditions in the areas we operate, incorrect estimates used in entering
into fixed price contracts, difficulty in managing the operation and growth of existing businesses, the level of
competition in the construction industry, changes in economic viability of competitor companies bidding projects
that can result in other companies bidding projects under cost, changes in availability of bonding capacity necessary
to perform certain types of projects, availability and quality of existing workforce and newly hired employees, weather
delaying work, interest rate changes, ability to manage companies in a decentralized structure, changes in
management and key personnel, shifting of industrial construction to other countries, regulatory impacts in areas of
required ratios of journeymen to helpers and i1 apprenticeship programs, changes in availability of qualified
employees and electricians in particular, unanticipated levels of casualty losses, changes in legislation or regulation
in accounting requiring a change in the way we report and due to seasonality (see also "Business-Risk Factors").
Although the Company believes the expectations reflected in such forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to haye been correct. All subsequent written and oral forward-
looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety
by such factors. The Company specifically disclaims any duty or obligation to update forward-looking statements
based on later acquired information.
2
PART I
Item 1. Business
In this annual report, the words "IES," the "Company," "we," "our," "ours," and "us" refer to
Integrated Electrical Services, Inc. and, except as otherwise specified herein, to our subsidiaries. Our fiscal year
ends on September 30.
We are the largest provider of electrical contracting services in the United States according to EC&M
Magazine. We provide a broad range of services including designing, building, maintaining and servicing electrical,
data communications and utilities systems for commercial, industrial and residential customers.
Our electrical contracting services include design of the electrical distribution systems within a building or
complex, procurement and installation of wiring and connection to power sources, end-use equipment and fixtures as
well as long-term contract maintenance. We service commercial, industrial, and residential markets and have a
diverse customer base including: general contractors; property managers and developers; corporations; government
agencies and municipalities; and homeowners. We provide services for a variety of projects including: high-rise
residential and office buildings, power plants, manufacturing facilities, municipal infrastructure and health care
facilities and residential developments. We also offer low voltage contracting services as a complement to our
electrical contracting business. Our low voltage services include design and installation of external cables for
corporations, universities, data centers and switching stations for data communications companies as well as the
installation of fire and security alarm systems. Our utility services consist of overhead and underground installation
and maintenance of electrical and other utilities transmission and distribution networks, installation and splicing of
high-voltage transmission and distribution lines, substation construction and substation and right-of-way
maintenance. Our maintenance services generally provide recurring revenues that are typically less affected by
levels of construction actiyity. We focus on projects that require special expertise, such as design-and-build projects
that utilize the capabilities of our in-house engineers or projects that require specific market expertise such as
hospitals or power generation facilities, as well as service, maintenance and certain renovation and upgrade work,
which tends to either be recurring, have lower sensitivity to economic cycles, or both.
Since 1997, we have deyeloped a national footprint of approximately 140 locations currently serving the
continental 48 states through the acquisition and internal growth of established companies operating in our core
business areas. From 1997 to 2003, revenues for our businesses increased at a compounded annual growth rate of
approximately 29%. Included in that growth was approximately five percent organic or "same store sales" growth.
This includes a decline in our revenue base during 2002 and 2003 of approximately seven percent due to market
conditions and strategic divestitures. In 2003, we continued to focus internally to integrate our information systems
and established a regionally based management structure to enhance operating controls at all levels of our
organization, as well as integrating a consolidated procurement program and structure to manage customers and
vendors on a national basis.
Industry Overview
Using the most recently available data from F. W. Dodge, we estimate the electrical contracting industry will
generate annual revenues in excess of $80 billion in 2003. Data from EC&M Magazine indicates that the electrical
contracting industry is highly fragmented, with more than 70,000 companies, most of which are small, owner.operated
businesses. This data also indicates that there are only 12 U.S. electrical contractors with revenues in excess of $200
million. F. W. Dodge data indicates total construction industry revenues have grown at an average compound rate of
approximately five percent from 1997 through 2003. This includes a decline in the market from 2001 to 2003 of
approximately one percent, where commercial and industrial construction spending was down due to soft market
conditions, offset by a rise in residential construction,
3
During the last decade, electrical contractors have experienced a growing demand for their services due to
more stringent electrical codes, increased use of electrical power, increased drive toward outsourcing, increased
demand for bandwidth, demand for bundled services, and construction of smart houses with integrated computer,
temperature control and safety systems. This market, while up over the past several years, has been depressed
during the last two years due to decreased overall construction spending.
Compedtive Strengths
Our competitive strengths include the following:
· Geographic diversity- We have approximately 140 locations, currently serving the continental 48 states and
have worked on more than 2,000 contracts over $250,000 and more than 10,000 contracts overall in 2003.
IES' national presence mitigates the region specific economic slowdowns. Our presence in states such as
Alabama, Virginia, Texas and Colorado has been particularly beneficial through this most recent
construction decline, because these areas were less impacted than some of the other areas of the U.S. Since
1997, much of our revenues have been deriyed from the fast growing Sunbelt states.
· Customer diversity - Our diverse customer base includes general contractors, property developers and
managers, facility owners and managers of large retail establishments, manufacturing and processing
facilities, utilities, government agencies and homeowners. No single customer accounted for more than 10%
of our revenues for the year ended September 30, 2003. We believe that customer diversity provides us with
many advantages including enabling us to better serve national customers with multiple locations and
reducing our dependence on any particular customer.
Our company services a wide variety of customers, which tends to cushion us somewhat from sector
declines. The impact of a slowdown in a particular industry is typically muted when compared to its smaller,
more geographically or sector concentrated competitors. Additionally, our expertise in a variety of
industries allows us to be flexible and to share our expertise across regions.
Electrical utility work is a component of our overall service offering which allows us even further diversity.
We do a significant amount of power, power line and "electrical grid" work. During fiscal 2003,
approximately $107.3 million, or 7'10, of our revenues were from power utility work. Although current
construction spending estimates according to F.W. Dodge indicate that spending in this sector will be down
in 2003 and 2004, recent large-scale power outages may encourage heightened spending levels in this area.
We haye the ability to mobilize our operations for the power utility sector quickly due to the number of
locations we have with expertise in this area.
We do see a shift in the composition of our backlog from time to time. During 2003, our backlog of work in
progress for commercial and industrial work declined in the areas of hotels and condominiums, health care
facilities, manufacturing facilities lIld airports; areas of backlog growth included institutions, utility work
and projects for the government.
· Expertise - We have developed areas of expertise in high-rise buildings including hotels, condominiums
and office buildings, retail centers, hospitals, switching centers and utility substations and single-family and
multi-family residential homes. We believe that our technical expertise provides us with (I) access to higher
margin design-and-build projects; (2) access to growth markets including wireless telecommunications,
highway lighting and traffic control, video and security and fire systems; and (3) the ability to deliver quality
service with greater reliability than that of many of our competitors.
· Ability to Service National Projects - Our nationwide presence and name recognition helps us compete for
larger, national contracts with customers that operate throughout the U.S. Additionally, we believe our size
and national service offering uniquely positions us as the only single source open shop electrical
contracting service provider able to execute projects on a national basis. We are able to take on very large
and complex projects, often with a national scope, that would strain the capabilities and resources of most of
our competitors. This type of work represents a growing market and we have made significant progress in
pursuing these sizable accounts, A few of our current national customers include Wal-Mart, the U.S. Navy,
Marriott, Nordstrom, Intel, Starbucks, Ryland Homes and Pulte Horres,
4
. Access to resources - Access to resources is a key to success, especially in this difficult environment.
Many of our competitors have experienced reduced access to both bonding capacity and capital, which
constrains their ability to effectively conpete and bid on many jobs. As a result of our size and track record,
we have the financial ability to maintain adequate bonding capacity. This, in conjunction with our access to
a $125 million credit facility, provides a significant competitive advantage over most of our competitors. We
are able to bid on large projects that require bonding and working capital that may exceed the capacity of
our competitors.
Many customers require subcontractors to post performance and payment bonds issued by a surety. Those
bonds guarantee the customer that the service provider will perform under the terms of a contract and pay
subcontractors and vendors. In the event a contractor or subcontractor fails to perform under a contract or
pay subcontractors and vendors, the customer may demand the surety to payor perform under the bond.
We have maintained a relationship with the same surety since our inception in 1997. Recently, we added a
second or co-surety, thus increasing the amount of surety credit available to us. Our relationship with our
sureties is such that we will indemnify them for any expenses they incur in connection with any of the bonds
they iss}1e on our behalf. In a market where bonding has become an issue for many of our competitors, we
are fortunate to be in such a strong position as it relates to bonding capacity. To date, we have not incurred
significant costs to indemnify our sureties for expenses they incurred on our behalf. As of September 30,
2003, the expected cost to complete projects covered by surety bonds was approximately $227.9 million.
. Proprietary systems and processes - We have proprietary systems and processes that help us bid on
projects, manage projects once they have been awarded and maintain and track customer information. In
addition, we developed and perfected techniques and processes for installation on a variety of different
projects, including a prefabrication process we implemented throughout the organization. Through the
consolidation of over 85 entities, we have taken the best practices within our company and leveraged those
systems and processes across the entire organization for "best in class" practices.
. Utilization of prefabrication processes - Our size and 100% merit shop environment has allowed us to
quickly implement best prefabrication practices across our company. We prefabricate significant portions of
electrical installations off-site and ship materials to the installation sites in specific sequences to optimize
materials management, improve efficiency and minimize our employees' time onjob sites. This is safer, more
efficient and more cost effective for both us and our customers. We have prefabrication centers
strategically located to service our companies throughout the U.S., and we believe our prefabrication
processes are among the best in the electrical contracting industry.
. Experienced management - Our management teams have extensive experience and well-known reputations
in the markets they serve. In addition, we have developed a strong team of executive officers, led by Herbert
(Roddy) Allen, with extensive operating experience. We believe management and our employees currently
own approximately 25% of our outstanding common stock.
Strategy
At the beginning of fiscal 2002 we implemented a three-phase strategy that is in place and will continue.
Phase one, "Back to Basics," focuses on our business fundamentals, including building backlog, controlling costs
and generating strong cash flow. Phase two of our strategy, "One Company. One Plan," is a focus on initiatives to
further integrate our company, given its formation through a series of acquisitions and its decentralized
organizational structure. We recently entered phase three of our plan, "Continued Growth," which emphasizes
expanding the business both internally and externally through selective acquisitions. Throughout the
implementatiDn of this three-phase strategy, we have reduced our debt and increased our working capital, creating a
more conservative capital structure. The three phases of this initiative are detailed in the table below. This multi-
phased strategy builds upon itself. As we enter the third phase, we continue to focus on the elements of the first two
phases.
5
. Phase I - Back to Basics
Build backlog. Building backlog is a pimary element of our strategy. Our ability to maintain a large
backlog highlights the advantages of our size and diverse customer base and helps us navigate through difficult
economic periods. Our backlog of work in progress has decreased to approximately $708 million as of September 30,
2003 from approximately $80 I million as of September 30, 2002. This decline is the result of many factors, including
the removal of$16.5 million of project work due to financial difficulties of one customer. We have also changed our
backlog calculation method for many industrial long-term maintenance contracts, which has eliminated approximately
$29 million in work from backlog, although they are still a source of revenues for us. From2001 through 2003, we
worked on a few very large contracts that spanned two to three years, which significantly increased backlog. These
larger projects are nearing completion, which lowers the total backlog. Our backlog of significant longer-term
contracts, defined as contracts in exc ess of $7.5 million, has decreased from approximately $209.5 million, or 26% of
our backlog, as of September 30, 2002, to approximately $120.5 million, or 17% of our backlog, as of September 30,
2003. This indicates the duration of our backlog is slightly shorter, as it is comprised of smaller projects that are
generally completed more quickly and tend to earn higher margins. During the year ended September 30, 2003, our
average contract size was approximately $0.5 million and lasted approximately six months.
Control Costs. Reducing costs is a key element of the Back to Basics strategy. We have taken and will
continue to take steps to operate more efficiently and reduce expenses in order to increase our profitability and
remain competitive within the industry. We continue to strengthen our relationships with suppliers in an effort to
reduce the costs of delivering services. We consolidated the administrative functions of many of our business
locations in an effort to streamline operations and we will continue to do so where appropriate. We believe that by
focusing on cost reduction, we are better positioned for competitive success in any business environment. The table
below shows a reduction of over $60 million in our selling, general and administrative expenses over a two-year
period (in millions):
Corporate
$
45.3
Fiscal year ended September 30,
2001 2002 2003
$ 23.7 $ 19.4
Operating Locations
Total
168.8
$ $
...2H.l
150.5
1742
$
134.3
15J 7
Focus on cash flow. Focusing on cash flow is the third component of the Back to Basics strategy. We are
focused on increasing cash flow by strategic planning and by maintaining an efficient base business. Bl'ective tax
planning reduced cash taxes paid by $8.2 million for the year ended September 30, 2002 and by $10.3 million for the
year ended September 30, 2003. We have improved cash flow generation from operations over the last two years.
Cash flow from operations increased from $8.6 million in 2001 to $53.4 million and $39.3 million in 2002 and 2003,
respectively. We also reduced capital expenditures from $25.8 million in 2001 to $11.9 million and $8.7 in 2002 and
2003, respectively.
· Phase n - One Company. One Plan.
In fiscal 2002, with Back to Basics in place and its benefits ongoing, we moved to phase two of our strategic
plan, One Company. One Plan. The primary goal of One Company. One Plan, was to achieve a higher level of
integration among our operating units. We divested non-core and under-performing subsidiaries and combined
some operating locations. We continue to streamline the organization and recognize significant value from increased
integration. We instituted a new management structure to share best practices, began implementation of en
integrated financial panning and reporting system, focused on unified employee programs and incentives and
increased employee training programs. We also focused on improving our safety record, generating savings through
a centralized procurement program and servicing customers on a national basis.
Management structure. We manage our business based on our operating ~gments. Within our
commercial and industrial segment, our subsidiaries are managed with five geographically based operating officers
6
reporting directly to our Chief Operating Officer. Our residential business segment also reports directly to the Chief
Operating Officer. This operating structure provides us a platform for strong operating and financial controls, allows
us to more efficiently manage the business and fosters implementation of best practices across the organization.
This structure also allows us to manage customer relationships above the local level. We believe this structure
enables us to continue to expand the services and expertise we offer in each of our local markets by using specialized
technical and marketing skills to maintain and strengthen relationships with general contractors and other customers;
build positive relationships with engineers and architects; address design preferences and code requirements across
the nation; increase labor sharing and joint project execution and continuously improve administrative, safety, hiring
and training practices.
The Executive Committee, comprised of the Chief Executive Officer, Chief Operating Officer, Chief Financial
Officer, Chief Technology and Procurement Officer, Senior Vice President of Operations and Senior Vice President of
Human Resources, monitors our operations and fosters our progress on the three-phase strategy.
Financial reporting and planning. All of our operating subsidiaries are joined on a common Wide Area
Network ("WAN"). This platform enables us to access and monitor the computer servers at each subsidiary location
and facilitates efficient communication. Stringent controls are in place limiting access to the data stored on each
location's server.
We are 80% complete in implementing a standard Enterprise Resource Planning ("ERP") software system
across all of our operating units and are expecting full implementation by the end of calendar year 2004. This
software is a third-party developed program specifically created for specialty construction contractors and enables
us to manage our projects and report our financial results. We also implemented a consolidated financial analysis
and planning system, which is compatible with our financial reporting system, and enables us to further analyze and
track data, both from a financial statement standpoint and on a job-by-job basis. These systems provide real-time
access to financial records, increase our ability to perform analyses, foster improved project management systems
and provide more uniform data, which help improve the overall management of the business. To date, these systems
have helped shorten and streamline the monthly fnancial closing process together with providing higher data
integrity.
Employee programs. We provide a common, unified healthcare plan to our employees. We are focusing on
other employee benefits as well, which include employee training. As an example, we partnered with Fails
Management Institute, a firm that specializes in construction industry consulting, to train our project managers. This
program will ensure consistent project management procedures and proficiency levels across the company. We are
focused on all aspects of employee benefits, including incentive compensation. We established a bonus plan
focused on overall company performance and subsidiary performance for all executive management and subsidiary
leaders. Our executive incentive compensation plan, while discretionary, is structured so our management executives
and subsidiary leaders may receive compensation up to a targeted amount once we achieve certain levels of
profitability.
Safety. Our focus on safety is continuously improving performance. The frequency of ecordable
accidents, defined as number of recorded accidents per 100 employees per year, is a key safety measure. Recordable
frequency rates have decreased each year to 3.80 per 100 employees in fiscal 2003, as shown in the table below. The
industry average through 200 I is approximately eight recordable accidents per 100 employees according to the
Bureau of Labor Statistics, so our safety focus has improved our performance to less than half the industry average.
In addition to protecting our workers, an improved safety record should lead to lower insurance costs in the future.
Year ended
SeDtember 30.
2001
2002
2003
Recordable
Accidents per 100
EmDlovees
6.41
4.65
3.80
Procurement. Our procurement strategy involves forging relationships and alliances with manufacturers,
service providers and distributors, These alliances include volume-based rebates, increased service commitments,
funding for our company-wide procurement catalog and partial sponsorship of company-wide events, As part of this
7
procurement strategy, we established a system for improving the accuracy of tracking the goods and services we
purchase. We currently track approximately 70% of our procurement spending for electrical supplies. The national
procurement initiative is generating positive results, as eyidenced by our rebate program. We earned cash volume-
based rebates of approximately $2.1 million and $2.5 million during the years ended September 30, 2002 and 2003,
respectively.
Customer focus. We are committed to managing relationships with nation-wide customers and providing
services to larger customers across the country. We maintain a customer database that tracks projects and provides
centralized access to customer data. This database is particularly important due to our unique relationship with our
customers. We typically perform work for a general contractor; however, the ultimate customer is the end user, such
as Walgreen's or 3M. We belieye it is imperative that we maintain and foster relationships with both of these
customer groups, so we track our work performed accordingly. We also place emphasis on multi-location national
projects. During the year ended September 30, 2003, we commenced work on two new projects with a national scope.
We believe these projects will provide us with additional opportunities for growth in the future.
. Phase m - Continued Growth
With the implementation of the first two phases of our strategy, we have a solid foundation for strategic,
profitable growth. We are more streamlined and efficient, and we function more as a unified organization than as a
federation of different entities.
Internal growth. We expect to grow internally by expanding our service offerings in our existing markets
and through expanding the geographic locations we currently serve. We also plan to open new locations in certain
strategic markets where we do not currently have a presence.
External growth. Our acquisition and expansion plans will be strategically focused and will occur at a
manageable pace. We plan to continue to expand through selective and cost effective acquisitions in geographic
markets that are projected to have higher than average construction spending growth. Acquisitions and expansions
will be focused where we do not currently have a significant presence or in specific market segments or service
offerings that tend to be more profitable for us.
We made one acquisition during the year ended September 30, 2003 of a company that services the
commercial and industrial market in the state of Colorado. According to F. W. Dodge, the state of Colorado is
projected to have approximately 12% compound annual growth in non-residential construction spending over the
next five years, which is over two times the projected U.S. non-residential construction growth level. Preyiously, we
did not haye a strong presence in Colorado. This acquisition, which occurred during our second fiscal quarter, was
accretive to earnings during the year ended September 30, 2003.
. Capital Structure Improvements
Across all three phases of our strategic plan, we are focused on continuously improving our capital
structure. We are utilizing cash flow from operations to reduce debt and to repurchase common stock. We reduced
our total debt by $39.6 million during the year ended September 30,2002, and we maintain a $125 million credit facility
with a group of lending institutions that has no outstanding borrowings as of September 30,2003. We also recently
completed a two million-share common stock repurchase program announced in August 2002. Our working capital
has increased $29.8 million from $236.6 million as of September 30,2001 to $266.4 million as of September 30,2003.
The Markets We Serve
Commercial and Industrial Market. Our commercial and industrial work consists primarily of electrical,
communications and utility installations and upgrade, renovation, replacement and service and maintenance work in:
. airports;
. community centers;
· high-rise apartments and condominiums;
. hospitals and health care centers;
8
. hotels;
· manufacturing and processing facilities;
. military installations;
. office buildings;
· refineries, petrochemical and power plants;
. retail stores and centers;
. schools; and
· theaters, stadiums and arenas.
Our commercial and industrial customers include:
. general contractors;
. developers;
· building owners and managers;
. engineers;
. architects; and
. consultants.
Demand for our commercial and industrial services is driven by construction and renovation activity levels,
as well as more stringent local and national electrical codes. From fiscal 1997 through 2003, our pro forma combined
revenues from commercial and industrial work has grown at a compound annual rate of approximately 3.2% per year,
including a decline of 6.6% from 2001 to 2003 where commercial and industrial spending was down due to soft market
conditions. According to F. W. Dodge, the construction industry has grown at a compound annual rate of
approximately 2.1% per year, including a decline of 7.4% from 2001 to 2003 where commercial and industrial spending
was down due to soft market conditions. Commercial and industrial work represented approximately 85%, 81% and
81% of our revenues for the years ended September 30, 2001,2002 and 2003, respectively. Pro ilrma combined
revenues include reyenues generated by our subsidiaries prior to acquisition by us.
New commercial and industrial work begins with either a design request or engineer's plans from the owner
or general contractor. Initial meetings with the parties allow us to prepare preliminary, detailed design specifications,
engineering drawings and cost estimates. Projects we design and build generally provide us with higher margins.
"Design and build" gives full or partial responsibility for the des~n specifications of the installation. Design and
build is an alternative to the traditional "plan and spec" model, where the contractor builds to the exact specifications
of the architect and engineer. We prefer to perform design and build work, because it allows us to use past
experience to install a more cost effective project for the customer with higher profitability to us. Once a project is
awarded, it is conducted in scheduled phases and progress billings are rendered to our customer for payment, less a
retention of 5% to 10% of the construction cost of the project. We generally provide the materials to be installed as a
part of these contracts, which vary significantly in size from a few hundred dollars tD several million dollars and vary
in duration from less than a day to more than a year. Actual fieldwork is coordinated during this time, including:
. ordering of equipment and materials;
· fabricating or assembling of certain components (pre-fabrication);
. delivering of materials and components to the job site; and
. scheduling of work crews and inspection and quality control.
Our size enables us to effectively prefabricate significant portions of certain projects at an alternative site
and drop ship materials in specific sequences. Prefabrication allows us to optimize materials management and
minimize the amount of time specialized employees spend on the job site, as well as minimizing the overall time it takes
to complete a project because working in a controlled assembly environment is more efficient than preparing all
materials on site.
9
Our service and maintenance reyenues are derived from service calls and routine maintenance contracts,
which tend to be recurring and less sensitive to economic fluctuations. Service and maintenance is supplied on a
long-term and per-call basis. Long-term service and maintenance is provided through contracts that require the
customer to pay an annual or semiannual fee for periodic diagnostic services at a specific discount from standard
prices for repair and replacement services. Per-call service and maintenance is initiated when a customer requests
emergency repair service. Service technicians are scheduled for the call or routed to the customer's residence or
business by the dispatcher. We will then follow up with the customer to schedule periodic maintenance work.
Service personnel work out of our service vehicles, which carry an inventory of equipment, tools, parts and supplies
needed to complete the typical variety of jobs. The technician assigned to a service call:
. travels to the residence or business;
. interviews the customer;
. diagnoses the problem;
. prepares and discusses a price quotation; and
. performs the work and often collects payment from the customer immediately.
Most service work is warranted for thirty days.
We design and install communications and utility infrastructure systems and low voltage systems for the
commercial and industrial market as a complement to our primary electrical contracting services. We believe the
demand for our communications services is driven by the following factors: the pace of technological change; the
overall growth in voice and data traffic; and the increasing use of personal computers and modems, with particular
emphasis on the market for broadband internet access. Demand for our utilities services is driven by industry
deregulation, limited maintenance or capital expenditures on existing systems and increased loads and supply and
delivery requirements. Demand for our low voltage systems is driven by the construction industry growth rate and
our ability to cross-sell among our customers.
Residential Market. Our work for the residential market consists primarily of electrical installations in new
single-family housing and low-rise, multi-family housing, for local, regional and national homebuilders and
developers. We believe demand for our residential services is dependent on the number of single-family and mult~
family home starts. Single-family home starts are affected by the leyel of interest rates 8ld general economic
conditions. A competitive factor particularly important in the residential market is our ability to develop relationships
with homebuilders and developers by providing services in multiple areas of their operations. This ability has
become increasingly important as consolidation has occurred in the residential construction industry and
homebuilders and developers have sought out service providers that can provide consistent service in all of their
operating regions.
We are currently one of the largest providers of electrical contracting services to the U.S. residential
construction market. Our residential business has experienced significant growth. Our pro forma combined revenues
from residential electrical contracting have grown at a compound annual rate of approximately 13.5% from fiscal 1997
through 2003 compared to an industry ayerage of approximately 8.8% according to F. W. Dodge. Residential
electrical contracting represented approximately 15%, 19% and 19% of our revenues for the years ended September
30, 2001, 2002 and 2003, respectiyely.
New residential installations begin with a builder providing potential subcontractors the architectural or
electrical drawings for the residences within the tract being developed. We typically submit a bid or contract
proposal for the work. Our personnel analyze the plans and drawings and estimate the equipment, materials and parts
and the direct and supervisory labor required to complete the project. We deliver a written bid or negotiate an
arrangement for the job. The installation work is coordinated by our field supervisors and the builders' personnel.
Payments for the project are generally obtained within 30 days, at which time any mechanics' and materialmen's liens
securing these payments are released. Interim payments are often obtained to cover labor and materials costs on
larger projects.
10
Customers
Major Customers. We have a diverse customer base. During the year ended September 30,2003, no single
customer accounted for more than 10% of our revenues. As a result of our emphasis on quality and worker reliability,
our management and a dedicated sales and work force have been responsible for developing and maintaining
successful relationships with key customers. We recently worked on projects for the following customers:
3M
AMEC
Austin Industries
Beck Group
Bovis, Inc.
Centex Construction
Fluor Corporation
Four Seasons Hotel
Hannover Company
Hansel Phelps Corporation
Home Depot
Hubbard Construction Group
Hyatt Corporation
Intel
J. E. Dunn Group
Kohl's
Kraft Construction
Lemoine Company
Lennar Homes
Manhattan Construction
Marriott International
MB Kahn
N issan
Robins & Morton
Six Continents
Skanska USA
Structure Tone, Inc.
Target
Turner Corporation
Walgreen's
Wal-Mart
Weitz Group
Whiting Turner Construction
We intend to continue our emphasis on developing and maintaining relationships with our customers by
providing superior, high-quality service.
Company Operations
Employee Screening, Training and Development. We are committed to providing the highest level of
customer service through the development of a highly trained workforce. Employees are encouraged to complete a
progressive training program to advance their technical competencies and to ensure that they understand and follow
the applicable codes, our safety practices and other internal policies. We support and fund continuing education for
our employees, as well as apprenticeship training for technicians under the Bureau of Apprenticeship and Training of
the Department of Labor and similar state agencies. Employees who train as apprentices for four years may seek to
become journeymen electricians and, after additional years of experience, master electricians. We pay progressive
increases in compensation to employees who acquire this additional training, and more highly trained employees
serve as foremen, estimators and project managers. Our master electricians are licensed in one or more cities or other
jurisdictions in order to obtain the permits required in our business. Some employees have also obtained specialized
licenses in areas including security systems and fire alarm installation. In some areas, licensing boards have set
continuing education requirements for maintenance of licenses. Because of the lengthy and difficult training and
licensing process for electricians, we believe that the number, skills and licenses of our employees constitute a
competitive strength in the industry.
We actively recruit and screen applicants for our technical positions and have established programs in some
locations to recruit apprentice technicians directly from high schools and vocational technical schools. We recently
initiated recruiting efforts at universities and colleges, such as Texas A&M University and Clemson University, for
skilled graduates in the Engineering and Construction Science fields. Prior to hiring new employees, we assess their
technical competence level, confirm background references and conduct drug testing.
Materials and Supplies. As a result of economies of scale, we believe we have been able to purchase
equipment, parts and supplies at discounts to prices at which stand-alone companies can purchase. In addition, as a
result of our size, we are able to lower our costs for (i) the purchase or lease of vehicles; (ii) bonding, (iii) property,
casualty and liability insurance; (iv) health insurance and related benefits; (v) retirement benefits administration; and
(vi) office and computer equipment.
Substantially all the equipment and component parts we sell or install are purchased from manufacturers and
other outside suppliers. We are not materially dependent on anyone of these outside sources for our supplies.
II
Control and Information Systems. We are committed to performing those controls and procedures that
improve our efficiency and the monitoring of our operations. We are over 80% complete in deploying a standard
Enterprise Resource Planning ("ERP") software to all of our operating companies. We believe ERP applications are
paramount to a growing business with our diverse geographic platform. Additionally, we have implemented a
financial reporting and planning application to complement the ERP application that provides a uniform structure and
analytical tools for the reporting process. This application was utilized for our 2003 and 2004 planning processes.
We expect to have the implementation completed by the end of calendar year 2004. Implementation of this ERP
system and financial reporting application allows us to obtain more timely results of operating performance and
perform more detailed analyses. In addition to our ERP system, other controls and procedures we have in place
include:
· pre-determined approval levels for bidding jobs. Each subsidiary may approve certain jobs based on each
subsidiary's gross revenues, the level of experienced estimating personnel on staff, the type of work to be
bid (i.e. niche vs. non-niche work to take advantage of our centers of excellence), and manpower availability.
If a job exceeds these parameters additional approvals must be obtained.
· an automated uniform monthly reporting process with data controls.
· a series of quarterly reviews conducted by our senior management team. Eyery other quarter, these meeting
locations rotate between the corporate office in Houston, Texas and various locations. The content of such
meetings includes discussing safety performance, previous operating results, forecasts for the future,
issues, opportunities and concerns.
· a formalized planning process that involves analyzing industry trends at a county level for each subsidiary.
This planning also formalizes the capital allocation process.
Competition
The electrical contracting industry is highly fragmented and competitive. Most of our competitors are small,
owner-operated companies that typically operate in a limited geographic area. There are few public companies
focused on providing electrical contracting services. In the future, competition may be encountered from new market
entrants. Competitive factors in the electrical contracting industry include:
· the ayailability of qualified and licensed electricians or qualified technicians;
· safety record;
· cost structure;
· relationships with customers;
· geographic diversity;
· ability to reduce project costs;
· access to technology;
· experience in specialized markets; and
· ability to obtain bonding.
See "Risk Factors"
Regulations
Our operations are subject to various federal, state and local laws and regulations, including:
· licensing requirements applicable to electricians;
· building and electrical codes;
· regulations relating to consumer protection, including those governing residential seryice agreements;
and
· regulations relating to worker safety and protection of the environment.
12
We believe w: have all licenses required to conduct our operations and are in substantial compliance with
applicable regulatory requirements. Our failure to comply with applicable regulations could result in substantial fines
or revocation of our operating licenses or an inability to perform government work.
Many state and local regulations governing electricians require permits and licenses to be held by individuals.
In some cases, a required permit or license held by a single individual may be sufficient to authorize specified
activities for all our electricians who work in the state or county that issued the permit or license. It is our policy to
ensure that, where possible, any permits or licenses that may be material to our operations in a particular geographic
area are held by multiple IES employees within that area.
Risk Management and Insurance
The primary risks in our operations include health, bodily injury, property damage and injured workers'
compensation. We maintain automobile and general liability insurance for third party health, bodily injury and
property damage and workers' compensation coverage, which we consider appropriate to insure against these risks.
Our third-party insurance is subject to large deductibles for which we establish reserves and, accordingly, we
effectively self-insure for much of our exposures.
Employees
At September 30, 2003, we had approximately 13,000 employees. We are not a party to any collective bargaining
agreements with our employees. We believe that our relationship with our employees is satisfactory.
Available Information
We file our interim and annual financial reports, as well as other reports required by the Securities Exchange
Act of 1934 with the United States Securities and Exchange Commission (the "SEC"). The public may read and copy
any materials we file with the SEC at the SEC's Public Reference Room at 450 Fifth Street, NW, Washington, DC
20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at (800)
SEC-0330. The SEC maintains a website at www.sec.l!:ov that contains our filings. We make available free of charge
through our website at www.ies-co.com all filings with the SEC as soon as it is reasonably practicable after such
material is electronically filed. Paper copies of these filings are also available free of charge upon written request to
us.
We have adopted a Code of Ethics for Financial Executives, a Code of Business Conduct and Ethics for directors,
officers and employees ( the legal Compliance and Corporate Policy Manual) and established Corporate Governance
Guidelines, copies of which may be found on our website at www.ies-co.com Paper copies of these documents are
also available free of charge upon written request to us. We have designated an "audit committee financial expert" as
that term is defined by the SEe. Further information about this designee may be found in the Proxy Statement for the
Annual Meeting of Stockholders of the Company.
13
RISK FACTORS
Downturns in construction could adversely affect our business because more than half of our business is
dependent on levels of new construction activity.
More than half of our business is the installation of electrical systems in newly constructed and renovated
buildings, plants and residences. Downturns in levels of construction or housing starts could have a material
adyerse effect on our business, financial condition and results of operations. Our ability to maintain or increase
revenues from new installation services will depend on the number of new construction starts and renovations,
which will likely correlate with the cyclical nature of the construction industry. The number of new building starts will
be affected by local economic conditions, changes in interest rates and other factors, including the following:
employment and income levels;
interest rates and other factors affecting the availability and cost of financing;
tax implications for homebuyers and commercial construction;
consumer confidence; and
housing demand.
Additionally, a majority of our business is focused in the southeastern and southwestern portions of the
United Sates, concentrating our exposure to local economic conditions in those regions. Downturns in levels of
construction or housing starts in these geographic areas could result in a material reduction in our activity levels.
The highly competitive nature of our industry could affect our profitability by reducing our profit margins.
The electrical contracting industry is served by many small, owner-operated private companies, public
companies and seyerallarge regional companies. We could also face competition in the future from new competitors
entering these markets. Some of our competitors offer a greater range of services, including mechanical construction,
facilities management, plumbing and heating, ventilation and air conditioning services. Competition in our markets
depends on a number of factors, including price. Some of our competitors may have lower overhead cost structures
and may, therefore, be able to provide services comparable to ours at lower rates than we do. Ifwe are unable to offer
our services at competitive prices or if we have to reduce our prices to remain competitive, our profitability would be
impaired.
There is currently a shortage of qualified electricians. Since the majority of our work is performed by
electricians, this shortage may negatively impact our business, including our ability to grow.
There is currently a shortage of qualified electricians in the United States. In order to conduct our business,
it is necessary to employ electricians. While overall economic growth has diminished, our ability to increase
productivity and profitability may be limited by our ability to employ, train and retain skilled electricians required to
meet our needs. Accordingly there can be no assurance, among other things, that:
we will be able to maintain the skilled labor force necessary to operate efficiently;
our labor expenses will not increase as a result of a shortage in the skilled labor supply; and
we will not be able to grow as a result of labor shortages.
Due to seasonality and differing regional economic conditions, our results may fluctuate from period to
period.
Our business is subject to seasonal variations in operations and demand that affect the construction
business, particularly in residential construction. Our quarterly results may also be affected by the regional economic
conditions. Accordingly, our performance in any particular quarter may not be indicative of the results that can be
expected for any other quarter or for the entire year.
The estimates we use in placing bids could be materially incorrect. The use of incorrect estimates could
result in losses on a fixed price contract. These losses could be material to our business.
14
We currently generate, and expect to continue to generate, more than half of our revenues under fixed price
contracts. The cost oflabor and materials, however, may vary from the costs we originally estimated. Variations from
estimated contract costs along with other risks inherent in performing fixed price contracts may result in actual
revenue and gross profits for a project differing from those we originally estimated and could result in losses on
projects. Depending upon the size of a particular project, variations from estimated contract costs can have a
significant impact on our operating results for any fiscal quarter or year. We must estimate the costs of completing a
particular project to bid for these fixed price contracts.
A significant amount of our historic growth has occurred through the acquisition of existing businesses;
however, future acquisitions will be made on a selective basis and may be difficult to identify and integrate
and may disrupt our business and adversely affect our operating results.
Historically, a significant amount of our growth has come through acquisitions. From April 1998 through
December 2000, we made 71 acquisitions. We made one acquisition in February 2003. We currently do not intend to
grow materially through acquisitions in the foreseeable future; however, we continually evaluate acquisition
prospects to complement and expand our existing business platforms. The timing, size or success of any acquisition
effort and the associated potential capital commitments cannot be predicted. If we are unable to find appropriate
acquisitions, our future ability to grow our revenues and profitability may be diminished. Each acquisition, however,
involves a number of risks. These risks include:
the diversion of our management's attention from our existing businesses to integrating the operations
and personnel of the acquired business;
possible adverse effects on our operating results during the integration process; and
our possible inability to achieve the intended objectives of the combination.
We may seek to finance an acquisition through borrowings under our credit facility or through the issuance
of new debt or equity securities. There can be no assurance that we will be able to secure this financing if and when
it is needed or on the terms we consider acceptable. Ifwe should proceed with a relatively large cash acquisition, we
could deplete a substantial portion of our financial resources to the possible detriment of our other operations. Any
future acquisitions could also dilute the equity interests of our stockholders, require us to write off assets for
accounting purposes or create other undesirable accounting issues, such as significant exposure to impairments of
goodwill or other intangible assets.
We may experience difficulties in managing internal growth.
In order to continue to grow internally, we expect to expend significant time and effort managing and
expanding existing operations. We cannot guarantee that our systems, procedures and controls will be adequate to
support our expanding operations, including the timely receipt of financial information. Our growth imposes
significant added responsibilities on our senior management, such as the need to identify, recruit and integrate new
senior managers and executives. If we are unable to manage our growth, or if we are unable to attract and retain
additional qualified management, our operations could be materially adversely affected.
We may experience difficulties in managing our working capital.
Our billings under fixed price contracts are generally based upon achieving certain benchmarks and will be
accepted by the customer once we demonstrate those benchmarks have been met. If we are unable to show the
compliance with billing requests, or if we fail to issue a project billing, our likelihood of collection could be delayed or
impaired, which could have a materially adverse effect on our operations.
To service our indebtedness and to fund working capital, we will require a significant amount of cash. Our
ability to generate cash depends on many factors.
Our ability to make payments on and to refinance our indebtedness and to fund planned capital
expenditures will depend on our ability to generate cash in the future. This is subject to our operational performance,
as well as general economic, financial, competitive, legislative, regulatory and other factors that are beyond our
control. Our credit facility will expire in May 2006, and our long-term senior subordinated notes are due in February
2009.
15
We cannot provide assurance that our business will generate sufficient cash flow from operations or that
future borrowings will be available to us under our credit facility in an amount sufficient to enable us to pay our
indebtedness, or to fund our other liquidity needs. We may need to refinance all or a portion of our indebtedness, on
or before maturity. We cannot provide assurance that we will be able to refinance any of our indebtedness on
commercially reasonable terms or at all. Our inability to refinance our debt on commercially reasonable terms could
materially adversely affect our business.
We have a substantial amount of debt. Our current debt level could limit our ability to fund future working
capital needs and increase our exposure during adverse economic conditions.
Our indebtedness could haye imp ortant consequences. For example, it could:
increase our vulnerability to adverse operational performance and economic and industry
conditions;
limit our ability to fund future working capital, capital expenditures and other general corporate
requirements;
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which
we operate;
place us at a disadvantage compared to a competitor that has less debt; and
limit our ability to borrow additional funds.
A significant portion of our business depends on our ability to provide surety bonds. The inability by us to
obtain surety bonds could adversely affect our operating results.
Surety market conditions are currently difficult as a result of significant losses incurred by many sureties in
recent periods, both in the construction industry as well as in certain larger corporate bankruptcies. As a result, less
bonding capacity is available in the market and terms have become more restrictive. Further, under standard terms in
the surety market, sureties issue bonds on a project by project basis, and can decline to issue bonds at any time.
Historically, approximately 30% of our fixed price contract business has required bonds. While we have enjoyed a
longstanding relationship with our surety and have recently added another surety, current market conditions as well
as changes in our sureties' assessment of our operating and financial risk could cause our sureties to decline to issue
bonds for our work. If that were to occur, our alternatives include doing more business that does not require bonds,
posting other forms of collateral for project performance such as letters of credit or cash, and seeking bonding
capacity from other sureties. There can be no assurance that we could easily achieve these alternatives.
Accordingly, if we were to experience an interruption in the ayailability of bonding capacity, our operating results
could be adversely impacted.
We have adopted tax positions that a taxing authority may view difTerently. If a taxing authority differs
with our tax positions, our results may be adversely affected.
Our effective tax rate and cash paid for taxes are impacted by numerous tax positions that we have adopted.
Taxing authorities may not always agree with the positions we haye taken. We believe that we haye adequate
reserves in the event that a taxing authority differs with positions we have taken, however there can be no assurance
that our results of operations will not be adversely affected.
Our results of operations could be adversely affected as a result of goodwill impairment write-offs.
When we acquire a business, we record an asset called "goodwill" if the amount we pay for the business,
including liabilities assumed, is in excess of the fair value of the assets of the business we acquire. We adopted
Statement of Financial Accounting Standards ("SFAS") No. 142 "Goodwill and Other Intangible Assets" which
establishes new accounting and reporting requirements for goodwill and other intangible assets. Under SF AS No.
142, all goodwill amortization ceased effective October 1, 2001. Goodwill amortization for the years ended September
30,2002 and 2003 would have otherwise been $12.9 million (before the impairment charge). Material amounts of
recorded goodwill attributable to each of our reporting units were tested for impairment by comparing the fair value of
each reporting unit with its carrying value, Fair value was determined using discounted cash flows, market multiples
and market capitalization. These impairment tests are required to be performed at adoption of SF AS No. 142 and at
16
least annually thereafter. Significant estimates used in the methodologies include estimates of future cash flows,
future short-term and long-term growth rates, weighted average cost of capital and estimates of market multiples for
each of the reportable units. On an ongoing basis (absent any impairment indicators), we expect to perform
impairment tests at least annually during the first fiscal quarter of each year.
Based on our impairment tests performed upon adoption of SF AS No. 142, we recognized a charge of $283.3
million ($7.11 per share) in the first quarter of 2002 to reduce the carrying value of goodwill of our reporting units to
its implied fair yalue. This impairment is a result of adopting a fair value approach, under SFAS No. 142, to testing
impairment of goodwill as compared to the previous method utilized in which evaluations of goodwill impairment were
made by us using the estimated future un discounted cash flows compared to the assets carrying amount. Under
SFAS No. 142, the impairment adjustment recognized at adoption ofthe new rules was reflected as a cumulative effect
of change in accounting principle in our first quarter 2003 statement of operations. Impairment adjustments
recognized after adoption, if any, generally are required to be recognized as operating expenses. We cannot assure
that we will not have future impairment adjustments to our recorded goodwill.
Our operations are subject to numerous physical hazards associated with the construction of electrical
systems. If an accident occurs, it could result in an adverse effect on our business.
Hazards related to our industry include, but are not limited to, electrocutions, fires, mechanical failures or
transportation accidents. These hazards can cause personal injury and loss of life, severe damage to or destruction
of property and equipment and may result in suspension of operations. Our insurance does not cover all types or
amounts of liabilities. Our third-party insurance is subject to large deductibles for which we establish reserves and,
accordingly, we effectively self-insure for much of our exposures. No assurance can be given either that our
insurance or our proyisions for incurred claims and incurred but not reported claims will be adequate to cover all
losses or liabilities we may incur in our operations or that we will be able to maintain adequate insurance at
reasonable rates.
The loss of a group of key pers onnel, either at the corporate or operating level, could adversely affect our
business.
The loss of key personnel or the inability to hire and retain qualified employees could have an adverse effect
on our business, financial condition and results of operations. Our operations depend on the continued efforts of
our current and future executive officers, senior management and management personnel at the companies we have
acquired. A criterion we use in evaluating acquisition candidates is the quality of their management. We cannot
guarantee that any member of management at the corporate or subsidiary level will continue in their capacity for any
particular period of time. If we lose a group of key personnel, our operations could be adversely affected. We do not
maintain key man life insurance.
The loss of productivity, either at the corporate office or operating level, could adversely affect our
business.
Our business is primarily driven by labor. The ability to perform contracts at acceptable margins depends
on our ability to deliver substantial labor productivity. We cannot guarantee that productivity will continue at
acceptable levels at corporate and our operating subsidiaries for a particular period of time, The loss of productivity
could adversely affect the margins on existing contracts or the ability to obtain new contracts.
17
Item 2. Properties
We operate a fleet of owned and leased service trucks, yans and support vehicles. We believe these
vehicles generally are adequate for our current operations.
At September 30, 2003, we maintained branch offices, warehouses, sales facilities and administrative offices
at approximately 140 locations. Substantially all of our facilities are leased. We lease our corporate office located in
Houston, TeJeas.
Our properties are generally adequate for our present needs, and we believe that suitable additional or
replacement space will be ayailable as required.
Item 3.
Legal Proceedings
We are involved in various legal proceedings that have arisen in the ordinary course of business. While it
is not possible to predict the outcome of these proceedings with certainty and it is possible that the results of legal
proceedings may materially adversely affect us, in our opinion, these proceedings are either adequately covered by
insurance or, ifnot so covered, should not ultimately result in any liability which would have a material adverse effect
on our financial position, liquidity or results of operations.
No legal proceeding indiyidually rises to the leyel of materiality, nor do any groups oflitigation. The judicial
system allows a lawsuit to be filed for reasons or amounts that may bear little or no relationship to the facts. We
have been subject to such high damage claim lawsuits. We believe that we have valid defenses and that the damage
claimed is not an accurate reflection of any reasonably expected outcome based on the facts we have.
Item 4.
Submission of Matters to a Vote of Security Holders
None.
Item 4A. Executive Officers
Herbert 'Roddy" Allen, 63, has been Chief Executive Officer and President of the Company since October
2002. From May 2002 to October 2002, Mr. Allen was Chief Operating Officer of the Company. From January 2000 to
May 2002, Mr. Allen was Senior Vice President - Eastern Operations and served as a Regional Operating Officer of
the Company from June 1998 to January 2000. Prior to September 2000, Mr. Allen served as the President of H.R.
Allen, Inc., one of the Company's subsidiaries.
Richard China, 45, has been Chief Operating Officer of the Company since October 2002. From May 2002 to
October 2002, Mr. China was President of IES Communications, Inc. From August 1999 to May 2002, Mr. China
served as a Regional Operating Officer of the Company. Prior to August 1999, Mr. China served as the President of
Primo Electric Company, Inc., one of the Company's subsidiaries.
William W. Reynolds, 45, has been the Chief Financial Officer and Executive Vice President of the Company
since June 2000. Mr. Reynolds joined IES after having served as Vice President and Treasurer of Peoples Energy
Corporation in Chicago, Illinois from 1998 to 2000. Prior to his appointment with Peoples Energy Corporation, Mr.
Reynolds was Vice President and Project Finance Corporate Officer for MCN Energy Group, Inc. in Detroit, Michigan
from 1997 to 1998. Prior to 1997, Mr. Reynolds spent seventeen years with BP Amoco Corporation serving in a
variety of positions both internationally and domestically.
Britton L. Rice, 55, has been the Chief Technology and Procurement Officer and Senior Vice President of the
Company since 2000. Mr. Rice also serves as the President of Britt Rice Electric, L.P., one of the Company's
subsidiaries.
Margery Harris, 43, has been the Senior Vice President of Human Resources of the Company since October
2000. From 1995 to 2000, Ms. Harris was employed by Santa Fe Snyder Corporation, a large global independent
18
exploration and production company, serving most recently as Vice President of Human Resources. Prior to that Ms.
Harris was a lead consultant with Hewitt Associates, a premier total compensation consulting firm.
Curt L. Warnock, 48, has been Vice President, Law of the Company since October 2002. From July 2001 to
October 2002, Mr. Warnock served as Assistant General Counsel of the Company. Prior to July 2001, Mr. Warnock
spent sixteen years with Burlington Resources Inc., a large independent NYSE oil and gas company, serving in
various positions. Prior to that, Mr. Warnock served as in-house counsel to Pogo Producing Company, a NYSE oil
and gas company; before that, he was in private practice. Mr. Warnock is licensed in Texas and before the Fifth
Circuit and before the United States Supreme Court.
David A. Miller, 33, has been Vice President and Chief Accounting Officer of the Company since October
2002. Between January 1998 and October 2002, Mr. Miller held the positions of Financial Reporting Manager,
Assistant Controller, Controller and Chief Accounting Officer with the Company. Prior to January 1998, Mr. Miller
held various positions in public accounting and private industry. Mr. Miller is a Certified Public Accountant.
19
PART II
Item S.
Market/or Registrant's Common Equity and Related Stockholder Matters.
The Company's common stock trades on the NYSE under the symbol "lES." The following table presents
the quarterly high and low sales prices for the Company's Common Stock on the NYSE since October 2001.
Hi.:h L!m'
FISCAL YEAR ENDED SEPTEMBER 30, 2002
First Quarter
5.59
3.07
3.94
4.60
3.37
Second Quarter
Third Quarter
Fourth Quarter
6.50
6.49
6.46
FISCAL YEAR ENDED SEPTEMBER 30, 2003
First Quarter
4.28
3.10
Second Quarter
4.50
3.50
Third Quarter
Fourth Quarter
7.60
7.76
4.23
5.76
As of November 20,2003, the market price of the Company's Common Stock was $7.25 per share and there
were approximately 1,440 holders of record.
We do not anticipate paying cash dividends on our common stock in the foreseeable future. We expect that
we will utilize all available earnings generated by our operations for the development and growth of our business, as
well as to retire some of our outstanding debt and common stock. Any future determination as to the payment of
dividends will be made at the discretion of our Board of Directors and will depend upon the Company's operating
results, financial condition, capital requirements, general business conditions and such other factors as the Board of
Directors deems relevant. Our debt instruments restrict us from paying cash dividends on the common stock. See
"Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital
Resources."
20
Item 6.
Selected Financial Data
The following selected consolidated historical financial information for IES should be read in conjunction
with the audited historical consolidated financial statements of Integrated Electrical Services, Inc. and subsidiaries
and the notes thereto included in Item 8, "Financial Statements and Supplementary Data."
Year Ended SeDtember 30.
m2 ~ 1Qll1 ~ l!l!l.1
Statement of ODerations Data: (In thousands, except share infonnation and ratios)
Revenues ....... .............. ... ....................... ... $ 1,035,888 $ 1,672,288 $ 1,693,213 $ 1,475,430 $ 1,448,553
Cost of services ...................................... 816.715 1.372.537 1.385.589 1.253.844 1.241.330
Gross profit .......................................... 219,173 299,751 307,624 221,586 207,223
Selling, general and
administrative expenses ......................... 113,871 221,519 214,073 174,184 153,651
Restructuring charges ............................... 5,556
Goodwill amortization............................. 9.305 13.211 12.983
Income from operations........................ 95,997 65,021 80,568 41,846 53,572
Interest and other expense, net ................ 02.542) (22.222) (26.187) (25.738) (24.963)
Income before income taxes and
cumulative effect of change in
accounting principle.............................. 83,455 42,799 54,381 16,108 28,609
Provision for income taxes....................... 35,348 21,643 25,671 6,175 8,179
Cumulative effect of change in
accounting principle, net oftax............. 283.284
Net income (loss)..................................... $ 4R 107 $ 21 156 $ 2R 710 $ (7.7115 n $ 20410
Diluted earnings per share before
cumulative effect of change in
accounting principle:............................. $ 139 $ 052 $ 070 $ 025 $ 052
Diluted earnings (loss) per share ............. $ 139 $ 052 $ 070 $ (6 R6) $ 052
Ratio ofeamings to fixed charges (1)....... 27 2R 1 5 20
66
As of September 30.
1999 2000 2001 2002 2003
Balance Sheet Data: (in thousands)
Cash and cash equivalents....................... $ 2,931 $ 770 $ 3,475 $ 32,779 $ 40,201
Working capital......... ..... ,................. ,.. .... 175,572
91,643 236,629 244,214 266,411
Total assets ............................................. 858,492
1,019,990 1,033,503 721,639 726,174
Total debt..........................,...,................. 229,544
245,065 288,551 248,959 248,336
Total stockholders' equity...................... 467,166
507,749 528,644 254,432 267,557
(1) The ratio of earnings to fixed charges is calculated by dividing the fixed charges into net income before taxes
plus fixed charges. Fixed charges consist of interest expense, amortization of offering discounts on debt,
amortization of debt issuance costs and the estimated interest component of rent expense.
21
Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with the consolidated financial
statements and related notes appearing elsewhere in the Form 10-K. See "Disclosure Regarding Forward-Looking
Statements."
General
Our electrical contracting business is operated in two segments: (I) commercial and industrial and (2)
residential. See Note 10 of "Notes to Consolidated Financial Statements" for a description of these reportable
segments.
In response to the SEC's Release No. 33-8040, "Cautionary Advice Regarding Disclosure About Critical
Accounting Policies," we have identified the accounting principles which we believe are most critical to our reported
financial status by considering accounting policies that involve the most complex or subjective decisions or
assessments. We identified our most critical accounting policies to be those related to revenue recognition, the
assessment of goodwill impairment, our allowance for doubtful accounts receivable, the recording of our self-
insurance liabilities and our estimation of the valuation allowance for deferred tax assets. These accounting policies,
as well as others, are described in the Note 2 of "Notes to Consolidated Financial Statements."
We enter into contracts principally on the basis of competitive bids. We frequently negotiate the final terms
and prices of those contracts with the customer. Although the terms of our contracts vary considerably, most are
made on either a fixed price or unit price basis in which we agree to do the work for a fixed amount for the entire
project (fixed price) or for units of work performed (unit price). We also perform services on a cost-plus or time and
materials basis. We are generally able to achieve higher margins on fixed price and unit price than on cost-plus
contracts. We currently generate, and expect to continue to generate, more than half of our revenues under fixed
price contracts. Our most significant cost drivers are the cost of labor, the cost of materials and the cost of casualty
and health insurance. These costs may vary from 1he costs we originally estimated. Variations from estimated
contract costs along with other risks inherent in performing fixed price and unit price contracts may result in actual
revenue and gross profits for a project differing from those we originally estimated and could result in losses on
projects. Depending on the size of a particular project, variations from estimated project costs could have a
significant impact on our operating results for any fiscal quarter or year. We believe our exposure to losses on fixed
price contracts is limited in aggregate by the high volume and relatively short duration of the fixed price contracts we
undertake. Additionally, we derive a significant amount of our revenues from new construction and from the
southern part of the United States. Downturns in new construction activity or in construction in the southern United
States could affect our results.
We complete most projects within one year. We frequently provide service and maintenance work under
open-ended, unit price master service agreements which are renewable annually. We recognize revenue on service
and time and material work when services are performed. Work performed under a construction contract generally
provides that the customers accept completion of progress to date and compensate us for services rendered
measured in terms of units installed, hours expended or some other measure of progress. Revenues from
construction contracts are recognized Dn the percentage-of-completion method in accordance with the American
Institute of Certified Public Accountants Statement of Position 81-1 "Accounting for Performance of Construction-
Type and Certain Production-Type Contracts." Percentage-of-completion for construction contracts is measured
principally by the percentage of costs incurred and accrued to date for each contract to the estimated total costs for
each contract at completion. We generally consider contracts to be substantially complete upon departure from the
work site and acceptance by the customer. Contract costs include all direct material and labor costs and those
indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs.
Changes in job performance, job conditions, estimated contract costs and profitability and final contract settlements
may result in revisions to costs and income and the effects of these revisions are recognized in the period in which
the revisions are determined. Provisions for total estimated losses on uncompleted contracts are made in the period
in which such losses are determined.
We evaluate goodwill for potential impairment in accordance with Statement of Financial Accounting
Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets." Included in this evaluation are certain
assumptions and estimates to determine the fair values of reporting units such as estimates of future cash flows,
22
discount rates, as well as assumptions and estimates related to the valuation of other identified intangible assets.
Changes in these assumptions and estimates or significant changes to the market value of our common stock could
materially impact our results of operations or financial position.
We provide an allowance for doubtful accounts for unknown collectIOn issues in addition to reserves for
specific accounts receivable where collection is considered doubtful. Inherent in the assessment of the allowance for
doubtful accounts are certain judgments and estimates including, among others, our customers' access to capital, our
customers' willingness to pay, general economic conditions and the ongoing relationships with our customers.
We are insured for workers' compensation, automobile liability, general liability and employee-related health
care claims, subject to hrge deductibles. Our general liability program provides coverage for bodily injury and
property damage neither expected nor intended. Losses up to the deductible amounts are accrued based upon our
estimates of the liability for claims incurred and an estimate of claims incurred but not reported. The accruals are
derived from actuarial studies, known facts, historical trends and industry ayerages utilizing the assistance of an
actuary to determine the best estimate of the ultimate expected loss. We believe such accruals to be adequate.
However, insurance liabilities are difficult to assess and estimate due to unknown factors, including the severity of an
injury, the determination of our liability in proportion to other parties, the number of incidents not reported and the
effectiveness of our safety program. Therefore, if actual experience differs from than the assumptions used in the
actuarial valuation, adjustments to the reserve may be required and would be recorded in the period that the
experience becomes known.
We regularly evaluate valuation allowances established for deferred tax assets for which future realization is
uncertain. We perform this evaluation at least annually at the end of each fiscal year. The estimation ofrequired
valuation allowances includes estimates of future taxable income. In assessing the realizability of deferred tax assets
at September 30, 2003, we considered whether it was more likely than not that some portion or all of the deferred tax
assets would not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of
future taxable income during the periods in which those temporary differences become deductible. We consider the
scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this
assessment. If actual future taxable income differs from our estimates, our results could be affected.
Results of Operations
The following table presents selected historical results of operations of IES and subsidiaries with dollar
amounts in thousands. These historical statements of operations include the results of operations for businesses
acquired through purchases beginning on their respective dates of acquisition.
23
Year Ended SeDtember 30.
2001 2002 2003
(In thousands)
Revenues ........... ...................................... $ 1,693,213 100% $ 1,475,430 100% $ 1,448,553 100%
Cost of services (including
depreciation) ............... ..................... .... 1.385.589 ~ 1.253.844 --.U 1.241.330 --M
Gross profit .............. ..................... ........ 307,624 18 221,586 15 207,223 14
Selling, general and
administrative expenses ..................... 214,073 12 174,184 12 153,651 10
Restructuring charges .............................. 5,556
Goodwill amortization ............................ 12.983 ---1. - -
- -
Income from operations .......................... 80,568 5 41,846 3 53,572 4
Interest and other expense,
net........................................................ (26.187) ---ill (25.738) ---ill (24.963) ----ill
Income before income taxes and
cumulative effect of change in
accounting principle ............................. 54,381 3 16,108 28,609 2
Provision for income taxes ...................... 25,671 I 6,175 8,179 1
Cumulative effect of change in
accounting principle, net of tax............ - 283.284 ---12. -
- -
Net income Ooss) .................................... $ 2R 710 2% $ (27J Vii) (lR)% $ 20410 1%
24
Year ended September 30. 2003 compared to vear ended SeDtember 30. 2002
Revenues
Revenues
Percentage of
Total Revenues
Percentage
Growth I Decline
Year ended September 30,
Commercial and Industrial ..........
Residential............... ... ..... ... .........
Total Company...........................
2002
2003
2003
Revenues decreased $26.8 million, or 2%, from $1,475.4 million for the year ended September 30, 2002 to
$1,448.6 million for the year ended September 30,2003. The decrease in total revenues is the result of $41.6 million in
lost revenues on divested or closed companies that were included in revenues for the year ended September 30, 2002,
but not during the year ended September 30, 2003. These lost revenues were partially offset by $32.2 million of
revenues from an acquisition during the year ended September 30, 2003. The decline in commercial and industrial
revenues is attributable to $29.4 million decline in communications work due to market contractions, particularly in
California, Colorado, Washington, D.C. and Virginia. The decrease in residential revenues is attributable to a $36.9
million decline in multi-family residential construction projects, primarily in Colorado and Maryland, offset by a $31.0
million increase in single-family construction spending. We believe record low interest rates during the last 12-18
months is driving demand for new homes, leading to record levels of single-family residential construction spending.
As families move into their new single-family homes, the demand for multi-family housing has dropped.
Gross Margin
Segment Gross Margins
as a Percental!e of Total Revenues
Year ended September 30,
Commercial and IndustriaL..
Residential. ..... .......................
Total Company.....................
2002
2003
13%
22%
15%
13%
21%
14%
GrDss profit decreased $14.4 mi lIion, or 7% from $221.6 million for the year ended September 30, 2002 to
$207.2 million for the year ended September 30, 2003. The decline in commercial and industrial gross profit was due to
lower revenues earned year over year as discussed and due to a shift in the type of commercial and industrial work
performed during the year ended September 30,2003, The related service and maintenance work for commercial and
industrial customers, which tends to earn higher gross margins than fixed price contracts, declined $6.0 million in
gross profit during the year. This decline was moderated by a $87.1 million increase in larger project work awarded
during the year, particularly industrial contracts in excess of $1 million. These larger projects produce gross profits
but tend to earn lower gross margins as a percentage of revenue due to the competitive bidding procedures in place
to be awarded this type of work. The shift of project work from small projects such as the service and maintenance
work to larger projects in excess of $1 million impacted gro ss profits by approximately $9.4 million.
Overall gross margin as a percentage of revenues decreased approximately 1 % from 15% for the year ended
September 30,2002 to 14% for the year ended September 30,2003. Had we earned last year's gross margin of 15%,
gross profit for the year ended September 30, 2003 would have been $217.3 million, an increase of $10.1 million. The
decline in gross margin during the year ended September 30, 2003 was due to the shift in type of commercial and
industrial work performed and due to the increased competition for available residential work. We believe record low
interest rates during the last 12-18 months is driving demand for new homes, leading to record levels of single-family
residential construction spending. This increased demand for residential construction has increased pricing pressure
for available work, particularly affecting our operating units that perform limited amounts of residential work in
addition to their commercial and industrial contract expertise.
25
Selling, General and Administrative Expenses
Selling, general and administratiye expenses decreased $20.5 million, or 12%, from $174.2 million for the year
ended September 30, 2002 to $153.7 million for the year ended September 30, 2003. This decline is due to the
organizational restructuring that occurred during the year ended September 30,2002. In the last 12 months, we have
combined administratiye offices and functions, leading to a decline in operating bcations from approximately 150
locations to approximately 140 locations. We also divested or closed non-performing companies, which decreased
our selling, general and administrative cost structure by approximately $7.9 million. Finally, we streamlined our
administrative cost structure, yielding savings of $14.3 million in salaries and benefits. As a result of these changes,
selling, general and administratiye expenses as a percent of revenue decreased 2% from 12% for the year ended
September 30, 2002 to 10% for the year ended September 30, 2003.
Restructuring Charges
In October 2001 we began implementation of a workforce reduction program. The purpose of this program
was to cut costs by reducing the number of administrative staff both in the field and at the home office. The total
number of terminated employees was approximately 450. As a result of the program implementation, we recorded pre-
tax restructuring charges of $5.6 million associated with 45 employees during the year ended September 30, 2002 and
presented these charges as a separate component of our results of operations for the period then ended. No
restructuring charges were incurred for the year ended September 30, 2003. The charges were based on the costs of
the workforce reduction program and include severance and other special termination benefits. We believe the
reduction of these personnel resulted in annual savings of approximately $4.1 million in salaries and benefits. At
September 30,2002, approximately $2.0 million of these charges that related to five individuals had not been paid and
were included in accounts payable and accrued expenses. At September 30, 2003, approximately $ 1.3 million of these
charges that relate to three individuals have not been paid and are included in accounts payable and accrued
expenses. We anticipate making the remaining payments accrued under this restructuring during the year ended
September 30, 2004.
Income From Operations
Income from operations increased $11.8 million, or 28%, from $41.8 million for the year ended September 30,
2002 to $53.6 million for the year ended September 30, 2003. As a percentage of revenues, income from operations
increased from 3% for the year ended September 30, 2002 to 4% for the year ended September 30, 2003. This increase
in income from operations was primarily attributed to $5.6 million in restructuring charges recorded during the year
ended September 30,2002, and a $20.5 million decrease selling, general and administrative expenses year over year,
offset by a $14.4 million decline in gross profits earned during the year ended September 30,2003.
Interest and Other Expense, net
Interest and other expense, net decreased $0.7 million, or 3%, from $25.7 million in 2002 to $25.0 million in
2003. The decrease was primarily the result of a $1.0 million decrease in interest expense during the year ended
September 30, 2003 due to a lower amount of average debt outstanding during the year ended September 30, 2003
compared to the year ended September 30, 2002. Oher expense, net included a $0.4 million gain from the sale of
certain subsidiaries. This was a decrease from last year's other expense, net, which included $1.0 million gain
resulting from the retirement of $27.1 million of our 9 3/8% senior subordinated notes due February 1, 2009 in the last
quarter of the year ended September 30, 2002, a $1.5 million net gain resulting from the sale of certain subsidiaries and
offset by a $0.6 million loss recorded on our investment in Energy Photovoltaics, Inc. and losses on sales of assets of
$0.9 million.
Provision for Income Taxes
Our effective tax rate decreased from 38% for the year ended September 30, 2002 to 29% for the year ended
September 30, 2003. This decrease is attributable to the release of $2.8 million of tax effected valuation allowances
that were included in income during the year ended September 30, 2003. We released these valuation allowances
because we believe that we will now realize a portion of the deferred tax assets for which they were established,
Without the impact of these valuation allowance releases, our effective tax rate was 38.5% for the year ended
September 30,2003,
26
Year ended Seotember 30. 2002 comoared to vear ended S~ptember 30. 2001
Revenues
Revenues
Percent of
Total Revenues
Year ended September 30,
2001
2002
Percentage
Growth I DecUne
2002
Commercial and Industrial .......... 85%
ResidentiaL... ..... .... ......... ........... 15%
Total Company........................... 100%
Revenues decreased $217.8 million, or 13%, from $1,693.2 million for the year ended September 30,2001 to
$1,475.4 million for the year ended September 30, 2002. The decrease in commercial and industrial revenues was
primarily the result of $71.3 million in non-recurring work performed for one customer during the year ended
September 30, 2001, a $58.8 million decrease in revenues from communications work due to market contractions,
particularly in California, Colorado and Arizona. We also experienced a decrease in commercial and industrial
revenues, which we attribute to increased competition for available work during the year ended September 30, 2002.
This decline most significantly impacted our operations in Georgia, North Carolina and Virginia, where revenues
decreased $76.4 million during the year ended September 30, 2002.
Gross Margin
Segment Gross Margins
as a Percental!e of Total Revenues
Year ended September 30,
Commercial and Industrial..
Residential....... ....... ...............
Total Company.....................
2001
2002
17010
23%
18%
13%
22%
15%
Gross profit decreased $86.0 million, or 28% from $307.6 million for the year ended September 30, 2001 to
$221.6 million for the year ended September 30, 2002. The overall decrease in gross profit was due decreased gross
profits of $39.2 million associated with the $217.8 million decline in revenues earned during the year ended September
30,2002 compared to the year ended September 30, 2001. Commercial and industrial gross profit was also decreased
by $8.9 million associated with companies divested during the year ended September 30, 2002, a $23.7 million decline
in gross profits earned on communications work due to a decline in work performed and lower margins earned on that
work due to the decrease in market demand, and $6.1 million in additional funding for our insurance reserves.
Overall gross margin as a percentage of revenues decreased approximately 3 % from 18% for the year ended
September 30,2001 to 15% for the year ended September 30,2002. Had we earned the 2001 gross margin of 18%,
gross profit for the year ended September 30, 2002 would have been $265.6 million, an increase of $44.0 million. The
decline in gross margin as a percentage of revenues was the result of increased competition due to decreased
construction spending during the year ended September 30, :.D02, a 25% decrease on gross margins earned on
communications work due to a decrease in market demand and $6.1 million in additional funding for our self-insurance
reserves.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased $39.9 million, or 19%, from $214.1 million for the year
ended September 30, 200 I to $174.2 million for the year ended September 30, 2002, Selling, general and administrative
expenses as a percent of revenue remained the same at 12% for 200 I and 2002. The decrease in the dollar amount of
selling, general and administrative expenses was primarily the result of the termination of certain administrative field
27
and home office personnel during the year ended September 30, 2002. Overall adninistratiye personnel headcount
declined by approximately 800 employees during the year ended September 30, 2002, which led to a decrease of
approximately $39.0 million in salaries and benefits expenses for such personnel.
Restructuring Charges
In October 2001 we began implementation of a workforce reduction program. The purpose of this program
was to cut costs by reducing the number of administrative staff both in the field and at the home office. The total
number of terminated employees was approximately 450. As a result of the program implementation, we recorded pre-
tax restructuring charges of$5.6 million associated with 45 employees during the year ended September 30, 2002 and
presented these charges as a separate component of our results of operations for the period then ended. The
charges were based on the costs of the workforce reduction program and include severance and other special
termination benefits. We belieye the reduction of these personnel resulted in annual sayings of approximately $4.1
million in salaries and benefits. At September 30,2002, approximately $2.0 million of these charges that related to five
individuals had not been paid and were included in accounts payable and accrued expenses.
Income from Operations
Income from operations decreased $38.8 million, or 48%, from $80.6 million for the year ended September 30,
2001 to $41.8 million for the year ended September 30, 2002. As a percentage of revenues, income from operations
decreased from 5% for the year ended September 30, 2001 to 3% for the year ended September 30, 2002. This
decrease in income from operations was primarily attributed to a $217.8 million decrease in revenues year over year, a
3% decline in margins earned on those revenues, funding for insurance reserves and restructuring charges of $5.6
million incurred during the year ended September 30, 2002, partially offset by a $39.9 million decrease in selling,
general and administrative expenses and non-recurring goodwill amortization of$12.9 million incurred during the year
ended September 30, 2001 in accordance with the current accounting standard.
Interest and Other Expense, net
Interest and other expense, net decreased $0.5 million, or 2%, from $26.2 million in 2001 to $25.7 million in
2002. The decrease was primarily the result ofa $1.0 million gain resulting from the retirement of$27.1 million of our 9
3/8% senior subordinated notes due February 1, 2009 in the last quarter of the year ended September 30, 2002, a $1.5
million net gain resulting from the sale of certain subsidiaries and offset by a $0.6 million loss recorded on our
investment in Energy Photovoltaics, Inc. and losses on sales of assets of $0.9 million. These amounts were offset by
increased interest expenses associated with increased average borrowings during the year ended September 30, 2002
as compared to the year ended September 30, 200 I.
Provision for Income Taxes
Our effective tax rate decreased from 47% for the year ended September 30,2001 to 38% for the year ended
September 30, 2002. The effective tax rate for the year ended September 30, 2001 included a provision for non-
deductible goodwill amortization expense while the effective tax rate for the year ended September 30, 2002 includes
the effect of the projected utilization of certain net operating loss carryforwards.
Cost Drivers
As a service business, our cost structure is highly variable. Our primary costs include labor, materials and
insurance. Approximately 40% of our costs are derived from labor and related expenses. For the years ended
September 30, 2001,2002 and 2003, our labor-related expenses totaled $610.6 million, $568.0 million and $553.5 million,
respectively. As of September 30,2003, we had approximately 13,000 employees. Approximately 11,000 employees
were field electricians, the number of which fluctuates depending upon the number and size of the projects
undertaken by us at any particular time. Approximately 2,000 employees were project managers, job superintendents
and administrative and management personnel, including executive officers, estimators or engineers, office staff and
clerical personnel. We proyide a health, welfare and benefit plan for all employees subject to eligibility requirements.
We have a 401(k) plan pursuant to which eligible employees may make contributions through a payroll deduction.
We make matching cash contributions of 25% of each employee's contribution up to 6% of that employee's salary.
We also have an employee stock purchase plan that provides that eligible employees may contribute up to 100% of
28
their cash compensation, up to $21,250 annually, toward the annual purchase of our common stock at a discounted
price. Over 750 of our employees participated in the employee stock purchase plan during the year ended
September 30, 2003.
Approximately 40% of our costs incurred are for materials installed on projects. This component of our
expense structure is variable based on the demand for our services. We generally incur costs for materials once we
begin work on a project. We generally order materials when needed, ship them directly to the jobsite and install them
within 30 days. Materials consist of commodity-based items such as conduit, wire and fuses as well as specialty
items such as fixtures, switchgear and control panels. For the years ended September 30, 2001, 2002 and 2003, our
materials expenses (net of rebates received) totaled $592.1 million, $531.5 million and $542.0 million, respectively.
We are insured for workers' compensation, employer's liability, auto liability, general liability and health
insurance, subject to large deductibles. Losses up to the deductible amounts are accrued based upon actuarial
studies and our estimates of the ultimate liability for claims incurred and an estimate of claims incurred but not
reported. The accruals are based upon known facts and historical trends and management believes such accruals to
be adequate. Expenses for claims administration, claims funding and reserves funding totaled $39.9 million, $49.3
million and $40.8 million for the years ended September 30, 2001, 2002 and 2003, respectively.
Working Capital
(In thousands, except for ratios)
CURRENT ASSETS:
Cash and cash equivalents ............................................................................................ $
Accounts receivable:
Trade, net of allowance of $6,262 and $5,425 respectively.................................
Retainage ........................ ....................................................................... ..... ................
Related party ........................ ......................................................................................
Costs and estimated earnings in excess of billings on uncompleted contracts ....
Inventories ........... ....... ........ ... ..... ............... ................ ..... ........................................... ......
Prepaid expenses and other current assets .................................................................
Total current assets ............................................................................................ $
CURRENT LIABILITIES:
Current maturities of long-term debt ............................................................................
Accounts payable and accrued expenses ...................................................................
Billings in excess of costs and estimated earnings on uncompleted cDntracts .....
Total current liabilities.... .......... .......... .......... ........................ ... ..................... ......
Working capital... ......... .............. .......... ......................... ....... ................. ................,... ......
SEPTEMBER 30.
2002 2003
32,779 $
40,20 I
237,310
62,482
153
46,314
23,651
35.041
437.730 $
245,618
68,789
67
48,256
20,473
23319
446.723
$ 570 $ 256
141,398 138,143
51.548 41.913
$ 193.516 $ 180.312
$ 244 214 $ 266411
Total current assets increased $9.0 million, or 2%, from $437.7 million for the year ended September 30, 2002 to $446.7
million for the year ended September 30, 2003. This increase is primarily the result of a $7.4 million increase in cash
and cash equivalents due to $39.3 million in cash provided by operations during the year ended September 30, 2003
offset by $7.9 million in cash used in investing activities and $24.0 million used in financing activities. See "Liquidity
and Capital Resources" below for further information. Current assets were further increased by an $8.3 million
increase in trade accounts receivable, net due tD the timing of collections, a $6.3 million increase in retainage due to
the timing of retention billings and a $1.9 million increase in costs and estimated earnings in excess of billings on
uncompleted contracts due to the timing of billings on projects in progress. Current assets were reduced by an $11,7
million decrease in prepaids and other current assets due to an $8.6 million decrease in short term deferred tax assets
due to the recognition of deferred tax assets and a $3.1 million decrease in other prepaid expenses due to the
amortization of prepaid expenses outstanding as of September 30, 2002. Current assets were further reduced by a $3.2
million decrease in inventories due to the installation of purchased materials at September 30,2002 for certain projects
in progress during the year ended September 30,2003,
29
Total current liabilities decreased $13.2 million, or 7%, from $193.5 million for the year ended September 30, 2002 to
$180.3 million for the year ended September 30,2003. This decrease is primarily the result ofa $9.6 million decrease in
billings in excess of costs and estimated earnings on uncompleted projects due to the timing of billings on projects in
progress, a $3.3 million decrease in accounts payable and accrued expenses due to the timing of payments made and
a $0.3 million decrease in current maturities oflong-term debt due to payments made on short-term debt.
Liquidity and Capital Resources
As of September 30, 2003, we had cash and cash equivalents of $40.2 million, working capital of $266.4
million, no borrowings under our credit facility, $247.9 million of outstanding senior subordinated notes, $27.4 million
of letters of credit outstanding and available borrowing capacity under our credit facility of $97.6 million.
During the year ended September 30, 2003, we generated $39.3 million of net cash from operating activities.
This net cash from operating activities was comprised of net income of $20.4 million, increased by $18.6 million of
non-cash charges and $8.2 million of deferred income taxes and decreased by $7.9 million in working capital changes.
Non-cash charges included depreciation and amortization expense, provision for allowance for doubtful accounts,
changes in deferred income taxes and losses on sales of property and equipment. Working capital changes
consisted of a $13.1 million decrease in billings in excess of costs and estimated earnings on uncompleted projects
and a $1.5 million increase in cost and estimated earnings in excess of billings on uncompleted contracts. These
working capital changes were offset by a $3.0 million decrease in inventory and a $2.6 million decrease in payables
offset by a $2.7 million decrease in receivables as a result of the timing of collections, with the balance of the change
due to other working capital changes. Net cash used in investing activities was $7.9 million, including $8.7 million
used for capital expenditures and $2.7 million used for the acquisition of a business, net of cash acquired, offset by
$3.5 million provided from divestitures and other. Net cash used by financing actiyities was $24.0 million, resulting
primarily from $16.3 in repayments of debt and the repurchase of the senior subordinated notes and $10.2 million for
the acquisition of treasury stock.
During the year ended September 30, 2003, we completed a 2 million share repurchase program. We used
approximately $10.2 million in cash generated from operations to repurchase shares during the year ended September
30, 2003.
On November 5, 2003, we commenced a $13 million share repurchase program which we expect to complete
primarily through open market purchases during the year ended September 30,2004. We expect to fund this program
with existing cash and cash flow form operations.
On May 27, 2003, we amended our $150.0 million reyolving credit facility to a $125.0 million revolving credit
facility with a syndicate of lending institutions to be used for working capital, capital expenditure, acquisitions and
other corporate purposes that matures May 22, 2006, as amended. Amounts borrowed under the credit facility bear
interest at an annual rate equal to either (a)the London interbank offered rate (LIBOR) plus 1.75 percent D
3.50 percent, as determined by the ratio of our total funded debt to EBITDA (as defined in the credit facility) or (b) the
higher of (i) the bank's prime rate or (ii) the Federal funds rate plus 0.50 percent plus an additional 0.25 percent to
2.00 percent, as determined by the ratio of our total funded debt to EBITDA. Commitment fees of 0.375 percent to
0.50 percent are assessed on any unused borrowing capacity under the credit facility. Our existing and future
subsidiaries guarantee the repayment of all amounts due under the facility, and the facility is secured by the capital
stock of those subsidiaries and the accounts receivable of the company and those subsidiaries. Borrowings under
the credit facility are limited to 66 2/3% of outstanding receivables (as defined in the agreement). The credit facility
requires the consent of the lenders for acquisitions exceeding a certain level of cash consideration, prohibits the
payment of cash dividends on the common stock, restricts our ability to repurchase shares of common stock or to
retire senior subordinated notes, restricts our ability to incur other indebtedness and requires us to comply with
various affirmative and negative covenants including certain financial covenants, some of which become more
restrictive over time. Among other restrictions, the financial covenants include a minimum net worth requirement, a
maximum total consolidated funded debt to EBITDA ratio, a maximum senior consolidated debt to EBITDA ratio and
a minimum interest coverage ratio. For more information regarding the covenants to our credit facility, as amended,
see our filing on Form S-K dated May 28, 2003. We were in compliance with the financial covenants of our credit
facility, as amended, at September 30, 2003. As of November 24, 2003, we had no outstanding borrowings on our
credit facility.
30
On January 25,1999 and May 29, 2001, we completed our offerings of$150.0 million and $125.0 million senior
subordinated notes, respectively. The offering completed on May 29, 2001 yielded $117.0 million in proceeds, net of
a $4.2 million discount and $3.9 million in offering costs. The proceeds from the May 29, 2001 offering were used
primarily to repay amounts outstanding under our credit facility. The notes bear interest at 9 3/8% and will mature on
February 1,2009. We pay interest on the notes on February I and August I of each year. The notes are unsecured
senior subordinated obligations and are subordinated to all of our existing and future senior indebtedness. The
notes are guaranteed on a senior subordinated basis by all of our subsidiaries. Under the terms of the notes, we are
required to comply with various affirmative and negative covenants including (1) restrictions on additional
indebtedness, and (2) restrictions on liens, guarantees and dividends. During the year ended September 30, 2002, we
retired approximately $27.1 million of these senior subordinated notes. In connection with these transactions, we
recorded a gain of $1.0 million. This gain is recorded in nterest and other expense, net during the year ended
September 30, 2002 in accordance with SFAS No.145, "Rescission ofFASB Statements No.4, 44 and 64, Amendment
ofFASB Statement No. 13, and Technical Corrections," which we adopted July 1,2002. At September 30, 2003, we
had $247.9 million in outstanding senior subordinated notes.
In August 200 I we entered into an interest rate swap contract that had a notional amount of $100.0 million
and was established to manage the interest rate risk of the senior subordinated note obligations. We terminated this
contract in February 2002. We received cash equal to the fair value of this derivative of$1.5 million, which is being
amortized over the remaining life of the bonds.
In February 2002 we entered into a new interest rate swap contract that had a notional amount of $100.0
million and was established to manage the interest rate risk of the senior subordinated note obligations. We
terminated this contract in August 2002. We received cash equal to the fuir value of this derivative of $2.5 million,
which is being amortized over the remaining life of the bonds. At September 30, 2002 and 2003 we had no
outstanding interest rate swap contracts.
Effective October 1, 2001, we adopted SFAS No. 142, "Goodwill and Other Intangible Assets," which
establishes new accounting and reporting requirements for goodwill and other intangible assets. Under SFAS No.
142, all goodwill amortization ceased effective October 1,2001. Goodwill amortization for the years ended September
30,2002 and 2003 would have otherwise been $12.9 million (before the impairment charge). Goodwill attributable to
each of our reporting units was tested for impairment by comparing the fair value of each reporting unit with its
carrying value. Fair value was determined. using discounted cash flows, market multiples and market capitalization.
These impairment tests are required to be performed at adoption of SFAS No. 142 and at least annually thereafter.
Significant estimates used in the methodologies include estimates of future cash flows, future short-term and long-
term growth rates, weighted average cost of capital and estimates of market multiples for each of the reportable units.
On an ongoing basis (absent any impairment indicators), we expect to perform our impairment tests annually during
the first fiscal quarter.
Based on our impairment tests performed upon adoption of SF AS No. 142, we recognized a charge of $283.3
million ($7.11 per share) in the first quarter of 2002 to reduce the carrying value of goodwill of our reporting units to
its implied fair value. This impairment is a result of adopting a fair value approach, under SFAS No. 142, to testing
impairment of goodwill as compared to the previous method utilized in which evaluations of goodwill impairment were
made using the estimated future undiscounted cash flows compared to the assets carrying amount.
The impairment was the result of lower forecasted future operating income at the point of adoption than we
anticipated to result from decreased spending in the construction industry in all of our markets. The impairment
related to our operating regions follows (amounts in millions):
Southeast $ 89.2
Northeast 35.2
Gulf Plains 47.4
Central 80.8
West 21.0
Residential 2.6
Divested after adoption 7.1
Total $ 2R:n
31
Under SFAS No. 142, the impairment adjustment recognized at adoption of the new rules was reflected as a
cumulative effect of change in accounting principle in the statement of operations for the year ended September 30,
2002. Impairment adjustments recognized after adoption, if any, generally are required to be recognized as operating
expenses.
On February 27, 2003 we acquired substantially all of the operating assets of Riviera Electric LLC ("Riviem")
out of a bankruptcy auction of a prior competitor. Riviera provides electrical contracting services in the state of
Colorado. The purchase price consisted of approximately $2.7 million of cash, net of cash acquired. The cash used in
this acquisition was funded by operations.
In December 2000, we made an investment in Energy Photoyoltaics, Inc. (EPV), based in Lawrenceville, New
Jersey. EPV is a privately held deyeloper and provider of proprietary thin film processes and equipment for
manufacturing photovoltaic modules to provide solar energy. At September 30, 2003, we had a carrying value of our
under 20% interest in EPV of$3.6 million and a $1.8 million debt investment in EPV. We performed a discounted cash
flow analysis at September 30, 2003 and determined that no impairment to this investment existed. This investment
involves certain risks involving demand for photovoltaic services. If EPV is unable to deliver on its business plan,
we could deem this investment impaired and would record a charge to other expense in the period such impairment, if
any, is determined.
All of our operating income and cash flows are generated by our wholly owned subsidiaries, which are the
subsidiary guarantors of our outstanding 9 3/8% Senior Subordinated Notes due 2009 (the "Senior Subordinated
Notes"). Weare structured as a holding company and substantially all of our assets and operations are held by our
subsidiaries. There are currently no significant restrictions on our ability to obtain funds from our subsidiaries by
dividend or loan. The parent holding company's independent assets, revenues, income before taxes and operating
cash flows are less than 3% of the consolidated total. The separate financial statements of the subsidiary guarantors
are not included herein because (i) the subsidiary guarantors are all of the direct and indirect subsidiaries of the
company; (ii) the subsidiary guarantors have fully and unconditionally, jointly and severally guaranteed the Senior
Subordinated Notes; and (iii) the aggregate assets, liabilities, earnings, and equity of the subsidiary guarantors is
substantially equivalent to the assets, liabilities, earnings and equity of the company on a consolidated basis. As a
result, the presentation of separate financial statements and other disclosures concerning the subsidiary guarantors
is not deemed material.
Other Commitments
As is common in our industry, we have entered into certain off balance sheet arrangements that expose us
to increased risk. Our significant off balance sheet transactions include commitments associated with noncancelable
operating leases, letter of credit obligations and surety guarantees.
We enter into noncancelable operating leases for many of our vehicle and equipment needs. These leases
allow us to retain our cash when we do not own the vehicles or equipment and we pay a monthly lease rental fee. At
the end of the lease, we have no further obligation to the lessor. We may determine to cancel or terminate a lease
before the end of its term. Typically we are liable to the lessor for various lease cancellation or termination costs and
the difference between the then fair market value of the leased asset and the implied book value of the leased asset as
calculated in accordance with the lease agreement.
Some of our customers require us to post letters of credit as a means of guaranteeing performance under our
contracts and ensuring payment by us to subcontractors and vendors, If our customer has reasonable cause to
effect payment under a letter of credit, we would be required to reimburse our creditor for the letter of credit.
Depending on the circumstances surrounding a reimbursement to our creditor, we may have a charge to earnings in
that period. To date we have not had a situation where a customer has had reasonable cause to effect payment under
a letter of credit. At September 30, 2003, $2.7 million of our outstanding letters of credit were to collateralize our
customers.
Some of the underwriters of our casualty insurance program require us to post letters of credit as collateral.
This is common in the insurance industry. To date we have not had a situation where an underwriter has had
32
reasonable cause to effect payment under a letter of credit. At September 30, 2003, $25.7 million of our outstanding
letters of credit were to collateralize our insurance program.
Many of our customers require us to post performance and payment bonds issued by a surety. Those
bonds guarantee the customer that we will perform under the terms of a contract and that we will pay subcontractors
and vendors. In the event that we fail to perform under a contract or pay subcontractors and vendors, the customer
may demand the surety to payor perform under our bond. Our relationship with our sureties is such that we will
indemnify the sureties for any expenses they incur in connection with any of the bonds they issues on our behalf.
To date, we have not incurred significant costs to indemnify our sureties for expenses they incurred on our behalf.
As of September 30, 2003, our cost to complete projects covered by surety bonds was approximately $227.9 million.
In April 2000, we committed to invest up to $5.0 million in EnerTech Capital Partners II L.P. (EnerTech).
EnerTech is a private equity firm specializing in investment opportunities emerging from the deregulation and
resulting convergence of the energy, utility and telecommunications industries. Through September 30,2003, we had
invested $2.7 million under our commitment to EnerTech. At September 30, 2003, the carrying value of our investment
in EnerTech was $2.5 million. Our investment in EnerTech is accounted for on the cost basis of accounting and,
accordingly, we do not record unrealized losses on investments within the EnerTech investment that we believe are
temporary in nature. At September 30, 2003, the unrealized losses related to our share of the EnerTech fund
amounted to approximately $0.8 million which we believe to be temporary in nature. If facts arise that lead us to
determine that such unrealized losses are not temporary, we would write down our inyestment in EnerTech through a
charge to other expense during the period of such determination.
Our future contractual obligations include (in thousands) (11:
2004
2005
2006
2007
2008
Thereafter
Total
Debt and capital lease obligations...... $ 256
Operating lease obligations................ S 12,679
$ 114
$ 10,316
$ 63
$ 6,411
$ 15
$ 4.035
$ 3
$ 2,439
$ 247,885
$ 2,922
$ 248.336
$ 38,802
(1) Debt and capital lease obligations are presented without interest.
Our other commercial commitments expire as follows (in thousands):
2004
2005
2006
2007
2008
Thereafter
Total
Standby letters of credit..................... $ 27,401
Other commercial commitments....... $
$
$
$
$
$
$
$
$
$
$
$ 27,401
2,300(2) $ 2,300
(2) Balance of investment commitment in EnerTech.
Outlook
Economic conditions across the country are challenging. We continue to focus on collecting receivables
and reducing days sales outstanding. To improve our position for continued success, we continue to take steps to
reduce costs. We have made significant cuts in administrative overhead at the home office and in the field. The
economic outlook for fiscal 2004 is still somewhat uncertain. We expect earnings in the first quarter of fiscal 2004 to
range between $0.10 and $0.15 per share. For the year ended September 30, 2004, we expect earnings to range
between $0.55 and $0.75 per share excluding any potential goodwill impairment charges.
We expect to generate cash flow from operations. Our cash flows from operations tend to track with the
seasonality of our business and historically have improved in the latter part of our fiscal year. We anticipate that our
cash flow from operations will provide sufficient cash to enable us to meet our working capital needs, debt service
requirements and capital expenditures for property and equipment through the next twelve months. We expect
capital expenditures of approximately $12 million for the fiscal year ended September 30, 2004. Our ability to generate
cash flow from operations is dependent on many factors, including demand for our products and services, the
33
availability of work at margins acceptable to us and the ultimate collectibility of our receivables. See "Disclosure
Regarding Forward-Looking Statements."
Seasonality And Cyclical Fluctuations
Our results of operations from residential construction are seasonal, depending on weather trends, with
typically higher revenues generated during spring and summer and lower revenues during fall and winter. The
commercial and industrial aspect of our business is less subject to seasonal trends, as this work generally is
performed inside structures protected from the weather. Our service and maintenance business is generally not
affected by seasonality. In addition, the construction industry has historically been highly cyclical. Our volume of
business may be adversely affected by declines in construction projects resulting from adverse regional or national
economic conditions. Quarterly results may also be materially affected by the timing of new construction projects,
acquisitions and the timing and magnitude of acquisition assimilation costs. Accordingly, operating results. for any
fiscal period are not necessarily indicative of results that may be achieved for any subsequent fiscal period.
InDation
Due to the relatively low levels of inflation experienced in fiscal 200 I, 2002 and 2003, inflation did not have a
significant effect on our results in those fiscal years, or on any of the acquired businesses during similar periods.
Recent Accounting Pronouncements
Effectiye October I, 2002, we adopted Statement of Financial Accounting Standards (SFAS) No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets." SFAS No. 144 supercedes SFAS No. 121,
"Accounting for the Impairment of Long-Liyed Assets and for Long-Lived Assets to be Disposed of." SFAS No. 144
establishes a single accounting model for long-lived assets to be disposed of by sale and requires that those long-
lived assets be measured at the lower of carrying amount or fair value less cost to sell, whether reported in continuing
operations or in discontinued operations. The adoption had no impact on the our financial podion or results of
operations.
In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal
Activities." SF AS No. 146 establishes requirements for recognition of a liability for a cost associated with an exit or
disposal activity based with an objective of recording the initial liability at fair value. We adopted SFAS No 146
effective January 1, 2003. The adoption had no impact on our financial position or results of operations.
In December 2002, the Financial Accounting Standards Board issued SFAS No. 148, "Accounting for Stock-
Based Compensation-Transition and Disclosure," which amends SFAS No. 123, "Accounting for Stock-Based
Compensation," by providing alternative methods of transition for a voluntary change to the fair value method of
accounting for stock options and other stock-based employee compensation. We adopted SF AS 148 on January I,
2003. The adoption of SF AS 148 did not have a material impact on our financial position or results of operations.
Financial Accounting Standards Board Interpretation No. 45, "Guarantor's Accounting and Disclosure
Requirements for Guarantees, including indirect Guarantees of Indebtedness of Others," ("Interpretation 45"), will
significantly change current practice in accounting for, and disclosure of, guarantees. Interpretation 45 requires a
guarantor to recognize, at inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing
the guarantee. Interpretation 45 also expands the disclosures required to be made by a guarantor about its
obligations under certain guarantees that it has issued. Interpretation 45's disclosure requirements are effective for
financial statements of interim or annual periods ending after December 15, 2002, while the initial recognition and
initial measurement provisions are applicable on prospective basis to guarantees issued or modified after December
31, 2002. The types of guarantees that we are party to include surety bonds and letters of credit. We adopted
Interpretation 45 effective January 1,2003. The adoption does not have a material impact on our results of operations
or financial position.
In January 2003, the Financial Accounting Standards Board issued Interpretation No. 46, "Consolidation of
Variable hterest Entities," ("Interpretation 46"). The objective of Interpretation 46 is to improve the financial
reporting by companies involved with variable interest entities. Until now, one company generally has included
another entity in its consolidated financial statements only if it controlled the entity through voting interest.
34
Interpretation 46 changes that by requiring a variable interest entity to be consolidated by a company if that
company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a
majority of the entity's residual returns or both. The consolidation requirements of Interpretation 46 apply
immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older
entities in the first fiscal year or interim period ending after December 15, 2003. Certain of disclosure requirements
apply to all financial statements issued after January 31, 2003, regardless of when the variable interest entity was
established. We have minority interests in two firms, EnerTech Capital Partners II, L.P. and Energy Photovoltaics,
Inc., and a joint venture that may fall under this interpretation. We do not believe the adoption of this statement will
have a material impact on our results of operations or financial position.
In May 2003, the FASB issued Statement of Financial Accounting Standards No. 150, '~ccounting for
Certain Financial Instruments with Characteristics of both Liabilities and Equity," ("SFAS 150"). SFAS 150 requires
that mandatorily redeemable financial instruments issued in the form of shares be classified as liabilities, and specifies
certain measurement and disclosure requirements for such instruments. The provisions of SF AS 150 were effective at
the beginning of the first interim period beginning after June 15, 2003. We adopted the requirements of SF AS 150 as
of July I, 2003. The adoption did not have a material impact on our results of operations or financial position.
Item 7A.Quantitative and Qualitative Disclosures About Market Risk
Management is actively involved in monitoring exposure to market risk and continues to develop and utilize
appropriate risk management techniques. We are not exposed to any significant market risks from commodity price
risk or foreign currency exchange risk. Our exposure to significant market risks include outstanding borrowings
under our floating rate credit facility. We do not have any outstanding borrowings under our credit facility as of
September 30, 2003. Management does not use derivative financial instruments for trading purposes or to speculate
on changes in interest rates or commodity prices.
As a result, our exposure to changes in interest rates results from our short-term and long-term debt with
both fixed and floating interest rates. The following table presents principal or notional amounts (stated in
thousands) and related interest rates by year of maturity for our debt obligations and their indicated fair market value
at September 30, 2003:
2004 2005 2006 2007 2008 Thereafter Total
Liabilities -Debt:
Fixed Rate (Senior Subordinated Notes) . $ $ $ $ $ $ 247,885 $ 247,885
Interest Rate ............................,............ 9.375 % 9.375 % 9.375 % 9.375 % 9.375 % 9.375 %
9,375%
Fair Value of Debt:
Fixed Rate
$ 255,322
35
Item 8.
Financial Statements and Supplementary Data
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
f.w.
Integrated Electrical Services, Inc. and Subsidiaries
Report of Independent Auditors ............................ ............. .............................................. ... .......... ................. ............. 36
Report of In dependent Public Accountants ... ...... ................................................................................. ...... ............... 37
Consolidated Balance Sheets ...................................... ....................................................................................... ........... 38
Consolidated Statements of Operations.................................... ... ........ ... ................. .... .............. ........ .......... ............... 39
Consolidated Statements of Stockholders' Equity .................................................................................................... 40
Consolidated Statements of Cash Flows ...... .................... .......................................... ........... .......................... ............ 41
Notes to Consolidated Financial Statements.............................................................................................................. 42
36
REPORT OF INDEPENDENT AUDITORS
Board of Directors and Stockholders
Integrated Electrical Services, Inc.
We have audited the accompanying consolidated balance sheets of Integrated Electrical Services, Inc. and
subsidiaries as of September 30, 2003 and 2002, and the related consolidated statements of operations, stockholders'
equity, and cash flows for the years then ended. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial statements based on our audits. The
financial statements of Integrated Electrical Services, Inc. for the year ended September 30, 2001 were audited by
other auditors who have ceased operations and \\hose report dated Noyember 12,2001, expressed an unqualified
opinion on those statements.
We conducted our audits in accordance with auditing standards generally accepted in the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated financial position of Integrated Electrical Services, Inc. and subsidiaries at September 30, 2003 and 2002,
and the consolidated results of their operations and their tash flows for the years then ended in conformity with
accounting principles generally accepted in the United States.
As discussed in Note 2 to the consolidated financial statements, effective October 1, 2001, the Company
adopted Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets ("FAS 142").
As discussed above, the consolidated financial statements ofIntegrated Electrical Services, Inc. for the year
ended September 30,2001 were audited by other auditors who haye ceased operations. As described in Notes 2 and
10, these consolidated financial statements have been revised. We audited the adjustments described in Note 10 that
were applied to revise the 2001 consolidated financial statements relating to changes in segments. We also applied
procedures with respect to the disclosures in Note 2 pertaining to financial statement revisions to include the
transitional disclosures required by FAS 142. In our opinion, the adjustments to Note 10 are appropriate and have
been properly applied. In addition, in our opinion, the FAS 142 disclosures for 2001 in Note 2 are appropriate.
However, we were not engaged to audit, review or apply any procedures to the 2001 consolidated financial
statements of the Company other than with respect to such adjustments and accordingly, we do not express an
opinion or any other form of assurance on the 200 I consolidated financial statements as a whole.
ERNST & YOUNG LLP
Houston, Texas
October 31, 2003
37
[This is a copy of the audit report previously issued by Arthur Andersen LLP in connection with Integrated Electrical
Services, Inc. 's filing on Form 10-K for the year ended September 30, 2001. This audit report has not been reissued
by Arthur Andersen LLP in connection with this filing on furm 100K for the year ended September 30, 2003.
Integrated Electrical Services, Inc.'s consolidated balance sheet as of September 30, 2000, and the consolidated
statements of operations, stockholder's equity and cash flows for the two years ended September 30, 2000 are not
required to be presented and are not included in this Form 1O-K.]
REPORT OF INDEPENDENT PUBliC ACCOUNTANTS
To Integrated Electrical Services, Inc.:
We have audited the accompanying consolidated balance sheets of Integrated Electrical Services, Inc. (a Delaware
corporation), and subsidiaries as of September 30, 2000 and 2001, and the related consolidated statements of
operations, stockholders' equity and cash flows for each of the three fiscal years in the period ended September 30,
2001. These financial statements are the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Integrated Electrical Services, Inc., and subsidiaries as of September 30,2000 and 2001, and the
consolidated results of their operations and their cash flows for each of the three fiscal years in the period ended
September 30, 2001, in conformity with accounting principles generally accepted in the United States.
ARTHUR ANDERSEN LLP
Houston, Texas
November 12,2001
38
INTEGRATED ELECfRlCAL SERVICES, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN mOUSANDS, EXCEPT SHARE INFORMATION)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ............................................................................................ $
Accounts receivable:
Trade, net of allowance of $6,262 and $5,425 respectively.................................
Retainage ...... ........................... ................ ............ .... ..... ...... ......... ...............................
Related party.... ... ......................... ............ .................... ............ ............................. .....
Costs and estimated earnings in excess of billings on uncompleted contracts ....
lnyentories .... ................. ........ .......... .... ....... ... ...... ...... ..... ............ .......... .... ................. ......
Prepaid expenses and other current assets .................................................................
Total current assets ...... ............ .......... ...................... ........... .............. .... .............
PROPERTY AND EQUIPMENT, net.....................................................................................
GOODWILL, net......................................................................................................................,
OTHER NONCURRENT ASSETS, net..................................................................................
Total assets ....... ........ ................. ......... ........ .......... ........... ......................... ........... $
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt ............................................................................
Accounts payable and accrued expenses ...................................................................
Billings in excess of costs and estimated earnings on uncompleted contracts .....
Total current liabilities ......... ......... ... ..... ..................... ......... ..... ............... ...... ......
LONG-TERM DEBT, net of current maturities ....................................................................
SENIOR SUBORDINATED NOTES, net ..............................................................................
OTHER NONCURRENT LIABILITIES .................................................................................
T otalliabilities ....... ........ ................................ ... .................... ................... .............
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued
and outstanding ...... .................',. ..... ........................ .....,............ ..... .......... ..... .... ...........
Common stock, $.01 par value, 100,000,000 shares authorized,
38,439,984 shares issued ...................., ...........,........... ..... .... .......... .......................,.......
Restricted voting common stock, $.01 par value, 2,605,709
shares issued, authorized and outstanding ..............................................................
Additional paid -in capitaL................,..........,......... .........................."......,.,......,.."."..".,
Treasury stock, at cost, 1,421,068 and 2,725,793 shares, respectively....................
Retained deficit. ............,.........,........ ........... .......,....,.,......,..........,..,...,.........,....,...........,..
Total stockholders' equity..................... ....... .......""...., ...................',.., ....... ......
Total liabilities and stockholders' equity........................................................
SEPTEMBER 30.
2002 2003
32,779 $ 40,201
237,310 245,618
62,482 68,789
153 67
46,314 48,256
23,651 20,473
35.041 23319
437.730 446.723
61,577 52,697
198,220 197,884
24.112 28.870
721 639 $ 726174
$ 570 $ 256
141,398 138,143
51548 41.913
193516 180312
504 195
247,935 247,927
25.252 30.183
467 .207 458.617
385 385
26 26
428,427 427,709
(9,774) (16,361)
(164.632) (144.202)
254.432 267.557
$ 721 639 $ 726174
The accompanying notes are an integral part of these consolidated financial statements.
39
INTEGRATED ELECfRlCAL SERVICES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN mOUSANDS, EXcwr SHARE INFORMATION)
REVENUES ................................................................................................................... $
COST OF SERVICES ....................................................................................................
Gross profit ........................................... ............. ............... .....................................
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ..............................
RESTRUCfURlNG CliARGES ..................................................................................
GOODWILL AMORTIZATION................................................................................
Income from operations............................................ ...........................................
OTHER INCOME (EXPENSE):
Interest expense................................ ............................ ........................................
Other, net... .... ........................................... ............................................... ..............
Interest and other expense, net....................................................................
INCOME BEFORE INCOME TAXES AND CUMULATNE EFFECf OF
CHANGE IN ACCOUNTING PRINCIPLE.............................................................
PROVISION FOR INCOME TAXES .........................................................................
CUMULATNE EFFECf OF CHANGE IN ACCOUNTING PRINCIPLE, NET
OF TAX
NET INCOME (LOSS)................................................................................................. ~
BASIC EARNINGS (LOSS) PER SHARE:
Basic earnings per share before cumulative effect of change in accounting
principle ......................................................................................................... ............ ~
Cumulative effect of change in accounting principle ............................................ ~
Basic earnings (loss) per share ................................................................................. ~
DILUTED EARNINGS (LOSS) PER SHARE:
Diluted eamings per share before cumulative effect of change in accounting
principle
Cumulative effect of change in accounting principle ............................................
Diluted earnings (loss) per share ..............................................................................
SHARES USED IN THE COMPUTATION
OF EARNINGS (LOSS) PER SHARE:
Basic...............................,.......................................................................................
Diluted... ...... .., ............ ......... ... ............. ....... .... .................. ................... ... ........... .....
YEAR ENDED SEPTEMBER 30.
2001 2002 2003
1,693,213 $ 1,475,430 $ 1,448,553
1.385.589 1.253.844 1.241330
307,624 221,586 207,223
214,073 174,184 153,651
5,556
12.983
80.568
54,381
41.846 53.572
(26,702) (25,744)
964 781
(25.738) (24.963)
16,108 28,609
6,175 8,179
283.284
(27l l5 I) ~ 20410
(26,053)
(134)
(26.187) _
25,671
2R 710 ~
071 ~
~
071 ~
025 ~
(711) $
(6 R61 ~
052
052
~ 070 ~ 025 ~ 052
$ $ (711) $
$ 070 $ (6 R6) $ 052
40402 'Ill
40 R99 790
19 R47 591
39 R47 591
39 062 776
1922SJ12
The accompanying notes are an integral part of these consolidated financial statements.
40
INTEGRATED ELECfRICAL SERVICES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(IN THOUSANDS, EXCEPT SHARE INFORMATION)
Restricted Voting Additional Retained Total
Common Stock Common Stock Treasurv Stock Paid-In Earnings Stockholders'
Shares Amount Shares Amount Shares Amount CaDital (Deficit) ~
BALANCE. September 30, $ $
2000................................ 38,099,079 381 2,655,709 $ 27 $ $ 427,332 80,009 $ 507,749
Issuance of stock................... 225,424 2 (50,000) (1) 1,037 1.038
Purchase of treasury stock..... (1,459,573) (10,376) (10.376)
Issuance of stock under
employee stock
purchase plan................... 207,642 1.173 (193) 980
Exercise of stock options ..... 7,169 6,052 22 521 543
Net income ........................... - - 28.710 28.710
BALANCE, September 30,
2001................................ 38,331,672 $ 383 2,605,709 $ 26 (1,245,879) $ (9,181) $ 428,697 $108,719 $ 528,644
Issuance of stock................... 7,306 213,150 1,321 (349) 972
Purchase of treasury stock..... - (209,600) (984 ) (984)
Receipt of treasury stock....... . (241,224) (1,392) (1,392)
Issuance of stock under
employee stock purchase
plan....................................... - 55,742 411 (411)
490
Exercise of stock options ..... 101,006 2 6,743 51 543
Net loss................................. - - (273.35 )) (273.351 )
BALANCE, September 30, 38,439.98 $ 428,427
2002................................ 4 $ 385 2,605,709 $ 26 (1,421,068) $ (9,774) $( 164.632) $ 254,432
Issuance of stock................... 14,750 90 (13) 77
Purchase of treasury stock...., - (1,890,400) (10,207) (10,207)
Receipt of treasury stock....... - (70,330) (270) (270)
Issuance of stock under
employee stock purchase
plan....................,.................. - 248,982 1,549 (728) 821
23
Exercise of stock options ..... 392,273 2,251 2,274
Net income ........................... - - 20.430 20.430
BALANCE, September 30, 18 419 98 $ 427 709
2003................................ ~ L-..ll5. 7 (;O~ 709 L-2.U (2 72~ 791) $ (I (; 3(; I) $( 144 202) $ 267 ~~7
The accompanying notes are an integral part of these consolidated financial statements.
41
l'
INTEGRATED ELECfRICAL SERVICES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN mOUSANDS)
CASH FLOWS FROM OPERATING ACfNITIES:
Net income (loss)... ................................ .... ........................ ..... ....... .......... ........ ......... ...... ......
Adjustments to reconcile net income (loss) to net cash
Provided by operating activities-
Cumulative effect of change in accounting principle ................................................
Provision for allowance for doubtful accounts..........................................................
Deferred income taxes .................. ............... .................... ...............................................
Depreciation and amortization .................................... ..................................................
(Gain) loss on sale of property and equiprrent..........................................................
N on-cash compensation charge....................................... ............................. ...............
Gain on divestitures ....................... ................................................................................
Changes in operating assets and liabilities, net of acquisitions and
dispositions of businesses
(Increase) decrease in:
Accounts receivable ......... ...... ...................................................................................
Inventories .... ..... ...... .................................................. .......................................... ........
Costs and estimated earnings in excess of billings on uncompleted contracts
Prepaid expenses and other current assets ............................................................
Other noncurrent assets ...... ...... ................................................................................
Increase (decrease) in:
Accounts payable and accrued expenses ..............................................................
Billings in excess of costs and estimated earnings on uncompleted contracts
Other current liabilities .............................................................................. ....... ..........
Other noncurrent liabilities ................................................................ ................. .......
Net cash proYided by operating activities..............................................
CASH FLOWS FROM INVESTING ACfIVITIES:
Proceeds from sale of property and equipment...........................................................
Purchases of property and equipment .........................................................................
Purchase of businesses, net of cash acquired ............................................................
Sale of businesses .... ... ....... .... ....................... ........... ...... ...... .............. ... .... ..... ..... .... ... .....
Investments in securities ............ ...... ...... ......... ... ......................... ............ ...... ................
Additions to note receivable from affiliate ..................................................................
Net cash used in investing activities ..........................................................
CASH FLOWS FROM FINANCING ACTNITIES:
Borrowings .......................................................................................................................
Repayments of de bt ...... ............... .......... ............ .......... .......... .........................................
Proceeds from sale of interest rate swaps ....................................................................
Purchase of treasury stock.... ........... ....... ............................... ... ......... ..... ........ ....... ........
Payments for debt issuance costs ...............................................................................
Proceeds from issuance of stock ..................................................................................
Proceeds from issuance of stock under employee stock purchase plan.................
Proceeds from exercise of stock options......................................................................
Net cash provided by (used in) financing activities ...............................
NET INCREASE IN CASH AND CASH EQUlVLENTS.......................................................
CASH AND CASH EQUIVALENTS, beginning of period..................................................
CASH AND CASH EQUIVALENTS, end of period .. ..... ... ....... ...... .......'. '" ....
SUPPEMENT AL DISCLOSURE OF CASH FLOW INFORMA nON:
Cash paid for
Interest........... ... .........,..,.....,..,..................,......".....,.....................""................,....,..,.,....
42
Year Ended Seotember 30.
2001 2002 2003
$ 28,710 $ (273,351) $ 20,430
283,284
912 4,324 2,277
(4,938) 6,175 8,179
30,345 18,633 16,315
(287) 1,547 38
568 1,422
(2,145) (381)
26,163 30,943 (2,667)
(4,979) (2,770) 3,011
(10,785) 14,524 (1,545)
(15,640) (9,824) 1,200
2,840 3,199 (2,221 )
(37,831) (37,739) 2,606
(6,414) 3,7C1} (13,083)
(250) 172
220 I 1.264 5.144
8.634 53.367 39.303
1,467 895 2,339
(25,801) (11,895) (8,727)
(233) (2,723)
7,549 2,153
(5,599) (300) (900)
(1250) (583)
<31.416) (4.334) 0.858)
231,744 74,613 77
(192,811) (97,941) (16,309)
4,040
(10,376) (984) (10,207)
(5,358) (679)
1,038
980 821
270 543 2.274
25.487 (19729) (24.023)
2,705 29,304 7,422
770 3.475 32.779
$ 1475 $ 12779 $ 40201
$ 23,793 $ 23,117 $ 24,003
Income taxes ........... .... ........ .......... ........ ................... ................ ...... ...... ............................
30,667
5,091
599
The accompanying notes are an integral part of these consolidated financial statements.
INTEGRATED ELECfRlCAL SERVICES, INC., AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BUSINESS:
Integrated Electrical Services, Inc. (the "Company" or "IES"), a Delaware corporation, was founded in June
1997 to create a leading national provider of electrical services, focusing primarily on the commercial and industrial,
residential, low voltage and service and maintenance markets.
In the course of its operations, the Company is subject to certain risk factors, including but not limited to:
exposure to downturns in the economy, risks related to its acquisition strategy, risks related to management of
internal growth and execution of strategy, management of external growth, availability of qualified employees,
competition, seasonality, risks associated with contracts, significant fluctuations in quarterly results, recoverability
of goodwill, collectibility of receivables, dependence on key personnel and risks associated with the availability of
capital and with debt service.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of IES, its wholly owned
subsidiaries, and certain investments. All significant intercompany accounts and transactions have been eliminated
in consolidation. Certain reclassifications have been made to the segment data for the fiscal year ended September
30,2001 to conform to the presentation used for the years ended September 30, 2002 and 2003 (See note 10).
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or
less to be cash equivalents.
Inventories
Inventories consist of parts and supplies held for use in the ordinary course of business and are valued by
the Company at the lower of cost or market generally using the first-in, first-out (FIFO) method.
Securities and Equity Investment
At September 30, 2001, the Company had a 20.6% equity interest in Energy Photovoltaics, Inc. (EPV) of $4.9
million which was included in other noncurrent assets. The Company accounted for this investment under the equity
method of accounting in accordance with Accounting Principles Board Opinion ND, 18, "The Equity Method of
Accounting for Investments in Common Stock." During the years ended September 30,2001 and 2002, the Company
recognized losses of $0.4 million and $0.6 million, respectively, as its portion of this investment's losses. This
amount is included as a component of other expense in the Company's consolidated statement of operations. During
the year ended September 30, 2002, the Company distributed out a portion of its investment in EPV to a former officer
of the Company, bringing its interest below 20%. Accordingly, at September 30, 2002 and September 30,2003, the
Company accounts for its interest in EPV under the cost method of accounting for investments. Additionally, the
Company has notes receivable totaling approximately $1.8 million with EPV at September 30, 2002 and September 30,
2003. See note 14 for further commitments.
43
During the year ended September 30, 2001, the Company disposed of one of its cost method investments for
approximately $0.3 million and realized a loss of $0.7 million. Such loss is included as a component of other expense
in the Company's consolidated statement of operations for the year ended September 30, 2001. Through September
30,2003, the Company had invested $2.7 million under its commitment to EnerTech Capital Partners II L.P. (EnerTech)
(See note 14). The carrying value of this Enertech investment at September 30, 2003 was $2.5 million. This
investment is accounted for on the cost basis of accounting and accordingly, the company dies not record unrealized
losses on inyestments within the EnerTech investment that it believes are temporary in nature. As of September 30,
2003, the unrealized losses related to the Company's share of the Enertech fund amounted to approximately $0.9
million, which it believes are temporary in nature.
At September 30,2002 and 2003, the Company's cost method investments in securities haye a carrying value
of $5.1 million and $6.1 million, respectively. The fair values of the Company's investments at September 30,2002 and
2003 are $4.7 million and $5.2 million, respectiyely. The difference between the carrying values and fair values at
September 30, 2002 and 2003 are unrealized losses on the Enertech investment which the Company believes are
temporary in nature. The Company uses available information and may perform discounted cash flow analyses to
determine impairment of its investments, if any.
Property and Equipment
Additions of property and equipment are recorded at cost, and depreciation is computed using the straight-
line method over the estimated useful lives of the assets. Leasehold imp rovements are capitalized and amortized over
the lesser of the life of the lease or the estimated useful life of the asset. Depreciation expense was approximately
$15.8 million, $16.9 million and $14.6 million for the years ended September30, 2001, 2002 and 2003, respectively.
Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for. major
renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon
retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from
the accounts and any resulting gain or loss is recognized in the statement of operations in the caption Other, net.
Goodwill
Effective October I, 2001, the Company adopted SFAS No. 142, "Goodwill and Other Intangible Assets,"
which establishes new accounting and reporting requirements for goodwill and other intangible assets. Under SFAS
No. 142, all goodwill amortization ceased effective October 1,2001. Goodwill amortization for each of the years ended
September 30,2002 and September 30,2003 would haye otherwise been $12.9 million (before the impairment charge).
Goodwill attributable to each of the Company's reporting units was tested for impairment by comparing the fair value
of each reporting unit with its carrying value. Fair value was determined using discounted cash flows, market
multiples and market capitalization. These impairment tests are required to be performed at adoption of SF AS No. 142
and at least annually thereafter. Significant estimates used in the methodologies include estimates of future cash
flows, future short-term and long-term growth rates, weighted ayerage cost of capital and estimates of market
multiples for each of the reportable units. On an ongoing basis (absent any impairment indicators), the Company
expects to perform our impairment tests annually during the first fiscal quarter.
Based on the Company's impairment tests performed upon adoption of SF AS No. 142, it recognized a charge
of $283.3 million ($7.11 per share) in the first quarter of 2002 to reduce the carrying value of goodwill of its reporting
units to its implied fair value. This charge resulted in the recording of a deferred tax asset totaling $14.6 million for
which the Company provided a full valuation allowance because at the time of adoption it was not deemed more likely
than not that the deferred tax asset would be realized. The future scheduled reversal of the asset is dependent upon
many factors, including projected future taxable income, the scheduled reversal of deferred tax liabilities and tax
planning strategies. At September 30, 2003, this deferred tax asset, net of valuation allowance, totaled $2.8 million.
This impairment is a result of adopting a fair value approach, under SF AS No. 142, to testing impairment of goodwill
as compared to the previous method utilized in which evaluations of goodwill impairment were made by the Company
using the estimated future undiscounted cash flows compared to the assets' carrying amount. Under SFAS No. 142,
the impairment adjustment recognized at adoption of the new rules was reflected as a cumulative effect of change in
accounting principle in the Company's first quarter 2002 statement of operations. The impairment was the result of
lower forecasted future operating income at the point of adoption than were anticipated to result from decreased
spending in the construction industry in all of the Company's markets except Residential. The impairment related to
44
the Company's current operating regions follows (amounts in millions):
Southeast $ 89.2
Northeast 35.2
Gulf Plains 47.4
Central 80.8
West 21.0
Residential 2.6
Divested after adoption 7.1
Total $ 2!l33
Under SF AS No. 142, the impairment adjustment recognized at adoption of the new rules was reflected as a
cumulative effect of change in accounting principle in the statement of operations for the year ended September 30,
2002. Impairment adjustments recognized after adoption, if any, generally are required to be recognized as operating
expenses.
As of September 30, 2001, 2002 and 2003, accumulated amortization was approximately $38.7 million, $37.4
million and $37.4 million, respectively. The carrying amount of goodwill attributable to each reportable segment with
goodwill balances and changes therein follows:
September Impairment September September
30.2001 Adjustment Divestitures 30.2002 Diyestitures ~
Commercial
and Industrial $ 418,887 $ 277,042 $1,150 $140,695 $ 336 $ 140,359
Residential 63.767 6.242 ~ 57.525
$ 4R2 654 $ 2R3 2M ~ !l:19R 220 !I: 'H6 $ 197 RM
The audited results of operations presented below for the year ended September 30, 2003 and adjusted
results of operations for the years ended September 30, 2001 and 2002 reflect the operations of the Company had we
adopted the non-amortization provisions of SF AS No. 142 effective October 1,2000:
45
Year Ended September 30,
2001 2002 2003
Reported net income (loss).................... $ 28,710 $ (273,351) $ 20,430
Add: Cumulative effect of change in
accounting principle, net of
tax.................................................. 283,284
Add: Goodwill amortization, net of
tax......................................................... 12.635
Adjusted net income .............................. $ 4114'; $ 99:n $ 20430
Basic earnings (loss) per share:
Reported net income (loss)............... $ 0.71 $ (6.86) $ 0.52
Add: Cumulative effect of change in
accounting principle, net of
tax.................................................. 7.11
Add: Goodwill amortization, net of
tax......................................................... 0.31
Adjusted net income .............................. $ 102 $ 02'; $ 0'12
Diluted earnings (loss) per share:
Reported net income (loss)............... $ 0.70 $ (6.86) $ 0.52
Add: Cumulatiye effect of change in
accounting principle, net of
tax.................................................. 7.11
Add: Goodwill amortization, net of
Tax........................................................ 0.31
Adjusted net income .............................. $ 101 $ 02'; $ 0';2
Debt Issuance Costs
Debt issuance costs related to the Company's credit facility and the senior subordinated notes are included
in other noncurrent assets and are amortized to interest expense oyer the scheduled maturity of the debt. As of
September30, 2002 and 2003, accumulated amortization of debt issuance costs were approximately $3.7 million and
$5.3 million, respectiyely. During the year ended September 30, 2003, the Company capitalized approximately $0.7
million of issuance costs incurred in connection with amending its credit facility.
Revenue Recognition
The Company recognizes revenue when services are performed except when work is being performed under
a construction contract. Such contracts generally provide that the customers accept completion of progress to date
and compensate the Company for services rendered measured in terms of units installed, hours expended or some
other measure of progress. Revenues from construction contracts are recognized on the percentage-of-completion
method in accordance with the American Institute of Certified Public Accountants Statement of Position (SOP) 81-1
"Accounting for Performance of Construction-Type and Certain Production-Type Contracts." The Company
recognizes revenue on signed contracts and change orders. The Company recognizes revenue on unsigned, verbally
approved, change orders where collection is deemed probable. Percentage-of-completion for construction contracts
is measured principally by the percentage of costs incurred and accrued to date for each contract to the estimated
total costs for each contract at completion. The Company generally considers contracts to be substantially complete
upon departure from the work site and acceptance by the customer. Contract costs include all direct material, labor
and insurance costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools,
repairs and depreciation costs. Changes in job performance, job conditions, estimated contract costs and
profitability and final contract settlements may result in revisions to costs and income and the effects of these
reyisions are recognized in the period in which the revisions are determined. Provisions for total estimated losses on
uncompleted contracts are made in the period in which such losses are determined.
46
The balances billed but not paid by customers pursuant to retainage provisions in construction contracts
will be due upon completion of the contracts and acceptance by the customer. Based on the Company's experience
with similar contracts in recent years, the retention balance at each balance sheet date will be collected within the
subsequent fiscal year.
The current asset "Costs and estimated earnings in excess of billings on uncompleted contracts" represents
revenues recognized in excess of amounts billed which management believes will be billed and collected within the
subsequent year. The current liability "Billings in excess of costs and estimated earnings on uncompleted contracts"
represents billings in excess ofrevenues recognized.
Accounts Receivable and Provision for Doubtful Accounts
The Company provides an allowance for doubtful accounts for specific accounts receivable where
collection is considered doubtful as well as for unknown collection issues based on historical trends.
Income Taxes
The Company follows the asset and liability method of accounting for income taxes in accordance with
Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." Under this method, deferred
income tax assets and liabilities are recorded for the future income tax consequences of temporary differences
between the financial reporting and income tax bases of assets and liabilities, and are measured using enacted tax
rates and laws.
The Company regularly evaluates valuation allowances established for deferred tax assets for which future
realization is uncertain. The Company performs this evaluation at lease annually at the end of each fiscal year. The
estimation of required valuation allowances includes estimates of future taxable income. In assessing the realizability
of deferred tax assets at September 30, 2003, the Company considers whether it was more likely than not that some
portion or all of the deferred tax assets would not be realized. The ultimate realization of deferred tax assets is
dependent upon the generation of future taxable income during the periods in which those temporary differences
become deductible. The Company considers the schedules reversal of deferred tax liabilities, projected future taxable
income and tax planning strategies in making this assessment. If actual future taxable income different from the
estimates, the Company's results could be affected.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States requires the use of estimates and assumptions by management in determining the reported amounts of
assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Estimates are used in the Company's revenue recognition of construction in progress, allowance for doubtful
accounts, realizability of deferred tax assets and self-insured claims liability.
Self-Insurance
The Company retains the risk for workers' compensation, employer's liability, autDmobile liability, general
liability and employee group health claims. resulting frDm uninsured deductibles per accident or occurrence which are
subject to annual aggregate limits. The Company's general liability program provides coverage for bodily injury and
property damage neither expected nor intended. Losses up to the deductible amounts are accrued based upon the
Company's known claims incurred and an estimate of claims incurred but not reported. For the year ended September
30, 2003, management has compiled its historical data pertaining to the self-insurance experiences and has utilized the
services of an actuary to assist in the determination of the ultimate loss associated with the Company's self-
insurance programs for workers' compensation, auto and general liability. Management believes that the actuarial
valuation provides the best estimate ofthe ultimate losses to be expected under these programs and has recorded the
present value of the actuarial determined ultimate losses under its workers compensation, auto and general liability
programs of $13.2 million and $13.0 million at September 30, 2002 and 2003, respectively. The present value is based
on the expected cash flow to be paid out under the workers' compensation, automobile and general liability programs
discounted at 5% on those claims not expected to be paid within twelve months, The undiscounted ultimate losses
47
related to the workers' compensation, automobile and general liability programs are $14.6 million and $14.3 million at
September 30, 2002 and 2003, respectively. The utilization of the actuarial valuation resulted in an increase in
reserves for self-insurance losses during the year ended September 30, 2002. The Company recorded a charge
associated with this change in estimate of approximately $6.1 million during the fourth quarter of the year ended
September 30, 2002. Insurance expense for these programs was approximately $39.9 million, $49.4 million and $40.8
million for the years ended September 30,2001,2002 and 2003, respectively. The present value of all self-insurance
reserves for the health, property and casualty programs recorded at September 30, 2002 and 2003 is $19.5 million and
$18.2 million, respectively. The undiscounted ultimate losses of all self-insurance reserves at September 30,2002 and
2003 was $20.8 million and $19.4 million, respectively. Based on historical payment patterns, the Company expects
payments ofundiscounted ultimate losses to be made as fonows (amounts in thousands):
Year Ended September 30,
2004
2005
2006
2007
2008
Thereafter
Total
$
10,349
3,371
2,138
1,337
843
1382
1947.0
$
The Company had restricted cash of $3.5 million and letters of credit ot $25.7 million outstanding at
September 30, 2003 to collateralize its self-insurance obligations.
Realization of Long-Lived Assets
In accordance with SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of," the Company evaluates the recoverability of property and equipment or other
assets, if facts and circumstances indicate that any of those assets might be impaired. If an evaluation is required,
the estimated future undiscounted cash flows associated with the asset are compared to the asset's carrying amount
to determine if an impairment of such property has occurred. The effect of any impairment would be to expense the
difference between the fair value of such property and its carrying value. To date, the Company has not recorded
any such.impairments.
Risk Concentration
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist
principally of cash deposits and trade accounts receivable. The Company grants credit, generally without collateral,
to its customers, which are generally contractors and homebuilders throughout the United States. Consequently, the
Company is subject to potential credit risk related to changes in business and economic factors throughout the
United States within the construction and home-building market. However, the Company generally is entitled to
payment for work performed and has certain lien rights in that work. Further, management believes that its contract
acceptance, billing and collection policies are adequate to manage potential credit risk. The Company routinely
maintains cash balances in financial institutions in excess of federally insured limits.
The Company had no single customer accounting for more than 10% of its revenues for the years ended
September 30, 2001, 2002 and 2003.
Fair Value of Financial Instruments
The Company's financial instruments consist of cash and cash equivalents, accounts receivable,
receivables from related parties, retain age receivables, notes receivable, accounts payable, a line of credit, notes and
bonds payable, long-term debt and interest rate swap agreements. The Company's senior subordinated notes had a
carrying value. excluding unamortized discount, at September 30,2002 and 2003 $247.9 million. The fair value of the
Company's senior subordinated notes at September 30, 2002 and 2003 was $218.1 million and $255.3 million,
respectively. The Company utilizes quoted market prices to determine the fair value of its debt. Other than the senior
subordinated notes, the Company believes that the carrying value of financial instruments on the accompanying
consolidated balance sheets approximates their fair value,
48
Subsidiary Guarantees
All of the Company's operating income and cash flows are generated by its wholly owned subsidiaries,
which are the subsidiary guarantors ofthe Company's outstanding 9 3/8% Senior Subordinated Notes due 2009 (the
"Senior Subordinated Notes"). The Company is structured as a holding company and substantially all of its assets
and operations are held by its subsidiaries. There are currently no significant restrictions on the Company's ability
to obtain funds from its subsidiaries by dividend or loan. The parent holding company's independent assets,
revenues, income before taxes and operating cash flows are less than 3% of the consolidated total. The separate
financial statements of the subsidiary guarantors are not included herein because (i) the subsidiary guarantors are all
of the direct and indirect subsidiaries of the Company; (ii) the subsidiary guarantors have fully and unconditionally,
jointly and severally guaranteed the Senior Subordinated Notes; and (iii) the aggregate assets, liabilities, earnings,
and equity of the subsidiary guarantors is substantially equivalent to the assets, liabilities, earnings and equity of the
Company on a consolidated basis. As a result, the presentation of separate financial statements and other
disclosures concerning the subsidiary guarantors is not deemed material.
Earnings per Share
The following table reconciles the components of the basic and diluted earnings (loss) per share for the
three years ended September 30,2001,2002 and 2003 (in thousands, except share information):
y ear Ended SeDtember 30.
2001 2002 2003
Numerator:
Net income (loss) ............................................................ $ 2R 710 $ (27~ ~'i n $ 20410
Denominator:
Weighted average common shares
outstanding - basic ................................................ 40,402,533 39,847,591 39,062,776
Effect of dilutive stock options..................................... 497257 162.536
Weighted average common and common
equivalent shares outstanding - diluted.............. 401199790 19 &47 'i91 19~2B12
Earnings (loss) per share:
Basic. ......................... .................................................. ...... $ 0.71 $ (6.86) $ 0.52
Diluted ......... ........ ............................................................. $ 0.70 $ (6.86) $ 0.52
For the years ended September 30,2001,2002 and 2003, exercisable stock options of 4.4 million, 5.6 million
and 4.2 million, respectiyely, were excluded from the computation of diluted earnings per share because the options'
exercise prices were greater than the average market price of the Company's common stock.
Stock Based Compensation
The Company accounts for its stock-based compensation arrangements using the intrinsic value method in
accordance with the provisions of Accounting Principles Board Opinion No. 25 - "Accounting for Stock Issued to
Employees" ("APB 25"), and related interpretations. Under APB 25, if the exercise price of employee stock options
equals the market price of the underlying stock on the date of grant, no compensation expense is recognized. The
Company's stock options have all been granted with exercise prices at fair value, therefore no compensation expense
has been recognized under APB 25. During the years ended September 30,2001 and 2002, the Company recorded
compensation expense of $568 and $1,422 in connection with a restricted stock award (See note 11).
The following table illustrates the effect on net income and earnings per share assuming the compensation
costs for IES' stock option and purchase plans had been determined using the fair value method at the grant dates
amortized on a pro rata basis over the vesting period as required under SF AS No. 123 - "Accounting for Stock-Based
Compensation" for the years ended September 30, 2001,2002 and 2003 (in thousands, except for per share data):
50
Year ended SeDtember 30.
2001 2002 2003
Net income (loss), as reported...................... $ 28,710 $ (273,351 ) $ 20,430
Add: Stock-based employee compensation
expense included in reported net income,
net of related tax effects ............................ 349 875
Deduct: Total stock-based employee
compensation expense determined under
fair value based method for all awards,
net of related tax effects ............................ 5.586 5.774 2.689
Pro forma net income (loss) for SF AS
No.123.......................................................... $ 21473 $ (27& 25m $ 17741
Earnings (loss) per share:
Basic - as reported...................................... $ 0.71 $ (6.86) $ 0.52
Basic - pro forma for SFAS No. 123......... $ 0.58 $ (6.98) $ 0.45
Earnings (loss) per share:
Diluted - as reported .................................. $ 0.70 $ (6.86) $ 0.52
Diluted - pro forma for SF AS No. 123...... $ 0.57 $ (6.98) $ 0.45
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model
with the following subjective assumptions:
Expected dividend yield .............. ....... ....... ............. .............................. ..............
Expected stock price volatility ..........................................................................
Weighted average risk free interest rate..........................................................
Expected life of options.................... ................... ........... .......... ..................... .....
2001
0.00010
60.99<'10
5.15%
6 years
2002
0.00010
81.56%
3.96%
6 years
2003
0.00%
51.94%
3.21%
6 years
The pro forma disclosures for the years ended September 30, 2001 and 2002 have been adjusted to reflect the
impact of cancellations and forfeitures of stock options issued prior to September 30, 2003. The effects of applying
SFAS No. 123 in the pro forma disclosure may not be indicative of future amounts as additional awards in future
years are anticipated and because the Black-Scholes option-pricing model involves subjective assumptions which
may be materially different than actual amounts.
New Accounting Pronouncements
Effective October I, 2002, the Company adopted Statement of Financial Accounting Standards (SF AS) No,
144, "Accounting for the Impairment or Disposal of Long-Lived Assets." SFAS No. 144 supercedes SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of." SFAS No. 144
establishes a single accounting model for long-lived assets to be disposed of by sale and requires that those long-
lived assets be measured at the lower of carrying amount or fair value less cost to sell, whether reported in continuing
operations or in dis continued operations. The adoption had no impact on the Company's financial position or
results of operations.
In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal
Activities." SF AS No. 146 establishes requirements for recognition of a liability for a cost associated with an exit or
disposal activity based with an objective of recording the initial liability at fair value. The Company adopted SF AS
No 146 effective January I, 2003. The adoption had no impact on the Company's financial position or results of
operations.
In December 2002, the Financial Accounting Standards Board issued SFAS No. 148, "Accounting for Stock.
51
Based Compensation-Transition and Disclosure," which amends SFAS No. 123, "Accounting for Stock-Based
Compensation," by providing altematiye methods of transition for a voluntary change to the fair value method of
accounting for stock options and other stock-based employee compensation. The Company adopted SFAS 148 on
January 1, 2003. The adoption of SFAS 148 did not have a material impact on the Company's financial position or
results of operations.
Financial Accounting Standards Board Interpretation No. 45, "Guarantor's Accounting and Disclosure
Requirements for Guarantees, including indirect Guarantees of Indebtedness of Others," ("Interpretation 45"), will
significantly change current practice in accounting for, and disclosure of, guarantees. Interpretation 45 requires a
guarantor to recognize, at inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing
the guarantee. Interpretation 45 also expands the disclosures required to be made by a guarantor about its
obligations under certain guarantees that it has issued. Interpretation 45's disclosure requirements are effectiye for
financial statements of interim or annual periods ending after December 15, 2002, while the initial recognition and
initial measurement provisions are applicable on prospective basis to guarantees issued or modified after Decemb er
31, 2002. The types of guarantees that the Company is party to include surety bonds and letters of credit. The
Company adopted Interpretation 45 effective January 1,2003. The adoption did not have a material impact on the
Company's results of operations or financial position.
In January 2003, the Financial Accounting Standards Board issued Interpretation No. 46, "Consolidation of
Variable Interest Entities," ("Interpretation 46"). The objective of Interpretation 46 is to improve the financial
reporting by companies inyolved with yariable interest entities. Until now, one company generally has included
another entity in its consolidated financial statements only if it controlled the entity through voting interest.
Interpretation 46 changes that by requiring a variable interest entity to be consolidated by a company if that
company is subject to a majority of the risk ofloss from the variable interest entity's activities or entitled to receive a
majority of the entity's residual returns or both. The consolidation requirements of Interpretation 46 apply
immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older
entities in the first fiscal year or interim period ending after December 15, 2003. Certain of disclosure requirements
apply to all financial statements issued after January 31, 2003, regardless of when the variable interest entity was
established. The Company has minority interests in two firms, Enetrech Capital Partners II, L.P. and Energy
Photovoltaics, Inc., and a joint venture that may fall under this interpretation. The Company does not believe the
adoption of this statement will have a material impact on its results of operations or financial position.
In May 2003, the FASB issued Statement of Financial Accounting Standards No. 150, '~ccounting for
Certain Financial Instruments with Characteristics of both Liabilities and Equity," ("SFAS 150"). SFAS 150 requires
that mandatorily redeemable financial instruments issued in the form of shares be classified as liabilities, and specifies
certain measurement and disclosure requirements for such instruments. The provisions of SF AS 150 were effective at
the beginning of the first interim period beginning after June 15, 2003. The Company adopted the requirements of
SFAS 150 as of July 1,2003. The adoption did not have a material impact on the Company's results of operations or
financial position.
3. BUSINESS COMBINATIONS:
Purchases
On February 27,2003, the Company purchased the assets of Riviera Electric LLC, an electrical contractor
located in the state of Colorado, out of a bankruptcy auction of a prior competitor. The total consideration paid in
this transaction was approximately $2.7 million, comprised entirely of cash, net of cash acquired. The fair value of the
tangible net assets acquired exceeded the total consideration paid. As a result, the long-term fixed assets of the
acquisition were reduced to zero. The accompanying balance sheets include allocations of the purchase price to the
assets acquired and liabilities assumed based on estimates of fair value and are subject to final adjustment during the
second fiscal quarter of the year ended September 30, 2004. The purchase price was allocated as follows (amounts in
thousands):
52
Accounts receivable, net ..............................................
Retention ................. ............ ............... ...... ................. ......
Costs and estimated earnings in excess of billings
on uncompleted projects and other............................
Less: Accounts payable and accrued expenses .......
Less: Billings in excess of costs and estimated
earnings on uncompleted projects and other............
$ 11,643
3,884
922
(10,214)
(3,512)
Cash paid, net of cash acquired................................... $ 2,723
The results of operations of Riviera are included in the Company's consolidated financial statements from
February 27, 2003 through September 30, 2003.
Pro Forma Presentation
The unaudited pro forma data presented below reflect the results of operations of IES and the acquisition of
Riviera Electric LLC assuming the transaction was completed on October I, 2001 (in thousands):
Year ended Seotember 30.
2002 ~
(unaudited) (unaudited)
Reyenues............................................................. $ 1 557711 $ 1 4lB 21l!
Net income before cumulative effect of
change in accounting principle........................ $
Net income (loss) ............................................... $
15 425
(267 l!5Q)
$
$
21150
21150
Basic earnings per share before cumulative
effect of change in accounting principle ........ $ 039 $
Cumulative effect of change in accounting
principle ............................................................ ... $ (711) $
Basic earnings (loss) per share ........................ $ (672) $
Diluted earnings per share before cumulative
effect of change in accounting principle ........ $ 039 $
Cumulatiye effect of change in accounting
principle ... ........... .......... ......... ... ..... ........ ...... ........ $ (711) $
Diluted earnings (loss) per share..................... $ (072) $
054
000
054
054
000
054
The unaudited pro forma data summarized above also reflects pro forma adjustments primarily related to:
reductions in general and administrative expenses for contractual1y agreed reductions in compensation programs and
additional income tax expense based on the Company's effective income tax rate. The unaudited pro forma financial
data does not purport to represent what the Company's combined results of operations would actually have been if
such transactions had in fact occurred on October 1, 2001, and are not necessarily representative of the Company's
results of operations for any future period.
Divestitures
On July 25, 2002, the CDmpany sold all of the stock of two of its operating companies. The proceeds from
the sale were $7.5 million in cash and 241,224 shares of the Company's common stock. The Company recorded a pre-
tax gain of $2.1 mil1ion associated with this sale that is recorded in other income,
53
On October 8, 2002, the Company sold all of the stock of one of its operating companies. The proceeds from
the sale were $1.1 million in cash and 70,330 shares of the Company's common stock. The Company recorded a pre-
tax gain ofless than $0.1 million associated with this sale that is recorded in other income.
On July 1,2003, the Company sold all of the stock of one of its operating companies. The proceeds from the
sale were $1.1 million in cash. The Company recorded a pre-tax gain of $0.4 million associated with this sale that is
recorded in other income.
In connection with the dispositions discussed above, the net pre-tax gain was detennined as follows for the
years ended September 30,2002 and 2003 (in thousands):
Book value of assets divested ........................................................ $
Liabilities divested......... ............ ............ ....................... ........... .........
Net assets divested.....................................................................
Cash received .... ....... ....... .............. .............. ............ ..... ........ .............
Common stock received...................................................................
Total consideration received....... ........ ...... ................................
Pre-tax gain ................................................................................... $
2002
2003
10,783 $
(3.987)
6.796
7,549
1392
8.941
2 14'; $
2,719
(675)
2.044
2,155
270
2.425
3RI
Had the dispositions discussed above been completed on October 1,2001, the results of the Company for
the years ended September 30, 2002 and 2003 would Iuve excluded revenues of $33.0 million and $0.1 million,
respectively and losses from operations of $0.3 million and $0.0 million, respectively.
4. RFSI'RUCfURING CHARGES
In October 200 I, the Company began implementation of a workforce reduction program. The purpose of this
program was to cut costs by reducing the number of administrative staff both in the field and at the home office. The
total number of tenninated employees was approximately 450. As a result of the program implementation, the
Company recorded pre-tax restructuring charges of $5.6 million associated with 45 employees during the year ended
September 30,2002 and presented these charges as a separate component of the Company's results of operations for
the period then ended. The charges were based on the costs of the workforce reduction program and include
severance and other special tennination benefits. The Company believes the reduction of these personnel resulted in
annual savings of approximately $4.1 million in salaries and benefits. At September 30, 2002, approximately $2.0
million of these charges that related to five individuals had not been paid and were included in accounts payable and
accrued expenses. At September 30, 2003, approximately $1.3 million of these charges that relate to three individuals
have not been paid and are included in accounts payable and accrued expenses. The Company anticipates making
the remaining payments accrued under this restructuring during the year ended September 30, 2004.
5. PROPERTY AND EQUIPMENT:
Property and equipment consists of the following (in thousands):
Land................................................................,.............,.............
Buildings...... ......... ..........................,................ ....... ... ................
Transportation equipment............ ........... ............... ...........,.....
Machinery and equipment ......................................................
Leasehold improvements....... .... ................................,.............
Furniture and fixtures ...........................................................,...
Estimated
useful lives
in years
N/A
5-32
3-5
3-10
5-32
5-7
Less-Accumulated depreciation and amortization ..............
Property and equipment, net .........................................
54
September 30.
2002 2003
$ 1,621 $ 1,621
8,169 8,072
30,280 29,221
51,771 53,692
13,369 13,658
8.543 8.815
113,753 115,079
(52.1 76) (62.382)
$ 61 S77 $ S2 697
6. DETAIL OF CERTAIN BALANCE SHEET ACCOUNTS:
Activity in the Company's allowance for doubtful accounts receivable consists of the following (in
thousands):
Balance at end of period .....................................................................................
Seotember 30.
2002 2003
$ 5,206 $ 6,262
4,324 2,277
411
(3,136) (3,514)
(\32) (\))
$ 6262 $ 5425
Balance at beginning of period..........................................................................
Additions to costs and expenses ......................................................................
Additions for acquisitions. ................................ ...... ................... ... .... ...... .... .... ...
Deductions for uncollectible receivables written off, net of recoveries ......
Deductions for divestitures ...... .............. .... ......... ...... ....... .................. ....... ..... ....
Accounts payable and accrued expenses consist of the following (in thousands):
Seotember 30.
2002 2003
65,433 $ 77,598
24,809
Accounts payable, trade............................................................................... $
Accrued compensation and benefits ..........................................................
Other accrued expenses ................................................................................
22,934
18,162
19,453
14,268
19.310 17.574
$ 141398 $ nil 143
Accrual for self-insurance liabilities ............................................................
Accrued payment for repurchase of senior subordinated notes ............
Contracts in progress are as follows (in thousands):
Seotember 30.
2002 2003
Costs incurred on contracts in progress.......................................................... $ 1,188,532 $ 1,132,778
Estimated earnings.............. ....... ............ ............... ............... ....... ..... ............. ....... 182.360 149.627
1,370,892 1,282,405
Less-Billings to date ............................................................................................ (1.376.126\ (1.276.062)
$ (5 234) $ 6343
Costs and estimated earnings in excess of billings on uncompleted
contracts......... ............... ......... ... ........................ ..............,................................ $
Less-Billings in excess of costs and estimated earnings on uncompleted
contracts ...........,........,......,..,..................... ... .......................,.,.................. ........
$
46,314 $
48,256
( 51.548)
(5 234) $
(41.913)
6343
55
7. DEBT:
Debt consists of the following (in thousands):
Senior Subordinated Notes, due February 1,2009, bearing interest at 9.375%
with an effective interest rate of 9.50% ..........................................................................................
Senior Subordinated Notes, due February I, 2009, bearing interest at 9.375%
with an effectiye interest rate of 10.00% .......................................................................................
Other ................. ...................................................... ..... ................ ............................................... .... .......
SeDtember 30.
2002 2003
137,885 137,885
110,000 110,000
1.074 451
248,959 248,336
(570) (256)
(3,797) (3,198)
3.847 3.240
24R 439 $ 24R 127
Less-current maturities of long-term debt............................ ............................................................
Less-unamortized discount on Senior Subordinated Notes..........................................................
Fair value of terminated interest rate hedges...................................................................................
T otallong-term debt ............................... ........................................................ ...... ......... ............ $
Future payments due on debt at September 30, 2003 are as follows (in thousands):
2004 ...................................................................... $
2005......................................................................
2006......................................................................
2007......................................................................
2008......................................................................
Thereafter.................................... ........ ................
Total.................................... $
256
114
63
15
3
247.885
24R 3"'16
Credit Facility
On May 27, 2003, the Company amended its $150.0 million revolving credit facility to a $125.0 million
revolving credit facility with a syndicate of lending institutions to be used for working capital, capital expenditures,
acquisitions and other corporate purposes that matures May 22, 2006, as amended (the "Credit Facility"). Amounts
borrowed under the Credit Facility bear interest at an annual rate equal to either (a) the London interbank offered rate
(LffiOR) plus 1.75 percent to 3.50 percent, as determined by the ratio of the Company's total funded debt to EBITDA
(as defined in the Credit Facility) or (b)the higher of (i) the bank's prime rate or (ii) the Federal funds rate plus
0.50 percent plus an additional 0.25 percent to 2.00 percent, as determined by the ratio of the Company's total funded
debt to EBITDA. Commitment fees of 0.375 percent to 0.50 percent are assessed on any unused borrowing capacity
under the Credit Facility. The Company's existing and future subsidiaries guarantee the repayment of all amounts
due under the facility, and the facility is secured by the capital stock of those subsidiaries and the accounts
receivable of the Company and those subsidiaries. Borrowings under the Credit Facility are limited to 66 2/3% of
outstanding receivables (as defined in the agreement). The Credit Facility requires the consent of the lenders for
acquisitions exceeding a certain level of cash consideration, prohibits the payment of cash dividends on the common
stock, restricts the ability of the Company to repurchase shares of common stock or to retire its Senior Subordinated
Notes, restricts the ability of the Company to incur other indebtedness and requires the Company to comply with
various affirmative and negative covenants including certain financial covenants, some of which become more
restrictive oyer time. Among other restrictions, the financial covenants include a minimum net worth requirement, a
maximum total consolidated funded debt to EBITDA ratio, a maximum senior consolidated debt to EBITDA ratio and
a minimum interest coverage ratio. For more information regarding the Covenants to its Credit Facility, as amended,
see the Company's filing on Form ~K dated May 28, 2003. The Company was in compliance with the financial
coyenants of its Credit Facility, as amended, at September 30, 2003. As of September 30, 2003, the Company had no
borrowings outstanding under its Credit Facility, letters of credit outstanding under its Credit Facility of$27.4 million,
$0.5 million of other borrowings and available borrowing capacity under its Credit Facility of $97.6 million.
56
Senior Subordinated Notes
On January 25, 1999 and May 29, 2001, the Company completed offerings of $150.0 million and $125.0 million
Senior Subordinated Notes, respectively. The offering completed on May 29, 200 I yielded $117.0 million in proceeds
to the Company, net ofa $4.2 million discount and $3.9 million in offering costs. The proceeds from the May 29, 2001,
offering were used primarily to repay amounts outstanding under the Credit Facility. The Senior Subordinated Notes
bear interest at 93/8% and mature on February 1,2009. The Company pays interest on the Senior Subordinated
Notes on February I and August I of each year. The Senior Subordinated Notes are unsecured obligations and are
subordinated to all existing and future senior indebtedness. The Senior Subordinated Notes are guaranteed on a
senior subordinated basis by all of the Company's subsidiaries. Under the terms of the Senior Subordinated Notes,
the Company is required to comply with various affirmatiye and negative covenants including: (i) restrictions on
additional indebtedness, and (ii) restrictions on liens, guarantees and dividends. During the year ended September
30, 2002, the Company retired approximately $27.1 million of these Senior Subordinated Notes. At September 30,
2002, the cost basis of $15.6 million notional amount of the retired senior subordinated notes were classified as part 0 f
accounts payable and accrued expenses as the settlement date occurred subsequent to September 30, 2002. In
connection with these transactions, the Company recorded a gain of $1.0 million during the year ended September 30,
2002. This gain is recorded in interest and other expense, net in accordance with SFAS No. 145, "Rescission ofFASB
Statements No.4, 44 and 64, Amendment ofFASB Statement No. 13, and Technical Corrections," which was adopted
July 1, 2002.
Interest Rate Swaps
The Company entered into an interest rate swap agreement in August 200 I, designated as a fair value
hedge, in order to minimize the risks and cost associated with its financing activities. The interest rate swap
agreement had a notional amount of $100.0 million and was established to manage the interest rate risk of the senior
subordinated note obligations. Under the swap agreement, the Company paid the counterparty variable rate interest
(3-month LIBOR plus 3.49%) and the counterparty paid the Company fixed rate interest of 9.375% on a semiannual
basis over the life of the instrument through February 1,2009. Pursuant to SFAS No. 133, as amended, such interest
rate swap contract was reflected at fair value on the Company's consolidated balance sheet and the related portion of
fixed-rate debt being hedged was reflected at an amount equal to the sum of its carrying yalue plus an adjustment
representing the change in fair value of the debt obligation attributable to the interest rate being hedged. The net
effect of this accounting on the Company's operating results is that interest expense on the portion of fixed-rate debt
being hedged was generally recorded based on variable interest rates. The interest rate swap was considered to be
perfectly effective because it qualified for the "short-cut" method under SFAS No. 133 and therefore there was no net
change in fair yalue to be recognized in income. At September 30, 2001 the fair yalue of this derivative was $3.2
million and was included in other noncurrent assets. The Company terminated this contract in February 2002. The
Company received cash equal to the fair value of this derivative of $1.5 million, which is being amortized over the
remaining life ofthe bonds.
The Company entered into a new interest rate swap agreement in February 2002, designated as a fair value
hedge, in order to minimize the risks and cost associated with its financing activities. The interest rate swap
agreement had a notional amount of $100.0 million and was established to manage the interest rate risk of the senior
subordinated note obligations. Under the swap agreement, the Company paid the counterparty variable rate interest
(3-month trailing LIB OR plus 3.49%) and the counterparty paid the Company fixed rate interest of 9.375% on a
semiannual basis over the life of the instrument. Pursuant to SFAS No. 133, as amended, such interest rate swap
contract was reflected at fair value on the Company's consolidated balance sheet and the related portion of fixed-rate
debt being hedged is reflected at an amount equal to the sum of its carrying value plus an adjustment representing
the change in fair value of the debt obligation attributable to the interest rate being hedged. The net effect of this
accounting on the Company's operating results was that ilterest expense on the portion of fixed-rate debt being
hedged was generally recorded based on variable interest rates. The interest rate swap was considered to be
perfectly effective because it qualified for the "short-cut" method under SF AS No. 133 and therefore there was no net
change in fair value to be recognized in income. The Company terminated this contract in August 2002. The
Company received cash equal to the fair value of this derivative of $2.5 million, which is being amortized over the
remaining life of the bonds. At September 30, 2002 and 2003 the Company had no outstanding interest rate swap
contracts.
57
The following table presents the balance sheet effect on the Senior Subordinated Notes (in thousands):
Senior Subordinated Notes, due February 1,2009.................................... $
Less: Unamortized discount on Senior Subordinated Notes ..................
Add: Fair value of interest rate hedge ........................................................
Add: Unamortized portion of interest rate hedge .....................................
$
Seotember 30.
2002 2003
247,885 $ 247,885
(3,797) (3,198)
3.847
24791'; $
3240
247927
8. LEASES:
The Company leases various facilities under noncancelable operating leases. For a discussion of leases
with certain related parties see Note II. Rental expense for the years ended September 30,2001, 2002 and 2003 was
approximately $10.8 million, $15.4 million and $14.6 million respectively. Future minimum lease payments under these
noncancelable operating leases with terms in excess of one year are as follows (in thousands):
Year Ended September 30,
2004. ..... ...... ................. ......... ............... ..... .......... $
2005....................................................................
2006....................................................................
2007....................................................................
2008....................................................................
Thereafter ............................. .................... ........
Total......................................... $
12,679
10,316
6,411
4,035
2,439
2.922
1R R02
9. INCOME TAXES:
Federal and state income tax provisions are as follows (in thousands):
Federal:
Current.... ..... ............... .... ........ .................... $ 24,592 $ $
Deferred ....... ....... ................... ... .................. (2,025) 6,635 7,183
State:
Curren t ............. .......... ............... ... ............... 6,017
Deferred....... ....... .............................. ..... ..... (2.913) (460) 996
$ 25671 $ 6 17:'\ $ R ]79
Year Ended SeDtember 30.
2001 2002 2003
58
Actual income tax expense differs from income tax expense computed by applying the U.S. federal statutory
corporate rate of35 percent to income before provision for income taxes as follows (in thousands):
Provision at the statutory rate ..................................................... $
Increase resulting from:
Non-cash restricted stock compensation charge ...............
Year Ended Seotember 30.
2001 2002 2003
19,033 $ 5,638 $ 10,013
Contingent tax liabilities .........................................................
88
4,208
295
2,018
997
324
21,885
16,428
301
N on-deductib Ie goodwill.............. .......... .............. ............ ......
State income taxes, net of benefit for federal deduction...
N on-deductible expenses ...................................... .................
700
Change in valuation allowance .............................................
5,207
Decrease resulting from:
Utilization of state net operating losses ..............................
Change in ya1uation allowance .............................................
Additional tax basis in amortizable assets...........................
$ 25 671
Deferred income tax provisions result from temporary differences in the recognition of income and expenses
for financial reporting purposes and for income tax purposes. The income tax effects of these temporary differences,
representing deferred income tax assets and liabilities, result principally from the following (in thousands):
59
Deferred income tax assets:
Allowance for doubtful accounts ............................. $
Goodwill...... .................. ....... ........ .... .......... ...................
Year Ended Se,ptember 30.
2002 2003
2,380 $ 2,062
34,073 28,509
11,758 5,063
10,694 13,104
695 1,316
157 1.474
59,757 51,528
(34.613) (27.1 86)
25.144 24.342
(3,637) (4,308)
(8n) ~91)
(4.509) (4.899)
20 tilS $ 1944l
Accrued expenses .......................................................
Net operating loss carry forward...............................
Various reserves ..........................................................
Other................................. ... ... ................. ......... .............
Subtotal............... .............. .............. ..................... .....
Less valuation allowance ...........................................
Total deferred income tax assets ...........................
Deferred income tax liabilities:
Property and equipment .............................................
Deferred contract revenue and other........................
Total deferred income tax liabilities.......................
Net deferred income tax assets .............................. $
At September 30, 2002 and 2003, the Company had $34.1 million and $28.5 million of deferred income tax
asset related to tax deductible goodwill, respectively. The impairment of goodwill recognized upon the adoption of
SFAS 142 caused the tax basis in deductible goodwill to exceed book basis by $38.2 million and resulted in an
additional deferred tax asset of$14.6 million. The income tax effect of the $14.6 million additional deferred tax asset
was included in the cumulative effect of change in accounting principal, net of tax. Subsequent to the adoption of
SFAS 142, the Company adopted a tax accounting method change that allowed it to deduct goodwill for income tax
purposes that had previously been classified as non-deductible. The tax accounting method change resulted in
additional tax basis in deductible goodwill. Tax basis for deductible goodwill related to the tax accounting method
change exceeded book basis by $100.8 million and resulted in the recording of an additional $38.3 million deferred tax
asset. The income tax effect of the $38.3 million additional deferred tax asset was included in the proyision for
income taxes. During the year ended September 30, 2002 and September 30, 2003, the Company had income tax return
activity that reduced the deferred tax by $18.5 million and $5.6 million, respectively. Tax deductible goodwill is
amortized oyer a IS-year period. As of September 30, 2003, approximately II years remain to be amortized.
At September 30, 2003, the Company had available approximately $27.3 million of net tax operating loss carry
forwards for federal income tax purposes. This carry forward, which may provide future tax benefits, begins to expire
in 2020. The Company also had available approximately $97.8 million of net tax operating loss carry forwards for state
income tax purposes which will begin to expire in 2013.
In assessing the realizability of deferred tax assets at September 30, 2003, the Company considered whether
it was more likely than not that some portion or all of the deferred tax assets would not be realized. The ultimate
realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in
which those temp orary differences become deductible. rhe Company considers the scheduled reversal of deferred
tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon
these considerations, the Company provided a valuation allowance to reduce the carrying value of certain of its
deferred tax assets. Accordingly, valuation allowances of $25.6 million and $1.5 million were recorded for deductible
goodwill and state net operating losses, respectively, During the year ended September 30, 2003, the Company
released $2.8 million of tax effected valuation allowances because it believes it will now realize the deferred tax assets
60
for which they were established. The Company will evaluate the appropriateness of its remaining valuation
al10wances on a periodic basis.
The Company has adopted positions that a taxing authority may view differently. The Company believes its
reserves of ~6.1 million recorded in other noncurrent liabilities are adequate in the event the positions are not
ultimately upheld. The timing of the payment of these reserves is not currently known and would be based on the
outcome of a possible review by a taxing authority. Statutes of limitations will begin to expire June 15, 2006 and
thereafter.
The net deferred income tax assets and liabilities are comprised ofthe fol1owing (in thousands):
Seotember 30.
2002 2003
Current deferred income taxes:
Assets ................................................. $
Liabilities. .............. ......... .....................
23,884 $
(872)
23.012
18,136
(591 )
17.545
Long-term deferred income taxes:
Assets ................................................. $
Liabilities........... ... .... ...... .....................
Net deferred income tax assets........................ $
1,260 $
0.637)
(2.3 77)
20635 $
6,206
(4.308)
1.898
19443
10. OPERATINGSEGMENTS
The Company follows SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information." Certain information is disclosed, per SFAS No. 131, based on the way management organizes financial
information for making operating decisions and assessing performance.
The Company's reportable segments are strategic business units that offer products and services to two
distinct customer groups. They are managed separately because each business requires different operating and
marketing strategies. These segments, which contain different economic characteristics, are managed through
geographically-based regions.
During 200 I, the Company managed and measured performance of its business in four distinct operating
segments: commercial and industrial, residential, service and maintenance and communications solutions. During
2002, the Company reorganized its business and measured performance into two distinctive operating segments;
commercial and industria~ and residential. As a result of this reorganization, all reporting responsibilities along with
operating responsibilities were folded into the commercial and industrial operating segment, and separate and distinct
financial information is not reviewed by the chief decision maker for the old service and maintenance and
communications solutions segments. Since 2002, the chief decision maker reviews operating results of only two
segments: commercial and industrial, and residential. The Company considered this a change in its structure of
internal organization, which caused its reportable segments to change and has restated the prior periods in
accordance with paragraph 34 of F AS 131.
The commercial and industrial segment provides electrical and communications contracting, design,
installation, renovation, engineering and upgrades and maintenance and replacement services in facilities such as
office buildings, high-rise apartments and condominiums, theaters, restaurants, hotels, hospitals and critical-care
facilities, school districts, manufacturing and processing facilities, military installations, airports, refineries,
petrochemical and power plants, outside plant, network enterprise and switch network customers. The residential
segment consists of electrical and communications contracting, installation, replacement and renovation services in
single family and low-rise mu Itifamily housing units, Corporate includes expenses associated with the Company's
home office and regional infrastructure.
The accounting policies of the segments are the same as those described in the summary of significant
61
accounting policies. The Company evaluates performance based on income from operations of the respective
business units prior to home office expenses. Management allocates costs between segments for selling, general and
administrative expenses, goodwill amortization, depreciation expense, capital expenditures and total assets.
Segment information for the years ended September 30,2001,2002 and 2003 are as follows (in thousands):
Revenues ..................... ..................................... ........................
Cost of services ............................................................ ............
Gross profit ...................................... ........ .......... .....................
Selling, general and administrative............................................
GoodwillllIl1ortization .................................................. ........ ...
Income from operations...........................................................
Other data:
Depreciation and lIIl1ortization expense...................................
Capital expenditures ................................................................
Total assets .... ... ................................................... ....................
Revenues .......................................................... .................... ....
Cost of services ........... ...................................... ...... .................
Gross profit ............... ... ........ ....... ............................................
Fiscal Year Ended Seotember 30.2001
Commercial
and Industrial Residential
$ 1,435,773
1.186.681
249,092
137,751
11.478
$ 99 1163
$ 24,559
16,854
850,182
$ 257,440
198.908
58,532
30,977
1.505
$ 260'i0
$ 3,250
1,936
112,779
Comorate Total
$ $ 1,693,213
1.385.589
307,624
45,345 214,073
12.983
$ (4'i 34'i) $ 1l0'il'ill
$
2,536
7,011
70,542
$ 30,345
25,801
1,033,503
Fiscal Year Ended Seotember 30.2002
Commercial
and Industrial Residential
$ 1,193,391
1.033.478
159,913
Selling, general and administrative............................................ 123,458
Restructuring charges ...... .................. ..... .......... ................ ........
Income from operations........................................................... $ 364'i'i
Other data:
Depreciation and lIIl1ortization expense...................................
Capital expenditures .................................................... .... ........
Total assets ............ ........... ............ ... ......... .............. ...... ...........
$ 13,921
8,301
519,897
62
$ 282,039
220.366
61,673
27,053
$ 34 6~0
$
885
753
89,896
Cornorate Total
$ $ 1,475,430
1.253.844
221,586
23,673 174,184
5.556 5.556
$ (29 729) $ 411146
$ 3,827
2,841
111,846
$ 18,633
11,895
721,639
Fiscal Year Ended Seotember 30. 2003
Commercial
And Industrial Residential Coroorate Total
Revenues. ...... ................... ...... ................. ............... ... ........ ... .... $ 1,172,386 $ 276,167 $ $ 1,448,553
Cost of services .... ........................ ....... ............... ...................... 1.023.151 218.179 1.241.330
Gross profit ....... ..... ....................... ........... ...... ........... .............. 149,235 57,988 207,223
Selling, general and administrative............................................ 101.096 33.110 19.445 153.651
Income from operations........................................................... $ 4R 139 $ 24 &78 $ (19445) $ 51 'i72
Other data:
Depreciation and amortization expense................................... $ 11,419 $ 1,133 $ 3,763 $ 16,315
Capital expenditures.... .... ............................... ................... ...... 5,345 891 2,491 8,727
Total assets. .................... ... ............ ..... ... ......... ..... .,. ................. 505,070 108,204 112,900 726,174
The Company does not haye significant operations or long-lived assets in countries outside of the United
States.
11. STOCKHOLDERS' EQUITY:
Restricted Voting Common Stock
The shares of restricted voting common stock have rights similar to shares of common stock except that
such shares are entitled to elect one member of the board of directors and to not otherwise vote with respect to the
election of directors and are entitled to one-half of one vote for each share held on all other matters. Each share of
restricted voting common stock will convert into common stock upon disposition by the holder of such shares.
During the year ended September 30, 2003, the Company completed a 2 million share repurchase program.
The Company used approximately $10.2 million in cash generated form operations to repurchase shares during the
year ended September 30, 2003 for this program.
1997 Stock Plan
In September 1997, the Company's board of directors and stockholders approved the Company's 1997 Stock
Plan (the "Plan"), which provides for the granting or awarding of incentive or nonqualified stock options, stock
appreciation rights, restricted or phantom stock and other incentive awards to directors, officers, key employees and
consultants of the Company. The number of shares authorized and reserved for issuance under the Plan is 15
percent of the aggregate number of shares of common stock outstanding. The terms of the option awards will be
es tablished by the cDmpensation committee of the Company's board of directors. Options generally expire 10 years
from the date of grant, one year following termination of employment due to death or disability, or three months
following termination of employment by means other than death or disability.
Directors' Stock Plan
In September 1997, the Company's board of directors and stockholders approved the 1997 Directors' Stock
Plan (the "Directors' Plan"), which provides for the granting or awarding of stock options to nonemployee directors.
In May 2000, the Company's board of directors amended the Directors' Plan. The number of shares authorized and
reserved for issuance under the Directors' Plan is 250,000 shares. Each nonemployee director is granted options to
purchase 3,000 shares at the time of an initial election of such director. In addition, each director will be automatically
granted options to purchase 3,000 shares annually at each September 30 on which such director remains a director.
All options have an exercise price based on the fair market value at the date of grant, are immediately vested and
expire 10 years from the date of the grant. In the event that the director ceases to serve as a member of the board for
any reason the options must be exercised within one year.
63
1999 Incentive Compensation Plan
In November 1999, the Company's board of directors adopted the 1999 Incentive Compensation Plan (the
"1999 Plan"). The 1999 Plan, as amended, authorizes the Compensation Committee of the Board of Directors or the
Board of Directors to grant eligible participants of the Company awards in the form of options, stock appreciation
rights, restricted stock or other stock based awards. The Company has up to 5.5 million shares of common stock
authorized for issuance under the 1999 Plan.
In March 2000, the Company granted 400,000 restricted stock awards under this stock plan to an employee.
This award was vested in equal installments on March 20th of each year through 2004, provided the recipient was still
employed by the Company. The market value of the underlying stock on the date of grant for this award was $2.3
million, which was recognized as compensation expense over the related vesting periods. During the year ended
September 30,2001, the Company amortized $0.6 million to expense in connection with this award. The award became
fully vested and was fully amortized during the year ended September 30, 2002.
plans:
The following table summarizes activity under the Company's stock option and incentive compensation
Outstanding, September 30, 2000..........................................................
Options Granted ... ... ............... .......... .................................. ...... ..... ....
Restricted Stock Granted........... .......... '" ........ ... ...... ................. ... .....
Exercised .................. ........ ......... .... ........ ......... ........ ..................... ... .....
Forfeited and Cancelled........... ... ....... ........ .... ............. ... ............... ....
Outstanding, September 30, 2001..........................................................
Options Granted ...... ..... ...... .... .............. ........ .................. ...................
Exercised......... ............................................................................... .....
Forfeited and Cancelled......... ............................................ ...............
Outstanding, September 30, 2002..........................................................
Options Granted ................................................................................
Exercised ....... ................. .............. ................. ...... ............ ... .................
Forfeited and Cancelled. ................ ............ ................. ......................
Outstanding, September 30, 2003..........................................................
Exercisable, September 30,2001.............................................................
Exercisable, September 30, 2002.... ........ ......................................... ........
Exercisable, September 30, 2003.............................................................
Shares
5.446.295
2,251,199
43,783
(157,004)
(655.152)
6929121
2,073,069
(434,471)
(2.033.039)
6 sew 6RO
21,000
(392,273)
(800.566)
SJ62 R41
:) 626 9RR
3314R64
3 747 774
Weighted Average
Exercise Price
$ 12.02
5.76
0.00
0.47
1304
$ 1006
4.60
1.51
8.33
$ 939
6.90
5.32
12.20
$ 92R
$ 122l
$ 1170
$ 1093
The table below summarizes options outstanding and exercisable at September 30,2003:
Outstanding Weighted-Average Exercisable
Range of as of Remaining Weighted-Average as of Weighted-Average
Exercise Prices Seotember 30. 2003 Contractual Life Exercise Price September 30. 2003 Exercise Price
$0.0000 - $4,6240 810,500 6.8 $ 3.71 282,176 $ 3.71
$4.6250 - $6.9000 2,169,629 7.3 $ 5.56 1,191,720 $ 5.67
$6.9100 - $10.3000 39,920 4.8 $ 9.03 28,120 $ 9.16
$10.3100 - $15.4000 1,822,843 4.8 $ 13.67 1,766,749 $ 13.69
$15.4100 - $22.1250 519.949 4.8 $ 18.12 479.009 $ 18.16
';362R41 61 $ 92R 1 747 774 $ 1091
Options granted during the years ended September 30, 2001, 2002 and 2003 had weighted average fair values
per option of$3,55, $1.91 and $3.63, respectively,
64
Unexercised options expire at various dates from January 27,2008 through September 30, 2012.
Employee Stock Purchase Plan
In February 2000, the Company's stockholders approved the Company's Employee Stock Purchase Plan (the
"ESPP"), which proyides for the sale of common stock to participants as defined at a price equal to the lower of 85%
of the CotqJany's closing stock price at the beginning or end of the option period, as defined. The number of shares
of common stock authorized and reserved for issuance under the ESPP is 1.0 million shares. The purpose of the ESPP
is to provide an incentive for employees of the Company to acquire a proprietary interest in the Company through the
purchase of shares of the Company's common stock. The ESPP is intended to qualify as an "Employee Stock
Purchase Plan" under Section 423 of the Internal Revenue Code of 1986, as amended (the "Code"). The provisions of
the ESPP are construed in a manner to be consistent with the requirements of that section of the Code. During the
years ended September 30, 2001,2002 and 2003, the Company issued 207,642,55,742 and 248,982 shares pursuant to
the ESPP, respectively. For purposes of SFAS No. 123, "Accounting for Stock-Based Compensation," estimated
compensation cost as it relates to the ESPP was computed for the fair value of the employees' purchase rights using
the Black-Scholes option pricing model with the following assumptions for 2001: expected dividend yield of 0.00%,
expected stock price volatility of 60.99%, weighted average risk free interest rate of 5.15% and an expected life of 0.5
years. The weighted ayerage fair value per share of these purchase rights granted in 200 I was approximately $1.52.
The following assumptions were used for 2002: expected dividend yield of 0.00%, expected stock price volatility of
81.56%, weighted average risk free interest rate of 3.96% and an expected life of 0.5 years. The weighted ayerage fair
value per share of these purchase rights granted in 2002 was approximately $1.54. The fDllowing assumptions were
used for 2003: expected dividend yield of 0.00%, expected stock price volatility of 51.94%, weighted average risk free
interest rate of 3.21 % and an expected life of 0.5 years. The weighted average fair value per share of these purchase
rights granted in 2003 was approximately $0.89.
12. RELATED-PARTY TRANSACTIONS:
The Company has transactions in the normal course of business with certain affiliated companies. The
Company has a note receivable from an affiliate, EPV, of$1.8 million as of September 30, 2002 and 2003. Amounts due
from other related parties at September 30, 2002 md 2003 were $0.2 million and $0.1 million, respectively. In
connection with certain of the acquisitions, subsidiaries of the Company have entered into a number of related party
lease arrangements for facilities. These lease agreements are for periods generally ranging from three to five years.
Related party lease expense for the years ended September 30, 200 I, 2002 and 2003 were $4.3 million, $4.2 million and
$4.2 million, respectively. Future commitments with respect to these leases are included in the schedule of minimum
lease payments in note 8.
13. EMPLOYEE BENEFIT PLANS:
In November 1998, the Company established the Integrated Electrical Services, Inc. 40 I (k) Retirement
Savings Plan (the "401(k) Plan"). All IES employees are eligible to participate on the first day of the month
subsequent to completing sixty days of service and attaining age twenty-one. Participants become vested in
Company matching contributions following three years of service.
Certain subsidiaries of the Company do not participate in the 401(k) Plan, but instead provide various
defined contribution savings plans for their employees (the "Plans"). The Plans cover substantially all full-time
employees of such subsidiaries. Participants vest at varying rates ranging from full vesting upon participation to
those that provide for vesting to begin after three years of service and are fully vested after eight years. Certain
plans provide for a deferral option that allows employees to elect to contribute a portion of their pay into the plan and
provide for a discretionary profit sharing contribution by the individual subsidiary. Generally the subsidiaries match
a portion of the amount deferred by participating employees. Contributions for the profit sharing portion of the Plans
are generally at the discretion of the individual subsidiary. The aggregate contributions by the Company to the
401(k) Plan and the Plans were $3.4 million, $3.0 million and $3.0 million for the years ended September 30,2001,2002
and 2003, respectively.
65
14. COMMITMENTS AND CONTINGENCIES:
The Company and its subsidiaries are involved in various legal proceedings that have arisen in the ordinary
course of business. While it is not possible to predict the outcome of such proceedings with certainty and it is
possible that the results of legal proceedings may materially adversely affect us, in the opinion of the Company, all
such proceedings are either adequately covered by insurance or, if not so covered, should not ultimately result in
any liability which would have a material adverse effect on the financial position, liquidity or results of operations of
the Company. The Company expenses routine legal costs related to such proceedings as incurred.
Some of the Company's customers require the Company to post letters of credit as a means of guaranteeing
performance under its contracts and ensuring payment by the Company to subcontractors and vendors. If the
customer has reasonable cause to effect payment under a letter of credit, the Company would be required to
reimburse its creditor for the letter of credit. Depending on the circumstances surrounding a reimbursement to its
creditor, the Company may have a charge to earnings in that period. To date the Company has not had a situation
where a customer has had reasonable cause to effect payment under a letter of credit. At September 30, 2003, $1.7
million of the Company's outstanding letters of credit were to collateralize its customers.
Some of the underwriters of the Company's casualty insurance progmm require it to post letters of credit as
collateral. This is common in the insurance industry. To date the Company has not had a situation where an
underwriter has had reasonable cause to effect payment under a letter of credit. At September 30, 2003, $25.7 million
of the Company's outstanding letters of credit were to collateralize its insurance program.
Many of the Company's customers require us to post performance and payment bonds issued by a surety.
Those bonds guarantee the customer that the Company will perform under the terms of a contract and that it will pay
its subcontractors and vendors. In the event that the Company fails to perform under a contract or pay
subcontractors and vendors, the customer may demand the surety to payor perform under the Company's bond.
The Company's relationship with its sureties is such that it will indemnify the sureties for any expenses they incur in
connection with any of the bonds they issues on the Company's behalf. To date, the Company has not incurred
significant expenses to indemnify its sureties for expenses they incurred on the Company's behalf. As of September
30,2003, the Company's cost to complete projects covered by surety bonds was approximately $227.9 million.
The Company has committed to invest up to $5.0 million in EnerTech Capital Partners II L.P. ("EnerTech").
EnerTech is a private equity firm specializing in investment opportunities emerging from the deregulation and
resulting convergence of the energy, utility and telecommunications industries. Through September 30, 2003, the
Company had invested $2.7 million under its commitment to EnerTech.
At September 30, 2003, the Company had reserves of $26.1 million recorded in other noncurrent liabilities for
tax positions adopted that a taxing authority may yiew differently. The Company believes these reserves are
adequate in the event the positions are not ultimately upheld. The timing of the payments of these reserves is not
currently known and would be based on the outcome ofa possible review by a taxing authority.
66
15. QUARTERLY RESULTS OF OPERATIONS (Unaudited):
Quarterly financial information for the years ended September 30, 2002 and 2003 are summarized as follows
(in thousands, except per share data):
Fiscal Year Ended Seotember 30. 2002
First Second Third Fourth
Ouarter Ouarter Ouerter Ouarter
Revenues .................. .......... ....... .................. ........ .... $ 375,179 $ 356,481 $ 374,819 $ 368,951
Gross profit ............................................ ... ........ ....... $ 57;2.29 $ 54,701 $ 58,491 $ 51,165
Net income before cumulative effect of change
in accounting principle .......................................... $ (1,813) $ 2,066 $ 7,477 $ 2;2.03
Cumulative effect of change in accounting
principle .................................................... ... ............ $ (283,284) $ $ $
Net income.... .............................................. ............. $ (285,097) $ 2,066 $ 7,477 $ 2;2.03
Basic earnings (loss) per share:
Before cumulative effect of change in
accounting principle .............................. $ (0.04) $ 0.05 $ 0.19 $ 0.06
Cumulative effect of change in
accounting principle .............................. $ (7.13) $ 0.00 $ 0.00 $ 0.00
Basic earnings (loss) per share ............ $ (7.17) $ 0.05 $ 0.19 $ 0.06
Diluted earnings (loss) per share:
Before cumulative effect of change in
accounting principle .............................. $ (0.04) $ 0.05 $ 0.19 $ 0.06
Cumulative effect of change in
accounting principle .............................. $ (7.13) $ 0.00 $ 0.00 $ 0.00
Diluted earnings (loss) per share ......... $ (7.17) $ 0.05 $ 0.19 $ 0.06
Fiscal Year Ended Seotember 30. 2003
First Second Third Fourth
Ouarter Ouarter Ouarter Ouarter
Reyenues ... .................... ........................ .................. $ 348,577 $ 343,135 $ 375,339 $ 381,502
Gross profit... ... ......... ............ .... .................. ............. $ 51,356 $ 49,105 $ 53,409 $ 53,353
Net income. .................... ..... ......... .... ........................ $ 3,807 $ 3,369 $ 5,411 $ 7,843
Earnings per share:
Basic......................................................... $ 0.10 $ 0.09 $ 0.14 $ 0.20
Diluted........... ........................... ................ $ 0.10 $ 0.09 $ 0.14 $ 0.20
The sum of the individual quarterly earnings per share amounts may not agree with year-to-date earnings
per share as each period's computation is based on the weighted average number of shares outstanding during the
period.
67
Item 9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
As of September 30, 2003, an evaluation was performed under the supervision and with the participation of
the Company's management, including the CEO and CFO, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures. Based on that evaluation, the Company's management, including
the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of September
30, 2003 in providing reasonable assurances that material information required to be disclosed is included on a timely
basis in the reports it files with the Securities and Exchange Commission.
Since the date of the evaluation, there have been no significant changes in the Company's internal controls
or in other factors that could significantly affect these controls.
68
P ART III
Item 10.
Directors and Executive Officers of the Registrant
The information required by this item is incorporated by reference to the sections entitled "Management"
and Section 16(a) of the Securities Exchange Act of 1934, and "Directors" in the Company's definitive Proxy
Statement for its 2004 Annual Meeting of Stockholders (the "Proxy Statement") to be filed with the Securities and
Exchange Commission no later than January 28, 2004.
Itemll.
Executive Compensation
The information required by this item is incorporated by reference to the section entitled "Executive
Compensation" in the Proxy Statement. Nothing in this report shall be construed to incorporate by reference the
Board Compensation Committee Report on Executive Compensation or the Performance Graph, which are contained
in the Proxy Statement, but expressly not incorporated herein.
Item 12.
Security Ownership of Certain Beneficial Owners and Management
The information required by this item is incorporated by reference to the ~ction entitled "Security
Ownership of Certain Beneficial Owners and Management" in the Proxy Statement.
Item 13.
Certain Relationships and Related Transactions
The information required by this item is incorporated by reference to the section entitled "Certain
Relationships and Other Transactions" in the Proxy Statement.
Item 14.
Principal Accountant Fees and Services
The information required by this item is incorporated by reference to the section entitled "Audit Fees" in the
Proxy Statement.
69
, I
Item IS.
PART IV
Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a)
Financial Statements and Supplementary Data, Financial Statement Schedules and Exhibits.
See Index to Financial Statements under Item 8 of this report.
(b) Exhibits.
3.1 Amended and Restated Certificate of Incorporation as amended. (Incorporated by
reference to 3.1 to the Registration Statement on Form 8-1 (File No. 333-38715) of the
Company)
3.2 Bylaws, as amended (Incorporated by reference to 3.2 to the Registration Statement on
Form S-4 (File No. 333-65160) of the Company)
4.1 Specimen Common Stock Certificate. (Incorporated by reference to 4.1 to the Registration
Statement on Form S-I (File No. 333-38715) of the Company)
4.2 Indenture, dated January 28, 1999, by and among Integrated Electrical Services, Inc. and
the subsidiaries named therein and State Street Bank and Trust Company covering up to
$150,000,00093/8% Senior Subordinated Notes due 2009. (Incorporated by reference to
Exhibit 4.2 to Post-Effective Amendment No.3 to the Registration Statement on Form S-4
(File No. 333-50031) of the Company)
4.3 Form of Integrated Electrical Services, Inc. 9 3/8% Senior Subordinated Note due 2009
(Series A) and (Series B). (Included in Exhibit A to Exhibit 4.2 to Post-Effective
Amendment No.3 to the Registration Statement on Form S-4 (File No. 333-50031) of the
Company)
4.4 Indenture, dated May 29, 2001, by and among Integrated Electrical Services, Inc. and the
subsidiaries named therein and State Street Bank and Trust Company covering up to
$125,000,00093/8% Senior Subordinated Notes due 2009. (Incorporated by reference to
Exhibit 4.3 to Registration Statement on Form S-4 (File No. 333-65160) of the Company)
4.5 Form of Integrated Electrical Services, Inc. 9 3/8% Senior Subordinated Note due 2009
(Series C) and (Series D). (Included in Exhibit A to Exhibit 4.3 to Registration Statement on
Form S-4 (File No. 333-65160) of the Company)
*10.1 Form of Amended and Restated Employment Agreement between the COllJlany and H.
Roddy Allen entered into effect as of January 30, 2003.
*10.2 Form of Amended and restated Employment Agreement between the Company and
Richard L. China entered into effective as of August 12,2003.
*10.3 Form of Amended and restated Employment Agreement either currently in force or to be
entered into between the Company and direct reports to the Chief Executive Officer (other
than the Chief Operating Officer).
10.4 Form of Officer and Director Indemnification Agreement. (Incorporated by reference to
exhibit 10.2 to the Company's Annual report Dn Form IO-K for the year ended September
30, 2002)
70
10.5 Integrated Electrical Services, Inc. 1997 Stock Plan, as amended. (Incorporated by
reference to Exhibit 10.3 to the Company's Annual Report on Form 10-K for the year
ended September 30, 200 I)
10.6 Integrated Electrical Services, Inc. 1997 Directors' Stock Plan. (Incorporated by reference
to Exhibit lOA to the Company's Annual Report on Form 10-K for the year ended
September 30, 2000)
10.7 Credit Agreement dated May 22, 2001, among the Company, as borrower, the Financial
Institutions named therein, as banks, Credit Lyonnais and the Bank of Nova Scotia as
syndication agents, Toronto Dominion (Texas), Inc. as documentation agent and the
Chase Manhattan Bank, as administrative agent. (Incorporated by reference to Exhibit
10.12 to the Registration Statement on Form S-4 (File No. 333-65160) of the Company)
10.8 Amendment No.1 dated June 20, 2001, to the Credit Agreement dated May 22, 2001,
among the Company, as borrower, the Financial Institutions named therein, as banks,
Credit Lyonnais and the Bank of Nova Scotia as syndication agents, Toronto Dominion
(Texas), Inc. as documentation agent and the Chase Manhattan Bank, as administrative
agent. (Incorporated by reference to Exhibit 10.6 to the Company's Annual Report on
Form IO-K for the year ended September 30, 2001)
10.9 Amendment No.2 dated November 30, 2001, to the Credit Agreement dated May 22, 2001,
among the Company, as borrower, the Financial Institutions named therein, as banks,
Credit Lyonnais and the Bank of Nova Scotia as syndication agents, Toronto Dominion
(Texas), Inc. as documentation agent and the JP Morgan Chase Bank, as administrative
agent. (Incorporated by reference to Exhibit 10.7 to the Company's Annual Report on
Form IO-K for the year ended September 30,2001)
10.10 Integrated Electrical Services, Inc. 1999 Incentive Compensation Plan. (Incorporated by
reference to Exhibit 10.11 to the Company's Annual Report on Form 100K for the year
ended September 30, 2000)
10.11 Amendment No. 3 dated February 4, 2002, to the Credit Facility dated May 22, 2001,
among the Company, as borrower, the Financial Institutions named therein, as banks,
Credit Lyonnais and the Bank of Nova Scotia as syndication agents, Toronto Dominion
(Texas), Inc. as documentation agent and the JP Morgan Chase Bank, as administrative
agent. (Incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on
Form 10-Q for the period ended December 31, 2002)
10.12 Amendment No.4 dated July 12, 2002, to the Credit Agreement dated May 22, 2001,
among the Company, as borrower, the financial Institutions named therein, as banks,
Credit Lyonnais and the Bank of Nova Scotia as syndication agents, Toronto Dominion
(Texas), Inc. as documentation agent and the JP Morgan Chase Bank, as administrative
agent. (Incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on
Form lO-Q for the period ended June 30, 2002)
10.13 Amendment No.5 dated May 27, 2003, to the Credit Agreement dated May 22, 2001,
among the Company, as borrower, the financial Institutions named therein, as banks,
Credit Lyonnais and the Bank of Nova Scotia as syndication agents, Toronto Dominion
(Texas), Inc. as documentation agent and the JP Morgan Chase Bank, as administrative
agent. (incorporated by reference to Exhibit 10,1 to the Company's Current report on
Form 8-K filed May 28,2003)
>I< 12 Ratio of Earnings to Fixed Charges,
71
16.1 Letter of Arthur Andersen LLP regarding a change in certifying accountant.
(Incorporated by reference to Exhibit 16.1 to the Company's Current Report on Form 8-K
(File No. 011-13783) filed June 10,2002)
*21.1 Subsidiaries of the Registrant.
*23.1 Consent of Ernst & Young LLP
*24 Powers of Attorney
*31.1 Certification of Herbert R. Allen, Chief Executive Officer, pursuant to Section 302 of The
Sarbanes -Oxley Act of 2002.
*31.2 Certification of William W. Reynolds, Chief Financial Officer, pursuant to Section 302 of
The Sarbanes-Oxley Act of 2002.
*32.1 Certification of Herbert R. Allen, Chief Executive Officer, pursuant to Section 906 of The
Sarbanes-Oxley Act of 2002.
*32.2 Certification of William W. Reynolds, Chief Financial Officer, pursuant to Section 906 of
The Sarbanes-Oxley Act of2002.
(c) Reports on Form 8-K.
On August 20, 2003 the Company filed a Current Report on Form 8-K in connection with
its press release dated August 20, 2003.
On September 17,2003 the Company filed a Current Report on Form 8-K in connection
with its press release dated September 16,2003.
* Filed herewith.
72
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November
24, 2003.
INTEGRATED ELECfRlCAL SERVICES, INe.
By:
Isl Herbert R. Allen*
Herbert R. Allen
President and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by
the following persons on behalf of the Registrant and in the capacities indicated on November 24, 2003.
Silffiature
Title
Isl Herbert R. Allen*
Herbert R. Allen
President, Chief Executive Officer and Director
Is/ Ronald P. Badie*
Ronald P. Badie
Director
Is/ Richard China*
Richard China
Director
/sl Donald Paul Hodel*
Donald Paul Hodel
Director
/s/ Alan R. Sielbeck*
Alan R. Sielbeck
Director
Is/ C. Bvron Snvder*
C. Byron Snyder
Chairman of the Board of Directors
/s/ Donald C. Trauscht*
Donald C. Trauscht
Director
Isl James D. Woods*
James D. Woods
Director
Isl William W. Revnolds
William W. Reynolds
Chief Financial Officer
Isl David A. Miller*
David A. Miller
Chief Accounting Officer
*By:
Is/ William W. Revnolds
William W. Reynolds as
attorney in fact for each
of the persons indicated.
73
Exhibit 10.1
AMENDED AND RESTATED EMPLOYMF.NT AGREEMENT
This Amended and Restated Employment Agreement (the "Agreement") by and between Integrated
Electrical Services, Inc., a Delaware corporation (the "Company"), and H.R. Allen ("Executive") is hereby entered
into effective as ofthis 30th day of January, 2003 (the "Effective Date").
RECITALS
The following statements are true and correct:
WHEREAS, the Company and Executive previously entered into an employment agreement dated as of the
2200 day of May, 1998; and
WHEREAS, this agreement was amended by the First Amendment dated as of the 181h day of December,
2001; and
WHEREAS, the parties to the original agreement as amended, deem it desirable to further amend and restate
the agreement to provide additional provisions and amend existing provisions;
As of the Effective Date, IES and the other subsidiaries of IES (collectively, the "IES Companies") are
engaged primarily in the providing of electrical contracting services.
Executive is employed hereunder by the Company in a confidential relationship wherein Executive, in the
course of his employment with the Company, has and will continue to become familiar with and aware of information
as to the Company's customers and specific manner of doing business, including the processes, techniques and
trade secrets utilized by the Company, and future plans with respect thereto, all of which has been and will be
established and maintained at great expense to the Company. This information is a trade secret and constitutes the
valuable goodwill of the Company.
Therefore, in consideration of the mutual promises, terms, covenants and conditions set forth herein and the
performance of each, the agreement, as amended, is hereby amended and restated as follows:
AGREEMENTS
1. Emolovrnent and Duties. (a) The Company employs Executive as Chief Executive
Officer of the Company. As such, Executive shall have responsibilities, duties and authority reasonably
accorded to, expected of and consistent with Executive's position as Chief Executive Officer of the Company
Executive hereby accepts this employment upon the terms and conditions herein contained and, subject to
paragraph 1 (c), agrees to devote substantially all of his time, attention and efforts to promote and further the
business and interests of the Company and its affiliates.
(b )Executive shall faithfully adhere to, execute and fulfill all lawful policies established by the Company.
(c) Except as set forth on Schedule I(c) hereto, Executive shall not, during the term of his
employment hereunder, engage in any other business activity pursued for gain, profit or other pecuniary
advantage if such activity interferes in any material respect with Executive's duties and responsibilities
hereunder. The foregoing limitations shall not be construed as prohibiting Executive from making personal
investments in such form or manner as will neither require his services in the operation or affairs of the
companies or enterprises in which such investments are made nor violate the terms of paragraph 3 hereof.
(d) Executive shall be entitled to vacation in accordance with the policies of the Company.
2.
follows:
Comoensation. For all services rendered by Executive, the Company shall compensate Executive as
74
(a) Base Salary. The base salary payable to Executive during the term shall be $475,000 per
year, payable in accordance with the Company's payroll procedures for officers, but not less frequently than
monthly. Such base salary may be increased from time to time, at the discretion of the Board of Directors of
IES (the "IES Board"), in light of the Executive's position, responsibilities and performance.
(b) Executive Perquisites, Benefits and Other Compensation. Executive shall be entitled to
receive additional benefits and compensation from the Company in such form and to such extent as
specified below:
(i) Reimbursement for all business travel and other out-of-pocket expenses
(including those costs to maintain any professional certifications held or obtained by Executive)
reasonably incurred by Executive in the performance of his duties pursuant to this Agreement and
in accordance with the Company's policy for executives of the Company. All such expenses shall
be appropriately documented in reasonable detail by Executive upon submission of any request for
reimbursement, and in a format and manner consistent with the Company's expense reporting
policy.
(ii) Executive shall, subject to the satisfaction of any general eligible criteria, be
eligible to participate in all compensation and benefit plans and programs as are maintained from
time to time for executives of the Company.
(iii) The Company shall provide Executive with such other perquisites as may be
deemed appropriate for Executive by the IES Board.
3. Non-Competition Ai!Teement.
(a) Executive recognizes that the Company's willingness to enter into this Agreement is
based in material part on Executive's agreement to the provisions of this paragraph 3 and that Executive's
breach of the provisions of this paragraph 3 could materially damage the Company. Subject to the further
provisions of this Agreement, Executive will not, during the term of his employment with the Company, and
for a period oftwo years immediately following the termination of such for any reason whatsoever, either for
Cause or in the event the Executive terminates his employment without Good Reason, except as may be set
forth herein, directly or indirectly, for himself or on behalf of or in conjunction with any other person,
company, partnership, corporation or business of whatever nature:
(i) engage, as an officer, director, shareholder, owner, partner, joint venturer, or in a
managerial capacity, whether as an employee, independent contractor, consultant or advisor, or as
a sales representative, in any electrical contracting business in direct competition with any IES
Company within 100 miles of where any IES Company conducts business, including any territory
serviced by an IES Company during the term of Executive's employment (the "Territory");
(ii) call upon any person who is, at that time, an employee of an IES Company for the
purpose or with the intent of enticing such employee away from or out of the employ of the IES
Company;
(iii) call upon any person or entity which is, at that time, or which has been, within
one year prior to that time, a customer of an IES Company within the Territory for the purpose of
soliciting or seJling electrical contracting products or services in direct competition with the IES
Companies within the Territory; or
(iv) call upon any prospective acquisition candidate, on Executive's own behalf or on
behalf of any competitor, which candidate was, to Executive's knowledge after due inquiry, either
called upon by an IES Company or for which an IES Company made an acquisition analysis, for the
purpose of acquiring such entity.
(v) disclose customers, whether in existence or proposed. of the Company to any
75
person, firm, partnership, corporation or business for any reason or purpose whatsoever except to
the extent that the Company has in the past disclosed such information to the public for valid
business reasons.
Notwithstanding the above, the foregoing covenant shall not be deemed to prohibit Executive from
acquiring as an investment not more than 1 % of the capital stock of a competing business, whose stock is
traded on a national securities exc hange, the Nasdaq Stock Market or on an over-the-counter or similar
market, unless the Board of Directors of the Company consents to such acquisition.
(b) Because of the difficulty of measuring economic losses to the Company and IES as a
result of a breach of the foregoing covenant, and because of the immediate and irreparable damage that
could be caused to the Company and IES for which they would have no other adequate remedy, Executive
agrees that foregoing covenant may be enforced by the Company, in the event of breach by him, by
injunctions and restraining orders. Executive further agrees to waive any requirement for the Company's
securing or posting of any bond in connection with such remedies.
(c) It is agreed by the parties that the foregoing covenants in this paragraph 3 impose a
reasonable restraint on Executive in light of the activities and business of the IES Companies on the date of
the execution of this Agreement and the current plans of the IES Companies; but it is also the intent of the
Company and Executive that such covenants be construed and enforced in accordance with the changing
activities, business and locations of the IES Companies throughout the term of this covenant, whether
before or after the date of termination of the employment of Executive, unless the Executive was conducting
such new business prior to any IES Company conducting such new business. For example, if, during the
term of this Agreement, an IES Company engages in new and different activities, enters a new business or
establishes new locations for its current activities or business in addition to or other than the activities or
business enumerated under the Recitals above or the locations currently established therefore, then
Executive will be precluded from soliciting the customers or employees of such new activities or business or
from such new location and from directly competing with such new business within 100 miles of its then-
established operating location(s) through the term of this covenant, unless the Executive was conducting
such new business prior to any IES Company conducting such new business.
(d) It is further agreed by the parties hereto that, in the event that Executive shall cease to be
employed hereunder and shall enter into a business or pursue other activities not in competition with the
electrical contracting aCtivities of the IES Companies or similar activities or business in locations the
operation of which, under such circumstances, does not violate clause (a)(i) of this paragraph 3, and in any
event such new business, activities or location are not in violation of this paragraph 3 or of Executive's
obligations under this paragraph 3, if any, Executive shall not be chargeable with a violation of this
paragraph 3 if the IES Companies shall thereafter enter the same, similar or a competitive (i) business, (ii)
course of activities or (iii) location, as applicable.
(e) The covenants in this paragraph 3 are severable and separate, and the unenforceability of
any specific covenant shall not affect the provisions of any other covenant. Moreover, in the event any
court of competent jurisdiction shall determine that the scope, time or territorial restrictions set forth are
unreasonable, then it is the intention of the parties that such restrictions be enforced to the fullest extent
which the court deems reasonable, and the Agreement shall thereby be reformed.
(t) All of the covenants in this paragraph 3 shall be construed as an agreement independent
of any other provision in this Agreement, and the existence of any claim or cause of action of Executive
against the Company or IES, whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by IES or the Company of such covenants. It is specifically agreed that the
period of two years (subject to the further provisions of this Agreement) following termination of
employment stated at the beginning of this paragraph 3, during which the agreements and covenants of
Executive made in this paragraph 3 shall be effective, shall be computed by excluding from such
computation any time during which Executive is in violation of any provision of this paragraph 3.
(g) The Company and the Stockholders hereby agree that this covenant is a material and
substantial part of this transaction.
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4. Term: Termination: RilZhts on Termination. The term of this Agreement shall begin on the Effective
Date and continue for three years (the "Initial Term") and, unless terminated sooner as herein provided,
shall continue on a year-to-year basis on the same terms and conditions contained herein in effect as of the
time of renewal (the "Extended Term"). This Agreement and Executive's employment may be terminated in
anyone of the following ways:
(a) Notice of Non-Renewal. This amended and restated agreement may be terminated by the
Company by serving notice of intent not to continue the agreement no later than ninety (90) days prior to
the expiration of the Initial or Extended Term. Not withstanding the foregoing, in the event a change of
control (as defined in Paragraph 18) occurs during either the Initial term or the Extended Term, this
agreement may not be terminated by the Company for a period of two (2) years following such change in
control.
(b) Death. The death of Executive shall immediately terminate this Agreement with no
severance compensation due to Executive's estate.
(c) Disability. If, as a result of incapacity due to physical or mental illness or injury,
Executive shall have been absent from his full-time duties hereunder for four consecutive months, then 30
days after receiving written notice (which notice may occur before or after the end of such four-month
period, but which shall not be effective earlier than the last day of such four-month period), the Company
may terminate Executive's employment hereunder, provided that Executive is unable to resume his full-time
duties at the conclusion of such notice period. Also, Executive may terminate his employment hereunder if
his health should become impaired to an extent bat makes the continued performance of his duties
hereunder hazardous to his physical or mental health, provided that Executive shall have furnished the
Company with a written statement from a doctor reasonably acceptable to the Company to such effect and
provided, further, that, at the Company's request made within 30 days of the date of such written statement,
Executive shall submit to an examination by a doctor selected by the Company who is reasonably acceptable
to Executive or Executive's doctor and such second doctor shall have concurred in the conclusion of
Executive's doctor. In the event this Agreement is terminated as a result of Executive's disability, Executive
shall receive from the Company, in a lump sum payment due within 10 days of the effective date of
termination, the base salary at the rate then in effect (i) during the Initial Term, for whatever time period, if
any, is remaining under the Initial Term, provided that such period shall not be less than one year, and (ii)
during the Extended Term, equivalent to one year of base salary.
(d) Cause. The Company may terminate this Agreement and Executive's employment 10 days
after written notice to Executive for "Cause", which shall be: (1) Executive's willful, material and irreparable
breach of this Agreement (which remains uncured 5 days after delivery of written notice); (2) Executive's
gross negligence in the performance or intentional nonperformance (in either case continuing for 10 days
after receipt of written notice of need to cure) of any of Executive's material duties and responsibilities
hereunder; (3) Executive's dishonesty or fraud with respect to the business, reputation or affairs of the
Company or IES which materially and adversely affects the Company or IES (monetarily or otherwise); (4)
Executive's conviction of a felony crime or crime involving moral turpitude; (5) Executive's drug or alcohol
abuse; or (6) Executive's violation of Company policy (which remains uncured or continues 5 days after
delivery of written notice). In the event of a termination for Cause, Executive shall have no right to any
severance compensation.
(e) Without Cause. Executive may, without Good Reason (as hereinafter defined) terminate
this Agreement and Executive's employment, effective 30 days after written notice is provided to the
Company. Executive may be terminated without Cause by the Company during either the Initial Term or
Extended Term. Should Executive be terminated by the Company without Cause or should Executive
terminate with Good Reason during the Initial Term or Extended Term, Executive shall receive from the
Company, in a lump sum payment due on the effective date of termination, the base salary at the rate then in
effect for whatever time period is remaining under the Initial Term or the Extended Term, as applicable, or for
one year, whichever amount is greater. Further, any termination without Cause by the Company or by
Executive for Good Reason shall operate to eliminate the period set forth in paragraph 3(a) and during which
77
the terms of paragraph 3 apply. If Executive resigns or otherwise terminates his employment without Good
Reason, rather than the Company terminating his employment pursuant to this paragraph 4( d), Executive
shall receive no severance compensation.
Executive shall have "Good Reason" to terminate his employment hereunder upon the occurrence
of any of the following events, unless such event is agreed to in writing by Executive: (a) Executive is
demoted by means of a material reduction in authority, responsibilities or duties to a position ofless stature
or importance within the Company than the position described in Section 1 hereof; (b) Executive's annual
base salary as then in effect is reduced; or (c) the relocation of the Company's principal executive offices to
a location outside the greater Houston, Texas area.
If termination of Executive's employment arises out of the Company's failure to pay Executive on a timely
basis the amounts to which he is entitled under this Agreement or as a result of any other breach of this Agreement
by the Company, as determined by a court of competent jurisdiction or pursuant to the provisions of paragraph 18
below, the Company shall pay all amounts and damages to which Executive may be entitled as a result of such
breach, including interest thereon and all reasonable legal fees and expenses and other costs incurred by Executive to
enforce his rights hereunder. Further, none of the provisions of paragraph 3 shall apply in the event this Agreement
is terminated as a result of a breach by the Company.
Upon termination of this Agreement for any reason provided above, in addition to the above payments, if
any, Executive shall be entitled to receive all compensation earned and all benefits and reimbursements due through
the effective date of termination, paid to Executive in a lump sum on the effective date. All other rights and
obligations of the Company and Executive under this Agreement shall cease as of the effective date of termination,
except that the Executive's obligations under paragraphs 3, 5, 6, 7, and 8 herein shall survive such termination in
accordance with their terms.
5. Return of ComDanv ProDerty. All records, designs, patents, business plans, financial statements,
manuals, memoranda, lists and other property delivered to or compiled by Executive by or on behalf of the Company,
IES or any IES Companies or their representatives, vendors or customers which pertain to the business of the
Company or IES or any IES Companies shall be and remain the property of the Company or IES or the IES Company,
as the case may be, and be subject at all times to their discretion and control. Likewise, all correspondence, reports,
records, charts, advertising materials and other similar data pertaining to the business, activities or future plans of the
Company or IES or the IES Company which is collected by Executive shall be delivered promptly to the Company
without request by it upon termination of Executive's employment.
6. Inventions. Executive shall disclose promptly to the Company any and all significant conceptions
and ideas for inventions, improvements and valuable discoveries, whether patentable or not, which are conceived or
made by Executive, solely or jointly with another, during the period of employment or within one year thereafter, if
conceived during employment, and which are directly related to the business or activities of the Company and which
Executive conceives as a result of his employment by the Company. Executive hereby assigns and agrees to assign
all his interests therein to the Company or its nominee. Whenever requested to do so by the Company, Executive
shall execute any and all applications, assignments or other instruments that the Company shall deem necessary to
apply for and obtain Letters Patent of the United States or any foreign country or to otherwise protect the
Company's interest therein.
7. Trade Secrets. Executive agrees that he will not, during or after the term of this Agreement,
disclose the specific terms of the Company's or IES' relationships or agreements with their respective significant
vendors or customers or any other significant and material trade secret of the Company or IES, whether in existence
or proposed, to any person, firm, partnership, corporation or business for any reason or purpose whatsoever.
78
8. Confidentiality.
(a) Executive acknowledges and agrees that all Confidential Information (as defined below) of
the Company is confidential and a valuable, special and unique asset of the Company that gives the
Company an advantage over its actual and potential, current and future competitors. Executive further
acknowledges and agrees that Executive owes the Company a fiduciary duty to preserve and protect all
Confidential Information from unauthorized disclosure or mauthorized use, that certain Confidential
Information constitutes "trade secrets" under applicable laws and, that unauthorized disclosure or
unauthorized use of the Company's Confidential Information would irreparably injure the Company.
(b) Both during the term of Executive's employment and after the termination of Executive's
employment for any reason (including wrongful termination), Executive shall hold all Confidential
Information in strict confidence, and shall not use any Confidential Information except for the benefit of the
Company, in accordance with the duties assigned to Executive. Executive shall not, at any time (either
during or after the term of Executive's employment), disclose any Confidential Information to any person or
entity (except other employees of the Company who have a need to know the information in connection with
the performance of their employment duties), or copy, reproduce, modify, decompile or reverse engineer any
Confidential Information, or remove any Confidential Information from the Company's premises, without the
prior written consent of the President of the Company, or permit any other person to do so. Executive shall
take reasonable precautions to protect the physical security of all documents and other material containing
Confidential Information (regardless of the medium on which the Confidential Information is stored). This
Agreement applies to all Confidential Information, whether now known or later to become known to
Executive.
(c) Upon the termination of Executive's employment with the Company for any reason, and
upon request of the Company at any other time, Executive shall promptly surrender and deliver to the
Company all documents and other written material of any nature containing or pertaining to any Confidential
Information and shall not retain any such document or other material. Within five days of any such request,
Executive shall certify to the Company in writing that all such materials have been returned.
(d) As used in this Agreement, the term "Confidential Information" shall mean any
information or material known to or used by or for the Company (whether or not owned or developed by the
Company and whether or not developed by Executive) that is not generally known to persons in the
electrical oontracting business. Confidential information includes, but is not limited to, the following: all
trade secrets of the Company; all information that the Company has marked as confidential or has otherwise
described to Executive (either in writing or orally) as confidential; all nonpublic information concerning the
Company's products, services, prospective products or services, research, product designs, prices,
discounts, costs, marketing plans, marketing techniques, market studies, test data, customers, customer lists
and records, suppliers and contracts; all Company business records and plans; all Company personnel files;
all financial information of or concerning the Company; all information relating to operating system software,
application software, software and system methodology, hardware platforms, technical information,
inventions, computer programs and listings, source codes, object codes, copyrights and other intellectual
property; all technical specifications; any proprietary information belongin g to the Company; all computer
hardware or software manual; all training or instruction manuals; and all data and all computer system
passwords and user codes.
9. No Prior Agreements. Executive hereby represents and warrants to the Company that the
execution of this Agreement by Executive and his employment by the Company and the performance of his duties
hereunder will not violate or be a breach of any agreement with a former employer, client or any other person or
entity. Further, Executive agrees to indemnify the Company for any claim, including, but not limited to, reasonable
attorneys' fees and expenses of investigation, by any such third party that such third party may now have or may
hereafter come to have against the Company based upon or arising out of any non-competition agreement, invention
or secrecy agreement between Executive and such third party which was in existence as of the date of this
Agreement.
10. Assignment; Binding Effect. Executive understands that he has been selected for employment by
the Company on the basis of his personal qualifications, experience and skills. Executive agrees, therefore, that he
79
cannot assign all or any portion of his performance under this Agreement. Subject to the preceding two sentences
and the express provisions of paragraph 12 below, this Agreement shall be binding upon, inure to the benefit of and
be enforceable by the parties hereto and their respective heirs, legal representatives, successors and assigns.
11. Release. Notwithstanding anything in this Agreement to the contrary, Executive shall not be
entitled to receive any payments pursuant to this Agreement unless Executive has executed (and not revoked) a
general release of all claims Executive may have against the Company and its affiliates in a form of such release
reasonably acceptable to the Company.
12. Comolete Al!Teement. Executive has no oral representations, understandings or agreements with
the Company, IES or any of their officers, directors or representatives covering the same subject matter as this
Agreement. This written Agreement is the final, complete and exclusive statement and expression of the agreement
between the Company, IES and Executive and of all the terms of this Agreement, and it cannot be varied, contradicted
or supplemented by evidence of any prior or contemporaneous oral or written agreements. This written Agreement
may not be later modified except by a further writing signed by a duly authorized officer of the Company and
Executive, and no term of this Agreement may be waived except by writing signed by the party waiving the benefit of
such term. Without limiting the generality of the foregoing, either party's failure to insist on strict compliance with
this Agreement shall not be deemed a waiver thereof.
13.
follows:
~ Whenever any notice is required hereunder, it shall be given in writing addressed as
To the Company:
Law Department
Integrated Electrical Services, Inc.
1800 West Loop South, Suite SOO
Houston, Texas 77027
To Executive:
H.R. Allen
6 Bristol Circle
Charleston, SC 29407
Notice shall be deemed given and effective on the earlier of three days after the deposit in the U.S. mail of a writing
addressed as above and sent first class mail, certified, return receipt requested, or when actually received. Either
party may change the address for notice by notifying the other party of such change in accordance with this
paragraph 13.
14. Severability: Headings. If any portion of this Agreement is held invalid or inoperative, the other
portions of this Agreement shall be deemed valid and operative and, so far as is reasonable and possible, effect shall
be given to the intent manifested by the portion held invalid or inoperative. The paragraph headings herein are for
reference purposes only and are not intended in any way to describe, interpret, define or limit the extent or intent of
the Agreement or of any part hereof.
IS. Disoute Resolutions. Except with respect to injunctive relief as provided in paragraph 3(b), neither
party shall institute a proceeding in any court or administrative agency to resolve a dispute between the parties
before that party has sought to resolve the dispute through direct negotiation with the other party. If the dispute is
not resolved within two weeks after a demand for direct negotiation, the parties shall attempt to resolve the dispute
through mediation. If the parties do not promptly agree on a mediator, the parties shall request the Association of
Attorney Mediators in Harris County, Texas to appoint a mediator certified by the Supreme Court of Texas. If the
mediator is unable to facilitate a settlement of the dispute within a reasonable period of time, as determined by the
mediator, the mediator shall issue a written statement to the parties to that effect and any unresolved dispute or
controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted
before a panel of three arbitrators in Houston, Texas, in accordance with the rules of the American Arbitration
Association then in effect. The arbitrators shall have the authority to order back-pay, severance compensation,
vesting of options (or cash compensation in lieu of vesting of options), reimbursement of costs, including those
incurred to enforce this Agreement, and interest thereon in the event the arbitrators determine that Executive was
80
terminated without disability or Cause, as defined in paragraphs 4(b) and 4(c), respectively, or that the Company has
otherwise materially breached this Agreement. A decision by a majority of the arbitration panel shall be final and
binding. Judgment may be entered on the arbitrators' award in any court having jurisdiction. The costs and
expenses, including reasonable attorneys' fees, of the prevailing party in any dispute arising under this Agreement
will be promptly paid by the other party.
16. Governinl! Law. This Agreement shall in all respects be construed according to the laws of the
State of Texas without regard to its conflicts of law provisions.
17. Countemarts. This Agreement may be executed simultaneously in two or more counterparts, each
of which shall be deemed an original and all of which together shall constitute but one and the
same instrument.
18. Chanl!e in ControL If, on or within two years following the effective date of a Change in Control (as
defined below), the Company terminates Executive's employment other than for Cause or Executive terminates his
employment for Good Reason, or if Executive's employment with the Company is terminated by the Company within
three months before the effective date of a Change in Control and it is reasonably demonstrated that such
termination (i) was at the request of a third party that has taken steps reasonably calculated to effect a Change in
Control, or (ii) otherwise arose in connection with or anticipation of a Change in Control, then Executive shall receive
from Company, in a lump sum payment due on the effective date of termination, in lieu of any other payments
pursuant to this Agreement, (i) the equivalent of three years' base salary at the rate then in effect, plus three times
annual bonus at the then current percentage applicable to Executive determined at 100% payout, and (ii) three years'
coverage under the Company's medical benefit plan on a tax-neutral basis.
(a) A "Change in Control" shall be deemed to have occurred if:
(i) any person, entity or group (as such terms are used in
Sections 13( d) and 14( dX2) of the Securities Exchange Act of 1934, as
amended (the ')\ct"), other than the IES Companies or an employee
benefit plan of the IES Companies, acquires, directly or indirectly, the
beneficial ownership (as defined in Section 13(d) of the Act) of any
voting security of the Company and immediately after such acquisition
such person is, directly or indirectly, the beneficial owner of voting
securities representing 20% or more of the total voting power of all of
the then outstanding voting securities of the Company entitled to vote
generally in the election of directors;
(ii) upon the first purchase of the Company's common
stock pursuant to a tender or exchange offer (other than a tender or
exchange offer made by the Company);
(iii) the stockholders of the Company shall approve a
merger, consolidation, recapitalization or reorganization of the
Company, or a reverse stock split of outstanding voting securities, or
consummation of any such transaction if stockholder approval is not
obtained, other than any such transaction which would result in at least
75% of the total voting power represented by the voting securities of
the surviving entity outstanding immediately after such transaction
being beneficially owned by the holders of all of the outstanding voting
securities of the Company immediately prior to the transactions with the
voting power of each such continuing holder relative to other such
continuing holders not substantially altered in the transaction;
(iv) the stockholders of the Company shall approve a plan
of complete liquidation or dissolution of the Corrpany or an agreement
for the sale or disposition by the Company of all or substantially all of
the Company's assets; or
81
(v) if, at any time during any period of two consecutive
years, individuals who at the beginning of such period constitute the
Board cease for any reason to constitute at least a majority thereof,
unless the election or nomination for the election by the Company's
stockholders of each new director was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the
beginning of the period.
(b) Notwithstanding anything in this Agreement to the contrary, a termination
pursuant to this paragraph shall operate to automatically waive in full the non-competition
restrictions imposed on Executive pursuant to paragraph 3(a).
(c) If it shall be finally determined that any payment made or
benefit provided to Executive in connection with a Change in Control of the
Company, whether or not made or provided pursuant to this Agreement, is
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended, or any successor thereto, the Company shall pay Executive
an amount of cash (the "Additional Amount") such that the net amount received
by Executive after paying all applicable taxes on such Additional Amount shall
be equal to the amount that Executive would have received if Section 4999 were
not applicable."
IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Agreement effective
for all purposes as of the date set forth above.
INTEGRATED ELECfRlCAL SERVICES, INC.
By:
Name:
Title:
EXECUI1VE
H. R. Allen
82
Exhibit 10.2
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This amended and restated Employment Agreement (the "Agreement") by and between Integrated Electrical
Services, Inc., a Delaware Corporation ("IES"). Primo Electric Company, a Delaware Corporation and wholly owned
subsidiary ofIES ("Primo") and Richard L. China ("Executive") is hereby entered into effective as of this _ day of
,2003.
RECITALS
Whereas, Executive and Primo have previously entered into an Employment Agreement (the "Original
Agreement") as of the 12th day of January, 1999; and
Whereas, the parties to the Original Agreement deem it desirable to amend and restate such Agreement in
its entirety and to include IES as a party to the Agreement; and
Whereas, as of the Effective Date, IES and the subsidiary companies of IES (collectively, the "IES
Companies") are engaged primarily in the providing of any electrical contracting, information technology principally
related to the electrical contracting or cabling industry, and related services business; and
Whereas, Executive is employed hereunder by IES in a confidential relationship wherein Executive, in the
course of his/her employment with IES, has and will continue to become familiar with and aware of information as to
IES's customers and specific manner of doing business, including the processes, techniques and trade secrets
utilized by IES, and future plans with respect thereto, all of which has been and will be established and maintained at
great expense to IES. This information is a trade secret and constitutes the valuable goodwill of IES.
Therefore, in consideration of the mutual promises, terms, covenants and conditions set forth herein and the
performance of each, the Original Agreement is hereby amended and restated in its entirety as follows:
AGREEMENTS
1. Emolovrnent and Duties.
(a) IES hereby employs Executive as Chief Operating Officer. As such, Executive shall have
responsibilities, duties and authority reasonably accorded to, expected of and consistent with Executive's
position. Executive hereby accepts this employment upon the terms and conditions herein and agrees to
devote substantially all of hislher time, attention and efforts to promote and further the business and
interests ofIES and its affiliates.
(b )Executive shall faithfully adhere to, execute and fulfill all lawful policies established by IES.
(c) Executive shall not, during the term of his /her employment hereunder, engage in any other
business activity pursued for gain, profit or other pecuniary advantage if such activity interferes in any
material respect with Executive's duties and responsibilities hereunder. The foregoing limitations shall not
be construed as prohibiting Executive from making personal investments in such form or manner as will
neither require hislher services in the operation or affairs of the companies or enterprises in which such
investments are made nor violate the terms of paragraph 3 hereof.
2. Comoensation. For all services rendered by Executive, IES shall compensate Executive as
follows:
(a) Base Salary. The base salary payable to Executive during the term shall be $30,833.33
monthly ($370,000 on an annualized basis), payable in accordance with rES' payroll procedures for officers,
but not less frequently than monthly. Such base salary may be increased from time to time, at the discretion
of the Board of Directors of IES (the "IES Board'"), in light of the Executive's position, responsibilities and
performance.
83
(b) Executive Perquisites, Benefits and Other Compensation. Executive shall be entitled to
receive additional benefits and compensation from IES in such form and to such extent as specified below:
(i) Reimbursement for all business travel and other out-of-pocket expenses
(including those costs to maintain any professional certifications held or obtained by Executive)
reasonably incurred by Executive in the performance of hislher duties pursuant to this Agreement
and in accordance with IES' policy for executives ofIES. All such expenses shall be appropriately
documented in reasonable detail by Executive upon submission of any request for reimbursement,
and in a format and manner consistent with IES' expense reporting policy.
(ii)Executive shall, subject to the satisfaction of any general eligibility criteria, be eligible
to participate in all compensation and
(iii) Provided Executive is the Chief Operating Officer of IES, he/she may receive an
incentive payment equal to a percentage ofhislher annualized base, as set forth in paragraph 2(a)
above, developed based on mutually agreeable goals, objectives and incremental performance of
the business unit for which Executive is directly responsible, all subject to approval of the
Compensation Committee ofthe Board of Directors. The actual payout of any incentive payment is
typically made in December of each year.
(iv) IES shall provide Executive with such other perquisites as may be deemed
appropriate for Executive by the IES Board.
3. Non-Competition Arp-eement.
(a) Executive recognizes that IES' willingness to enter into this Agreement is based in material part on
Executive's agreement to the provisions of this paragraph 3 and that Executive's breach of the provisions of this
paragraph 3 could materially damage IES. Subject to the further provisions of this Agreement, Executive will not,
during the term of hislher employment with IES, and for a period of two years immediately following the termination
of such for any reason whatsoever, either for Cause or in the event the Executive terminates hislher employment
without Good Reason, except as may be set forth herein, directly or indirectly, for himself/herself or on behalf of or in
conjunction with any other person, company, partnership, corporation or business of whatever nature:
(i) engage, as an officer, director, shareholder, owner, partner, joint venturer, or in a
managerial capacity, whether as an employee, independent contractor, consultant or advisor, or as
a sales representative, in any electrical contracting, information technology principally related to
the electrical contracting or cabling industry, and related services business in direct competition
with any IES Company within 100 miles of where any IES Company conducts business, including
any territory serviced by an IES Company during the term of Executive's employment (the
"Territory");
(ii) call upon any person who is, at that time, an employee of an IES Company for the
purpose or with the intent of enticing such employee away from or out of the employ of the IES
Company;
(iii) call upon any person or entity which is, at that time, or which has been, within
one year prior to that time, a customer of an IES Company within the Territory for the purpose of
soliciting or selling electrical contracting, information technology principally related to the electrical
contracting or cabling industry, and related products or services in direct competition with the IES
Companies within the Territory;
(iv) call upon any prospective acquisition candidate, on Executive's own behalf or on
behalf of any competitor, which candidate was, to Executive's knowledge after due inquiry, either
called upon by an IES Company or for which an IES Company made an acquisition analysis, for the
purpose of acquiring such entity; or
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(v) disclose customers, whether in existence or proposed, of IES to any person, firm,
partnership, corporation or business for any reason or purpose whatsoever except to the extent
that IES has in the past disclosed such information to the public for valid business reasons.
Notwithstanding the above, the foregoing covenant shall not be deemed to prohibit Executive from
acquiring as an investment not more than 1 % of the capital stock of a competing business, whose stock is
traded on a national securities exchange, the Nasdaq Stock Market or on an over-the-counter or similar
market, unless the Board of Directors ofIES consents to such acquisition.
(b) Because of the difficulty of measuring economic losses to IES as a result of a breach of
the foregoing covenant, and because of the immediate and irreparable damage that could be caused to IES
for which they VIOuld have no other adequate remedy, Executive agrees that foregoing covenant may be
enforced by IES, in the event of breach by him/her, by injunctions and restraining orders. Executive further
agrees to waive any requirement for IES' securing or posting 0 f any bond in connection with such remedies.
(c) It is agreed by the parties that the foregoing covenants in this paragraph 3 impose a
reasonable restraint on Executive in light of the activities and business of the IES Companies on the date of
the execution of this Agreement and the current plans of the IES Companies; but it is also the intent of IES
and Executive that such covenants be construed and enforced in accordance with the changing activities,
business and locations of the IES Companies throughout the term ofthis covenant, whether before or after
the date of termination of the employment of Executive, unless the Executive was conducting such new
business prior to any IES Company conducting such new business. For example, if, during the term of this
Agreement, an IES Company engages in new and different activities, enters a new business or establishes
new locations for its current activities or business in addition to or other than the activities or business
enumerated under the Recitals above orthe locations currently established therefore, then Executive will be
precluded from soliciting the customers or employees of such new activities or business or from such new
location and from directly competing with such new business within 100 miles of its then-established
operating location(s) through the term of this covenant, unless the Executive was conducting such new
business prior to any IES Company conducting such new business.
(d) It is further agreed by the parties hereto that, in the event that Executive shall cease to be
employed hereunder and shall enter into a business or pursue other activities not in competition with the
electrical contracting activities of the IES Companies or similar activities or business in locations the
operation of which, under such circumstances, does not violate clause (a)(i) of this paragraph 3, and in any
event such new business, activities or location are not in violation of this paragraph 3 or of Executive's
obligations under this paragraph 3, if any, Executive shall not be chargeable with a violation of this
paragraph 3 if the IES Companies shall thereafter enter the same, similar or a competitive (i) business, (ii)
course of activities or (iii) location, as applicable.
(e) The covenants in this paragraph 3 are severable and separate, and the unenforceability of
any specific covenant shall not affect the provisions of any other covenant. Moreover, in the event any
court of competent jurisdiction shall determine that the scope, time or territorial restrictions set forth are
unreasonable, then it is the intention of the parties that such restrictions be enforced to the fullest extent
which the court deems reasonable, and the Agreement shall thereby be reformed.
(t) All of the covenants in this paragraph 3 shall be construed as an agreement independent
of any other provision in this Agreement, and the existence of any claim or cause of action of Executive
against IES, whether predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by IES of such covenants. It is specifically agreed that the period of two years (subject to the
further provisions of this Agreement) following termination of employment stated at the beginning of this
paragraph 3, during which the agreements and covenants of Executive made in this paragraph 3 shall be
effective, shall be computed by excluding from such computation any time during which Executive is in
violation of any provision of this paragraph 3.
(g) IES and the Executive hereby agree that this covenant is a material and substantial part of
this transaction.
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4. Term: Termination: RilZhts on Termination. The term of this Agreement shall begin on the Effective
Date and continue for three years (the "Initial Term") and, unless terminated sooner 1Il herein provided, shall
continue on a year-to-year basis on the same terms and conditions contained herein in effect as of the time of renewal
(the "Extended Term"). This Agreement and Executive's employment may be terminated in anyone of the following
ways:
(a) Notice of Non-Renewal. This amended and restated agreement may be terminated by the
Company by serving notice of intent not to continue the agreement no later than ninety (90) days prior to
the expiration of the Initial or Extended Term. Notwithstanding the foregoing, in the event a change of
control (as defined in Paragraph 9) occurs during either the Initial Term or the Extended Term, this
Agreement may not be terminated by the Company for a period of two (2) years following such change in
control.
(b) Death. The death of Executive shall immediately terminate this Agreement with no
severance compensation due to Executive's estate.
(c) Disability. If, as a result of incapacity due to physical or mental illness or injury,
Executive shall have been absent from hislher full-time duties hereunder for four consecutive months, then
30 days after receiving written notice (which notice may occur before or after the end of such four-month
period, but which shall not be effective earlier than the hst day of such four-month period), IES may
terminate Executive's employment hereunder, provided that Executive is unable to resume hislher full-time
duties at the conclusion of such notice period. Also, Executive may terminate hislher employment
hereunder if hislher health should become impaired to an extent that makes the continued performance of
hislher duties hereunder hazardous to hislher physical or mental health, provided that Executive shall have
furnished IES with a written staternent from a doctor reasonably acceptable to IES to such effect and
provided, further, that, at IES' request made within 30 days of the date of such written statement, Executive
shall submit to an examination by a doctor selected by IES who is reasonably acceptable to Executive or
Executive's doctor and such second doctor shall have concurred in the conclusion of Executive's doctor. In
the event this Agreement is terminated as a result of Executive's disability, Executive shall receive from IES,
in a lump sum payment due within 10 days of the effective date of termination, six months of base salary at
the rate then in effect.
(d) Cause. IES may terminate this Agreement and Executive's employment 10 days after
written notice to Executive for "Cause", which shall be: (1) Fxecutive's breach of this Agreement; (2)
Executive's gross negligence in the performance or intentional nonperformance of any of Executive's duties
and responsibilities hereunder; (3) Executive's dishonesty or fraud with respect to the business, reputation
or affairs of IES; (4) Executive's conviction of a felony crime or crime involving moral turpitude;
(5) Executive's violation of Company policy; or (6) Executive's drug or alcohol abuse. In the event of a
termination for Cause, Executive shall have no right to any severance compensation.
(e) Without Cause. Executive may be terminated without Cause by IES during either the
Initial Term or Extended Term. Should Executive be terminated by IES without Cause during the Initial Term
or the Extended Term, Executive shall receive from IES, in a lump sum payment due on the effective date of
termination, the base salary at the rate then in effect for one year (severance compensation). Further, any
termination without Cause by IES shall operate to shorten the period set forth in paragraph 3(a) and during
which the terms of paragraph 3 apply to one year from the date of termination of employment.
(f) Good Reason. Executive may voluntarily terminate his/her employment for Good Reason
(as hereinafter defined), effective 14 days after written notice is provided to IES. Should Executive terminate
his/her employment for Good Reason during the Initial Term or the Extended Term, Executive shall receive
from IES, in a lump sum payment due on the effective date of termi nation, the base salary at the rate then in
effect for one year (severance compensation). Further, any termination by Executive for Good Reason shall
operate to shorten the period set forth in paragraph 3(a) and during which the terms of paragraph 3 apply to
one year from the date of termination of employment. Otherwise, Executive may voluntarily terminate his/her
employment without Good Reason, effective 30 days after written notice is provided to IES. If Executive
resigns or otherwise terminates his/her employment without Good Reason, Executive shall have no right to
any severance compensation.
86
Executive shall have "Good Reason" to terminate his/her employment hereunder upon the
occurrence of any of the following events, unless such event is agreed to in writing by Executive: (a)
Executive's annual base salary as then in effect is reduced; (b) Execut:ve is demoted by means ofa material
reduction in authority, responsibilities or duties to a position of less stature or importance within IES than
the position described in Section 1 hereof; or (c) the relocation of the Company's principal executive offices
to a location outside the greater Houston, Texas area or the Company's requiring Executive to relocate
anywhere other than the Company's principal executive offices.
5. Return of Comoanv Prooertv. All records, designs, patents, business plans, financial statements,
manuals, memoranda, lists and other property delivered to or compiled by Executive by or on behalf of IES or any IES
Companies or their representatives, vendors or customers which pertain to the business of IES or any IES Companies
shall be and remain the property ofIES or the IES Company, as the case may be, and be subject at all times to their
discretion and control. Likewise, all correspondence, reports, records, charts, advertising materials and other similar
data pertaining to the business, activities or future plans of IES or the IES Company which is collected by Executive
shall be delivered promptly to IES without request by it upon termination of Executive's employment.
6. Inventions. Executive shall disclose promptly to IES any and all significant conceptions and ideas
for inventions, improvements and valuable discoveries, whether patentable or not, which are conceived or made by
Executive, solely or jointly with another, during the period of employment or within one year thereafter, if conceived
during employment, and which are directly related to the business or activities of IES and which Executive conceives
as a result of his/her employment by IES. Executive hereby assigns and agrees to assign all his/her interests therein
to IES or its nominee. Whenever requested to do so by IES, Executive shall execute any and all applications,
assignments or other instruments that IES shall deem necessary to apply for and obtain Letters Patent of the United
States or any foreign country or to otherwise protect IES' interest therein.
7. Trade Secrets. Executive agrees that he/she will not, during or after the term of this Agreement,
dis close the specific terms of IES' relationships or agreements with their respective significant vendors or customers
or any other significant and material trade secret of IES, whether in existence or proposed, to any person, firm,
partnership, corporation or business for any reason or purpose whatsoever.
8. Confidentialitv.
(a) Executive acknowledges and agrees that all Confidential Information (as defined below) of
IES is confidential and a valuable, special and unique asset of IES that gives IES an advantage over its
actual and potential, current and future competitors. Executive further acknowledges and agrees that
Executive owes IES a fiduciary duty to preserve and protect all Confidential Information from unauthorized
disclosure or unauthorized use, that certain Confidential Information constitutes "trade secrets" under
applicable laws and, that unauthorized disclosure or unauthorized use of IES' Confidential Information
would irreparably injure IES.
(b) Both during the term of Executive's employment and after the termination of Executive's
employment for any reason (including wrongful termination), Executive shall hold all Confidential
Information in strict confidence, and shall not use any Confidential Information except for the benefit of IES,
in accordance with the duties assigned to Executive. Executive shall not, at any time (either during or after
the term of Executive's employment), disclose any Confidential Information to any person or entity (except
other employees of IES who have a need to know the information in connection with the performance of
their employment duties), or copy, reproduce, modify, decompile or reverse engineer any Confidential
Information, or remove any Confidential Information from IES' premises, without the prior written consent of
the President of IES, or permit any other person to do so. Executive shall take reasonable precautions to
protect the physical security of all documents and other material containing Confidential Information
(regardless of the medium on which the Confidential Information is stored). This Agreement applies to all
Confidential Information, whether now known or later to become known to Executive.
(c) Upon the termination of Executive's employment with IES for any reason, and upon
request of IES at any other time, Executive shall promptly surrender and deliver to IES all documents and
other written material of any nature containing or pertaining to any Confidential Information and shall not
87
retain any such document or other material. Within five days of any such request, Executive shall certify to
IES in writing that all such materials have been returned.
{d)As used in this Agreement, the term "Confidential Information" shall mean any information or material
known to or used by or for IES (whether or not owned or developed by IES and whether or not developed by
Executive) that is not generally known to persons in the electrical contracting business. Confidential
information includes, but is not limited to, the following: all trade secrets of IES; all information that IES has
marked as confidential or has otherwise described to Executive (either in writing or orally) as confidential; all
nonpublic information concerning IES' products, services, prospective products or services, research, product
designs, prices, discounts, costs, marketing plans, marketing techniques, market studies, test data, customers,
customer lists and records, suppliers and contracts; all Company business records and plans; all Company
personnel files; all financial in formation of or concerning IES; all information relating to operating system
software, application software, software and system methodology, hardware platforms, technical information,
inventions, computer programs and listings, source codes, object codes, copyrights and other intellectual
property; all technical specifications; any proprietary information belonging to IES; all computer hardware or
software manual; all training or instruction manuals; and all data and all computer system passwords and user
codes.
9. ChanlZe in Control.
(a) Executive understands and acknowledges that the Company may be merged or
consolidated with or into another entity and that such entity shall automatically succeed to the rights and
obligations of the Cornpany hereunder or that the Company may undergo a Change in Control (as defined
below). In the event a Change in Control is initiated or occurs during the Initial Term or Extended Term, then
the provisions of this paragraph 9 shall be applicable.
(b) In the event of a Change in Control wherein the Company and Executive have not
received written notice at least ten business days prior to the date of the event giving rise to the Change in
Control from the successor to all or a substantial portion of the Company's business and/or assets that
such successor is willing as of the closing to assume and agree to perform the Company's obligations under
this Agreement in the same manner and to the same extent that the Company is hereby required to perform,
then Executive may, at Executive's sole discretion, elect to terminate Executive's employment on such
Change in Control by providing written notice to the Company prior to the closing of the transaction giving
rise to the Change in Control. In such case, Executive shall receive from Company, in a lump sum payment
due on the effective date of termination in lieu of any other payments pursuant to this agreement (i) the
equivalent to two and one half times a year's base salary at the rate then in effect, plus two and one half
times annual bonus at the then current percentage applicable to Executive determined at 100% payout and
(ii) two years' coverage under the Company's medical benefit plan on a tax neutral basis.
(c) If, on or within six months following the effective date of a Change in Control the
Company terminates Executive's employment other than for Cause or Executive terminates his employment
for Good Reason, or if Executive's employment with the Company is terminated by the Company within
thirty days before the effective date of a Change in Control and it is reasonably demonstrated that such
termination (i) was at the request of a third party that has taken steps reasonably calculated to effect a
Change in Control, or (ii) otherwise arose in connection with or anticipation of a Change in Control, then
Executive shall receive from Company, in a lump sum payment due on the effective date of termination,. in
lieu of any other payments pursuant to this agreement (i) the equivalent to two and one half times a year's
base salary at the rate then in effect, plus two and one half times annual bonus at the then current
percentage applicable to Executive determined at 100% payout and (ii) two years' coverage under the
Company's medical benefit plan on a tax neutral basis.
(d) A "Change in Control" shall be deemed to have occurred if:
(i) any person, entity or group (as such terms are used in Sections 13(d) and
l4(d)(2) of the Securities Exchange Act of 1934, as amended (the "Act"), other than the IES
Companies or an employee benefit plan of the IES Companies, acquires, directly or indirectly, the
beneficial ownership (as defined in Section l3(d) of the Act) of any voting security of the Company
88
and immediately after such acquisition such person is, directly or indirectly, the beneficial owner of
voting securities representing 20% or more of the total voting power of all of the then outstanding
voting securities of the Company entitled to vote generally in the election of directors;
(ii) upon the first purchase of the Company's common stock pursuant to a tender or
exchange offer (other than a tender or exchange offer made by the Company);
(iii) the stockholders of the Company shall approve a merger, consolidation,
recapitalization or reorganization of the Company, or a reverse stock split of outstanding voting
securities, or consummation of any such transaction if stockholder approval is not obtained, other
than any such transaction which would result in at least 75% of the total voting power represented
by the voting securities of the surviving entity outstanding immediately after such transaction
being beneficially owned by the holders of all of the outstanding voting securities of the Company
immediately prior to the transactions with the voting power of each such continuing holder relative
to other such continuing holders not substantially altered in the transaction;
(iv) the stockholders of the Company shall approve a plan of complete liquidation or
dissolution of the Company or an agreement for the sale or disposition by the Corrpany of all or
substantially all of the Company's assets; or
(v) if, at any time during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board cease for any reason to constitute at least a majority
thereof, unless the election or nomination for the election by the Company's stockholders of each
new director was approved by a vote of at least two-thirds of the directors then still in office who
were directors at the beginning of the period.
(e) Notwithstanding anything in this Agreement to the contrary, a termination pursuant to
paragraph 9(b), (c), or (d) shall operate to automatically waive in full the non-competition restrictions
imposed on Executive pursuant to paragraph 3(a).
(t) If it shall be finally determined that any payment made or benefit provided
to Executive in connection with a Change in Control of the Company, whether or not made or provided
pursuant to this Agreement, is subject to the excise tax imposed by Section 4999 of the Internal Revenue
Code of 1986, as amended, or any successor thereto, the Company shall pay Executive an amount of cash
(the "Additional Amount") such that the net amount received by Executive after paying all applicable taxes
on such Additional Amount shall be equal to the amount that Executive would have received if Section 4999
were not applicable.
10. Indemnification. In the event Executive is made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by the
Company against Executive), by reason of the fact that he is or was performing services under this Agreement, then
the Company shall indemnify Executive against all expenses (including attorneys' fees), judgments, fines and
amounts paid in settlement, as actually and reasonably incurred by Executive in connection therewith. In the event
that both Executive and the Company are made a party to the same third-party action, complaint, suit or proceeding,
the Company agrees to engage competent legal representation, and Executive agrees to use the same representation,
provided that if counsel selected by the Company shall have a conflict of interest that prevents such counsel from
representing Executive, Executive may engage separate counsel and the Company shall pay all reasonable attorneys'
fees and reasonable expenses of such separate counsel. Further, while Executive is expected at all times to use his
best efforts to faithfully discharge his duties under this Agreement, Executive cannot be held liable to the Company
for errors or omissions made in good faith where Executive has not exhibited gross, willful and wanton negligence
and misconduct nor performed criminal and fraudulent acts which materially damage the business of the Company.
II. Outolacement Services. Should Executive be terminated Without Cause or resign with Good
Reason, helshe shall be entitled to outplacement services commensurate with Executive's position for a period of one
year or until helshe obtains comparable employment, whichever is less.
12. No Prior Al1:reements. Executive hereby represents and warrants to IES that the execution of this
89
Agreement by Executive and his/her employment by IES and the performance of his/her duties hereunder will not
violate or be a breach of any agreement with a former employer, client or any other person or entity. Further,
Executive agrees to indemnify IES for any claim, including, but not limited to, reasonable attorneys' fees and
expenses of investigation, by any such third party that such third party may now have or may hereafter come to have
against IES based upon or arising out of any non-competition agreement, invention or secrecy agreement between
Executive and such third party which was in existence as of the date of this Agreement.
13. Assi~ment: Bindinl! Effect. Executive understands that he/she has been selected for employment
by IES on the basis of his/her personal qualifications, experience and skills. Executive agrees, therefore, that he/she
cannot assign all or any portion of his/her performance under this Agreement. Subject to the preceding two
sentences and the express provisions of paragraph 11 below, this Agreement shall be binding upon, inure to the
benefit of and be enforceable by the parties hereto and their respective heirs, legal representatives, successors and
assigns.
14. ~. Notwithstanding anything in this Agreement to the contrary, Executive shall not be
entitled to receive any payments pursuant to this Agreement unless Executive has executed (and not revoked) a
general release of all claims Executive may have against IES and its affiliates in a form of such release reasonably
acceptable to IES.
15. Comnlete Al!reement. Executive has no oral representations, understandings or agreements with
IES, IES or any of their officers, directors or representatives covering the same subject matter as this Agreement.
This written Agreement is the final, complete and exclusive statement and expression of the agreement between IES,
IES and Executive and of all the terms of this Agreement, and it cannot be varied, contradicted or supplemented by
evidence of any prior or contemporaneous oral or written agreements. This written Agreement may not be later
modified, except by a further writing signed by an officer of IES who must be duly authorized by IES' Board of
Directors and Executive, and no term of this Agreement may be waived except by writing signed by the party waiving
the benefit of such term. Without limiting the generality of the foregoing, either party's failure to insist on strict
compliance with this Agreement shall not be deemed a waiver thereof.
16.
follows:
~ Whenever any notice is required hereunder, it shall be given in writing addressed as
To IES:
Law Department
Integrated Electrical Services, Inc.
1800 West Loop South, Suite 500
Houston, Texas 77027
To Executive:
Richard L. China
1720 Love Point Drive
Stevensville, MD 21666
Notice shall be deemed given and effective on the earlier of three days after the deposit in the U.S. mail of a writing
addressed as above and sent first class mail, certified, return receipt requested, or when actually received. Either
party may change the address for notice by notifying the other party of such change in accordance with this
paragraph 16.
17. Severability: Headinl!s. If any portion of this Agreement is held invalid or inoperative, the other
portions of this Agreement shall be deemed valid and operative and, so far as is reasonable and possible, effect shall
be given to the intent manifested by the portion held invalid or inoperative. The paragraph headings herein are for
reference purposes only and are not intended in any way to describe, interpret, define or limit the extent or intent of
the Agreement or of any part hereof.
18. DisDute Resolutions. Except with respect to injunctive relief as provided in paragraph 3(b), neither
party shall institute a proceeding in any court or administrative agency to resolve a dispute between the parties
before that party has sought to resolve the dispute through direct negotiation with the other party. If the dispute is
90
not resolved within two weeks after a demand for direct negotiation, the parties shall attempt to resolve the dispute
through mediation. If the parties do not promptly agree on a mediator, the parties shall request the Association of
Attorney Mediators in Harris County, Texas to appoint a mediator certified by the Supreme Court of Texas. If the
mediator is unable to facilitate a settlement of the dispute within a reasonable period of time, as determined by the
mediator, the mediator shall issue a written statement to the parties to that effect and any unresolved dispute or
controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted
before a panel of three arbitrators in Houston, Texas, in accordance with the rules of the American Arbitration
Association then in effect. A decision by a majority of the arbitration panel shall be final and binding. Judgment may
be entered on the arbitrators' award in any court having jurisdiction. The costs and expenses, including reasonable
attorneys' fees, of the prevailing party in any dispute arising under this Agreement will be promptly paid by the other
party.
19. Governinl! Law. This Agreement shall in all respects be construed according to the laws of the
State of Texas without regard to its conflicts of law provisions.
20. Countemarts. This Agreement may be executed simultaneously in two or more counterparts, each
of which shall be deemed an original and all of which together shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective for all purposes as of the
Effective Date.
INTEGRATED ELECTRICAL SERVICES, INe.
By:
Name:
Title:
PRIMO ELECTRIC COMPANY
By:
Name:
Title:
EXECUTIVE
Richard L. China
91
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
Exhibit 10.3
This amended and restated Employment Agreement (the "Agreement") by and between Integrated Electrical
Services, Inc., a Delaware Corporation ("IES") and ("Executive") is hereby entered into effective as
of this _ day of ,2003.
RECITALS
Whereas, Executive and IES [or subsidiary company] have previously entered into an Employment
Agreement (the "Original Agreement") as of the _ day of , _; and
Whereas, the parties to the Original Agreement deem it desirable to amend and restate such Agreement in
its entirety [and to include IES as a party to the Agreement]; and
Whereas, as of the Effective Date, IES and the subsidiary companies of IES (collectively, the "IES
Companies") are engaged primarily in the providing of any electrical contracting, information technology principally
related to the electrical contracting or cabling industry, and related services business; and
Whereas, Executive is employed hereunder by IES in a confidential relationship wherein Executive, in the
course of hislher employment with IES, has and will continue to become familiar with and aware of information as to
IES's customers and specific manner of doing business, including the processes, techniques and trade secrets
utilized by IES, and future plans with respect thereto, all of which has been and will be established and maintained at
great expense to IES. This information is a trade secret and constitutes the valuable goodwill ofIES.
Therefore, in consideration ofthe mutual promises, terms, covenants and conditions set forth herein and the
performance of each, the Original Agreement is hereby amended and restated in its entirety as follows:
AGREEMENTS
1. Emolovrnent and Duties.
(a) IES hereby employs Executive as As such,
Executive shall have responsibilities, duties and authority reasonably accorded to, expected of and
consistent with Executive's position. Executive hereby accepts this employment upon the terms and
conditions herein and agrees to devote substantially all ofhislher time, attention and efforts to promote and
further the business and interests ofIES and its affiliates.
(b)Executive shall faithfully adhere to, execute and fulfill all lawful policies established by IES.
(c) Executive shall not, during the term ofhislher employment hereunder, engage in any other
business activity pursued for gain, profit or other pecuniary advantage if such activity interferes in any
material respect with Executive's duties and responsibilities hereunder. The foregoing limitations shall not
be construed as prohibiting Executive from making personal investments in such form or manner as will
neither require hislher services in the operation or affairs of the companies or enterprises in which such
investments are made nor violate the terms of paragraph 3 hereof.
follows:
2. Comoensation. For all services rendered by Executive, IES shall compensate Executive as
(a) Base Salary. The base salary payable to Executive during the term shall be
$ monthly ($ on an annualized basis), payable in accordance with IES' payroll
procedures for officers, but not less frequently than monthly. Such base salary may be increased from time
to time, at the dis cretion of the Board of Directors of IES (the "IES Board"), in light of the Executive's
position, responsibilities and performance.
(b) Executive Perquisites, Benefits and Other Compensation. Executive shall be entitled to
92
receive additional benefits and compensation from IES in such form and to such extent as specified below:
(i) Reimbursement for all business travel and other out-of-pocket expenses
(including those costs to maintain any professional certifications held or obtained by Executive)
reasonably incurred by Executive in the performance of hislher duties pursuant to this Agreement
and in accordance with IES' policy for executives ofIES. All such expenses shall be appropriately
documented in reasonable detail by Executive upon submission of any request for reimbursement,
and in a format and manner consistent with IES' expense reporting policy.
(ii) Executive shall, subject to
the satisfaction of any general eligibility criteria, be eligible to participate in all compensation and
(iii) Provided Executive is the of IES, he/she may
receive an incentive payment equal to a percentage of hislher annualized base, as set forth in
paragraph 2(a) above, developed based on mutually agreeable goals, objectives and incremental
performance of the business unit for which Executive is directly responsible, all subject to approval
of the Compensation Committee of the Board of Directors. The actual payout of any incentive
payment is typically made in December of each year.
(iv) IES shall provide Executive with such other perquisites as may be deemed
appropriate for Executive by the IES Board.
3. Non-Comoetition Ai!Teement.
(a) Executive recognizes that IES' willingness to enter into this Agreement is based in material part on
Executive's agreement to the provisions of this paragraph 3 and that Executive's breach of the provisions of this
paragraph 3 could materially damage IES. Subject to the further provisions of this Agreement, Executive will not,
during the term of hislher employment with IES, and for a period of two years immediately following the termination
of such for any reason whatsoever, either for Cause or in the event the Executive terminates hislher employment
without Good Reason, except as may be set forth herein, directly or indirectly, for himself/herself or on behalf of or in
conjunction with any other person, company, partnership, corporation or business of whatever nature:
(i) engage, as an officer, director, shareholder, owner, partner, joint venturer, or in a
managerial capacity, whether as an employee, independent contractor, consultant or advisor, or as
a sales representative, in any electrical contracting, information technology principally related to
the electrical contracting or cabling industry, lIld related services business in direct competition
with any IES Company within 100 miles of where any IES Company conducts business, including
any territory serviced by an IES Company during the term of Executive's employment (the
"Territory");
(ii) call upon any person who is, at that time, an employee of an IES Company for the
purpose or with the intent of enticing such employee away from or out of the employ of the IES
Company;
(iii) call upon any person or entity which is, at that time, or which has been, within
one year prior to that time, a customer of an lES Company within the Territory for the purpose of
soliciting or selling electrical contracting, information technology principally related to the electrical
contracting or cabling industry, and related products or services in direct competition with the IES
Companies within the Territory;
(iv) call upon any prospective acquisition candidate, on Executive's own behalf or on
behalf of any competitor, which candidate was, to Executive's knowledge after due inquiry, either
called upon by an IES Company or for which an IES Company made an acquisition analysis, for the
purpose of acquiring such entity; or
(v) disclose customers, whether in existence or proposed, of IES to any person, firm,
93
partnership, corporation or business for any reason or purpose whatsoever except to the extent
that IES has in the past disclosed such information to the public for valid business reasons.
Notwithstanding the above, the foregoing covenant shall not be deemed to prohibit Executive from
acquiring as an investment not more than 1 % of the capital stock of a competing business, whose stock is
traded on a national securities exchange, the Nasdaq Stock Market or on an over-the-counter or similar
market, unless the Board of Directors ofIES consents to such acquisition.
(b) Because of the difficulty of measuring economic losses to IES as a result of a breach of
the foregoing covenant, and because of the immediate and irreparable damage that could be caused to IES
for which they would have no other adequate remedy, Executive agrees that foregoing covenant may be
enforced by IES, in the event of breach by himlher, by injunctions and restraining orders. Executive further
agrees to waive any requirement for IES' securing or posting of any bond in connection with such remedies.
(c) It is agreed by the parties that the foregoing covenants in this paragraph 3 impose a
reasonable restraint on Executive in light of the activities and business of the IES Companies on the date of
the execution of this Agreement and the current plans of the IES Companies; but it is also the intent of IES
and Executive that such covenants be construed and enforced in accordance with the changing activities,
business and locations of the IES Companies throughout the term of this covenant, whether before or after
the date of termination of the employment of Executive, unless the Executive was conducting such new
business prior to any IES Company conducting such new business. For example, if, during the term of this
Agreement, an IES Company engages in new and different activities, enters a new business or establishes
new locations for its current activities or business in addition to or other than the activities or business
enumerated under the Recitals above or the locations currently established therefore, then Executive will be
precluded from soliciting the customers or employees of such new activities or business or from such new
location and from directly competing with such new business within 1>0 miles of its then~stablished
operating location(s) through the term of this covenant, unless the Executive was conducting such new
business prior to any IES Company conducting such new business.
(d) It is further agreed by the parties hereto that, in the event that Executive shall cease to be
employed hereunder and shall enter into a business or pursue other activities not in competition with the
electrical contracting activities of the IES Companies or similar activities or business in locations the
operation of which, under such circumstances, does not violate clause (a)(i) of this paragraph 3, and in any
event such new business, activities or location are not in violation of this paragraph 3 or of Executive's
obligations under this paragraph 3, if my, Executive shall not be chargeable with a violation of this
paragraph 3 if the IES Companies shall thereafter enter the same, similar or a competitive 0) business, (ii)
course of activities or (iii) location, as applicable.
(e) The covenants in this paragraph 3 are severable and separate, and the unenforceability of
any specific covenant shall not affect the provisions of any other covenant. Moreover, in the event any
court of competent jurisdiction shall determine that the scope, time or territorial restrictions set forth are
unreasonable, then it is the intention of the parties that such restrictions be enforced to the fullest extent
which the court deems reasonable, and the Agreement shall thereby be reformed.
(t) All of the covenants in this paragraph 3 shall be construed as an agreement independent
of any other provision in this Agreement, and the existence of any claim or cause of action of Executive
against IES, whether predicated on this Agreement or otherwise, shall not constitute a defense to the
enforcement by IES of such covenants. It is specifically agreed that the period of two years (subject to the
further provisions of this Agreement) following termination of employment stated at the beginning of this
paragraph 3, during which the agreements and covenants of Executive made in this paragraph 3 shall be
effective, shall be computed by excluding from such computation any time during which Executive is in
violation of any provision of this paragraph 3.
(g) IES and the Executive hereby agree that this covenant is a material and substantial part of
this transaction.
4. Term: Termination: Ril!hts on Termination. The term of this Agreement shall begin on the Effective
94
Date and continue for three years (the "Initial Term") and, unless terminated sooner as herein provided, shall
continue on a year-to-year basis on the same terms and conditions contained herein in effect as of the time of renewal
(the "Extended Term"). This Agreement and Executive's employment may be terminated in anyone of the following
ways:
(a) Notice of Non-Renewal. This amended and restated agreement may be terminated by the
Company by serving notice of intent not to continue the agreement no later than ninety (90) days prior to
the expiration of the Initial or Extended Term. Notwithstanding the foregoing, in the event a change of
control (as defined in Paragraph 9) occurs during either the Initial Term or the Extended Term, this
Agreement may no be terminated by the Company for a period of two (2) years following such change in
control.
(b) Death. The death of Executive shall immediately terminate this Agreement with no
severance compensation due to Executive's estate.
(c) Disability. If, as a result of incapacity due to physical or mental illness or injury,
Executive shall have been absent from hislher full-time duties hereunder for four consecutive months, then
30 days after receiving written notice (which notice may occur before or after the end of such four-month
period, but which shall not be effective earlier than the last day of such four-month period), IES may
terminate Executive's employment hereunder, provided that Executive is unable to resume hislher full-time
duties at the conclusion of such notice period. Also, Executive may terminate hislher employment
hereunder if hislher health should become impaired to an extent that makes the continued performance of
hislher duties hereunder hazardous to hislher physical or mental health, provided that Executive shall have
furnished IES with a written statement from a doctor reasonably acceptable to IES to such effect and
provided, further, that, at IES' request made within 30 days of the date of such written statement, Executive
shall submit to an examination by a doctor selected by IES who is reasonably acceptable to Executive or
Executive's doctor and such second doctor shall have concurred in the conclusion of Executive's doctor. In
the event this Agreement is terminated as a result of Executive's disability, Executive shall receive from IES,
in a lump sum payment due within 10 days of the effective date of termination, six months of base salary at
the rate then in effect.
(d) Cause. IES may terminate this Agreement and Executive's employment 10 days after
written notice to Executive for "Cause", which shall be: (1) Executive's breach of this Agreement; (2)
Executive's gross negligence in the performance or intentional nonperformance of any of Executive's duties
and responsibilities hereunder; (3) Executive's dishonesty or fraud with respect to the business, reputation
or affairs of IES; (4) Executive's conviction of a felony crime or crime involving moral turpitude;
(5) Executive's violation of Company policy; or (6) Executive's drug or alcohol abuse. In the event of a
termination for Cause, Executive shall have no right to any severance compensation.
(e) Without Cause. Executive may be terminated without Cause by IES during either the
Initial Term or Extended Term. Should Executive be terminated by IES without Cause during the Initial Term
or the Extended Term, Executive shall receive from IES, in a lump sum payment due on the effective date of
termination, the base salary at the rate then in effect for one year (severance compensation). Further, any
termination without Cause by IES shall operate to shorten the period set forth in paragraph 3(a) and during
which the terms of paragraph 3 apply to one year from the date of termination of employment.
(t) Good Reason. Executive may voluntarily terminate hislher employment for Good Reason
(as hereinafter defined), effective 14 days after written notice is provided to IES. Should Executive terminate
hislher employment for Good Reason during the Initial Term or the Extended Term, Executive shall receive
from IES, in a lump sum payment due on the effective date of termination, the base salary at the rate then in
effect for one year (severance compensation). Further, any termination by Executive for Good Reason shall
operate to shorten the period set forth in paragraph 3(a) and during which the terms of paragraph 3 apply to
one year from the date of termination of employment. Otherwise, Executive may voluntarily terminate hislher
employment without Good Reason, effective 30 days after written notice is provided to IES. If Executive
resigns or otherwise terminates his/her employment without Good Reason, Executive shall have no right'to
any severance compensation.
95
Executive shall have "Good Reason" to terminate hislher employment hereunder upon the
occurrence of any of the following events, unless such event is agreed to in writing by Executive: (a)
Executive's annual base salary as then in effect is reduced; (b) Executive is demoted by means ofa material
reduction in authority, responsibilities or duties to a position of less stature or importance within IES than
the position described in Section 1 hereof; or (c) the relocation of the Company's principal executive offices
to a location outside the greater Houston, Texas area or the Company's requiring Executive to relocate
anywhere other than the Company's principal executive offices.
5. Return of Companv Property. All records, designs, patents, business plans, financial statements,
manuals, memoranda, lists and other property delivered to or compiled by Executive by or on behalf of IES or any IES
Companies or their representatives, vendors or customers which pertain to the business of IES or any IES Companies
shall be and remain the property of IES or the IES Company, as the case may be, and be subject at all times to their
discretion and control. Likewis e, all correspondence, reports, records, charts, advertising materials and other similar
data pertaining to the business, activities or future plans of IES or the IES Company which is collected by Executive
shall be delivered promptly to IES without request by it upon termination of Executive's employment.
6. Inventions. Executive shall disclose promptly to IES any and all significant conceptions and ideas
for inventions, improvements and valuable discoveries, whether patentable or not, which are conceived or made by
Executive, solely or jointly with another, during the period of employment or within one year thereafter, if conceived
during employment, and which are directly related to the business or activities of IES and which Executive conceives
as a result ofhislher employment by IES. Executive hereby assigns and agrees to assign all hislher interests therein
to IES or its nominee. Whenever requested to do so by IES, Executive shall execute any and all applications,
assignments or other instruments that IES shall deem necessary to apply for and obtain Letters Patent of the United
States or any foreign country or to otherwise protect IES' interest therein.
7. Trade Secrets. Executive agrees that he/she will not, during or after the term of this Agreement,
disclose the specific terms of IES' relationships or agreements with their respective significant vendors or customers
or any other significant and material trade secret of IES, whether in existence or proposed, to any person, firm,
partnership, corporation or business for any reason or purpose whatsoever.
8. Confidentiality.
(a) Executive acknowledges and agrees that all Confidential Information (as defined below) of
IES is confidential and a valuable, special and unique asset of IES that gives IES an advantage over its
actual and potential, current and future competitors. Executive further acknowledges and agrees that
Executive owes IES a fiduciary duty to preserve and protect all Confidential Information from unauthorized
disclosure or unauthorized use, that certain Confidential Information constitutes "trade secrets" under
applicable laws and, that unauthorized disclosure or unauthorized use of IES' Confidential Information
would irreparably injure IES.
(b) Both during the term of Executive's employment and after the termination of Executive's
employment for any reason (including wrongful termination), Executive shall hold all Confidential
Information in strict confidence, and shall not use any Confidential Information except for the benefit ofIES,
in accordance with the duties assigned to Executive. Executive shall not, at any time (either during or after
the term of Executive's employment), disclose any Confidential Information to any person or entity (except
other employees of IES who have a need to know the information in connection with the performance of
their employment duties), or copy, reproduce, modify, decompile or reverse engineer any Confidential
Information, or remove any Confidential Information from IES' premises, without the prior written consent of
the President of IES, or permit any other person to do so. Executive shall take reasonable precautions to
protect the physical security of all documents and other material containing Confidential Information
(regardless of the medium on which the Confidential Information is stored). This Agreement applies to all
Confidential Information, whether now known or later to become known to Executive.
(c) Upon the termination of Executive's employment with IES for any reason, and upon
request of IES at any other time, Executive shall promptly surrender and deliver to IES all documents and
other written material of any nature containing or pertaining to any Confidential Information and shall not
retain any such document or other material. Within five days of any such request, Executive shall certify to
96
IES in writing that all such materials have been returned.
(d)As used in this Agreement, the term "Confidential Information" shall mean any information or material
known to or used by or for IES (whether or not owned or developed by IES and whether or not developed by
Executive) that is not generally known to persons in the electrical contracting business. Confidential
information includes, but is not limited to, the following: all trade secrets ofIES; all information that IES has
marked as confidential or has otherwise described to Executive (either in writing or orally) as confidential; all
nonpublic information concerning IES' products, services, prospective products or services, research, product
designs, prices, discounts, costs, marketing plans, marketing techniques, market studies, test data, customers,
customer lists and records, suppliers and contracts; all Company business records and plans; all Company
personnel files; all financial information of or concerning IES; all information relating to operating system
software, application software, software and system methodology, hardware platforms, technical information,
inventions, computer programs and listings, source codes, object codes, copyrights and other intellectual
property; all technical specifications; any proprietary information belonging to IES; all computer hardware or
software manual; all training or instruction manuals; and all data and all computer system passwords and user
codes.
9. Change in Control.
(a) Executive understands and acknowledges that the Company may be merged or
consolidated with or into another entity and that such entity shall automatically succeed to the rights and
obligations of the Company hereunder or that the Company may undergo a Change in Control (as defined
below). In the event a Change in Control is initiated or occurs during the Initial Term or Extended Term, then
the provisions of this paragraph 9 shall be applicable.
(b) In the event of a Change in Control wherein the Company and Executive have not
received written notice at least ten business days prior to the date of the event giving rise to the Change in
Control from the successor to all or a substantial portion of the Company's business and/or assets that
such successor is willing as of the closing to assume and agree to perform the Company's obligations under
this Agreement in the same manner and to the same extent that the Company is hereby required to perform,
then Executive may, at Executive's sole discretion, elect to terminate Executive's employment on such
Change in Control by providing written notice to the Company prior to the closing of the transaction giving
rise to the Change in Control. In such case, Executive shall receive from Company, in a lump sum payment
due on the effective date of termination the base salary at the rate then in effect for two years, one year's
bonus payment with all goals deemed met in full, and two years' coverage under the Company's medical
benefit plan on a tax neutral basis. .
(c) If, on or within six months following the effective date of a Change in Control the
Company terminates Executive's employment other than for Cause or Executive terminates his employment
for Good Reason, or if &ecutive's employment with the Company is terminated by the Company within
thirty days before the effective date of a Change in Control and it is reasonably demonstrated that such
termination (i) was at the request of a third party that has taken steps reasonably calculated to effect a
Change in Control, or (ii) otherwise arose in connection with or anticipation of a Change in Control, then
Executive shall receive from Company, in a lump sum payment due on the effective date of termination the
base salary at the rate then in effect for two years, one year's bonus payment with all goals met in full, and
two years' coverage under the Company's medical benefit plan on a tax neutral basis.
(d) A "Change in Control" shall be deemed to have occurred if:
(i) any person, entity or group (as such terms are used in Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Act"), other than the IES
Companies or an employee benefit plan of the IES Companies, acquires, directly or indirectly, the
beneficial ownership (as defined in Section 13(d) of the Act) of any voting security of the Company
and immediately after such acquisition such person is, directly or indirectly, the beneficial owner of
voting securities representing 20% or more of the total voting power of all of the then outstanding
voting securities of the Company entitled to vote generally in the election of directors;
(ii) upon the first purchase of the Company's common stock pursuant to a tender or
97
~~_.....
exchange offer (other than a tender or exchange offer made by the Company);
(iii) the stockholders of the Company shall approve a merger, consolidation,
recapitalization or reorganization of the Company, or a reverse stock split of outstanding voting
securities, or consummation of any such transaction if stockholder approval is not obtained, other
than any such transaction which would result in at least 75% of the total voting power represented
by the voting securities of the surviving entity outstanding immediately after such transaction
being beneficially owned by the holders of all of the outstanding voting securities of the Company
immediately prior to the transactions with the voting power of each such continuing holder relative
to other such continuing holders not substantially altered in the transaction;
(iv) the stockholders of the Company shall approve a plan of complete liquidation or
dissolution of the Company or an agreement for the sale or disposition by the Company of all or
substantially all of the Company's assets; or
(v) if, at any time during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board cease for any reason to constitute at least a majority
thereof, unless the election or nomination for the election by the Company's stockholders of each
new director was approved by a vote of at least two-thirds of the directors then still in office who
were directors at the beginning of the period.
(e) Notwithstanding anything in this Agreement to the contrary, a termination pursuant to
paragraph 9(b), (c), or (d) shall operate to automatically waive in full the non-competition restrictions
imposed on Executive pursuant to paragraph 3(a).
(f) If it shall be finally determined that any payment made or benefit provided
to Fxecutive in connection with a Change in Control of the Company, whether or not made or provided
pursuant to this Agreement, is subject to the excise tax imposed by Section 4999 of the Internal Revenue
Code of 1986, as amended, or any successor thereto, the Company shall pay Executive an amount of cash
(the "Additional Amount") such that the net amount received by Executive after paying all applicable taxes
on such Additional Amount shall be equal to the amount that Executive would have received if Section 4999
were not applicable.
10. Indemnification. In the event Executive is made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by the
Company against Executive), by reason of the fact that he is or was performing services under this Agreement, then
the Company shall indemnify Executive against all expenses (including attorneys' fees), judgments, fines and
amounts paid in settlement, as actually and reasonably incurred by Executive in connection therewith. In the event
that both Executive and the Company are made a party to the same third-party action, complaint, suit or proceeding,
the Company agrees to engage competent legal representation, and Executive agrees to use the same representation,
provided that if counsel selected by the Company shall have a conflict of interest that prevents such counsel from
representing Executive, Executive may engage separate counsel and the Company shall pay all reasonable attorneys'
fees and reasonable expenses of such separate counsel. Further, while Executive is expected at all times to use his
best efforts to faithfully discharge his duties under this Agreement, Executive cannot be held liable to the Company
for errors or omissions made in good faith where Executive has not exhibited gross, willful and wanton negligence
and misconduct nor performed criminal and fraudulent acts which materially damage the business of the Company.
11. Outolacement Services. Should Bcecutive be terminated Without Cause or resign with Good
Reason, helshe shall be entitled to outplacement services commensurate with Executive's position for a period of one
year or until he/she obtains comparable employment, whichever is less.
12. No Prior Agreements. Executive hereby represents and warrants to IES that the execution of this
Agreement by Executive and hislher employment by IES and the performance of hislher duties hereunder will not
violate or be a breach of any agreement with a former employer, client or any other person or entity. Further,
Executive agrees to indemnify IES for any claim, including, but not limited to, reasonable attorneys' fees and
expenses of investigation, by any such third party that such third party may now have or may hereafter come to have
against IES based upon or arising out of any non-competition agreement, invention or secrecy agreement between
98
Executive and such third party which was in existence as of the date of this Agreement.
13. Assil!nment: Bindinl! Effect. Executive understands that he/she has been selected for employment
by IES on the basis of hislher personal qualifications, experience and skills. Executive agrees, therefore, that he/she
cannot assign all or any portion of hislher performance under this Agreement. Subject to the preceding two
sentences and the express provisions of paragraph 11 below, this Agreement shall be binding upon, inure to the
benefit of and be enforceable by the parties hereto and their respective heirs, legal representatives, successors and
assigns.
14. Release. Notwithstanding anything in this Agreement to the contrary, Executive shall not be
entitled to receive any payments pursuant to this Agreement unless Executive has executed (and not revoked) a
general release of all claims Executive may have against IES and its affiliates in a form of such release reasonably
acceptable to IES.
15. Comolete A~eement. Executive has no oral representations, understandings or agreements with
IES, IES or any of their officers, directors or representatives covering the same subject matter as this Agreement.
This written Agreement is the final, complete and exclusive statement and expression of the agreement between IES,
IES and Executive and of all the terms of this Agreement, and it cannot be varied, contradicted or supplemented by
evidence of any prior or contemporaneous oral or written agreements. This written Agreement may not be later
modified, except by a further writing signed by an officer of IES who must be duly authorized by IES' Board of
Directors and Executive, and no term of this Agreement may be waived except by writing signed by the party waiving
the benefit of such term. Without limiting the generality of the foregoing, either party's failure to insist on strict
compliance with this Agreement shall not be deemed a waiver thereof.
16. ~ Whenever any notice is required hereunder, it shall be given in writing addressed as
follows:
To IES:
Law Department
Integrated Electrical Services, Inc.
1800 West Loop South, Suite 500
Houston, Texas 77027
To Executive:
Notice shall be deemed given and effective on the earlier of three days after the deposit in the U.S. mail of a writing
addressed as above and sent first class mail, certified, return receipt requested, or when actually received. Either
party may change the address for notice by notifying the other party of such change in accordance with this
paragraph 16.
17. Severability: Headinl!s. If any portion of this Agreement is held invalid or inoperative, the other
portions of this Agreement shall be deemed valid and operative and, so far as is reasonable and possible, effect shall
be given to the intent manifested by the portion held invalid or inoperative. The paragraph headings herein are for
reference purposes only and are not intended in any way to describe, interpret, define or limit the extent or intent of
the Agreement or of any part hereof.
18. Dispute Resolutions. Except with respect to injunctive relief as provided in paragraph 3(b), neither
party shall institute a proceeding in any court or administrative agency to resolve a dispute between the parties
before that party has sought to resolve the dispute through direct negotiation with the other party. If the dispute is
not resolved within two weeks after a demand for direct negotiation, the parties shall attempt to resolve the dispute
through mediation. If the parties do not promptly agree on a mediator, the parties shall request the Association of
Attorney Mediators in Harris County, Texas to appoint a mediator certified by the Supreme Court of Texas. If the
mediator is unable to facilitate a settlement of the dispute within a reasonable period of time, as determined by the
mediator, the mediator shall issue a written statement to the parties to that effect and any unresolved dispute or
99
controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted
before a panel of three arbitrators in Houston, Texas, in accordance with the rules of the American Arbitration
Association then in effect. A decision by a majority of the arbitration panel shall be final and binding. Judgment may
be entered on the arbitrators' award in any court having jurisdiction. The costs and expenses, including reasonable
attorneys' fees, of the prevailing party in any dispute arising under this Agreement will be promptly paid by the other
party.
19. Governin~ Law. This Agreement shall in all respects be construed according to the laws of the
State of Texas without regard to its conflicts oflaw provisions.
20. Counteroarts. This Agreement may be executed simultaneously in two or more counterparts, each
of which shall be deemed an original and all of which together shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective for all purposes as of the
Effective Date.
INTEGRATED ELECTRICAL SERVICES, INC.
By:
Name:
Title:
[Subsidiary Company if applicable]
By:
Name:
Title:
EXECUTIVE
Executive
100
INTEGRATED ELECfRlCAL SERVICES, INC., AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS OF DOLLARS)
Year Ended September 30.
1999 2000 2001 2002 2003
CONSOLIDATED
Earnings:
Income before income
taxes and cumulative
effect of change in
accounting principle ..... $ 83,455 $ 42,799 $ 54,381 $ 16,108 $ 28,609
Fixed charges....................... 14.772 25.925 29.631 30.006 28.945
$ 911227 $ hll724 $ Il4 012 $ 46114 $ 57 554
Fixed Charges:
Interest expense.................. $ 13,145 $ 23,230 $ 26,053 $ 26,702 $ 25,744
Portion of rental cost
representing interest.... 1.627 2.695 3.578 3.304 3201
$ 14772 $ 15925 $ 29hll $ 30 ()()(j $ 211945
Ratio of Earnings to
Fixed Charges ...................... hh 27 211 15 20
101
Exhibit 12
SUBSIDIARIES OF THE REGISfRANT
Subsidiary
State of Incorporation
1st Group Telecommunications, Inc.
Ace/Putzel Electric, Inc.
Aladdin-Ward Electric & Air, Inc.
Amber Electric, Inc.
Anderson & Wood Construction Co., Inc.
ARC Electric, Incorporated
B. Rice Electric LP
Bachofner Electric, Inc.
Bear Acquisition Corporation
Bexar Electric Company, Ltd.
Bexar Electric II LLC
Brink Electric Construction Co.
Britt Rice Electric, Inc.
Britt Rice Holdings II LLC
Britt Rice Holdings LLC
Britt Rice Management LLC
Bryant Electric Company, Inc.
BW Consolidated, Inc.
BW /BEC II LLC
BW/BEC, Inc.
BW/BEC, L.L.c.
Canova Electrical Contracting, Inc.
Carroll Holdings II LLC
Carroll Holdings LLC
Carroll Management LLC
Carroll Systems LP
Carroll Systems, Inc.
Charles P. Bagby Co., Inc.
Collier Electric Company, Inc.
Commercial Electrical Contractors, Inc.
Cross State Electric, Inc.
Cypress Electrical Contractors, Inc.
Daniel Electrical Contractors, Inc.
Daniel Electrical of Treasure Coast, Inc.
Daniel Integrated Technologies, Inc.
Davis Electrical Constructors, Inc.
Deleo Electric, Inc.
DKD Electric Company, Inc.
Delaware
Georgia
Florida
Florida
Delaware
Delaware
Texas
Delaware
Delaware
Texas
Arizona
South Dakota
Delaware
Delaware
Arizona
Arizona
North Carolina
Nevada
Arizona
Delaware
Nevada
Delaware
Delaware
Arizona
Arizona
Texas
Delaware
Alabama
Florida
Delaware
California
Delaware
Florida
Florida
Florida
South Carolina
Delaware
New Mexico
102
Exhibit 21.1
ElectroTech, Inc.
EMC Acquisition Corporation
Ernest P. Breaux Electrical, Inc.
Federal Communications Group, Inc.
Florida Industrial Electric, Inc.
General Partner, Inc.
Goss Electric Company, Inc.
H.R. Allen, Inc.
Hatfield Reynolds Electric Company
Haymaker Electric, Inc.
Holland Electrical Systems, Inc.
Houston Stafford Holdings LLC
Houston-Stafford Electric Holdings III, Inc.
Houston-Stafford Electrical Contractors, LP
Houston-Stafford Holdings II LLC
Houston-Stafford Management LLC
Howard Brothers Electric Co., Inc.
ICS Holdings LLC
ICS Integrated Communication Services LP
IES Communications, Inc.
IES Contractors Holdings LLC
IES Contractors Management LLC
IES Contractors, Inc.
IES ENC Management, Inc.
IES ENC, Inc.
IES Federal Contract Group, LP
IES Holdings II LLC
IES Holdings LLC
IES Management LP
IES Operations Group, Inc.
IES Properties Holdings II LLC
IES Properties Holdings, Inc.
IES Properties Management, Inc.
IES Properties, Inc.
IES Properties, LP
IES Reinsurance, Ltd.
IES Residential Group, Inc.
IES Specialty Lighting, Inc.
IES Ventures Inc.
Integrated Electrical Finance, Inc.
Intelligent Building Solutions, Inc.
J.W. Gray Electric Company, Inc.
J.W. Gray Electrical Contractors, LP
l.W. Gray Holdings II LLC
J.W. Gray Holdings, LLC
103
Nevada
Delaware
Delav.'are
Delaware
Florida
Alabama
Delaware
South Carolina
Arizona
Alabama
Delaware
Arizona
Delaware
Texas
Delaware
Arizona
Delaware
Arizona
Texas
Delaware
Arizona
Arizona
Delaware
Delaware
Delaware
Texas
Delaware
Arizona
Texas
Delaware
Arizona
Delaware
Delaware
Delaware
Texas
Bermuda
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Texas
Delaware
Arizona
J. W. Gray Management, LLC
Kay ton Electric, Inc.
Key Electrical Supply, Inc.
Linemen, Inc. dba California Communications
Mark Henderson, Incorporated
Menninga Electric, Inc.
Mid-States Electric Company, Inc.
Mills Electric LP
Mills Electric Holdings II LLC
Mills Electrical Contractors, Inc.
Mills Electrical Holdings, LLC
Mills Management LLC
Mitchell Electric Company, Inc.
M-S Systems, Inc.
Murray Electrical Contractors, Inc.
NBH Holding Co., Inc.
Neal Electric LP
Neal Electric Management LLC
New Technology Electrical Contractors, Inc.
Newcomb Electric Company, Inc.
Pan American Electric Company, Inc.
Pan American Electric, Inc.
Paulin Electric Company, Inc.
Pollock Electric, Inc.
Pollock Summit Electric, LP
Pollock Summit Holdings II LLC
Pollock Summit Holdings, Inc.
PrimeNet, Inc.
Primo Electric Company
Raines Electric Company
Raines Electric LP
Raines Holdings II LLC
Raines Holdings LLC
Raines Management LLC
Riviera Electric LLC
RKT Electric, Inc.
Rockwell Electric, Inc.
Rodgers Electric Company, Inc.
Ron's Electric, Inc., dba IES-North Plains
SEI Electrical Contractor, Inc.
Spectrol, Inc.
Summit Electric of Texas, Inc.
T &H Electrical Corporation
Tech Electric Co., Inc.
Tesla Power (Nevada) II LLC
104
Arizona
Nebraska
Texas
Delaware
Delaware
Delaware
Delaware
Texas
Delaware
Delaware
Arizona
Arizona
Arizona
Tennessee
Delaware
Delaware
Texas
Arizona
Delaware
Delaware
New Mexico
Tennessee
Delaware
Delaware
Texas
Delaware
Arizona
Delaware
Delaware
Delaware
Texas
Delaware
Arizona
Arizona
Delaware
Delaware
Delaware
Washington
Delaware
Florida
Delaware
Delaware
Delaware
Delaware
Delaware
Tesla Power (Nevada), Inc.
Tesla Power & Automation, LP
Tesla Power GP, Inc.
Tesla Power Properties, LP
Thomas Popp & Company
Valentine Electrical, Inc.
Wright Electrical Contracting, Inc.
105
Nevada
Texas
Delaware
Texas
Ohio
Delaware
Delaware
Exhibit 23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements (Forms S-8 and S-4 File Nos. 333..Q7113,
333-45447, 333-45449, 333-91041, 333-31608, 333-32624, 333-50031, 333-62636 and 333-68274) of Integrated Electrical
Services, Inc. of our report dated October 31, 2003, with respect to the consolidated financial statements of Integrated
Electrical Services, Inc. included in this Annual Report (Form lOoK) for the year ended September 30,2003.
ERNST & YOUNG LLP
Houston, Texas
November 24, 2003
106
Exhibit 24
Power of Attorney
Know all men by these presents that Herbert R. Allen constitutes and appoints William W. Reynolds and
Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full power of
substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the Annual
Report on Form IO-K of Integrated Electrical Services, Inc. for the fiscal year ended September 30, 2003, and any
amendments thereto and to file the same, and with all exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
November 24, 2003
Is/ Herbert R. Allen
Herbert R. Allen
107
Power of Attorney
Know all men by these presents that Ronald P. Badie constitutes and appoints Herbert R. Allen, William W.
Reynolds and Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full power
of substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the Annual
Report on Form IO-K of Integrated Electrical Services, Inc. for the fiscal year ended September 30, 2003, and any
amendments thereto and to file the same, and with all exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
November 24,2003
/s/ Ronald P. Badie
Ronald P. Badie
108
Power of Attorney
Know all men by these presents that Richard L. China constitutes and appoints Herbert R. Allen, William W.
Reynolds and Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full power
of substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the Annual
Report on Form 10-K of Integrated Electrical Services, Inc. for the fiscal year ended September 30, 2003, and any
amendrnents thereto and to file the same, and with all exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
November 24, 2003
/s/ Richard L. China
Richard L. China
109
Power of Attorney
Know all men by these presents that Donald P. Hodel constitutes and appoints Herbert R. Allen, William W.
Reynolds and Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full power
of substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the Annual
Report on Form 10-K of Integrated Electrical Services, Inc. for the fiscal year ended September 30,2003, and any
amendments thereto and to file the same, and with all exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
November 24, 2003
/s/ Donald P. Hodel
Donald P. Hodel
IlO
Power of Attorney
Know all men by these presents that David A. Miller constitutes and appoints Herbert R. Allen, William W.
Reynolds and Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full power
of substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the Annual
Report on Form lO-K of Integrated Electrical Services, Inc. for the fiscal year ended September 30, 2003, and any
amendments thereto and to file the same, and with all exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
November 24, 2003
Is/ David A. Miller
David A. Miller
111
Power of Attorney
Know all men by these presents that Alan R. Sielbeck constitutes and appoints Herbert R. Allen, William W.
Reynolds and Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full power
of substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the Annual
Report on Form IO-K of Integrated Electrical Services, Inc. for the fiscal year ended September 30, 2003, and any
amendments thereto and to file the same, and with all exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full IXlwer and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
November 24, 2003
/s/ Alan R. Sielbeck
Alan R. Sielbeck
112
Power of Attorney
Know all men by these presents that C. Byron Snyder constitutes and appoints Herbert R. Allen, William W.
Reynolds and Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full power
of substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the Annual
Report on Form IO-K of Integrated Electrical Services, Inc. for the fiscal year ended September 30, 2003, and any
amendments thereto and to file the same, and with all exhibits thereto and other documents in connection therewith,
with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and
authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
NoveDlber24,2003
113
Isl C Bvron Snyder
C. Byron Snyder
Power of Attorney
Know all men by these presents that Donald C. Trauscht constitutes and appoints Herbert R. Allen, William
W. Reynolds and Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full
power of substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the
Annual Report on Form IO-K of Integrated Electrical Services, Inc. for the fiscal year ended September 30, 2003, and
any amendments thereto and to file the same, and with all exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power
and authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
November 24, 2003
/s/ Donald C. Trauscht
Donald C. Trauscht
114
Power of Attorney
Know all men by these presents that James D. Woods constitutes and appoints Herbert R. Allen, William
W. Reynolds and Curt L. Warnock and each of them, as his true and lawful attorneys-in-fact and agents, with full
power of substitution, for him and in his name, place and stead, in any and all capacities to sign in his name to the
Annual Report on Form 10-K ofIntegrated Electrical Services, Inc. for the fiscal year ended September 30, 2003, and
any amendments thereto and to file the same, and with all exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power
and authority to do and perform each and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or any of them or their substitutes may lawfully do or cause to be done by
virtue hereof.
November 24,2003
Is/ James D. Woods
James D. Woods
115
Exhibit 31.1
CERTIFICA nON
I, Herbert R. Allen, certify that:
1. I have reviewed this annual report on Form 10-K ofIntegrated Electrical Services, Inc.;
2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading wth respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this annual
report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(t)) for the registrant and we
have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this annual report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting
that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal
quarter in the case of an annual report) that has materially affected, or is reasonable likely to
materially affect, the registrant's internal control over financial reporting; and;
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design (J" operation of internal
control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.
Date: November 24, 2003
Isl Herbert R. Allen
Herbert R. Allen
Chief Executive Officer
116
Exhibit 31.2
CERTIFICA nON
I, William W. Reynolds, certify that:
1. I have reviewed this annual report on Form IO-K ofIntegrated Electrical Services, Inc.;
2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not trisleading with respect to the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this annual
report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this annual report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(t) and 15d-15(t)) for the registrant and we
have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this annual report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting
that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal
quarter in the case of an annual report) that has materially affected, or is reasonable likely to
materially affect, the registrant's internal control over financial reporting; and;
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.
Date: Novemb er 24, 2003
Isl William W. Revnolds
William W. Reynolds
Chief Financial Officer
117
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECfION 906 OF THE SARBANES -OXLEY ACT OF 2002
In connection with this Annual Report ofIntegrated Electrical Services, Inc. (the "Company") on Form 10-K for the
period ending September 30,2003 (the "Report"), I, Herbert R. Allen, Chief Executive Officer of the Company, certify,
pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of2002, that:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange
Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial
condition and result of operations of the Company.
Is! Herbert R Allen
Herbert R Allen
Chief Executive Officer
November 24, 2003
118
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES -OXLEY ACT OF 2002
In connection with this Annual Report of Integrated Electrical Services, Inc. (the "Company") on Form 10-K for the
period ending September 30, 2003 (the "Report"), I, William W. Reynolds, Chief Financial Officer of the Company,
certify, pursuant to 18 D.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange
Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial
condition and result of operations of the Company.
/sl William W. Revnolds
William W. Reynolds
Chief Financial Officer
November 24, 2003
119
TECHNICAL SPECIFICATIONS
FOR
T AXIW A Y LIGHTS (2 T IW) AND AIRFIELD
GUIDANCE SIGN
FLORIDA KEyS MARATHON AIRPORT
MONROE COUNTY, FLORIDA
PREPARED FOR:
THE MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
PREPARED BY:
URS CORPORATION
MAY 2004
TECHNICAL SPECIFICATIONS
TAXIWAY LIGHTS (2 T/W) AND AIRFIELD GUIDANCE SIGN
TABLE OF CONTENTS
Section Standard Title Document Pages
P-lO 1 FDOT Mobilization P-I0l-l
P-102 FAA Maintenance of air operations area P-I02-1 thru P-I02-6
traffic
P-401 FAA Plant Mix Bituminous Pavements P-401-1 thru P-401-22
P-602 FAA Bituminous Prime Coat P-602-1 thru P-602-3
P-620 FAA Runway and Taxiway Painting P-620-1 thru P-620-7
L-I00 Signage and Electrical Work L-I00-1 thru L-I00-12
L-108 FAA Installation of Underground Cable for L108-1 thru L-108-9
Airports
L-110 FAA Installation of Airport Underground L-I10-1 thru L-llO-6
Electrical Duct
L-125 Installation of Airport Lighting L-125-1 thru L-125-6
System
T-904 FAA Sodding T -904-1 thru T -904-5
Florida Keys Marathon Airport
~l M~WM
Taxiway Lights (2 T/W) and Airfield Guidance Sign
ITEM P.101
MOBILIZATION
DESCRIPTION
101-1.1 The work
mobilizing for be .
the movement of
establishment of
sanitary and othe
The costs of bon
of the work, exclu
METHOD OF/MEASUREMENT
101-2.1 Measurement of Mobilization for payment shall be the work under this Section completed in
accordance with the Plans and these Specifications.
BASIS OF PAYMENT
Payment shall be made under:
Item P-IOl...3.1
Mobilization -- per lump sum
101-3.2 PARTIAL PAYME
will be made in accordanc.e with t
proj ect.
% of Original
Contract Amount
Earned
Partial payments for any project will be limited to ten percent (lO%) of the original Contract amount for
that project. Any remaining amount will be paid upon completion of all work on the Project.
The standard retainage, as herein specified will be applied to these allowances. Partial payments made on
this item shall in no way act to preclude or limit any ofthe provisions for partial payments otherwise
provided for by the Contract.
END OF ITEM P-I01
Florida Keys Marathon Airport
P-I01-1 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
ITEM P-102
MAINTENANCE OF AIR OPERATIONS AREA TRAFFIC
DESCRIPTION
102-1.1 The work under this Section consists of furnishing all measures required to maintain the safe
and orderly movement of Air Operations Area (AOA) traffic in and around the construction areas as
shown on the Plans and as described in these Technical Specifications.
102-2.1 GENERAL. This Section covers the Contractor's responsibilities for maintammg the
optimum level of safety and the operating efficiency of the airport during construction. These
responsibilities are based on criteria contained in current edition of Federal Aviation Administration
Advisory Circular AC 150/5370-2e, Operation Safety on Airport with Emphasis on Safety During
Construction. The Contractor shall be responsible for all activities, under his control, as specified in the
above referenced Advisory Circulars, the Zoning Ordinance and in other referenced documents. In
certain cases where the obstacle clearance criteria utilized for this project may differ from that described
herein, these variances will be depicted on the Plans.
102-3.1 OBSTACLE CLEARANCES DURING CONSTRUCTION TAXIWAYS,
T AXILANES AND APRONS. Construction activity, personnel, equipment or materials shall not be
permitted within 73 feet of the centerline of an active taxiway and within 64 feet of the centerline of an
active taxilane, unless otherwise shown on the Plans.
102-4.1
TRENCHES, EXCA VA TIONS AND STOCKPILED MATERIAL
a. Open trenches or excavations exceeding 3 inches in depth and 3 inches in width shall not
be permitted within 200 feet of the centerline of an active runway or within 73 feet of the center line of
active taxiways and taxi lanes unless otherwise shown on the Plans.
b. Coverings for open trenches or excavations may be utilized by the Contractor to restore
operations in these areas. Covering shall be of sufficient strength to support the weight of the heaviest
aircraft operating on the runway or taxiway. Each covering shall be installed only as approved by the
Architect/Engineer.
c. Barricades and/or flagging shall be installed to identify the limits of construction near open
trenches or excavations. Stockpiled material shall be secured against displacement by aircraft engine and
propeller blast and ambient winds.
d. Stockpiled materials, equipment and personnel shall not be allowed within the runway,
taxiway and taxilane obstacle clearance areas as described in this Article.
102-5.1 MARKING AND LIGHTING OF CONSTRUCTION AREAS. The Contractor shall
install lighting, marking, barrel barricades, railroad tie barricades, lighted commercial barricades, concrete
barriers, plastic barricades, signs and other measures to delineate closed and hazardous areas during
construction. The guidance and procedures provided by the current FAA Advisory Circular AC
150/5340-1, including changes, "Marking of Paved Areas on Airports", shall be utilized as depicted on
the Plans. Steady burning red obstruction lights may be required in certain instances to supplement
lighted barricades or highlight hazardous or potentially dangerous objects. The location of these lights
shall be as shown on Plans or as directed by the Architect/Engineer. Obstruction lights and barrel
barricades, railroad tie barricades, lighted commercial barricades, plastic barricades, concrete barriers, and
signs shall not be located within runway, taxiway and taxi lane obstacle clearance areas.
Florida Keys Marathon Airport
P-102-1 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
102-6.1 LOOSE MATERIALS AND DEBRIS. Loose materials shall be removed from the active
portion of the AOA, placed in protected areas or otherwise secured to prevent dispersal into active
portions of the AOA. The AOA is defined as all areas used or intended to be used for aircraft operations
including active runways, aprons, taxiways, taxilanes, etc. Debris shall be promptly removed from the
AOA. The Contractor shall exercise care in the transportation of materials within the AOA. Materials
tracked or spilled in the AOA shall be removed immediately. When hauling, loading, grading, or when
any of the Contractor's activities are likely to cause the deposit of loose materials in the AOA, it shall be
immediately removed using powered vacuum sweepers which shall continuously patrol the affected areas.
The sweepers shall be supplemented by hand sweepers, loaders, trucks, etc., as necessary.
102-7.1
VEmCLES AND MOBILE EQUIPMENT
a. All Contractor vehicles and mobile equipment operating in the AOA shall be identified by
three foot (3') square orange and white flags whenever such vehicle and equipment is operating on or
about the AOA. In addition, such vehicles and equipment shall have the Contractor's name clearly
affixed on each side of such vehicles and equipment, all in accordance with current requirements. During
the hours between 30 minutes before sunset and 30 minutes after sunrise and at all times when visibility is
impaired, vehicles and mobile equipment shall also be equipped with a revolving yellow beacon light
mounted on the top of the vehicle or equipment. Beacon lights shall provide:
(1) Three hundred sixty degree azimuth coverage.
(2) Effective intensity in the horizontal plane not less than 40 or more than 400
candelas.
(3) Beam spread measured to 1/10 peak intensity extending from 10 degrees to 15
degrees above the horizontal.
(4) Sixty to ninety flashes per minute.
b. All Contractor vehicles and mobile equipment not individually authorized by the Airport
Manager for independent operation in the AOA shall be operated under escort while in the AOA. The
escort vehicle and its driver must be authorized by the Airport Manager for escort duty and for operation
within the AOA. If access to the construction, staging or storage sites requires the crossing of an active
runway or taxiway, all vehicles shall be escorted across said runway or taxiway by either an Airport
Manager escort vehicle or a vehicle equipped with a VHF-AM Transceiver specifically authorized by the
Airport Manager to cross these operational pavements. No crossing of active taxiways or runways by
vehicles so equipped shall be made without first obtaining specific clearance from ground Control
Unicorn.
c. No crane shall be allowed on the work site until the equipment and its intended operation is
approved by the Airport Manager, in accordance with the requirements of the General Condition. The
Contractor shall provide the RPR with not less than 24-hour advance written notice requesting crane
access to the AOA. The RPR will then request approval from the Airport Manager.
d. When access is approved by the Airport Manager, the tip of the crane boom shall be
identified by the orange and white flag mentioned above and, if appropriate, by red obstruction lights.
102-8.1
CLOSURES
a. Prior to the commencement of any demolition or other work which will cause an
interruption or modification to existing aircraft operations, the Contractor shall confer with, and obtain
written authorization from the RPR.
Florida Keys Marathon Airport
P-102-2 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
b. When the Contractor's operations require the closure of any runway, taxiway, apron,
roadway, service gate, walkway, etc., the Contractor shall notify the RPR not less than 48 hours prior to
need. No runway, taxiway, apron, roadway, service gate, walkway, etc., shall be closed without prior
written authorization from the RPR.
c. If the Contractor requires access to operational areas not delineated on the Construction
Safety Plan Drawing(s), the Contractor shall participate in negotiations leading to the imposition of
restrictions on airport operations in the affected areas; the Contractor shall strictly abide by all conditions
imposed by the Airport Manager relating to its entry and use of such areas and the Contractor shall not
enter these areas until granted temporary, conditional entry clearance by the RPR and the Airport
Manager.
d. Trenching, excavation and other work requiring temporary runway or taxiway closure shall
be limited by the Contractor to that amount of work that can be completed within the hours of minimal
operation. All ditches, excavations, etc., shall be restored prior to the end of the work period and affected
pavements returned to service. This work shall be scheduled during hours of minimal operations. Unless
otherwise noted in the Contract Documents, hours of minimal operation shall be defined as the hours
between 12:00 midnight and 5:30 A.M. daily. All other hours are considered hours of normal operation.
e. The Contractor may be required to pursue affected portions of the work on a continuous 24
hour per day basis during construction of the various phases and subphases shown on the Plans and
described in the Contract Documents (such as when runways or taxiways, aprons, service or access
roadways, or service gates are closed for operation or when hazards of any kind arise).
102-9.1 OPERATIONS SAFETY INSPECTION. The entire work site shall be inspected daily and
more frequently if construction activities are of a nature that debris may be expected to accumulate on
AOA pavements. Special inspections shall be conducted for each work area prior to return to service for
aircraft operation. The purpose of these inspections is to ascertain that areas returned to aircraft service
are in satisfactory condition and that the overall work site and its activities are within the safety criteria
set forth in these Contract Documents. Inspections shall be conducted jointly by representatives of the
Contractor, the Airport Manager, the RPR and the affected airlines. These inspections shall cover the
several safety items noted in and referred by this Article.
Any violations of the Safety Criteria found during these inspections shall be rectified immediately. If a
violation cannot be corrected on an immediate basis by the Contractor, the Contractor shall immediately
notify the RPR. No area shall be approved for aircraft operations while it is in violation unless
specifically authorized by the Airport Manager, the RPR and the designated airline representative.
102-10.1 OPERATIONAL EMERGENCIES. During construction periods, the Contractor shall
monitor the UNICOM frequency and be able to activate the runway/taxiway upon demand, in response to
emergency or other conditions that require him to clear the runway to accept a landing aircraft or one
taking off. In all cases aircraft safety shall be the one single foremost priority over all construction activity
on the runway. In this event the Contractor may need to respond to an evacuation request from the RPR,
from the Airport Manager or from the aircraft itself if one of the other controlling entities are not present.
The Contractor shall have a Safety Officer on the project site, at all times, monitoring the UNICOM
frequencies and able to determine the limits of the area to be evacuated and the restoration work needed to
prepare the area for aircraft operations. Should the directive entail extra work under the contract, and is
determined so by the RPR, the Contractor will not be reimbursed for such extra work, since this work is
considered incidental to the General Contractor's operation and safety procedures as part of Item P-I02.
102-11.1 FINAL CLEANUP. After work in any work area has been completed and before opening it
to traffic, the Contractor shall remove all temporary traffic control devices, temporary pavements, and
other temporary work and devices installed for traffic control. The Contractor shall restore the site to its
original condition or to the revised condition shown on the Plans.
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MATERIALS AND CONSTRUCTION METHODS
102-12.1 TEMPORARY MARKER LIGHTS. The Contractor shall install, operate and maintain
temporary marker lights in the locations shown on the Plans. The Contractor shall furnish portable base
mounted light fixtures, red or yellow and blue lenses, 30/45 watt 6.6/6.2 ampere transformers, and 30 watt
6.6 ampere lamps. The Contractor shall furnish 5000 volt, #8AWG, Type "C", FAA Specification L824
stranded copper cable; compatible connector kits; FAA Specification L823 tape; compression sleeves and
any other materials necessary to install, operate and maintain the temporary marker lights.
The Contractor shall furnish and install the following:
(a) Heat shrinkable sleeves, tape and incidentals,
(b) 15 watt lamps for 120V circuit,
(c) Necessary wiring, power, connections, etc. to operate lights on l20V circuit,
(d) Required staples to keep cable and wire securely fastened to pavement.
(e) Pavement sealant to seal pavements, when wiring is installed recessed in saw
kerfs.
Yellow flashing lights mounted on top of the various types of barricades are not considered marker lights.
102-12.2 BARREL BARRICADES. The Contractor shall install and maintain barrel barricades in
the locations shown on the Plans, in accordance with the approved layout for each construction area, and
as directed by the Architect/Engineer. Barrel barricades shall be in accordance with the details shown on
the Plans including barrels, lights, ropes, flags and incidentals. Barrels shall be weighted immediately
upon installation, as necessary to prevent displacement by aircraft engine blast and by ambient wind.
Barrel barricade lines shall be inspected each day and repaired or replaced as necessary to meet the
requirements of the approved layout plan.
102-12.3 TEMPORARY CONCRETE BARRIERS.
a. Temporary concrete barriers for traffic control and protection shall be New Jersey type
precast concrete barriers conforming to the requirements of ASTM C825.
b. Temporary concrete barrier sections shall be capable of being interlocked and shall be
provided with warning flags, steady burning lights and/or flashing lights as required and shall be provided
with grooves to allow flow of surface drainage.
c. The temporary concrete barriers need not be new, but shall be structurally sound, of a
quality and type meeting the requirements of these specifications and shall be subject to the
Architect/Engineer's approval.
d. Temporary concrete barriers shall, at the conclusion of the construction or when no longer
needed, be relocated or removed and disposed of as the case may be.
RPR.
e. Commercial lighted barricades may be used in lieu of concrete barriers as directed by the
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102-12.4 RAILROAD TIE BARRICADES (LOW TIE BARRICADES). The Contractor shall
install and maintain Railroad Tie Barricades consisting of standard 6" x 8" X 8' timber railroad ties placed
as and where shown on the Plans and as directed by the Architect/Engineer. Railroad ties shall be painted
as detailed on the Plans and placed in the location and manner shown on the Plans. A battery operated
yellow flashing light shall be installed on each section of the railroad tie barricades; the yellow flashing
light shall be continuously (24 hours a day basis) operated. The railroad tie barricades shall be anchored
to the sub grade or pavement using two No.4, 18" long steel pins driven in the subgrade, or flexible
pavement or installed through predrilled holes in rigid pavement. At conclusion of work and when the
barricades are no longer needed, the Contractor shall remove and dispose of them and restore the
pavement to its original condition.
102-12.5 PLASTIC BARRICADES. Plastic barricades, meeting the following requirements, shall
only be used when specifically shown on the Plans or ordered by the Architect/Engineer.
a. Plastic barricades shall consist of a molded plastic I-beam section suspended, by means of
a toggle system, from a molded plastic cone.
The assembly shall be designed to remain usable following vehicular impact.
(1) The plastic barricade (I-beam section and cones) shall be manufactured from high
density Polyethylene compounded with Ultra Violet Stabilizer to protect it against ultra violet exposure
and outdoor weathering.
(2) The cone shall consist of a stem and a base. The base shall be hollow and so
manufactured as to allow for external and internal ballasting (using water, sand or other suitable material),
to provide a ballast weight of approximately 20 lbs.
follows:
(3) The dimensions of the various elements of the plastic barricade system shall be as
Cones
Overall Height
Base Dimension
Weight (unballasted)
Outside diameter stem
Top
Bottom
Wall Thickness
45"
18" x 18" x4"
7 3/4 lbs.
3 1/4"
6W'
1/8': 1/32"
I-Beam Section
Depth (reflective areas)
Lengths (as ordered by the
Archi teet/Engineer)
Wall Thickness
Weight
8"
36" or 48"
1/8"
1.2 lbs. per foot
b. The plastic barricade assembly shall be equal to MAXICADE System as manufactured by
Glasdon - Traffic Services Incorporated (distributed locally by Saft T Store, West Palm Beach,
Telephone: 1-561-793-5817) or approved equal.
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c. The I-beam section shall be capable of being mounted (using a flexible toggle system) on
the plastic cones. The cones shall be designed to support the I-beam sections and also to support traffic
lights.
d. The plastic barricade assembly shall be impregnated with traffic orange color. White
reflective sheeting shall be applied to the I-beam section to form a series of alternating 6-inch wide
stripes, traffic orange and reflective white, at 450 angle.
102-12.6 OTHER. Half of 8" PVC with orange and white stripes with flashing or steady
burning red light. The 8" PVC shall be weighted or sturdily attached to the surface to prevent
displacement from prop wash, jet blast, wing vortex or any other surface wind current.
If affixed to the surface, they must be frangible at grade level or as low as possible, but not to
exceed 3" above the ground. This shall be used in movement areas.
METHOD OF MEASUREMENT
102-13.1 No measurement will be made for this item. Quantity will be incidental to the
project..
BASIS OF PAYMENT
102-14.1 There will not be additional compensation for this item. Payment will be incidental to
this project.
END OF ITEM P-I02
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ITEM P- 401
PLANT MIX BITUMINOUS PAVEMENTS
DESCRIPTION
401-1.1 This item shall consist of surface, leveling or base courses composed of mineral aggregate
and bituminous material mixed in a central mixing plant and placed on a prepared course in accordance
with these specifications and shall conform to the lines, grades, thicknesses, and typical cross sections
shown on the plans. Each course shall be constructed to the depth, typical section, or elevation required
by the plans and shall be rolled, finished, and approved before the placement of the next course.
MA TERIALS
401-2.1 AGGREGATE. Aggregates shall consist of crushed stone, crushed gravel, or crushed slag
with or without sand or other inert finely divided mineral aggregate. The portion of materials retained on
the No.8 sieve is coarse aggregate. The portion passing the No.8 (2.36 mm) sieve and retained on the
No. 200 (0.075 mm) sieve is fine aggregate, and the portion passing the No. 200 (0.075 mm) sieve is
mineral filler.
a. Coarse Aggregate. Coarse aggregate shall consist of sound, tough, durable
particles, free from adherent films of matter that would prevent thorough coating
and bonding with the bituminous material and be free from organic matter and
other deleterious substances. The percentage of wear shall not be greater than 40
percent for surface and intermediate courses and 50 percent for base course,
when tested in accordance with ASTM C 131. The sodium sulfate soundness
loss shall not exceed 10 percent, or the magnesium sulfate soundness loss shall
not exceed 13 percent, after five cycles, when tested in accordance with ASTM C
88.
Aggregate shall contain at least 70 percent by weight of individual pieces having
two or more fractured faces and 85 percent by weight having at least one
fractured face. The area of each face shall be equal to at least 75 percent of the
smallest midsectional area of the piece. When two fractured faces are
contiguous, the angle between the planes of fractures shall be at least 30 degrees
to count as two fractured faces. Fractured faces shall be obtained by crushing.
The aggregate shall not contain more than 8 percent, by weight, of flat or
elongated pieces, when tested in accordance with ASTM D 4791.
Slag shall be air-cooled, blast furnace slag, and shall have a compacted weight of
not less than 70 pounds per cubic foot (1.12 mg/cubic meter) when tested in
accordance with ASTM C 29.
b. Fine Aggregate. Fine aggregate shall consist of clean, sound, durable, angular
shaped particles produced by crushing stone, slag, or gravel that meets the
requirements for wear and soundness specified for coarse aggregate. The
aggregate particles shall be free from coatings of clay, silt, or other objectionable
matter and shall contain no clay balls. The fine aggregate, including any blended
material for the fine aggregate, shall have a plasticity index of not more than 6
and a liquid limit of not more than 25 when tested in accordance with ASTM D
4318.
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Natural (nonmanufactured) sand may be used to obtain the gradation of the
aggregate blend or to improve the workability of the mix. The amount of sand to
be added will be adjusted to produce mixtures conforming to requirements of
this specification. The fine aggregate shall not contain more than 20 percent
natural sand by weight of total aggregates.
The aggregate shall have sand equivalent values of 35 or greater when tested in
accordance with ASTM D 2419.
c. Sampling. ASTM D 75 shall be used in sampling coarse and fine aggregate, and
ASTM C 183 shall be used in sampling mineral filler.
401-2.2 MINERAL FILLER. If filler, in addition to that naturally present in the aggregate, IS
necessary, it shall meet the requirements of ASTM D 242.
401-2.3 BITUMINOUS MATERIAL. Bituminous material shall conform to the following
requirements: AC-20 in accordance with the requirements of ASTM D 3381.
The Contractor shall furnish vendor's certified test reports for each lot of bituminous material shipped to
the project. The vendor's certified test report for the bituminous material can be used for acceptance or
tested independently by the Engineer.
401-2.4 PRELIMINARY MATERIAL ACCEPTANCE. Prior to delivery of materials to the job
site, the Contractor shall submit certified test reports to the Engineer for the following materials:
a. Coarse Aggregate.
(1) Percent of wear.
(2) Soundness.
(3) Unit weight of slag.
b. Fine Aggregate.
(1) Liquid limit.
(2) Plastic index.
(3) Sand equivalent.
c. Mineral Filler.
d. Bituminous Material. The certification(s) shall show the appropriate ASTM test(s) for
each material, the test results, and a statement that the material meets the specification
requirement.
The Engineer may request samples for testing, prior to and during production, to verify
the quality of the materials and to ensure conformance with the applicable specifications.
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COMPOSITION
401-3.1 COMPOSITION OF MIXTURE. The bituminous plant mix shall be composed of a
mixture of well-graded aggregate, filler if required, and bituminous material. The several aggregate
fractions shall be sized, handled in separate size groups, and combined in such proportions that the
resulting mixture meets the grading requirements of the job mix formula (JMF).
401-3.2 JOB MIX FORMULA. No bituminous mixture for payment shall be produced until a job
mix formula has been approved by the Engineer. The bituminous mixture shall be designed using
procedures contained in Chapter III, MARSHALL METHOD OF MIX DESIGN, of the Asphalt
Institute's Manual Series No. 2 (MS-2), Mix Design Methods for Asphalt Concrete, and shall meet the
requirements of Tables 1 and 2.
The design criteria in Table 1 are target values necessary to meet the acceptance requirements contained
in paragraph 401-5.2b. The criteria is based on a production process which has a material variability with
the following standard deviations:
Stability (lbs.)
Flow (0.01 inch)
Air Voids (%)
270
1.5
0.65
If material variability exceeds the standard deviations indicated, the job mix formula and subsequent
production targets should be based on a stability greater than shown in Table 1, and the flow and air voids
should be targeted close to the mid-range of the criteria in order meet the acceptance requirements.
If the Tensile Strength Ratio (TSR) of the composite mixture, as determined by ASTM D 4867, is less
than 75, the aggregates shall be rejected or the asphalt treated with an approved anti-stripping agent. The
amount of anti-stripping agent added to the asphalt shall be sufficient to produce a TSR of not less than
75. If an antistrip agent is required, it will be provided by the Contractor at no additional cost.
The job mix formula shall be submitted in writing by the Contractor to the Engineer.at least 21 days prior
to the start of paving operations and shall include as a minimum:
a. Percent passing each sieve size.
b. Percent of asphalt cement.
c. Asphalt viscosity or penetration grade.
d. Number of blows of hammer compaction per side of molded specimen.
e. Mixing temperature.
f. Compaction temperature.
g, Temperature of mix when discharged from the mixer.
h. Temperature-viscosity relationship of the asphalt cement.
I. Plot of the combined gradation on the Federal Highway Administration (FHW A)
45 power gradation curve.
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j. Graphical plots of stability, flow, air voids, voids in the mineral aggregate, and
unit weight verses asphalt content.
k. Percent natural sand.
l. Percent fractured faces.
m. Percent elongated particles.
n. Tensile Strength Ratio (TSR).
o. Antistrip agent (if required).
The Contractor shall submit samples to the Engineer, upon request, for job mix formula verification
testing.
The job mix formula for each mixture shall be in effect until modified in writing by the Engineer. Should
a change in sources of materials be made, a new job mix formula must be approved by the Engineer
before the new material is used.
TABLE 1. MARSHALL DESIGN CRITERIA
PAVEMENTS DESIGNATED FOR
TEST PROPERTY AIRCRAFT GROSS WEIGHTS OF
60,000 POUNDS OR MORE
Number of blows 75
Stability, pounds (newtons) minimum 2150
Flow, 0.01 in. (0.25 mm) 10 - 14
Air voids (percent) 2.8 -4.2
Percent voids in mineral aggregate, minimum See Table 2
TABLE 2. MINIMUM PERCENT VOIDS IN MINERAL AGGREGATE
MAXIMUM PARTICLE MINIMUM VOIDS IN
SIZE MINERAL AGGREGATE,
PERCENT
in. mm. Percent
Y2 12.5 16
~ 19.0 15
1 25. 14
1-1/4 31.25 13
The mineral aggregate shall be of such size that the percentage composition by weight, as determined by
laboratory screens, will conform to the gradation or gradations specified in Table 3 when tested in
accordance with ASTM Standard C 136 and C 117.
The gradations in Table 3 represent the limits which shall determine the suitability of aggregate for use
from the sources of supply. The aggregate, as selected (and used in the JMF), shall have a gradation
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within the limits designated in Table 3 and shall not vary from the low limit on one sieve to the high limit
on the adjacent sieve, or vice versa, but shall be well graded from coarse to fine.
Deviations from the final approved mix design for bitumen content and gradation of aggregates shall be
within the action limits for individual measurements as specified in paragraph 401-6.5a. The limits still
will apply if they fall outside the master grading band in Table 3.
The maximum size aggregate used shall not be more than one-half of the thickness of the course being
constructed.
TABLE 3. AGGREGATE - BITUMINOUS PAVEMENTS
PERCENTAGE BY WEIGHT
SIEVE SIZE PASSING SIEVE
SURFACE (3/4" MAX)
1 -14 in. (31.25 nun) -
1 in. (25.0 mm) -
% in. (19.0 nun) 100
~ in. (12.5 nun) 79 - 99
3/8 in. (9.5 nun) 68 - 88
No.4 (4.75 nun) 48 - 68
No.8 (2.36 nun) 33 - 53
No. 16 (1.18 nun) 20 - 40
No. 30 (0.60 nun) 14 - 30
No. 50 (.30 nun) 9 - 21
No. 10 (0.15 nun) 6-16
No. 200 (0.075 mm) 3-6
Asphalt percent:
Stone or gravel 5.0 - 7.5
Slag 6.5 - 9.5
The aggregate gradations shown are based on aggregates of uniform specific gravity. The percentages
passing the various sieves shall be corrected when aggregates of varying specific gravities are used, as
indicated in the Asphalt Institute Manual Series No.2 (MS-2), Appendix A.
401-3.3 RECYCLED ASPHALT CONCRETE. The use ofrecycled asphalt pavement (RAP) will
not be permitted in the P-40 1 plant mix bituminous pavements.
401-3.4 TEST SECTION. Prior to full production, the Contractor shall prepare and place a quantity
of bituminous mixture according to the job mix formula. The amount of mixture should be sufficient to
construct a test section 300 long and 20 wide placed in two lanes, with a longitudinal cold joint, and shall
be of the same depth specified for the construction of the course which it represents. The underlying
grade or pavement structure upon which the test section is to be constructed shall be the same as the
remainder of the course represented by the test section. The equipment used in construction of the test
section shall be the same type and weight to be used on the remainder of the course represented by the test
section.
Three random samples shall be taken at the plant and tested for stability, flow, and air voids in accordance
with paragraph 401-5.1a(2). Two random samples of mixture shall be taken at the plant and tested for
aggregate gradation and asphalt content in accordance with paragraphs 40 1-6.3a and 3b and evaluated in
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accordance with paragraphs 401-6.5a and 5b. Three randomly selected cores shall be taken from the
finished pavement mat, and three from the longitudinal joint, and tested in accordance with paragraph
401-5.1b(4). Random sampling shall be in accordance with procedures contained in ASTM D 3665.
Mat density and air voids shall be evaluated in accordance with paragraph 401-5.2f(1). Stability and flow
shall be evaluated in accordance with paragraph 401-5.2f(2). Joint density shall be evaluated in
accordance with paragraph 401-5 .2f(3).
Voids in the mineral aggregate (VMA), for each plant sample, shall be computed in accordance with
procedures contained in Chapter III, MARSHALL METHOD OF MIX DESIGN, of the Asphalt
Institute's Manual Series No.2 (MS-2), Mix Design Methods for Asphalt Concrete.
The test section shall be considered acceptable if; 1) stability, flow, mat density, air voids, and joint
density are 90 percent or more within limits, 2) gradation and asphalt content are within the action limits
specified in paragraphs 401-6.5a and 5b, and 3) the voids in the mineral aggregate is within the limits of
Table 2.
If the initial test section should prove to be unacceptable, the necessary adjustments to the job mix
formula, plant operation, placing procedures, and/or rolling procedures shall be made. A second test
section shall then be placed. If the second test section also does not meet specification requirements, both
sections shall be removed at the Contractor's expense. Additional test sections, as required, shall be
constructed and evaluated for conformance to the specifications. Any additional sections that are not
acceptable shall be removed at the Contractor's expense. Full production shall not begin until an
acceptable section has been constructed and accepted by the Engineer. The initial test section, whether
acceptable or unacceptable, and any subsequent section that meets specification requirements shall be
paid for in accordance with paragraph 401-8.1.
Job mix control testing shall be performed by the Contractor at the start of plant production and in
conjunction with the calibration of the plant for the job mix formula. It should be recognized that the
aggregates produced by the plant may not satisfy the gradation requirements or produce a mix that exactly
meets the JMF. In those instances, it will be necessary to reevaluate and redesign the mix using plant-
produced aggregates. Specimens should be prepared and the optimum bitumen content determined in the
same manner as for the original design tests.
401-3.5 TESTING LABORATORY. The laboratory used to develop the job mix formula shall meet
the requirements of ASTM D 3666. A certification signed by the manager of the laboratory stating that it
meets these requirements shall be submitted to the Engineer prior to the start of construction. The
certification shall contain as a minimum:
a. Qualifications of personnel; laboratory manager, supervising technician,
and testing technicians.
b. A listing of equipment to be used in developing the job mix.
c. A copy of the laboratory's quality control system.
d. Evidence of participation in the AASHTO Materials Reference Laboratory
(AMRL) program
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CONSTRUCTION METHODS
401-4.1 WEATHER LIMITATIONS. The bituminous mixture shall not be placed upon a wet
surface or when the surface temperature of the underlying course is less than specified in Table 4. The
temperature requirements may be waived by the Engineer, if requested; however, all other requirements
including compaction shall be met.
TABLE 4. BASE TEMPERATURE LIMITATIONS
MAT THICKNESS BASE TEMPERATURE (MINIMUM)
DEG.F DEG.C
3 in. (7.5 em) or greater 40 4
Greater than 1 in. (2.5 em) 45 7
But less than 3 in. (7.5 em)
1 in. (2.5 em) or less 50 10
401-4.2 BITUMINOUS MIXING PLANT. Plants used for the preparation of bituminous mixtures
shall conform to the requirements of ASTM D 995 with the following changes:
a. Requirements for All Plants,
(1) Truck Scales. The bituminous mixture shall be weighed on approved scales
furnished by the Contractor, or on certified public scales at the Contractor's
expense. Scales shall be inspected and sealed as often as the Engineer deems
necessary to assure their accuracy. Scales shall conform to the requirements of
the General Provisions, Section 90-01.
(2) Testing Facilities. The Contractor shall provide laboratory facilities at the plant
for the use of the Engineer's acceptance testing and the Contractor's quality
control testing, in accordance with paragraph 401-6.2d.
(3) Inspection of Plant. The Engineer, or Engineer's authorized representative, shall
have access, at all times, to all areas of the plant for checking adequacy of
equipment; inspecting operation of the plant: verifying weights, proportions, and
material properties; and checking the temperatures maintained in the preparation
of the mixtures.
(4) Storage Bins and Surge Bins. Paragraph 3.9 of ASTM D 995 is deleted.
Instead, the following applies. Use of surge bins or storage bins for temporary
storage of hot bituminous mixtures will be permitted as follows:
(a) The bituminous mixture may be stored in surge bins for period of time
not to exceed 3 hours.
(b) The bituminous mixture may be stored in insulated storage bins for a
period of time not to exceed 24 hours.
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The bins shall be such that mix drawn from them meets the same requirements as mix loaded directly into
trucks.
If the Engineer determines that there is an excessive amount of heat loss, segregation or oxidation of the
mixture due to temporary storage, no overnight storage will be allowed.
401-4.3 HAULING EQUIPMENT. Trucks used for hauling bituminous mixtures shall have tight,
clean, and smooth metal beds. To prevent the mixture from adhering to them, the truck beds shall be
lightly coated with a minimum amount of paraffin oil, lime solution, or other approved material. Each
truck shall have a suitable cover to protect the mixture from adverse weather. When necessary, to ensure
that the mixture will be delivered to the site at the specified temperature, truck beds shall be insulated or
heated and covers shall be securely fastened.
401-4.4 BITUMINOUS PAVERS. Bituminous pavers shall be self-propelled, with an activated
screed, heated as necessary, and shall be capable spreading and finishing courses of bituminous plant mix
material which will meet the specified thiclmess, smoothness, and grade. The paver shall have sufficient
power to propel itself and the hauling equipment without adversely affecting the finished surface.
The paver shall have a receiving hopper of sufficient capacity to permit a uniform spreading operation.
The hopper shall be equipped with a distribution system to place the mixture uniformly in front of the
screed without segregation. The screed shall effectively produce a finished surface of the required
evenness and texture without tearing, shoving, or gouging the mixture.
If an automatic grade control device is used, the paver shall be equipped with a control system capable of
automatically maintaining the specified screed elevation. The control system shall be automatically
actuated from either a reference line and/or through a system of mechanical sensors or sensor-directed
mechanisms or devices which will maintain the paver screed at a predetermined transverse slope and at
the proper elevation to obtain the required surface. The transverse slope controller shall be capable of
maintaining the screed at the desired slope within plus or minus 0.1 percent.
The controls shall be capable of working in conjunction with any of the following attachments:
a. Ski-type device of not less than 30 feet (9.14 m) in length.
b. Taut stringline (wire) set to grade.
c. Laser control.
401-4.5 ROLLERS. Rollers of the vibratory, steel wheel, and pneumatic-tired type shall be used.
They shall be in good condition, capable of operating at slow speeds to avoid displacement of the
bituminous mixture. The number, type, and weight of rollers shall be sufficient to compact the mixture to
the required density while it is still in a workable condition.
The use of equipment which causes excessive crushing of the aggregate will not be permitted.
401-4.6 PREPARATION OF BITUMINOUS MATERIAL. The bituminous material shall be
heated in a manner that will avoid local overheating and provide a continuous supply of the bituminous
material to the mixer at a uniform temperature. The temperature of the bituminous material delivered to
the mixer shall be sufficient to provide a suitable viscosity for adequate coating of the aggregate particles,
but shall not exceed 325 degrees F (160 degrees C).
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401-4.7 PREPARATION OF MINERAL AGGREGATE. The aggregate for the mixture shall be
heated and dried prior to introduction into the mixer. The maximum temperature and rate of heating shall
be such that no damage occurs to the aggregates. The temperature of the aggregate and mineral filler
shall not exceed 350 degrees F (175 degrees C) when the asphalt is added. Particular care shall be taken
that aggregates high in calcium or magnesium content are not damaged by overheating. The temperature
shall not be lower than is required to obtain complete coating and uniform distribution on the aggregate
particles and to provide a mixture of satisfactory workability.
401-4.8 PREPARATION OF BITUMINOUS MIXTURE. The aggregates and the bituminous
material shall be weighed or metered and introduced into the mixer in the amount specified by the job mix
formula.
The combined materials shall be mixed until the aggregate obtains a uniform coating of bitumen and is
thoroughly distributed throughout the mixture. Wet mixing time shall be the shortest time that will
produce a satisfactory mixture, but not less than 25 seconds for batch plants. The wet mixing time for all
plants shall be established by the Contractor, based on the procedure for determining the percentage of
coated particles described in ASTM D 2489, for each individual plant and for each type of aggregate
used. The wet mixing time will be set to achieve 95 percent of coated particles. For continuous mix
plants, the minimum mixing time shall be determined by dividing the weight of its contents at operating
level by the weight of the mixture delivered per second by the mixer. The moisture content of all
bituminous mix upon discharge shall not exceed 0.5 percent.
401-4.9 PREPARATION OF THE UNDERLYING SURFACE. Immediately before placing the
bituminous mixture, the underlying course shall be cleaned of all dust and debris. A prime coat or tack
coat shall be applied in accordance with Item P-602 or P-603, if required by the contract specifications.
401-4.10 TRANSPORTING, PLACING, AND FINISIDNG. The bituminous mixture shall be
transported from the mixing plant to the site in vehicles conforming to the requirements of paragraph 401-
3. Deliveries shall be scheduled so that placing and compacting of mixture is uniform with minimum
stopping and starting of the paver. Adequate artificial lighting shall be provided night placements.
Hauling over freshly placed material shall not be permitted until the material has been compacted, as
specified, and allowed to cool to atmospheric temperature.
The Contractor may elect to use a material transfer vehicle to deliver mix to the paver.
The mix shall be placed and compacted at a temperature suitable for obtaining density, surface
smoothness, and other specified requirements but not less than 250 degrees F (107 degrees C).
Upon arrival, the mixture shall be placed to the full width by a bituminous paver. It shall be struck off in
a uniform layer of such depth that, when the work is completed, it shall have the required thickness and
conform to the grade and contour indicated. The speed of the paver shall be regulated to eliminate pulling
and tearing of the bituminous mat. Unless otherwise permitted, placement of the mixture shall begin
along the centerline of a crowned section or on the high side of areas with a one-way slope. The mixture
shall be placed in consecutive adjacent strips having a minimum width of 12.5 feet except where edge
lanes require less width to complete the area. The longitudinal joint in one course shall offset the
longitudinal joint in the course immediately below by at least 1 foot (30 cm); however, the joint in the
surface top course shall be at the centerline of the pavement. Transverse joints in one course shall be
offset by at least 10 feet (3 m) from transverse joints in the previous course.
Transverse joints in adjacent lanes shall be offset a minimum of 10 feet (3 m).
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On areas where irregularities or unavoidable obstacles make the use of mechanical spreading and
finishing equipment impractical, the mixture may be spread and luted by hand tools.
The Contractor shall set grade stakes and str'lines for both sides of each paving line. Th
lines shall be supported . urn of 25cente ditional supports sha ins
prevent sag, if required. ntal alignmen of th rmg lines shall be withiq 1 iijc per 10
feet. The Contractor shall provide a satisfactory method of securing the string line where vertical
curves are constructed to maintain the proper grade.
401-4.11 COMPACTION OF MIXTURE. After placing, the mixture shall be thoroughly and
uniformly compacted by rolling. The surface shall be compacted as soon as possible when the mixture
has attained sufficient stability so that the rolling does not cause undue displacement, cracking or shoving.
The sequence of rolling operations and the type of rollers used shall be at the discretion of the Contractor.
The speed of the roller shall, at all times, be sufficiently slow to avoid displacement of the hot mixture
and be effective in compaction. Any displacement occurring as a result of reversing the direction of the
roller, or from any other cause, shall be corrected at once.
Sufficient rollers shall be furnished to handle the output of the plant. Rolling shall continue until the
surface is of uniform texture, true to grade and cross section, and the required field density is obtained.
To prevent adhesion of the mixture to the roller, the wheels shall be kept properly moistened (and
scrapers used), but excessive water will not be permitted.
In areas not accessible to the roller, the mixture shall be thoroughly compacted with hand tampers.
Any mixture that becomes loose and broken, mixed with dirt, contains check-cracking, or in any way
defective shall be removed and replaced with fresh hot mixture and immediately compacted to conform to
the surrounding area. This work shall be done at the Contractor's expense. Skin patching shall not be
allowed.
401-4.12 JOINTS. The formation of all joints shall be made in such a manner as to ensure a
continuous bond between the courses and obtain the required density. All joints shall have the same
texture as other sections of the course and meet the requirements for smoothness and grade.
The roller shall not pass over the unprotected end of the freshly laid mixture except when necessary to
form a transverse joint. When necessary to form a transverse joint, it shall be made by means of placing a
bulkhead or by tapering the course. The tapered edge shall be cut back to its full depth and width on a
straight line to expose a vertical face prior to placing the adjacent lane. In both methods all contact
surfaces shall be given a tack coat of bituminous material before placing any fresh mixture against the
joint.
Longitudinal joints which are irregular, damaged, uncompacted, or otherwise defective shall be cut back
to expose a clean, sound surface for the full depth of the course. All contact surfaces shall be given a tack
coat of bituminous material prior to placing any fresh mixture against the joint.
MATERIAL ACCEPTANCE
401-5.1 ACCEPTANCE SAMPLING AND TESTING. All acceptance sampling and testing
necessary to determine conformance with the requirements specified in this section will be performed by
the Engineer at no cost to the Contractor. Testing organizations performing these tests shall meet the
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requirements of ASTM D 3666. All equipment in Contractor furnished laboratories shall be calibrated by
the testing organization prior to the start of operations.
a. Plant-Produced Material. Plant-produced material shall be tested for stability, flow,
and air voids on a lot basis. Sampling shall be from material deposited into trucks at the
plant or from trucks at the job site. A lot will consist of:
one day's production not to exceed 2,000 tons (1 814000 kg), or
a half day's production where a day's production is expected to consist of
between 2,000 and 4,000 tons (1 814000 and 3628000 kg), or
similar subdivisions for tonnages over 4,000 tons (3 628 000 kg).
Where more than one plant is simultaneously producing material for the job, the lot sizes
shall apply separately for each plant.
(1) Sampling. Each lot will consist of four equal sublots. Sufficient material for
preparation of test specimens for all testing will be sampled by the Engineer on a
random basis, in accordance with the procedures contained in ASTM D 3665.
One set of laboratory compacted specimens will be prepared for each sub lot in
accordance with ASTM D 1559, paragraph 4.5, at the number of blows required
by paragraph 401-3.2, Table 1. Each set of laboratory compacted specimens will
consist of three test portions prepared from the same sample increment.
The sample of bituminous mixture shall be put in a covered metal tin and placed
in an oven for not less than 30 nor more than 60 minutes to stabilize to
compaction temperature. The compaction temperature of the specimens should
be as specified in the job mix formula.
(2) Testing. Sample specimens shall be tested for stability and flow in accordance
with ASTM D 1559, paragraph 5. Air voids will be determined by the Engineer
in accordance with ASTM D 3203.
Prior to testing, the bulk specific gravity of each test specimen shall be measured
by the Engineer in accordance with ASTM D 2726 using the procedure for
laboratory-prepared thoroughly dry specimens, or ASTM D 1188, whichever is
applicable, for use in computing air voids and pavement density.
For air voids determination, the theoretical maximum specific gravity of the
mixture shall be measured for each sublot in accordance with ASTM D 2041,
Type C, D, or E container. The value used in the voids computation for each
sublot shall be base on the maximum specific gravity measurements for the
sub lot.
The stability, flow for each sublot shall be computed by averaging the results of
all test specimens representing that sublot.
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(3) Acceptance. Acceptance of plant produced material for stability, flow, and air
voids shall be determined by the Engineer in accordance with the requirements of
paragraph 401-5.2b.
b. Field Placed Material. Material placed in the field shall be tested for mat and joint
density on a lot basis.
(1) Mat Density. The lot size shall be the same as that indicated in paragraph 401-
5.1.a and shall be divided into four equal sublots. One core of finished,
compacted materials shall be taken by the Contractor from each sublot. Core
locations will be determined by the Engineer on a random basis in accordance
with procedures contained in ASTM D 3665. Cores shall not be taken closer
than one foot from a transverse or longitudinal joint.
(2) Joint Density. The lot size shall be the total length of longitudinal joints
constructed by a lot of material as defined in paragraph 401-5.1a. The lot shall
be divided into four equal sublots.
One core of finished, compacted materials shall be taken by the Contractor from
each sublot. Core locations will be determined by the Engineer on a random
basis in accordance with procedures contained in ASTM D 3665.
(3) Sampling. Samples shall be neatly cut with a core drill. The cutting edge of the
core drill bit shall be of hardened steel or other suitable material with diamond
chips embedded in the metal cutting edge. The minimum diameter of the sample
shall be three inches. Samples that are clearly defective, as a result of sampling,
shall be discarded and another sample taken. The Contractor shall furnish all
tools, labor, and materials for cutting samples and filling the cored pavement.
Cored holes shall be filled in a manner acceptable to the Engineer and within one
day after sampling.
(4) Testing. The bulk specific gravity of each cored sample will be measured by the
Engineer in accordance with ASTM D 2726 or D 1188, whichever is applicable.
The percent compaction (density) of each sample will be determined by dividing
the bulk specific gravity of each sub lot sample by the average bulk specific
gravity of all laboratory prepared specimens for the lot, as determined in
paragraph 401-5.la(2).
(5) Acceptance. Acceptance of field placed material for mat density will be
determined by the Engineer in accordance with the requirements of paragraph
40l-5.2c. Acceptance for joint density will be determined in accordance with the
requirements of paragraph 401-5.2d.
c. Partial Lots - Plant-Produced Material. When operational conditions cause a lot to be
terminated before the specified number of tests have been made for the lot, or when the
Contractor and Engineer agree in writing to allow overages or other minor tonnage
placements to be considered as partial lots, the following procedure will be used to adjust
the lot size and the number of tests for the lot.
The last batch produced where production is unexpectedly halted will be sampled and its
properties shall be considered as representative of the particular sublot from which it was
taken. Where three sub lots are produced, they shall constitute a lot. Where one or two
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"
sub lots are produced, they shall be incorporated into the next lot and the total number of
sublots shall be used in the acceptance plan calculation, i.e., n = 5 or n = 6, for example.
d. Partial Lots - Field Placed Material. The lot size for field placed material shall
correspond to that of the plant material, except that in no cases less than (3) cored
samples shall be obtained, i.e., n = 3.
401-5.2 ACCEPTANCE CRITERIA.
a. General. Acceptance will be based on the following characteristics of the
bituminous mixture and completed pavement as well as the implementation of the
Contractor's Quality Control plan and test results:
(1) Stability
(2) Flow
(3) Air voids
(4) Mat density
(5) Joint density
(6) Thickness
(7) Smoothness
(8) Grade
Stability, flow, and air voids will be evaluated for acceptance in accordance with
paragraph 401-5.2b. Mat density will be evaluated for acceptance in accordance with
paragraph 401-5 .2c. Joint density will be evaluated for acceptance in accordance
with paragraph 401-5.2d.
Acceptance for mat density and air voids will be based on the criteria contained in
paragraph 401-5.2f(1). Acceptance for stability and flow will be based on the
criteria contained in paragraph 401-5.2f(2). Acceptance for joint density will be
based on the criteria contained in paragraph 401-5f(3). Thickness will be evaluated
by the Engineer for compliance in accordance with paragraph 401-5.2.f(4).
Acceptance for smoothness will be based on the criteria contained in paragraph 401-
5.2f(5). Acceptance for grade will be based on the criteria contained in paragraph
401-5.2f(6).
The Engineer may at any time, not withstanding previous plant acceptance, reject and
require the Contractor to dispose of any batch of bituminous mixture which is
rendered unfit for use due to contamination, segregation, incomplete coating of
aggregate, or improper mix temperature. Such rejection may be based on only visual
inspection or temperature measurements. In the event of such rejection, the
Contractor may take a representative sample of the rejected material in the presence
of the Engineer, and if he can demonstrate in the laboratory, in the presence of the
Engineer, that such material was erroneously rejected, payment will be made for the
material at the contract unit price.
b. Stability, Flow, Air Voids. Acceptance of each lot of plant produced material for
stability, flow, and air voids shall be based on the percentage of material within
specification limits (PWL). The PWL plan considers the variability (standard
deviation) of the material and the testing procedures, as well as the average (mean)
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value of the test results. If a material with high variability is produced, the production
target must be adjusted as outlined in paragraph 401-3.2 to achieve a PWL of 90 or
more.
c. Mat Density. Acceptance of each lot of in-place pavement for mat density shall be
based on the percentage of material within specification limits (PWL). If a material
with high variability is produced, then a higher target density must be maintained in
order to achieve a PWL of 90 or more.
d. Joint Density. Acceptance of each lot of in-place pavement for joint density shall be
based on the percentage of material within specification limits (PWL). If a material
with high variability is produced, then a higher target density must be maintained in
order to achieve a PWL of 90 or more.
e. Percentage of Material Within Specification Limits (PWL). The percentage of
material within specification limits (PWL) shall be determined in accordance with
procedures specified in Section 110 of the General Provisions. The specification
tolerance limits(L) and (U) are contained in Table 5.
f. Acceptance Criteria.
(1) Mat Density and Air Voids. Ifthe PWL of the lot equals or exceeds 90
percent, the lot shall be acceptable. If the PWL is less than 90 percent, payment shall
be made in accordance with paragraph 401-8.1a.
(2) Stability and Flow. If the PWL of the lot equals or exceeds 90 percent,
the lot shall be acceptable. If the PWL is less than 90 percent, the Contractor shall
determine the reason and take corrective action. If the PWL is below 80 percent, the
Contractor must stop production and make adjustments to the mix.
(3) Joint Density. If the PWL of the lot equals or exceeds 90 percent, the
lot shall be acceptable. If the PWL is less than 90 percent, the Contractor shall
evaluate the method of compacting joints. If the PWL is below 80 percent, the
Contractor shall stop production until the reason for poor compaction can be
determined.
(4) Thickness. Thickness shall be evaluated for compliance by the Engineer
to the requirements shown on the plans. Measurements of thickness shall be made by
the Engineer using the cores extracted for each sublot for density measurement.
(5) Smoothness. The finished surfaces of the pavement shall not vary more
than 3/8 inch for the base course or 1/4 inch for the surface course. Each lot shall be
evaluated with a 12-foot (3.6 m) straightedge. The lot size shall be 2000 square yards
(square meters). Measurements will be made perpendicular and parallel to the
centerline at distances not to exceed 50 feet (15.2 m). When more than 15 percent of
all measurements within a lot exceed the specified tolerance, the Contractor shall
remove the deficient area and replace with new material. Sufficient material shall be
removed to allow at least one inch of asphalt concrete to be placed. Skin patching
shall not be permitted. High points may be ground off.
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(6) Grade. The finished surface of the pavement shall not vary from the
grade line elevations and cross sections shown on the plans by more than 1/2 inch
(12.70 nun). The finished grade of each lot will be determined by running levels at
intervals of 50 feet (15.2 m) or less longitudinally and transversely to determine the
elevation of the completed pavement. The lot size shall be 2000 square yards (square
meters). When more than 15 percent of all the measurements within a lot are outside
the specified tolerance, the Contractor shall remove the deficient area and replace
with new material. Sufficient material shall be removed to allow at least one inch of
asphalt concrete to be placed. Skin patching for correcting low areas shall not be
permitted. High points may be ground off.
g. Outliers. AU individual tests forlllat <tensity and air voids shall beche~lted for
outliers(testcriterion) inaccor<tanc.e-witb. ASTM E 178, at a significan~e'evel of
5 percent. Outliers shall be discarded, and the PWL shall be determined using
the remaining test values.
TABLE 5. ACCEPTANCE LIMITS STABILITY, FLOW, AIR VOIDS, DENSITY
Test Property Pavements Designed for Aircraft Gross Weights of 60,000 Lbs. or More
or Tire Pressure Greater than 100 Psi
Number of Blows: 75
Specification Tolerance
L
Stability, minimum
pounds 1800
Flow,O.OI-inch 8
Air voids total
mix (percent) 2.0
Density, percent 96.3
Joint density
(percent) 93.3
u
16
5.0
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401-5.3 RESAMPLING PAVEMENT.
a. General. Resampling of a lot of pavement for mat density will be allowed if the
Contractor requests, in writing, within 48 hours after receiving the written test results from
the Engineer. A retest will consist of all the sampling and testing procedures contained in
paragraphs 401-5.1b and 401-5.2c. Only one resampling per lot will be permitted.
(1) A redefined PWL shall be calculated for the resampled lot. The number of tests
used to calculate the redefined PWL shall include the initial tests made for that lot
plus the retests.
(2) The cost for resampling and retesting shall be borne by the Contractor.
b. Payment for Resampled Lots. The redefined PWL for a resampled lot shall be used to
calculate the payment for that lot in accordance with Table 6.
c. Outliers. If the tests within a lot include a very large or a very small value which appears
to be outside the normal limits of variation, check for an outlier in accordance with ASTM
E 178, at a significance level of 5 percent, to determine if this value should be discarded
when computing the PWL.
401-5.4 LEVELING COURSE. Any course used for truing and leveling shall meet the
requirements of paragraph 401-3.2 and 5.2b, but shall not be subject to the density requirements of
paragraph 401-5 .2c and d. The leveling course shall be compacted with the same effort used to achieve
density of the test section. The truing and leveling course shall not exceed a nominal thickness of 1-1/2
inches (37.5 mm).
CONTRACTOR QUALITY CONTROL
401-6.1 GENERAL. The Contractor shall develop a Quality Control Program in accordance
with Section 100 of the General Provisions. The program shall address all elements which effect the
quality of the pavement including, but not limited to:
a. Mix Design
b. Aggregate Grading
c. Quality of Materials
d. Stockpile Management
e. Proportioning
f. Mixing and Transportation
g. Placing and Finishing
h. Joints
I. Compaction
j. Surface smoothness
401-6.2 TESTING LABORATORY. The Contractor shall provide a fully equipped asphalt
laboratory located at the plant or job site. It shall be available for joint use by the Contractor for quality
control testing and by the Engineer for acceptance testing and must have adequate equipment for the
performance of the tests required by these specifications. The Engineer shall have priority in use of the
equipment necessary for acceptance testing.
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The effective working area of the laboratory shall be a minimum of 150 square feet (14 square meters)
with a ceiling height of not less than 7.5 feet (2.3 meters). Lighting shall be adequate to illuminate all
working areas. It shall be equipped with heating and air conditioning units to maintain a temperature of
70 degrees F + 5 degrees (21 degrees C + 2.3 degrees C).
Laboratory facilities shall be kept clean and all equipment shall be maintained in proper working
condition. The Engineer shall be permitted unrestricted access to inspect the Contractor's laboratory
facility and witness quality control activities. The Engineer will advise the Contractor in writing of any
noted deficiencies concerning the laboratory facility, equipment, supplies, or testing personnel and
procedures. When the deficiencies are serious enough to be adversely affecting test results, the
incorporation of the materials into the work shall be suspended immediately and will not be permitted to
resume until the deficiencies are satisfactorily corrected.
401-6.3 QUALITY CONTROL TESTING. The Contractor shall perform all quality control tests
necessary to control the production and construction processes applicable to these specifications and as
set forth in the Quality Control Program. The testing program shall include, but not necessarily limited
to, tests for the control of asphalt content, aggregate gradation, temperatures, aggregate moisture, field
compaction, and surface smoothness. A Quality Control Testing Plan shall be developed as part of the
Quality Control Program.
a. Asphalt Content. A minimum of two extraction tests shall be performed per lot in
accordance with ASTM D 2172 or ASTM 6307 for determination of asphalt content. The
weight of ash portion of the extraction test, as described in ASTM D 2172, shall be
determined as part of the first extraction test performed at the beginning of plant
production; and as part of every tenth extraction test performed thereafter, for the duration
of plant production. The last weight of ash value obtained shall be used in the calculation
of the asphalt content for the mixture.
The use of the nuclear method for determining asphalt content in accordance with ASTM
D 4125 is permitted, provided that it is calibrated for the specific mix being used.
b. Gradation. Aggregate gradations shall be determined a minimum of twice per lot from
mechanical analysis of extracted aggregate in accordance with AASHTO T 30 and ASTM
C 136 (Dry Sieve). When asphalt content is determined by the nuclear method, aggregate
gradation shall be determined from hot bin samples on batch plants, or from the cold feed
on drum mix or continuous mix plants, and tested in accordance with ASTM C 136 (dry
sieve) using actual batch weights to determine the combined aggregate gradation of the
mixture.
c. Moisture Content of Aggregate. The moisture content of aggregate used for production
shall be determined a minimum of once per lot in accordance with ASTM C 566.
d. Moisture Content of Mixture. The moisture content of the mixture shall be determined
once per lot in accordance with ASTM D 1461.
e. Temperatures. Temperatures shall be checked, at least four times per lot, at necessary
locations to determine the temperatures of the dryer, the bitumen in the storage tank, the
mixture at the plant, and the mixture at the job site.
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f. In-Place Density Monitoring. The Contractor shall conduct any necessary testing to
ensure that the specified density is being achieved. A nuclear gauge may be used to
monitor the pavement density in accordance with ASTM D 2950.
g. Additional Testing. Any additional testing that the Contractor deems necessary to
control the process may be performed at the Contractor's option.
h. Monitoring. The Engineer reserves the right to monitor any or all of the above testing.
401-6.4 SAMPLING. When directed by the Engineer, the Contractor shall sample and test any
material which appears inconsistent with similar material being sampled, unless such material is
voluntarily removed and replaced or deficiencies corrected by the Contractor. All sampling shall be in
accordance with standard procedures specified.
401-6.5 CONTROL CHARTS. The Contractor shall maintain linear control charts both for
individual measurements and range (i.e., difference between highest and lowest measurements) for
aggregate gradation and asphalt content.
Control charts shall be posted in a location satisfactory to the Engineer and shall be kept current. As a
minimum, the control charts shall identify the project number, the contract item number, the test number,
each test parameter, the Action and Suspension Limits applicable to each test parameter, and the
Contractor's test results. The Contractor shall use the control charts as part of a process control system for
identifying potential problems and assignable causes before they occur. If the Contractor's projected data
during production indicates a problem and the Contractor is not taking satisfactory corrective action, the
Engineer may suspend production or acceptance of the material.
a. Individual Measurements. Control charts for individual measurements shall be
established to maintain process control within tolerance for aggregate gradation and
asphalt content. The control charts shall use the job mix formula target values as
indicators of central tendency for the following test parameters with associated Action and
Suspension Limits:
CONTROL CHART LIMITS FOR INDIVIDUAL MEASUREMENTS
Sieve
3/4 inch (19.0 mm)
Y2 inch (12.5 mm)
3/8 inch (9.5 mm)
No.4 (4.75 mm)
No. 16 (1.18 mm)
No. 50 (0.30 mm)
No. 200 (0.075 mm)
Asphalt Content
Action Limit
0%
+/-6%
6%
+/-6%
+/-5%
+/-13%
+/-2%
+/-0.45%
Suspension Limit
0%
+/-9%
+/-9%
+/-9%
+/-7.5%
+/-4.5%
+/-3%
+/-0.70%
b. Range. Control charts for range shall be established to control process variability for the
test parameters and Suspension Limits listed below. The range shall be computed for
each lot as the difference between the two test results for each control parameter. The
Suspension Limits specified below are based on a sample size of n = 2. Should the
Contractor elect to perform more than two tests per lot, the Suspension Limits shall be
adjusted by multiplying the Suspension Limit by 1.18 for n = 3 and by 1.27 for n = 4.
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~'
CONTROL CHART LIMITS BASED ON RANGE
(Based on n = 2)
Sieve
Yz inch (12.5 nun)
3/8 inch (9.5 nun)
No.4 (4.75 nun)
No. 16 (1.18 mm)
No. 50 (0.30 mm)
No. 200 (0.075 mm)
Asphalt Content
Suspension Limit
11 percent
11 percent
11 percent
9 percent
6 percent
3.5 percent
0.8 percent
c. Corrective Action. The Quality Control Plan shall indicate that appropriate action shall
be taken when the process is believed to be out of tolerance. The Plan shall contain sets
of rules to gauge when a process is out of control and detail what action will be taken to
bring the process into control. As a minimum, a process shall be deemed out of control
and production stopped and corrective action taken, if:
(I) One point falls outside the Suspension Limit line for individual measurements or
range; or
(2) Two points in a row fall outside the Action Limit line for
individual measurements.
METHOD OF MEASUREMENT
401-7.1 MEASUREMENT. No measuremeritwill be made for this item. Quantity will be
incidental to each specific item.
BASIS OF PAYMENT
401-8.1 PAYMENT. There will not be additional compensation for this item. Paymc,mt will be
incidental to each specific item.
TESTING REQillREMENTS
ASTM C 29
Unit Weight of Aggregate
ASTM C 88
Soundness of Aggregates by Use of Sodium Sulfate or Magnesium
Sulfate
ASTM C 117
Test Method for Materials Finer than 75-um (No.200) Sieve III
Mineral Aggregates by Washing
ASTM C 131
Resistance to Abrasion of Small Size Coarse Aggregate by Use of
the Los Angeles Machine
ASTM C 136
Sieve or Screen Analysis of Fine and Coarse Aggregates
ASTM C 183
Sampling Hydraulic Cement
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ASTM C 566
ASTM D 75
ASTM D 995
ASTM D 118
ASTM D 1461
ASTM D 1559
ASTM D 2041
ASTM D 2172
ASTM D 2419
ASTM D 2489
ASTM D 2726
ASTM D 3203
ASTM D 2950
ASTM D 3665
ASTM D 3666
ASTM D 4125
ASTM D 4318
ASTM D 4791
ASTM D 4867
ASTM E 178
AASHTO T 30
The Asphalt Institute's
Manual No.2 (MS-2)
Total Moisture Content of Aggregate by Drying
Sampling Aggregates
Requirements for Mixing Plants for Hot-Mixed Hot-Laid Bituminous
Paving Mixtures
Bulk Specific Gravity of Compacted Bituminous Mixtures Using
Paraffin-Coated Specimens
Moisture or Volatile Distillates in Bituminous Paving Mixtures
Resistance to Plastic Flow of Bituminous Mixtures Using Marshall
Apparatus
Theoretical Maximum Specific Gravity and Density of Bituminous
Paving Mixtures
Quantitative Extraction of Bitumen from Bituminous Paving
Mixtures
Sand Equivalent Value of Soils and Fine Aggregate
Degree of Particle Coating of Bituminous-Aggregate Mixtures
Bulk Specific Gravity of Compacted Bituminous Mixtures Using
Saturated Surface-Dry Specimens
Percent Air Voids in Compacted Dense and Open Bituminous
Paving Mixtures
Density of Bituminous Concrete in Place by Nuclear Method
Random Sampling of Paving Materials
Inspection and Testing Agencies for Bituminous Paving Materials
Asphalt Content of Bituminous Mixtures by the Nuclear Method
Liquid Limit, Plastic Limit, and Plasticity Index of Soils
Flat or Elongated Particles in Coarse Aggregate
Effect of Moisture on Asphalt Concrete Paving Mixtures
Practice for Dealing With Outlying Observations
Mechanical Analysis of Extracted Aggregate
Mix Design Methods for Asphalt Concrete
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The Asphalt Institute's
Manual No. 20 (MS-20)
ASTM D 242
ASTM D 946
ASTM D 3381
ASTM D 4552
Hot-Mix Recycling
MATERIAL REQUIREMENTS
Mineral Filler for Bituminous Paving Mixtures
Asphalt Cement for Use in Pavement Construction
Viscosity-Graded Asphalt Cement for Use in Pavement Construction
Classifying Hot-Mix Recycling Agents
END OF ITEM P-401
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ITEM P-602
BITUMINOUS PRIME COAT
DESCRIPTION
602-1.1 This item shall consist of an application of bituminous material on the prepared base
course in accordance with these specifications and in reasonably close conformity to the lines shown
on the plans.
MATERIALS
602-2.1 BITUMINOUS MATERIAL. The types, grades, controlling specifications, and
application temperatures for the bituminous materials are given in Table 1. The Engineer shall
designate the specific material to be used.
TABLE 1. BITUMINOUS MATERIAL
Application Temperatures \1\
Type and Grade Specification Deg. F Deg. C
Emulsified Asphalt
SS-I, SS-lh ASTM D 977 70-160 20-70
MS-2, HFMS-l ASTM D 977 70-160 20-70
CSS-l, CSS-lh ASTM D 2397 70-160 20-70
CMS-2 ASTM D 2397 70-160 20- 70
Cutback Asphalt
RC-30 ASTM D 2028 80+ 30+
RC-70 ASTM D 2028 120+ 50+
RC-250 ASTM D 2028 165+ 75+
\1 \ The maximum temperature for cutback asphalt shall be that at which fogging occurs.
CONSTRUCTION METHODS
602-3.1 WEATHER LIMITATIONS. The prime coat shall be applied only when the existing
surface is dry or contains sufficient moisture to get uniform distribution of the bituminous material,
when the atmospheric temperature is above 60 F (15 C), and when the weather is not foggy or rainy.
The temperature requirements may be waived, but only when so directed by the Engineer.
Florida Keys Marathon Airport
P-602-1 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
602-3.2 EQUIPMENT. The equipment used by the Contractor shall include a self-powered
pressure bituminous material distributor and equipment for heating bituminous material.
The distributor shall be designed, equipped, maintained, and operated so that bituminous material at
even heat may be applied uniformly on variable widths of surface at the specified rate. The
allowable variation from the specified rate shall not exceed 10 percent. Distributor equipment shall
include a tachometer, pressure gages, volume-measuring devices or a calibrated tank, and a
thermometer for measuring temperatures of tank contents. The distributor shall be self-powered and
shall be equipped with a power unit for the pump and full circulation spray bars adjustable laterally
and vertically.
A power broom and/or blower shall be provided for any required cleaning of the surface to be
treated.
602-3.3 APPLICATION OF BITUMINOUS MATERIAL. Immediately before applying the
prime coat, the full width of the surface to be primed shall be swept with a power broom to remove
all loose dirt and other objectionable material.
The bituminous material including solvent shall be uniformly applied with a bituminous distributor at
the rate of 0.25 to 0.50 gallons per square yard (1.20 to 2.40 liters per square meter) depending on the
base course surface texture. The type of bituminous material and application rate shall be approved
by the Engineer prior to application.
Following the application, the primed surface shall be allowed to dry not less than 48 hours without
being disturbed or for such additional time as may be necessary to permit the drying out of the prime
until it will not be picked up by traffic or equipment. This period shall be determined by the
Engineer. The surface shall then be maintained by the Contractor until the surfacing has been placed.
Suitable precautions shall be taken by the Contractor to protect the primed surface against damage
during this interval, including supplying and spreading any sand necessary to blot up excess
bituminous material.
602-3.4 BITUMINOUS MATERIAL CONTRACTOR'S RESPONSIBILITY. Samples of
the bituminous materials that the Contractor proposes to use, together with a statement as to their
source and character, must be submitted and approved before use of such material begins. The
Contractor shall require the manufacturer or producer of the bituminous materials to furnish material
subject to this and all other pertinent requirements of the contract. Only satisfactory materials, so
demonstrated by service tests, shall be acceptable.
The Contractor shall furnish vendor's certified test reports for each carload, or equivalent, of
bituminous material shipped to the project. The report shall be delivered to the Engineer before
permission is granted for use of the material. The furnishing of the vendor's certified test report for
the bituminous material shall not be interpreted as basis for final acceptance. All such test reports
shall be subject to verification by testing samples of materials received for use on the project.
Florida Keys Marathon Airport
P-602-2 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
602-3.5 FREIGHT AND WEIGH BILLS. Before the final estimate is allowed, the Contractor
shall file with the Engineer receipted bills when railroad shipments are made, and certified weigh
bills when materials are received in any other manner, of the bituminous materials actually used in
the construction covered by the contract. The Contractor shall not remove bituminous material from
the tank car or storage tank until the initial outage and temperature measurements have been taken by
the Engineer, nor shall the car or tank be released until the final outage has been taken by the
Engineer.
Copies of freight bills and weigh bills shall be furnished to the Engineer during the progress of the
work.
METHOD OF MEASUREMENT
602-4.1 No measurement will be made for this item. Quantity will be incidental to each
specific item.
BASIS OF PAYMENT
602-5.1 There will be no additional compensation for this item. Payment will b~Jrlcidelltal
to each specific item.
MATERIAL REQUIREMENTS
ASTM D 977
Emulsified Asphalt
ASTM D 2028
Asphalt, Cutback (Rapid Curing Grade)
ASTM D 2397
Cationic Emulsified Asphalt
TESTING REQUIREMENTS
ASTM D 1250
Petroleum Measurement Tables
Asphalt
Institute
Manual MS-6
Table IV-3
Temperature-Volume Corrections for Emulsified
Asphalts
END OF ITEM P-602
Florida Keys Marathon Airport
P-602-3 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
ITEMP-620 RUNWAY AND TAXIWAY PAINTING
DESCRIPTION
620-1.1 This item shall consist of the painting of numbers, markings, and stripes on the surface of
runways and taxiways applied in accord~~ce \Vith th~se. ~pe~i~cations~?d at the locations sho\V11.o~the
plans, or as directed by the Engineer. The work shalla.lso include the removal of existing marking$ on
airfield pavement surfa.ces.
MATERIALS
620-2.1 MATERIALS ACCEPTAN
test reports for materials ship
that the materials meet. the s
acceptance or the Engineer ma
as a basis for payment. The Contractor shal
materials to the site.
ontractor shall furnish manufacturer's: certified
est reports shall includ ent
reports can be used erial
The reports shall not b eted
the Engineer upon arrival of a s ent of
620-2.2 PAINT. Paint s
620-2.2a. Paint shall be Ii
31136 to 2 parts Whit
furnished in Type II -
711.
nee with the requirements of p.ragraph
-33538 or 33655 and Pink . part Red-
al Standard No. 595. .s;hall be
en tested in accordance wit STM D
a. WATERBORNE. Paint shall fueettb.e reqtlirelDents of Federal Specification TT:'P-
1952D, Type I or Type.II.
b. EPOXY. Paint shall be a two component, minimum 99 percent solids type system
conforming to the following:
(1) Pigments. Component A. Percent by weight.
(a) White:
Titanium Dioxide, ASTM D 476, type II shall be 18 percent
minimum
(16.5 percent minimum at 100 percent purity).
(b) Yellow and Colors:
Tit~lDium Dioxide, ASTM D 476, type II shall be 14 to
ow, other colors, and tinting as required to meet
color standard.
Epoxy resin sha.llbe 75 to 79 percent.
(2) EpoxyContent.Qol)lp~~~~!~.<r:he",eight per epoxy equivalent, when
tested in accordance with ASTMD1652 shall be themaIlufacturer'slarget plus or minus 50.
(3) : Amine Number. :CompoIlent:i.l,.>When tested in accordance with ASTM D
2074 shall be the manufacturer's target plusor minus 50.
Florida Keys Marathon Airport
P-620-1 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
(4) . Prol1ibIt~4l\faterhl.~~.T~~~~~~fa~~~rershall. certify that thePfod.lJct4ges
not contaIn mercury, lead, hexavalent chromium,ti.alogenated solvents, nor any carcInog~Il' as
defined In 29 CFR 1910.1200.
(5) DaylIght Directional Reflectance:
(a) hIte: daylIght dIrectional reflectance of the white pamt shall
not be less than 75 percent re ve to nesIum oxide), when tested In accordance wIth Federal
Test Method Standard No. 141, Method 6121.
(b). Xellow:Thed.ay.~~~td.r~l;tional reflectance of the yellow paInt shall
not be less than 38 percent (relative t0II1agnesiuIll9xIde),,,,hen tested in accordance with Federal
Test Method Standard No. 14~.T~e x an4y~~~e~/~~.aJIJ)~consistent with the Federal IJ;~~man
yellow color standard chart for traffic yellow.. standard 33538, or shall be consIstent wIth the
tolerance lIsted below:
x .462 x .470 x .479 x .501
Y .438 Y .455 Y .428 Y .452
(6) Accelerated weathering.
(a) Sample preparatIon. Apply t
inch (0.33 mm) to four 3 by 6 Inch (8 by 15 cm) aluminu
Test Method Standard No. 141, Method 2013. AI"r-dr
conditIons.
paInt at a wet fIlm thic
. els prepared as descrIb
he sample 48 hours unde ..
(b) TestIng condItions. Test In accordance wIth ASTM G 53 usIng both
Ultra VIolet (UV -B) Light and condensate exposure, 72 hours total,. alternatIng 4 hour UV exposure
at 60 degree C, and 4 hours condensate exposure at 40 degrees C.
(c) EvaluatIon. Remove the samples and condition for 24 hours under
standard conditIons. Determine the dIrectIonal reflectance and color match usIng the procedures In
paragraph 620-2.2b(5) above. Evaluate for conformance with the color requIrements.
(7) Volatile OrganIc Content. .. DetermIne the volatile organIc content in
accordance with 40 CFR Part 60 AppendIx A, Meihod24.
(8) Dry opacity. Use Procedure B, Method B of Method 4121 of Federal Test
Method Standard No. 141. The wet fIlm thickness shall be 0.015 Inch (0.12 mm). The rtnnImum
opacity for white and colors shall be 0.92.
(9) Abrasion resistance. Subject tile panels prepared in paragraph 620-2.2b(6)
to the abrasion test in accordance with ASTM D 968; Method A, except that the inside di~eter of
the metal guIde tube shall be from 0.747 to 0 .. toJ9.05 mm). FIve llte(~o~ \!Bused
sand shall be used for each test panel. Thete . n two test panels. [Note: fiv~ liters of
sand weighs 17.5 lb. (7.94 kg).] Both baked and weathered paint fIlms shall require not less than
150 liters of sand for the removal of the paint fIlms.
(10) Hardness, Shore. Hardness shall beat least 80 when tested in accordance with
ASTM D 2240.
Florida Keys Marathon Airport
P-620-2 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
c. l\1ETJ;IAg.R):J),A:1.'E.~aillt shall be~( twocoIIlpoQ.ent, minimum 99 percent solids
type system conforming to theJollowing:
(1) Pigments. Component A. Percent by weight.
(a) ~.~~te:
Tita.n.itlul])ioxide,ASTMn 476,typeU shall be 6 percent
minimum.
Methacrylate resin shall be 18 percent minimum.
(b) Yellow and Colors:
Titanium Dioxide, ASTM D 476, type n shall be 6 percent
minimum.
Organic yellow, other colors, and tinting as required to meet color
standard.
Methacrylate resin shall be 18 percent minimum.
(2) Prohibited Materials. The manufacturer shall certify that the product does
not contain mercury, lead, hexavalent chromium, halogenated solvents, nor any carcinogen, as
dermed in 29 CFR 1910.1200.
(3) Daylight Directional Reflectance:
(a) White: The daylight directional reflectance of the white' p,int shall
not be less than 80 percent (relative to magnesium oxide), when tested in accordance with Federal
Test Method Standard No. 141, Method 6121.
(b) Yellow: The daylig
not be less than 55 percent (relativ~ to IiIagnesiu
Test Method Standard No. 141. The. x and y valu
yellow color standard chart for traffic yellow stan
tolerance listed below:
ectance ofthe yellow p~'
he ted in accordancew' ,.
e consistent with the Federa
33538, or shall be consistent '
x .462 x .470 x .479 x .501
Y .438 Y .455 Y .428 Y .452
(4) Accelerated weathering.
. (a) Sample prepar
inch (0.33 mm) to four 3 by 6 inch (8 by 15 c .
2013 of Federal Test Method Standard No. 141.
conditions.
1\.pplYJh~ paintat a wet fIlm thic
.'n,um p'anelsprepared as describe. . ...ethod
Air.dry the. sample 48 hours under' standard
(b) Testing conditions. Test in accordance with ASTM G 53 using both
Ultra Violet (UV-B) Light and condensate exposure, 72 hours total, alternating 4 hour UVexposure
at 60 degree C, and 4 hours condensate exposure at 40 degrees C.
(c) Evaluation. Remove the samples and condition for 24 hoUrs under
standard conditions. Determine the directional reflectance and color match using the proc~dures in
paragraph 620-2.2c(3) above. Evaluate for conformance with the color requirements.
Florida Keys Marathon Airport
P-620-3 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
(5) Volatile Organic Content. Determine the volatile organic content in
accordance with 40 CFR Part 60 Appendix A, Method 24.
(6) Dry opacity. Use Procedure B, Method B of Method 4121 of Federal Test
Method Standard No. 141. The wet fIlm thickness shall be 0.015 inch (0.12 mm). The minimum
opacity for white and colors shall be 0.92.
(7) .A.bra~iollEesis~~Jlce. ... S~~ject~~e..e~lDels prepared in paragraph620-2.~c(4)
to the abrasion test in accordance with ASTMD968,Method A, except that the inside diameter of
the metal guide tube shaUbef~?IllO''747 to 0.75~Jnch.(18..97 to 19.05 mm). Five liters()f unused
sand shall. be used.for eachte~tg.~Rfl.~~ete.~.~.~h~U~ep.lllOntwotest panels. [Not~: tiv~~t~rsof
sand weighs 17.5 . lb. (7.94k.g).lBothbakedaIl€Jweathered paint fIlms shall require not less than
150 liters of sand for the removal of the paint fIlms.
(8) Hardness, Shore. Hardness shall be at least 80 when tested in accordance
with ASTM D 2240.
d. SOLVENT BASE. Paint shall meefthe requirements of Federal Specification A-A-
2886A Type I or Type II.
620-2.3 REFLECTIVE MEDIA. Glass beads shall meet the requirements of Fed. Spec. TT -B-
1325, Type I, Gradation A, or GI. s. shall be treated with adhesion promoting
and/or flotation coatings as sped . rer ofthe paint.
CONSTRUCTION METHODS
620-3.1 WEATHER LIMITATIONS. The painting shall be performed only when the.surface is
dry and when the surface temperature is at least 45 egrees C) and rising and the pavement
surface temperature is at least 5 degrees F (2.7 degrees above the dew point.
620-3.2 EQUIPMENT. Equipment shall include the apparatus necessary to properly clean the
existing surface, a mechanical marking machine, a bead and/or silica sand dispensing machine, and
such auxiliary hand-painting equipment as may be necessary to satisfactorily complete the job.
The mechanical marker shall be an atomizing spray-type marking machine suitable for application of
traffic paint. It shall produce an even and uniform film thickness at the required coverage and shall be
designed so as to. apply markin~s of uniform cross sections and clear-cut edges without running or
spattering and without over spray.
620-3.3 PREPARATION OF SURFACE. Immediately before application of the paint, the surface
shall be dry and free from dirt, grease, oil, laitance, or other foreign material which would reduce the
bond between the paint and the pavement. The area to be painted shall be cleaned by sweeping and
blowing or by other methods as required to remove all dirt, laitance, and loose materials.
Paint shall not be applied to Portland cement concrete pavement until the areas to be painted are clean of
curing material. Sandblasting or high-pressure water shall be used to remove curing materials from
concrete surfaces.
620-3.4 LAYOUT OF MARKINGS. The proposed markings shall be laid out in advance of the
paint application. The location of markings to receive glass beads shall be shown on the plans.
Florida Keys Marathon Airport
P-620-4 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
620-3.5 APPLICATION. Markings shall be applied at the locations and to the dimensi
spacing shown on the plans. Paint shall not be applied until the layout and condition 0
have been approved by the Engineer. The edges ofthe markings shall not vary from a
more than yz inch (12 mm) in 50 feet (15 m) and marking dimensions and spacings sha
the following tolerances:
Dimension and Spacing Tolerance
36 inches (910 mm) or less +/- 1'2 inch (12 mm)
Greater than 36 inches to 6 feet (910 mm to 1.85 m) +/- 1 inch (25 mm)
Greater than 6 feet to 60 feet (1.85 m to 18.3 m) +/- 2 inches (51mm)
Greater 60 feet (l8.3m) +/- 3 inches (76 rom)
The paint shall be mixed in accordance with t
pavement with a marking machine at the ra
be permitted. A period of not less than 24 _
surface course or seal coat and application of t
e manufacturer's instructions and appli~d to the
in Table 1. The addition of thinner will not
elapse between placement of a bituminous
TA
APPLICATION RATES FOR PAIN
1.
ASS BEADS; AND SILICA SAND
Paint Glass Beads, Type Glass Beads, Silica Sand
Square feet per I, Gradation A Type III Pounds Pounds per gallon
2 Pounds per gallon per gallon of paint of paint -lb./gal.
Paint Type gallon, ft /gal of paint -lb./gal. - lb./gal. (Kilograms per
(Square meters
per liter, m2/1) (Kilograms per (Kilograms per liter of paint -
liter of paint - kgll) liter of paint - kg/l kg/l
115 ft2/gal. 7 Ib.lgal. 12 Ib.lgal. 4 Ib.lgal.
Waterborne minimum
maXImum minimum minimum (0.5 kg/I)
(2.8 m2/I) (0.85 kg/I) (1.45 kg/I)
--_.~ --
115 ft2/gal. 7 Ib.lgal. 12 Ib.lgal. 4 Ib.lgal.
Solvent Base minimum
maXImum mImmum rmmmum (0.5 kg/I)
(2.8 m2/I) (0.85 kg/I) (1.45 kg/I)
----...-.----------
90 ff/gal. 15 Ib.lgal. 24 Ib.lgal. 8 Ib.lgal.
minimum
Epoxy maXImum mlmmum mlmmum (1.0 kg/l)
(2.2 m2/I) (1.8 kg/I) (2.9 kg/I)
--
45 ff/gal. 15 Ib.lgal. 24 Ib.lgal. 8 Ib.lgal.
minimum
Methacrylate maXImum minimum minimum (1.0 kg/I)
(1.1 m2/l) (1.8 kg/I) (2.9 kg/I)
Glass beads shall be distributed upon the mark~cl~r~aSl:\t the locations shown. on t~e plallsto
receive glass beads immediatelyafterapplicatioll?ft~epaint;.A dispenser shall be. furnishedwhlch
is properly designed for attachment to theml:\ridngmachineand suitable for dispensing glass
beads. Glass beads shall be applied at the rate(s) shown in Table 1. Glass beads shall not be
Florida Keys Marathon Airport
P-620-5 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
applied to black paint. Glass beads shall adhere to the cured paint or all marking operations shall
cease until corrections are made.
All emptied containers shall be returned to the paint storage area for checking by the Engineer.
The containers shall not be removed from the airport or destroyed until authorized by the
Engineer.
620-3.6 PROTECTION. After application of the paint, all markings shall be protected from damage
until the paint is dry. All surfaces shall be protected from disfiguration by spatter, splashes, spillage, or
drippings of paint.
620-3.7 REMOVAL OF EXJSTINGMA~g~.Existing markings sha.ll be remox~~by
water blasting or grinding. In ord.~r to. avoid ~~.~~gingth.~ pavements during the wat~~/~l~~t~g
operations, the Contractor shall only utilize .alV~terpressurethat is sufficient t() .rem()x~/~~e
pavement markings. In the eve~tthat the payeIDentj~damaged by the water blastingop~r~~i9~s,
the Contractor shall reduce the water pressurt~,orsb.allutilize other approved methods to remove
the pavement markings. Do not use chemical paint remover.
METHOD OF MEASUREMENT
620-4.1 The quantity of runway and taxiway markings to be paid for shall be the number of square
feet of painting performed in accordance with the specifications and accepted by the Engineer.
620-4.2 Measurement of removal of existing markings for payment shall be the number of
square feet removed, as shown on the Plans or as directed by the Architect/Engineer,. performed in
accordance with the specifications and accepted .by the Architect/Engineer. No measurement' for
payment will be made for the removal of temporary pavement markings, or the removal ofstriping
tape.
BASIS OF PAYMENT
620-5.1 Payment shall be made at the contract unit price per square foot for runway and
taxiway painting, reflective media and removal of existing markings. This price shalf be full
compensation for furnishing all materials and for all labor, equipment, tools, and incidentals
necessary to complete the item.
Payment will be made under:
Item P-620-5~1
Final Marking (yello~/Qr whi~e with
Reflective Beads at 100% application rate) ..... per square foot
Item P-620-5.2
Outline BlackPaint{noreflective beads)......... per square foot
TESTING REQUIREMENTS
ASTM C-146
Chemical Analysis of Glass Sand
ASTM C 371
Wire-Cloth Sieve Analysis of Nonplastic Ceramic
Powders
Florida Keys Marathon Airport
P-620-6 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
ASTM D 92
ASTMD711
ASTM D968
ASTM D 1652
ASTM D 2074
ASTM D 2240
ASTM G53
Federal TestMethod
Methods
ASTMD476
Code of Federal
Regulations
Fed. Spec.iTT -B--1325
Fed. Spec. TT-P-85
Fed. Spec. TT-P-110
Fed.Spec.TT-P-1952
Federal Standard 595
Test Method for Flash and Fire Points by Cleveland
Open Cup
No-Pick-Up Time of Traffic Paint
ethods for Abrasion Resistance of
s by Falling Abrasive
Test Method for Epoxy Content of Epoxy Resins
Test Method for Total Primary, Secondary, and T
ertiary AmineValues of Fatty Amines by Alternative
Indicator Method
Test Methodfor Rubber Products-Durometer
Hardness
Operating Light and Water-Exposure
Apparatus (Florescent UV-Condensation Type) for
Exposure of Nonmetallic Materials.
. Paint, V
of InspectIon,
Testing
cquer alld Related Materials;
dard No. 141 Sampling and
MATERIAL REQillREMENTS
Specifications for Titanium Dioxide Pigments
40 CFR Part 60, Appendix A
29 CFR Part 1910.1200
Beads (Gla~sSpheres)Retrorenective
Paint, traffic and Airfield Marking, Solvent Base
Paint,Tra.ffi~Black (Non-reflectorized)
Paint, traffic and Airfield Marking, Waterborne
Colors used in GovernmelltProcurement
END OF ITEM P-620
Florida Keys Marathon Airport
P-620-7 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
ITEM L-IOO SIGNAGE AND ELECTRICAL WORK
DESCRIPTION
100-1.1 GENERAL. The electrical and mechanical work to be done under this Project shall
include the furnishing of all supervision, labor materials, tools, equipment and all incidentals
necessary to install cabling, underground duct, L-867 bases for signs, and guidance signs, in
accordance with the Federal Aviation Administration Advisory Circular No. 150/5370-10A and
150/5340-18C. All items must be listed as approved in AC 150/5345-1 U or latest version in effect on
the date of advertisement. All other equipment and materials covered by other referenced
specifications shall be subject to acceptance through manufacturer's certification of compliance with
the applicable FAA specification. The Contractor shall furnish written proof of FAA approval on all
equipment covered by FAA specification. All other equipment and material shall be subject to
approval by the Engineer.
The Federal Aviation Administration requires certification that the electrical equipment used in this
project meets their requirements.
All equipment and materials installed on this Contract must be in strict accordance with the plans and
specifications.
All work shall be performed in strict accordance with these contract specifications, drawings and any
instructions furnished by the Engineer during execution of the work to aid in interpretation of the
drawings or specifications.
100-1.2 SUMMARY OF THE WORK. The work to be performed shall include furnishing all
labor, supplies, materials, equipment, plant, transportation, and services required to augment, move,
install, and complete electrical work as specified herein and as shown on the contract drawings.
This work shall include but is not limited to the following:
(a) Maintain in operation all existing field electrical facilities and circuits while this
improvement is in progress, including protection of airport personnel, aircraft, and vehicles; furnish
and maintain temporary circuits and place augmented airport lighting into operation. Field lighting
on active runways and taxiways shall be operable each night, each day when weather conditions
require illumination, i.e. fog, rain, or when the airport calls an emergency.
(b) Furnish and install all new signs, foundations, base cans, secondary extension leads,
ducts at the locations indicated and in accordance with specifications, ready for installation of cables.
(c) Furnish and install all 2" PVC duct at the locations indicated and in accordance with
specifications, ready for installation of cables. Excavation, backfill trenches, and install cable
marking tape, in trench.
(d) Furnish and install new guidance SIgnS, fixtures, connectors, hardware and all
incidentals.
(e) Remove existing sign fixtures and foundations.
Florida Keys Marathon Airport
L-IOO-l May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
(t) Ground all signs, equipment, enclosures, regulators, controls and conduits installed
under this contract as shown in the plans or as called for by the authority having jurisdiction.
(g) Adjust finished grade as necessary to accommodate existing and new SIgn
foundations to match existing ground.
(h) Where new sign circuitry is to be extended from existing stake edge lights, remove
the existing taxiway edge lights stake, concrete anchor and isolating transformer. Salvage and deliver
edge lights and transformers as directed by the Engineer. Non-salvage materials are to be disposed of
by the Contractor. Reinstall a new L-867 base with concrete envelope, new L-861T, and isolating
transformer, reconnect sign cable back into circuit cables to close loop.
(i) Permanently connect new regulators into the system as shown.
(j) Furnish and install new L-824, Type "C" cable, in duct or in conduit as required to
complete each circuit.
(k) All existing cables belonging to FAA, Weather Service, or telephone and power
companies shall be protected within the construction limits. All damaged cables shall be repaired by
the Contractor. When working near cables used by the FAA for controlling air traffic, the Airways
Facilities Representatives in the tower shaH be notified when they plan to start and finish this work.
(1) Guarantee as required by the Performance and Maintenance Bond.
(m)Other items required to complete foregoing. The omission of express reference to any
parts necessary for or reasonable incidental to the complete installation shall not be construed as
releasing the Contractor from furnishing such parts.
Unless otherwise specified, the Contractor shall submit his progress schedule for the Engineer's
approval within 10 days after the effective date of the notice to proceed. The Contractor's progress
schedule, when approved by the Engineer, may be used to establish major construction operations
and to check on the progress of the work. The Contractor shall provide sufficient materials,
equipment, and labor to guarantee the completion of the project in accordance with the plans and
specifications within the time set forth in the proposal. If the Contractor falls significantly behind the
submitted schedule, the Contractor shall, upon the Engineer's request, submit a revised schedule for
completion of the work within the contract time and modify his operations to provide such additional
materials, equipment, and labor necessary to meet the revised schedule. Should the prosecution ofthe
work be discontinued for any reason, the Contractor shall notify the Engineer at least 48 hours in
advance of resuming operations. A minimum of three (3) working days advance notice shall be given
to the Engineer and approval received for any disconnections or shutdowns.
The plans are diagrammatic. Locations of equipment to be installed are shown in the plans, but the
actual installation will depend on field conditions and the nature of the equipment furnished. When
conditions which will adversely affect the installation become apparent, the Engineer shall be
notified in writing.
The Contractor shall provide task lighting for night work. Task lighting shall be adequate to
accurately see the task being performed. Refer to IES recommended illumination levels. Task
lighting must not cause glare or confusion for the pilots.
Florida Keys Marathon Airport
L-IOO-2
May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
All items of general work required, such as excavation, cutting, patching, etc., shall be included in
this Contract. Installation shall be performed by experienced and skilled persons to obtain only the
best workmanship. All equipment shall be set square and true with construction. The work shall be
under constant supervision by the Contractor or by an authorized and competent foreman with five
years experience until completion.
The Contractor shall at all times keep the construction areas free from accumulations of waste
material and rubbish, and prior to completion of work, remove any rubbish from and about the
project, and all tools, reels, equipment, and materials not a part of the project. Upon completion of
the construction, the Contractor shall leave the work and premises in a clean, neat, and workmanlike
condition satisfactory to the Engineer. The Contractor shall be responsible for the proper
performance in all respects, in whole and in part, of the electrical equipment until acceptance of the
entire work by the Engineer.
The electrical construction and installation shall be complete, and the Contractor shall furnish all
equipment necessary for the satisfactory installation and operation of electrical apparatus and for the
operation of the electrical system as indicated, whether specifically mentioned or not.
100-1.3 DRAWINGS. The drawings indicate the extent and general layout of the sign system,
arrangement of circuits, cables through ducts, connections to existing circuit cables, and other work.
Field verification of scale dimensions is required to determine actual locations, distance, and levels.
No extra compensation will be allowed because of differences between work shown on the drawings
and measurements in the field. The Contractor shall check the plans and specifications and, if any
portion of the work is found to be omitted, unclear, or in error, the Contractor shall immediately
notify the Engineer. The direction of the Engineer shall be followed and the work completed
accordingly.
The plans and specifications are complementary and what is called for in either one shall be binding
as if called for in both.
Where a disagreement exists between the plans and specifications, the specifications shall govern.
Any discrepancies between the drawings, Advisory Circulars, and field conditions must be resolved
with the Engineer before proceeding. All agreements shall be verified in writing.
Detail dimensions shown on the plans are approximate and shall be field verified before construction.
All differences shall be submitted to the Engineer in writing before construction begins.
100-1.4 SHOP DRAWINGS. Before any equipment is ordered or commencement of installation
of the electrical system, a complete schedule of materials and detailed shop drawings covering all
items of equipment proposed for installation shall be submitted for approval by the Engineer. Shop
drawings shall include but not be limited to:
Physical dimensions and weights of all equipment,
Operating ratings and specifications of all equipment,
Terminal block interconnections between all major items of equipment,
Regulators and Wire Way Layouts.
The schedule shall initially include eight sets of catalog cuts, diagrams, drawings, brochures, or other
such descriptive data as may be required by the Engineer. No equipment shall be ordered or put into
Florida Keys Marathon Airport
L-100-3 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
manufacture until these shop drawings or brochures have been approved by the Engineer. The
Engineer will be allowed ten (10) calendar days to review all shop drawings or brochures. The
Engineer's review shall be based on a complete submittal covering all items to be furnished and
installed under the contract. In the event any items or material or equipment contained in the
schedule fail to comply with specification requirements, such items will be rejected.
100-1.5 SITE CONDITIONS. The existence of any known buried wires, conduits, pipes, ducts
or other facilities is shown in a general way only. It will be the duty of the Contractor with the help
of airport personnel to visit the site and make exact determination of the existence and location of
any facilities prior to commencing any work. It is understood that he will be responsible for making
the exact determination of the location and condition of such facilities. Any costs shall be paid for by
the Contractor.
When excavating and trenching within the vicinity of existing cables or other utilities, the Contractor
shall employ hand excavation to avoid damage. Any damage caused by the Contractor to known
systems shall be repaired by the Contractor at his own expense and to the satisfaction of the
Engineer. It shall be the Contractor's responsibility to verify the exact locations of existing systems
and utilities shown on the drawings. Additional utilities and systems not shown on the drawings may
exist; and it shall be the Contractor's responsibility to research existing above and below ground
conditions. Where an unknown utility is discovered, provide labor and materials as needed to
establish identity and use of the utility. Existing drawing sets will be released upon written request to
the Consultant.
Prior to trenching verify that the trench route is free of metallic utilities by searching with a metal
detector. Verify location of existing utilities through careful excavation or by impressing an
identification signal (if acceptable to cable owner) at an accessible location and following the path of
the utility with a signal tracer. Where necessary to prevent damage to utilities excavate soil by hand.
All items damaged by the Contractor's workers or his equipment shall be replaced immediately at his
expense.
100-1.6 CODES. The Contractor shall comply with all ordinances, laws, regulations, and codes
applicable to the work involved. This does not relieve the Contractor from furnishing and installing
work shown or specified which may be beyond the requirements of such ordinances, laws,
regulations, and codes.
Regular inspections shall be requested by the Contractor as required by any and all regulations. All
charges for the inspection called for by regulating agencies of installation or plans and specifications
shall be paid by the Contractor.
100-1.7 PERMITS. The Contractor shall procure and pay for all permits and fees prior to the
start of any work.
100-1.8 MAINTENANCE AND OPERATING INSTRUCTIONS. The Contractor shall
provide the Owner with complete instructions in the proper care and operation of the equipment
installed under this contract. This is considered as part of the final inspection, and final acceptance
will not be given until the Owner's representative is knowledgeable about the system.
100-1.9 MAINTENANCE AND OPERATING MANUAL. The Contractor shall collect and
assemble details, instructions, schematics of actual equipment and operation, and directions supplies
Florida Keys Marathon Airport
L-100-4 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
by the manufacturer with all equipment. Final acceptance of the work will be withheld until such data
has been presented complete to the Engineer for transmission to the Owner.
100-1.10 AS-BUILT DRAWING NOTES. The Contractor shall mark up one set of blue line prints
to show the as-built conditions which differ from the original. The Engineer will furnish a newly
printed set of blueline drawings for this purpose. As-builts shall be kept up daily and initialed off by
Contractor and Engineer's inspector weekly. There shall be sufficient detail, including station
numbers, markers, panel circuit numbers, etc., to allow for easy location and correcting tracings. This
work shall be completed and accepted by the Engineer before approval of final payment.
100-1.11 INSTALLATION METHODS. All electrical materials, construction methods, and
installation shall be in accordance with applicable Federal Aviation Administration's advisory
circulars, the latest edition, including amendments, of the currently adopted edition of the National
Electrical Code.
100-1.12 SAFETY RULES. The Electrical Safety Rules shall be observed and complied with in
every detail, and any violation thereof shall be cause for immediate termination of the Contractor's
authority to proceed with the work and recourse to his Surety for completion of the Project. The
Electrical Safety Rules are as follows:
a. The Contractor shall be responsible for conforming with the safety requirements of Appendix 1
of AC 150-5370-2C.
b. Electrical circuits, operating over 300 volts, phase-to-ground shall be de-energized before work
is accomplished thereon. Work on energized systems shall be accomplished by trained personnel,
properly insulated, and done with extreme caution.
c. Electrical circuits shall be considered de-energized only when one of the following conditions
exists:
(1) Switches connecting subject circuit to the energy supply are observed in the OPEN
position, with an air break, and safety-tagged (padlocked) in the OPEN position;
(2) Electronically operated switches are visibly OPEN, blocked or racked in the OPEN
position, and safety-tagged OPEN;
(3) Whenever the supply circuit break is not visible and clearly identified, the circuit shall be
grounded. The ground connection shall be safety-tagged before work thereon, when the
ground connection is not within sight of the work area.
d. Use of Red Safety Tags:
(1) Safety tags shall be filled out and connected to any switch or equipment opened for
protection of personnel working upon circuits connected thereto.
(2) Safety tags shall be removed only by the employee who placed the tag, or by another
employee designated in writing by the employee who placed the tag, to remove the tag.
Removal of a safety tag placed by an employee not available at the time of need to
remove, may be authorized by the Electrical Superintendent or his designated
representative, only after carefully checking that the circuit is ready to be energized.
Florida Keys Marathon Airport
L-IOO-5 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
(3) Equipment with a safety tag attached shall not be operated, and connections with a safety
tag attached shall not be changed.
(4) Insulated cables, operated at over 300 volts to ground shall be handled, when energized,
only with rubber gloves testes to 15,000 volts.
(5) Insulated cables, which have been in operation, shall be cut only with a grounded cable
shears, or shall be grounded by driving a grounded sharp tool through the shielding and
the conductors before cutting.
(6) All personnel working around energized electrical equipment operating at over 300 volts
shall wear standard insulated, non-conducting hard hats, and shall wear no garments with
metallic zipper fasteners.
(7) Ladders used in any electrical work shall be of wood or fiberglass construction.
100-1.13 CONSTRUCTION SEQUENCING. The existing system must remain in operation
until the new system is in place, operational, and tested. During construction, the faces of the new
signs shall be concealed from view. The new signs shall be concealed with opaque canvas tarpaulins
securely wrapped with nylon rope to withstand jet blast and protect signs. After cutover of the new
system, all existing signs must be removed or concealed within 12 hours.
Por projects involving electrical energy or other hazardous energy sources, the contractor shall
submit a copy of their Lockout/Tagout program which meets the requirements of29 CPR 1910.331,
Safety Related Work Practices (OSHA). During the performance of electrical work, it is
recommended that an unannounced inspection by performed by the airport sponsor or his agent to
determine if the Lockout/Tagout program is being followed. Immediate action shall be taken to
correct noncompliance, including suspension of work when necessary.
100-1.14 QUALITY ASSURANCE.
(a) Workmanship. Workmanship shall be consistent with the best commercial practices for
installation of this type.
(b) Materials. Materials and equipment shall be specified herein. When materials are used that are
not specifically designated herein, they shall be in accordance with the best industry standards and
practices for equipment of this type. All components and parts shall be suitable for operation under
the environmental conditions specified herein. Metal parts shall be either inherently corrosion-
resistant or shall be suitably protected to resist corrosion or oxidation during extended service life.
(c) Parts Rating. All parts shall be of adequate rating for the application and shall not be operated
above the parts manufacturer's recommended ratings.
(d) Environmental Conditions. The equipment installed outdoors shall be designated for
continuous outdoor operation under the following environmental conditions:
(1) Temperature - Any ambient temperature from minus 200P to plus 1200P.
(2) Altitude - 4 MSL.
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L-100-6
May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
(3) Humidity - Up to 100 percent.
(4) Sand and Dust - Exposure to Windblown sand and dust particles.
(5) Wind - Operation at wind velocities up to 200 mph as per FAA AC 150/5345-14E per
hour.
(6) Water - Components provided for underground installation, directly buried or installed in
underground housing, shall be suitable for continuous operation submerged in water.
100-2.1
GENERAL.
EQUIPMENT AND MATERIALS
a. Airport signage equipment and materials covered by Federal Aviation Administration (FAA)
specifications shall have the prior approval of the FAA, and be listed in Advisory Circular (AC)
150/5345-1 U, Approved Airport Equipment or by Testing Lab.
b. All other equipment and materials covered by other referenced specifications shall be subject to
acceptance through manufacturer's certification of compliance with the applicable specification
when requested by the Engineer. Whenever Underwriters Laboratories has a published standard
applicable to the equipment furnished for this contract, the furnished equipment shall be listed by
UL.
c. Materials and equipment shall be as specified herein. When materials are used that are not
specifically designated herein, they shall be in accordance with the best industry standards and
practices for equipment of this type. All components and parts shall be suitable for operation under
the environmental conditions specified herein. Metal parts shall be either inherently corrosion-
resistant or shall be suitably protected to resist corrosion or oxidation during extended service life.
d. Prior to purchasing materials, the Contractor shall submit a list of materials as described in L-
100.
e. Material requirements shall comply with the following FAA AC:
AC 150/5345-1U
AC 150/5370-2C
AC 150/5370-10A
MIL-P-1523-88
TT-P-641F
AC 150/5340-18C
AC 150/5345-lOE
AC 150/5345-42C
AC 150/5345-44E
AC 150/5345-47A
Airport Approved Equipment
Operational Safety on Airports During Construction
Standards for Specifying Construction of Airports
Wash Primer Specification
Type II, Base Paint, Zinc-Rich
Taxiway Guidance Sign System
Regulators, Constant Current, L-828 and L-829
Specification for Airport Light Bases, Transformer Housings,
Junction Boxes, and Accessories
Specification for Taxiway and Runway Signs
Isolation Transformers for Airport Lighting Systems
100-2.2 HARW ARE CORROSION PROTECTION. In order to prevent deterioration due to
corrosion, all bolts, nuts, studs, washers, pins, terminals, springs, hangers and similar fastenings and
Florida Keys Marathon Airport
May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
L-IOO-7
fittings shall be of an approved corrosion-resisting material and/or be treated in an approved manner
to render it adequately resistant to corrosion. All hardware such as cap screws, set screws, tap bolts,
nuts, washers, etc., shall be of stainless steel type 304, SAE grade 2, if they are used outdoors unless
specified otherwise on the plans. Brass, bronze, or hot-dip galvanized ferrous hardware (per ASTM,
Specification A 153) will be considered for indoor use. All bolts, screws, nuts, etc., shall be coated
with a layer of "Never seize" compound.
All ferrous metalwork shall be galvanized. If any galvanizing is damaged, the metal work shall be
refinished by cleaning, treating with one coat of wash primer conforming to Federal (military)
specification MIL-P-1523-88, and shall be given one shop coat of zinc-rich base paint (zinc dust
paint) conforming to Federal Specification TT-P-641F Type II, immediately when the wash primer is
dry.
100-2.3 SIGNS. Provide signs with lamp failure bypass option to allow the continued operation
of remaining lamps if one lamp fails.
100-2.3.1 TAXIWAY GUIDANCE SIGNS. Taxiway guidance signs shall meet the requirements
of AC 150/5345-44E, Type L-858R, L-858L and L-858Y, Size 2, Class 1. Signs connected to
existing circuits shall match 6.6 Amp, shall be style 2 for a 3-step regulator and style 3 for a five step,
6.6 Amp regulator. Signs shall be internally illuminated with frangible couplings grounding lug
outside and a tether strap. Signs shall be colored as defined by the plans and Advisory Circulars. Sign
lengths shall vary as necessary to accommodate the legends as defined on drawings.
100-2.3.2 CONCRETE PADS. Signs concrete pads shall be as shown on the plans. Exposed
concrete surface shall be finished smooth with a steel trowel or rubbed to a smooth finish. All
horizontal edges shall be chamfered. Place sign anchor bolts with use of a template for correct
position. Grade level shall be brought even with surface of concrete pad by use of earth for a
minimum of 10 feet from pad.
100-2.3.3 LEVELING. During construction of sign pad, the base can shall be adjusted and firmly
held in place so that the machined upper surface of the base flange will be level within 2 degrees and
protrude not more than '14 inch above the surface of pad. All other bearing areas for additional flange
supports shall be in the same horizontal plane as transformer base flange.
100-2.3.4 CABLE ENTRANCE. The cable entrance to the sign fixture shall be through the
conduit (with bushings) into the L-867 base in the sign foundation as shown on the plans. All
connections shall be watertight.
100-2.3.5 CABLE CONNECTIONS (SPLICES). In making cable connections to signs, install
new 2" PVC duct with cable underground to existing light, install two new L824 Type C cables, #8
5KV in PVC, leaving slack cables inside the base to permit all connections to be made above ground.
Cable connections (splices) to the transformer or fixture shall be made as described in section L-108.
100-2.3.6 ASSEMBLING UNIT. Assemble signs and install on pad in accordance with
manufacturer's installation instructions. Install lamps of proper rating in the fixture.
100-2.3.7 SIGN ISOLATION TRANSFORMERS. All isolating transformers shall meet the
requirements of Ac 150/5345-47A. All transformers shall be 60 hertz and rated for 6.6 amp. primary
and 6.6 secondary amps for Style 2 and 3 signs. Provide isolation transformers necessary to operate
the number of lamps in each sign as recommended by the sign manufacturer. Provide manufactured
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L-IOO-8 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
secondary jumper cables as necessary to connect the sign power lead to the transformer secondary
lead.
100-2.3.8 SUBMITTAL. Submit manufacturer's rough-in drawings and any modifications
necessary to foundation shown on contract drawings (include costs in bid) for approval. Include sign
parts list, volt-ampere consumption, lamp data, and wiring diagram.
100-2.3.9 TAXIWAY EDGE LIGHT, STAKE MOUNTED, WHERE POWER IS TAKEN
FOR NEW SIGN.
a. Taxiway Edge Lights. Remove the existing taxiway edge light stake mounted and
install a new L-861 base mounted light in its place. Existing base mounted light shall remain and
hole drilled through the concrete envelope and base for a 2" PVC Duct, Type II to enter. The cables
from the sign shall be connected into the circuit loop in these bases for power to the sign.
100-2.4 BASE CANS. All base cans shall meet the requirements of AC 150/5345-42, type L-
867, size B, class 1, 24" deep. Provide spacer rings as needed to level the steel cover with
surrounding concrete. Provide a flat ring gasket to improve water tightness. Provide steel cover. Cans
shall be ordered with holes to accommodate the raceways indicated on the plans. Provide nylon
grommet at each hole.
100-2.5
CONCRETE. Concrete shall conform with 3000 psi minimum compression strength.
100-2.6
DUCT. Duct shall conform to Item L-IIO.
100-2.7 CABLE IDENTIFICATION TAGS. The cable identification tags shall conform to
item L-108.
100-2.8
LAMPS. All lamps shall be new, wattage to match, as shown on the plans.
100-2.9 SIGN LAMPS. Shall be quartz for RDR signs. Lamps for other Guidance signs shall be
quartz, and suitable for 6.6A series circuit. Set guidance sign transformer to provide an operating life
in excess of26,OOO hours and 6.6A (max) output or as specified by the Engineer.
100-2.10 CABLE CONNECTIONS (SPLICES). Cable connections shall conform to item L-
108.
100-2.11 GROUND RODS. %" x 10' ground rods shall be located at each sign except for %" x
20' ground rod shall be located at RIW distance sign and Mandatory Sign.
100-2.12 BARRICADES. Place barricades around the construction limits of each Area, across
Runway and Taxiway closures, and around excavation for the sign foundation until the ground line
has been replaced. The flashers are battery operated.
100-2.13 SIGN DEMOLITION. Remove existing sign and transformer and deliver to owner as
directed by the Engineer. Remove wire feeding sign back to nearest source junction box or light
fixture(s). Remove existing foundation, haul away and restore ground as shown on the plans.
100-2.14 INTERRUPTIONS. Interruptions of runway and taxiway lighting or signage circuits
may be necessary during construction. The Contractor shall provide a reliable shunt cable to provide
Florida Keys Marathon Airport
L-IOO-9
May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
temporary continuity of service to runway and taxiway lights or signs during construction where
required. The Contractor shall not interrupt any circuit or perform any work that might endanger any
circuit until approval of the Engineer has been received. Temporary cables shall be protected and
identified as a hazard.
The Contractor shall be responsible for installing, maintaining, protecting, and removing all required
temporary jumper cables used to maintain power to electrical circuits.
For the permanent installation, all temporary connection and re-routing of circuits shall be replace
with new materials installed in accordance with the specifications and as shown on the plans.
The Contractor shall remove all circuit cables from their respective power sources in the vault before
working on the cables in the field. All such cables shall be so marked at the point of disconnection to
prevent accidental reconnection. This work is incidental to the electrical work and no separate
payment will be made.
100-2.15 SALVAGE. Except as otherwise specified or indicated on the drawings, all electrical
materials and equipment to be salvaged or "stored" shall become the property of the Airport, and
shall be moved by the Contractor to a site at the airport designated by the Engineer. All wastes such
as removed asphalt, concrete, excess dirt, conductors, base cans, etc., shall become property of the
Contractor and shall be disposed of by the Contractor, in compliance with all applicable
environmental standards.
100-2.16 TESTING. All materials and finishes are subject to testing. Material inspection and
testing, and strength tests on the concrete will be performed by the Contractor at no expense to the
Owner. The testing of electrical equipment shall conform to the description of the individual
specification sections.
100-2.17 INSPECTION. Provide for electrical inspections by the authority having jurisdiction.
No work shall be concealed or enclosed until after inspections. If work is concealed or enclosed
without inspection and approval, the Contractor shall be responsible for all expense and work
required to open and restore the concealed area in addition to all required modifications.
The installation of all equipment will be inspected by a representative of the Engineer while being
installed. Before the acceptance inspections and tests are to be made, the Contractor shall notify the
Engineer by written notice when he is ready. The completed systems shall be operated from sunset to
sunrise each night for a period of one week prior to acceptance test. During this trial operation, the
Contractor shall correct any defects which may develop, at no extra cost.
Mill inspection will be waived, and the materials accepted upon certified copies of all mill reports
identifying the material specification requirements. Copies of order bills and test reports shall be
furnished as requested.
100-2.18 WARRANTY. The Contractor shall provide a written I-year warranty guaranteeing all
work installed under this contract. It shall cover all parts and labor against defective parts or
workmanship necessary to repair or bring into proper operation any equipment, including, but not
limited to, fixtures, transformers, regulators, switches, signs, circuit breakers, conduit system, base
cans and foundations. The regulators shall be guaranteed under the terms of the manufacturer's
standard warranty for a period of two years and shall cover full parts and labor. The warranty shall
Florida Keys Marathon Airport
L-100-I0 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
start upon the acceptance of all work as accepted by Engineer. Final payment will be withheld until
receipt of the warranty by the Contractor.
CONSTRUCTION METHODS
100-3.1 GENERAL. Installation shall be performed by experienced and skilled persons to obtain
only the best workmanship. All equipment shall be set square and true with construction. The work
shall be under constant supervision, until completion, by the Contractor, or by an authorized and
competent foreman with five (5) years experience in airfield electrical systems.
The Contractor shall be a licensed Electrical Contractor or General Contractor in the state of Florida
with at least five (5) years experience in airfield electrical systems.
The installation and testing to be performed under this item shall be as specified in the applicable
advisory circulars. Correct placement of the signs, assemblies, and edge lights are of prime
importance; to achieve this, careful attention to detail is required. The installation must be made with
utmost care to avoid costly remedial action.
Heat shrinkable rubber sleeves shall be installed over all connections and splices.
Workmanship shall be consistent with the best commercial practices for installation of this type.
The Engineer shall review each individual sign location and make adjustments as needed to
compensate for the true rotation of the sign, before the Contractor can proceed with the digging and
pouring of concrete. The Contractor will be held responsible for the correct leveling, adjustment and
orientation of all signs installed by him.
The workmanship shall be first class and in accordance with the highest standards of the electrical
industry. The installations and adjustments shall be made by competent electricians. Conduits
entering base cans shall extend 1-1/2" into the can to allow for thermal contraction and expansion, as
shown on plans. .
METHOD OF MEASUREMENT
100-4.1 Equipment to be paid for under this item shall consist of all equipment installed,
connected, and accepted as a complete unit ready for operation and accepted as satisfactory by the
Engineer.
100-4.2
Conduit beyond or outside of sign foundations base shall be paid for under Item L-ll O.
BASIS OF PAYMENT
100-5.1 Payment for items in L-lOO shall be included as incidental to pay items in L sections
except for the items listed below. These items shall include all incidentals as necessary to provide
and place into operation a complete signage system.
Payment will be made under:
Florida Keys Marathon Airport
L-IOO-ll May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
L-IOO-A
L-IOO-B
L-IOO-C
L-IOO-D
L-lOO- E
L-lOO-F
L-IOO-G
Remove existing guidance sign unit complete with
foundation. This shall include concrete foundation,
restore grading, salvage material disposed of as
directed by the Engineer. ........................................... .................. Per each
Relocate existing guidance sign unit complete. This
shall include existing concrete pad removal, salvage
materials, restore grading, new foundation, L-867
base, brick, secondary extension lead cable,
connectors, and all incidentals ................................... ..................Per each
Existing guidance sign unit to be relocated and
modified, complete with foundation. This shall
include concrete foundation, new panel, circuit
cable back to light fixture, close circuit loop,
waterproof all underground connections, restore
grading, salvage material disposed of as directed by
the Engineer ............................................................... ..................Per each
Existing internally lighted guidance sign, one
module to be modified ............................................... ..................Per each
Existing internally lighted guidance sign, three
modules, to be modified............................................. ..................Per each
Guidance sign, one module, single face, size 2,
complete with foundation. This shall include new
foundation, L-867 base, brick, secondary extension
lead cable, frangible couplings, lamps, L-823
connectors, anchor bolts, setting of anchor bolts,
conduit, tether, grounding identification tag and all
incidentals. ................................................................. .................. Per each
Guidance sign, two modules, single face, size 2,
complete with foundation. This shall include new
foundation, L-867 base, brick, secondary extension
lead cable, frangible couplings, lamps, L-823
connectors, anchor bolts, setting of anchor bolts,
conduit, tether, grounding identification tag and all
incidentals. ................................................................. .................. Per each
L-100-12 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Florida Keys Marathon Airport
L-lOO-H
L-lOO- I
L-lOO-J
L-lOO-K
Guidance sign, three modules, single face, size 2,
complete with foundation. This shall include new
foundation, L-867 base, brick, secondary extension
lead cable, frangible couplings, lamps, L-823
connectors, anchor bolts, setting of anchor bolts,
conduit, tether, grounding identification tag and all
incidentals. ................................................................. ................. .Per each
Guidance sign, three modules, double face, size 2,
complete with foundation. This shall include new
foundation, L-867 base, brick, secondary extension
lead cable, frangible couplings, lamps, L-823
connectors, anchor bolts, setting of anchor bolts,
conduit, tether, grounding identification tag and all
incidentals. ................................................................. ................. .Per each
Retroreflective guidance sign. This shall include
new foundation, frangible coupling, setting of
anchor bolts, tag, and all incidentals, complete in
place. .......................................................................... ................. .Per each
Existing retroreflective guidance sign panel to be
replaced. ................ .............. ....................................... ................ ..Per each
END OF SECTION L-IOO
L-100-13 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
Florida Keys Marathon Airport
ITEM L-I08
INSTALLATION OF UNDERGROUND CABLE FOR AIRPORTS
DESCRIPTION
108-1.1 This item shall consist of furnishing and installing underground cable in accordance
with these specifications at the locations shown in the plans. This item shall include the
excavation and backfill of the trench and the installation of cable and counterpoise wire in
trench, duct or conduit. It shall include splicing, cable marking, and testing of the installation
and all incidentals necessary to place the cable in operating condition as a completed unit to the
satisfaction of the Engineer. This item shall not include the installation of the duct or conduit.
EQUIPMENT AND MATERIALS
108-2.1 GENERAL
a. Airport lighting equipment and materials covered by Federal Aviation
Administration (FAA) specifications shall have the prior approval of the FAA, and are listed in
Advisory Circular (AC) 150/5345-1, Approved Airport Equipment.
b. All other equipment and materials covered by other referenced specifications shall
be subject to acceptance through manufacturer's certification of compliance with the applicable
specification, when requested by the Engineer.
108-2.2 CABLE. Underground cable shall conform to the requirements of AC 150/5345-7,
Specification for L-824 Underground Electrical Cable for Airport Lighting Circuits.
If telephone control cable is specified, copper shielded, polyethylene insulated and jacketed, No.
19 A WG telephone cable conforming to the United States Department of Agriculture, Rural
Electrification Administration (REA) Bulletin 345-14, REA Specification for Fully Color-
Coded, Polyethylene Insulated, Double Polyethylene-Jacketed Telephone Cables for Direct
Burial, shall be used.
Where counterpoise conductors are to be installed and where soil conditions would adversely
affect bare copper wire, thermoplastic wire conforming to Fed. Spec. J-C-30, Type TW, 600 volt,
may be used.
Cable type, size, number of conductors, strand and service voltage shall be specified in the plans
and/or proposal.
108-2.3 BARE COPPER WIRE (COUNTERPOISE). Bare copper wire for counter-poise
installations shall be stranded wire conforming to ASTM Specifications B 3 and B 8.
Counterpoise wire embedded in trench concretehackfill material shall be No.6 stranded bare
copper type THHN, 600 volt, nylon jacketed PVCinsulated confonning to Federal Specification
J-C-30.
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L-108-1 (FAA) May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
108-2.4 CABLE CONNECTIONS. In-line connections of underground primary cables shall
be of the type called for in the plans or in the proposal, and shall be one of the types listed below.
When the plans or the proposal permit a choice of connection, the Contractor shall indicate in the
bid the type of connection he proposes to furnish.
a. The Cast Splice. A cast splice, employing a plastic mold and using epoxy resin
equal to that manufactured by Minnesota Mining and Manufacturing Company, "Scotchcast" Kit
No. 82--A, or as manufactured by Hysol Corporation, "Hyseal Epoxy Splice" Kit No. EI135, for
potting the splice is approved. This means of splicing is the only type approved for telephone
control cable.
b. The Vulcanized Splice. A vulcanized splice employing Joy Manufacturing
Company's Vulcanizing Kit No. X-1604-8 or equal is approved for field vulcanized splices. The
proper molds for various cable sizes shall be used.
c. The Field-attached Plug-in Splice. Figure 3 of AC 150/5345-26, Specification
for L-823 Plug and Receptacle, Cable Connectors, employing connector kits, is approved for
field attachment to single conductor cable.
d. The Factory-Molded Plug-in Splice. Specification for L-823 Connectors,
Factory-Molded to Individual Conductors, are approved.
e. The Taped Splice. Taped splices employing field-applied rubber, or synthetic
rubber tape covered with plastic tape are approved. The rubber tape should meet the
requirements of Mil. Spec. MIL-I-3825 and the plastic tape should comply with Mil. Spec. MIL-
1-7798 or Fed. Spec. HH-I-595. In all the above cases, connections of cable conductors shall be
made using crimp connectors utilizing a crimping tool designed. To make a complete crimp
before the tool can be removed. No. 19 A WG telephone control wires may be connected by
means of wrapped and soldered splice, 3M Company Moisture Proof UR Type Connector, or
equal, or by a method approved by the Engineer.
108-2.5 CONCRETE. Concrete shall conform to Florida department of Transportation
(FDOT) "Specification for Road and Bridge Construction" Section 345, Class I, with a minimum
28-day compressive strength of3,000 psi.
The concrete supplier (ready-mix company) shall submit a certification to the Engineer prior to
start of work that all concrete delivered meets the requirements of Section 345 for Class I
concrete with a minimum 3000 psi compressive strength. Each truckload of ready-mix delivered
must be accompanied with the certification stipulated in Section 345-43. Failure to provide the
certifications shall result in the concrete being rejected.
CONSTRUCTION METHODS
108-3.1 GENERAL. The Contractor shall install the specified cable at the approximate
locations indicated in the airport lighting layout plans. The Engineer shall indicate specific
locations.
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Taxiway Lights (2 TIW) and Airfield Guidance Sign
Cable connections between lights will be permitted only at the light locations for connecting the
underground cable to the primary leads of the individual insulating transformers. The Contractor
shall be responsible for providing cable in continuous lengths for home runs or other long cable
runs without connections, unless otherwise authorized in writing by the Engineer or shown in the
plans.
108-3.2 INSTALLATION IN DUCT OR CONDUIT. This item includes the installation of
the cable in duct or conduit as described below. The maximum number and voltage ratings of
cables installed in each single duct or conduit, and the current-carrying capacity of each cable
shall be in accordance with the latest National Electric Code, or the code of the local agency
having jurisdiction.
The Contractor shall make no connections or joints of any kind in cables installed in conduits or
ducts.
The duct or conduit shall be installed as a separate item in accordance with Item L-II0,
"Installation of Airport Underground Electrical Duct." The Contractor shall make sure that the
duct is open, continuous, and clear of debris before installing cable. The cable shall be installed
in a manner to prevent harmful stretching of the conductor, injury to the insulation, or damage to
the outer protective covering. The ends of all cables shall be sealed with moisture-seal tape
before pulling into the conduit and it shall be left sealed until connections are made. Where
more than one cable is to be installed in a duct under the same contract, all cable shall be pulled
in the duct at the same time. The pulling of a cable through ducts or conduits may be
accomplished by handwinch or power winch with the use of cable grips or pulling eyes. Pulling
tensions should be governed by recommended standard practices for straight pulls or bends. A
lubricant recommended for the type of cable being installed shall be used where pulling lubricant
is required. Duct or conduit markers temporarily removed for excavations shall be replaced as
required.
108-3.3 TRENCHING. Where turf is well established and the sod can be removed, it shall
be carefully stripped and properly stored. Trenches for cables may be excavated manually or
with mechanical trenching equipment. Walls of trenches shall be essentially vertical so that a
minimum of shoulder surface is disturbed. Road patrols or graders shall not be used to excavate
the trench with their blades. The bottom surface of trenches shall be essentially smooth and free
from coarse aggregate. Unless otherwise specified, cable trenches shall be excavated to a
minimum depth of 18 inches (45 cm) below finished grade; except as follows:
a. When off the airport or crossing under a roadway or driveway, the minimum depth
shall be 36 inches (90 cm) unless otherwise specified.
b. Minimum cable depth when crossing under a railroad track, shall be 42 inches
(105 cm) unless otherwise specified.
The Contractor shall excavate all cable trenches to a width not less than 6 inches (150 mm). The
trench shall be widened where more than two cables are to be installed parallel in the same
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L-108-3 (FAA) May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
trench. Unless otherwise specified in the plans, all cables in the same location and running in the
same general direction shall be installed in the same trench.
When rock excavation is encountered, the rock shall be removed to a depth of at least 3 inches
(75 mm) below the required cable depth and it shall be replaced with bedding material of earth or
sand containing no mineral aggregate particles that would be retained on a 1I4-inch (6 mm)
sieve. The Contractor shall ascertain the type of soil or rock to be excavated before bidding. All
excavation shall be unclassified.
108-3.4 INSTALLATION IN TRENCHES. The Contractor shall not use a cable plow for
installing the cable. Mechanical cable-laying equipment may be used in conjunction with a
trenching machine if specified on project plans and specifications; and it should provide for
physical inspection of cable prior to backfilling. Sharp bends or kinks in the cable shall not be
permitted.
Cables shall be unreeled in place alongside or in the trench and shall be carefully placed along
the bottom of the trench. The cable shall not be unreeled and pulled into the trench from one
end.
Where two or more cables are laid parallel in the same trench, they shall be placed laterally a
minimum distance of 3 inches (75 mm) apart, and the trench shall be widened sufficiently to
accomplish this.
Cables crossing over each other shall have a minimum of 3-inch (75 mm) vertical displacement
with the topmost cable depth at or below the minimum required depth below finished grade.
Not less than 1 foot (30 cm) of cable slack shall be left on each side of all connections, insulating
transformers, light units, and at all other points where cable is connected to field equipment. The
slack cable shall be placed in the trench in a series of S curves. Additional slack cable shall be
left in runway light bases, handholes, manholes, etc., where it is required to bring the cable
above ground level to make connections. The amount of slack cable shall be stipulated by the
Engineer, or as shown in the plans and specifications.
108-3.5 BACKFILLING. After the cable has been installed, the trench shall be 3 inches (75
mm) deep, loose measurement, and shall be either earth or sand containing no mineral aggregate
particles that would be retained on a 1I4-inch (6 m) sieve. This layer shall not be compacted.
The second layer shall be 5 inches (125 mm) deep, loose measurement, and shall contain no
particles that would be retained on a I-inch (25.0 mm) sieve. The remainder of the backfill shall
be excavated or imported mineral and shall not contain stone or aggregate larger than 4 inches
(100 mm) maximum diameter. The third and subsequent layers of the backfill shall not exceed 8
inches (200 mm) in maximum depth, loose measurement.
The second, and subsequent layers shall be thoroughly tamped and compacted to at least the
density of the adjacent undisturbed soil, and to the satisfaction of the Engineer. If necessary to
obtain the desired compaction, the backfill material shall be moistened or aerated as required.
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Trenches shall not be excessively wet and shall not contain pools of water during backfilling
operations. The trench shall be completely backfilled and tamped level with the adjacent
surface, except that when sod is to be placed over the trench, the backfilling shall be stopped at a
depth equal to the thickness of the sod to be used, with proper allowance for settlement. Any
excess excavated material shall be removed and disposed of in accordance with instructions
issued by the Engineer.
108-3.6 RESTORATION. Where sod has been removed, it shall be replaced as soon as
possible after the backfilling is completed. All areas disturbed by the trenching, storing of dirt,
cable laying, pad construction, and other work shall be restored to its original condition. The
restoration shall include any necessary topsoiling, fertilizing, liming, seeding, sodding, sprigging
or mulching. All such work shall be performed in accordance with the FAA standard turfing
specifications. the Contractor shall be held responsible for maintaining all disturbed surfaces and
replacements until final acceptance.
108-3.7 CABLE MARKERS. The location of runway light circuits shall be marked by a
concrete slab marker, 2 feet (60 cm) square and 4 inches (100 mm) thick, extendIng
approximately 1 inch (25 mm) above the surface. Each cable run from the line of runway lights
to the equipment vault shall also be marked at approximately every 200 feet (60 m) along the
cable run, with an additional marker at each change of direction of cable run. All other cable
buried directly in the earth shall be marked in the same manner. The Contractor shall not install
slab markers where cable lies in straight lines between obstruction light poles which are spaced
300 feet (90 m) apart, or less. Cable markers shall be installed immediately above the cable.
The Contractor shall impress the word "cable" and directional arrows on each cable marking
slab. The letters shall be approximately 4 inches (100 mm) high and 3 inches (75 mm) wide,
with width of stroke Y2 inch (12 mm) and 114 inch (6 mm) deep.
The location of each underground cable connection, except at lighting units or insulating
transformers, shall be marked by a concrete marker slab placed above the connection. The
Contractor shall impress the word "splice" on each slab. He also shall impress additional circuit
identification symbols on each slab if so desired by the Engineer.
108-3.8 SPLICING. Connections of the type shown in the plans shall be made by
experienced personnel regularly engaged in this type of work and shall be made as follows:
a. Cast Splices. These shall be made by using crimp connectors for jointing
conductors. Molds shall be assembled, and the compound shall be mixed and poured in
accordance with manufacturer's instructions and to the satisfaction of the Engineer.
b. Vulcanized Splices. These shall be made by using crimp connectors for joining
conductors. The splice shall be made, using compounds furnished by the manufacturer, in
accordance with hislher instructions and to the satisfaction of the Engineer.
c. Field-attached Plug-in Splices. These shall be assembled in accordance with
manufacturer's instructions. These splices shall be made by plugging directly into mating
connectors. In all cases the joint where the connectors come together shall be wrapped with at
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L-108-5 (FAA) May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
least one layer of rubber or synthetic rubber tape and one layer of plastic tape, one-half lapped,
extending at least 1-1/2 inches (37 mm) on each side of the joint.
d. Factory-Molded Plug-in Splices. These shall be made by plugging directly into
mating connectors. In all cases, the joint where the connectors come together shall be wrapped
with at least one layer of rubber or synthetic rubber tape and one layer of plastic tape, one-half
lapped, extending at least 1-1/2 inches (37 mm) on each side of the joint.
e. Taped Splices. A taped splice shall be made in the following manner:
Bring the cables to their final position and cut so that the conductors will butt. Remove
insulation and jacket allowing for bare conductor of proper length to fit compression sleeve
connector with 1/4 inch (6 mm) of bare conductor on each side of the connector. Use a sharp
knife to pencil insulation and jacket at approximately the same angle as a pencil point. Care
must be taken to avoid nicking or injuring the conductor during removal of insulation or
penciling. Do not use emery paper on splicing operation since it contains metallic particles. The
copper conductors shall be thoroughly cleaned. Join the conductors by inserting them
equidistant into the compression connection sleeve. Crimp conductors firmly in place with
crimping tool that requires a complete crimp before tool can be removed. Test the crimped
connection by pulling on the cable. Scrape the insulation to assure that the entire surface over
which the tape will be applied (plus 3 inches (75 mm) on each end) is clean. After scraping wipe
the entire area with a clean lint-free cloth. Do not use solvents.
Apply high-voltage rubber tape one-half lapped over bare conductor. This tape should be
tensioned as recommended by the manufacturer. Voids in the connector area may be eliminated
by highly elongating the tape stretching it just short of its breaking point. Throughout the rest of
the splice less tension should be used. Always attempt to exactly half-lap to produce a uniform
buildup. Continue buildup to 1-112 times cable diameter over the body of the splice with ends
tapered a distance of approximately 1 inch (25 mm) over the original jacket. Cover rubber tape
with two layers of vinyl pressure-sensitive tape one-half lapped. Do not use glyptol or lacquer
over vinyl tape as they react as solvents to the tape. No further cable covering or splice boxes
are required.
If shielded cable is to be spliced, prepare cable as for a regular taped splice, except that the
neoprene jacket shall be removed a distance not less than 5 inches (125 mm) from the beginning
of the penciled portion. Carefully unwrap the shielding tape from that portion where jacket has
been removed and cut off so that it extends about 1 inch (25 mm) from end of the jacket.
Proceed with the taped splice as described above and tape up to 1/4 inch (6 mm) from the shield
on both ends. Build up rubber tape to a thickness equal to the insulation thickness or 5/16 inch
(9 mm) over connector.
Next wrap one-half lapped layer of semi-conducting tape (Scotch No. 13 Semi-Conducting Tape,
or equal) over splicing tape and 114 inch (6 mm) onto the shielding tape. Wrap a fine, flat
shielding braid one-half lapped over the splice extending Yz inch (12 mm) onto the metallic
shielding. Solder ends of braid to metallic shielding tape. A bonding wire, (Minimum No. 14
Stranded Copper) equal to the current carrying capacity of the metallic shield, should have the
Florida Keys Marathon Airport
L-108-6 (FAA) May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
individual strands wrapped around the metallic shield at both ends of the splice. These strands
should be tack soldered to the shield in several places. The cable sheath should be replaced by
wrapping with two one-half lapped layers of vinyl tape extending 2 inches (50 mm) onto the
cable jacket.
The above described splice is for a straight-through splice with continuity of shielding.
108-3.9 BARE COUNTERPOISE WIRE INSTALLATION AND GROUNDING FOR
LIGHTNING PROTECTION. If shown in the plans or specified in job specifications, a
stranded bare copper wire, No.6 A WG minimum size, shall be installed for lightning protection
of the underground cables. The bare counterpoise wire shall be installed in the same trench for
the entire length of the insulated cables it is designed to protect, and shall be placed at a distance
of approximately 4 inches (100 mm) from the insulated cable. The counterpoise wire shall be
securely attached to each light fixture base, or mounting stake. The counterpoise wire shall also
be securely attached to copper or copper-clad ground rods installed not more than 500 feet (150
m) apart around the entire circuit. The ground rods shall be of the length and diameter specified
in the plans, but in no case shall they be less than 8-feet (240 cm) long nor less than 5/8 inch (15
mm) in diameter.
The counterpoise system shall terminate at the transformer vault or at the power source. It shall
be securely attached to the vault or equipment grounding system. The connections shall be made
as shown in the project plans and specifications.
108-3.10 TESTING. The Contractor shall furnish all necessary equipment and appliances for
testing the underground cable circuits after installation. The Contractor shall test and
demonstrate to the satisfaction of the Engineer the following:
a. That all lighting power and control circuits are continuous and free from short
circuits.
b. That all circuits are free from unspecified grounds.
c. That the insulation resistance to ground of all nongrounded series circuits is not
less than 50 megohms.
d. That the insulation resistance to ground of all nongrounded conductors of multiple
circuits is not less than 50 megohms.
e. That all circuits are properly connected in accordance with applicable wiring
diagrams.
f. That all circuits are operable. Tests shall be conducted that include operating each
control not less than 10 times and the continuous operation of each lighting and power circuit for
not less than Y2 hour.
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METHOD OF MEASUREMENT
108-4.1 Trenching shall be measured by the linear feet (meters) of trench, including the
excavation, backfill, and reconditioning, completed, measured as excavated, and accepted as
satisfactory.
When specified in the proposal, separate measurement shall be made for trenches of various
specified widths.
108-4.2 Cable or counterpoise wire installed in trench shall be measured by the number of
linear feet (meters) of cable or counterpoise wire installed in trenches, ready for operation, and
accepted as satisfactory. Separate measurement shall be made for each cable or counterpoise
wire installed in trench.
108-4.3 Cable or counterpoise wire installed in duct or conduit shall be measured by the
number of linear feet (meters) measured in place, completed, ready for operation, and accepted
as satisfactory.
Separate measurement shall be made for each cable or counterpoise wire installed in duct or
conduit.
BASIS OF PAYMENT
108-5.1 Payment will be made at the contract unit price for trenching cable and bare
counterpoise wire installed in trench, duct or conduit in place by the Contractor and accepted by
the Engineer. This price shall be full compensation for furnishing all materials and for all
preparation and installation of these materials, and for all labor, equipment, tools, and incidentals
necessary to complete this item.
Payment will be made under:
Item L-I0S-5.1 Cable Trench-perlinear foot (meter)
Item L-108-5.2 Furnish and Install Cable (lIC, # 8, 5KV, L-824, Type C),
in trench, duct or conduit complete in place - per linear foot
(meter)
Item L-108-5.3 Furnish and Install Counterpoise Wire (#6, BSD Copper Stranded)
600volt with.groundrods,complete in place - per linear foot
(meter)
Florida Keys Marathon Airport L-108-8 (FAA) May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
AC 150/5345-7
AC 150/5345-26
Fed.Spec.J -C-30
HH-I-595
ASTM B 3
ASTM B 8
MIL-I-3825
MIL-I-7798
MATERIAL REQUIREMENTS
Specification for L-824 Underground Electrical Cable for
Airport Lighting Circuits
Specification for L-823 Plug and Receptacle Cable Connectors
Cable and Wire, Electrical Power, Fixed Installation
Insulation Tape, Electrical, Pressure-Sensitive Adhesive, Plastic, for
Low- Temperature Application
Soft or Annealed Copper Wire
Concentric-lay-Stranded Cooper Conductor, Hard, Medium-Hard,
or Soft
Insulation Tape, Electrical, Self-Fusing, For Use in Electronics,
Communications, and Allied Equipment
Insulation Tape, Electrical, Pressure-Sensitive Adhesive, Plastic
END OF ITEM L-l08
Florida Keys Marathon Airport
L-108-9 (FAA) May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
ITEM L-110
INSTALLATION OF AIRPORT UNDERGROUND ELECTRICAL DUCT
DESCRIPTION
110-1.1 This item shall consist of underground electrical ducts installed in accordance with
this specification at the locations and in accordance with the dimensions, designs, and details
shown in the plans. This item shall include the installation of all underground electrical ducts or
underground conduits. It shall also include all backfilling, removal, and restoration of any paved
areas; manholes, concrete encasement, mandreling installation of steel drag wires and duct
markers, capping, and the testing of the installation as a. coll1pleted duct system ready for
installation of cables, to the satisfaction of the Engineer. ExcavationshallbeirlCludeclWIder
specification L-l OS "INSTALLATION OF UNDERGROUND CABLES FOR AIRPORTS".
EQUIPMENT AND MATERIALS
110-2.1 GENERAL. All equipment and materials covered by referenced specifications shall
be subject to acceptance through manufacturer's certification of compliance with the applicable
specification when so requested by the Engineer.
110-2.2 BITUMINOUS FIBER DUCT. Bituminous fiber duct and fittings shall conform to
the requirements of Underwriters Laboratories Standard 543.
a. Type I, for concrete encasement.
b. Type II, for direct burial.
110-2.3 NOT USED.
110-2.4 STEEL CONDUIT. Rigid steel conduit and fittings shall conform to the
requirements of Underwriters Laboratories Standard 6, 514, and 1242.
110-2.5 CONCRETE. .Concrete shall co.nfoIlI1 to Florida department of Tr
(FDOT) "Specification for RoadandBridgeCorlstrUction" Section 345,.Class I, with a
2S-day compressive strength of 3,000 psi.
The concrete supplier (ready-mix company) shall ubmit a certification to the Engineer prior to
start of work that all concrete delivered meets requirements of Section 345 for Class I
concrete with a minimum 3000 psi compr . .ength. Each truckload of ready-mix delivered
must be accompanied with the certification .. ated in Section 345-43. Failure to provide the
certifications shall result in the concrete being rejected.
110-2.6 PLASTIC CONDUIT. Plastic conduit and fittings shall conform to the requirements
of Fed. Spec. W-C-l094 and shall be one of the following, as specified in the proposal:
Florida Keys Marathon Airport
L-llO-l(FAA) May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
a. Type I - suitable for underground use either directly in the earth or encased in
concrete.
b. Type II - suitable for either above ground or underground use.
CONSTRUCTION METHODS
110-3.1 GENERAL. The Contractor shall install underground ducts at the approximate
locations indicated in the airport layout plans. The Engineer shall indicate specific locations as
the work progresses. Ducts shall be of the size, material, and type indicated in the plans or
specifications. Where no size is indicated in the plans or specifications, the ducts shall be not
less than 3 inches (75 mm) inside diameter. All duct lines shall be laid so as to grade toward
handholes, manholes and duct ends for drainage. Grades shall be at least 3 inches (75 mm) per
100 feet (30 m). On runs where it is not practicable to maintain the grade all one way, the duct
lines shall be graded from the center in both directions toward manholes, handholes, or duct
ends. Pockets or traps where moisture may accumulate shall be avoided.
The Contractor shall mandrel each duct. An iron-shod mandrel, not more than 1/4-inch (6 mm)
smaller than the bore of the duct shall be pushed through each duct by means of jointed conduit
rods. The mandrel shall have a leather or rubber gasket slightly larger than the duct hole.
All ducts installed shall be provided with a No. 10 gauge galvanized iron or steel drag wire for
pulling the permanent wiring. Sufficient length shall be left in manholes or handholes to bend
the drag wire back to prevent it from slipping back into the duct. Where spare ducts are
installed, as indicated on the plans, the open ends shall be plugged with removable tapered plugs,
designed by the duct manufacturers, or with hardwood plugs conforming accurately to the shape
of the duct and having the larger end of the plug at least 1/4-inch (6 mm) greater in diameter than
the duct.
All ducts shall be securely fastened in place during construction and progress of the work and
shall be plugged to prevent seepage of grout, water, or dirt. Any duct section having a defective
joint shall not be installed.
All ducts, except steel conduit, installed under runways, taxiways, aprons, and other paved areas
shall be encased in a concrete envelope.
Where turf is well established and the sod can be removed, it shall be carefully stripped and
properly stored.
Trenches for ducts may be excavated manually or with mechanical trenching equipment. Walls
of trenches shall be essentially vertical so that a minimum of shoulder surface is disturbed.
Blades of road patrols or graders shall not be used to excavate the trench. The Contractor shall
ascertain the type of soil or rock to be excavated before bidding. All excavation shall be
unclassified.
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L-llO-2 (FAA) May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
110-3.2 DUCTS ENCASED IN CONCRETE. Unless otherwise shown in the plans,
concrete-encased ducts shall be installed so that the top of the concrete envelope is not less than
18 inches (45 cm) below the finished sub grade where installed under runways, taxiways, aprons,
or other paved areas, and not less than 18 inches (45 cm) below finished grade where installed in
unpaved areas. Ducts under paved areas shall extend at least 3 feet (90 cm) beyond the edges of
the pavement or 3 feet (90 cm) beyond any underdrains which may be installed alongside the
paved area. Trenches for concrete-encased ducts shall be opened the complete length before
concrete is laid so that if any obstructions are encountered, proper provisions can be made to
avoid them. All ducts for concrete encasements shall be placed on a layer of concrete not less
than 3 inches (75 mm) thick prior to its initial set. Where two or more ducts are encased in
concrete, the Contractor shall space them not less than 1-112 inches (37 mm) apart (measured
from outside wall to outside wall) using spacers applicable to the type of duct. As the duct
laying progresses, concrete not less than 3 inches (75 mm) thick shall be placed around the sides
and top of the duct bank. End bells or couplings shall be installed flush with the concrete
encasement where required.
When specified, the Contractor shall reinforce the bottom side and top of encasements with steel
reinforcing mesh or fabric or other approved metal reinforcement. When directed, the
Contractor shall supply additional supports where the ground is soft and boggy, where ducts
cross under roadways, or where otherwise shown on the plans. Under such conditions, the
complete duct structure shall be supported on reinforced concrete footings, piers, or piles located
at approximately 5-foot (150 cm) intervals.
When clay or soapstone ducts are specified, they shall be installed with concrete encasement as
described above. Clay conduit shall be of the single-bore type. Where the self-centering socket-
joint type of single clay duct is used, conduit shall be built up, tier by tier, and separated only by
sufficient mortar or fine aggregate concrete to bed the ducts evenly and fill all voids between
ducts. Single ducts shall be jointed together and the joints grouted with Portland cement mortar.
A suitable gasket (of rubber or other approved material) shall first be placed in the receptacle end
of the duct, prior to the joining operation, in order to exclude all mortar from the duct.
Where the square bore butt-joint type of clay duct, single or multicell, is used, sections shall be
aligned with at least four steel dowel pins and joints wrapped with duct tape 6 inches (150 mm)
wide and lapped 6 inches (150 mm). All joints in a bank of single-bore ducts shall be staggered,
beginning evenly from the manhole or handhole, by means of short lengths 6, 8, 9, 12, and 15
inches (150, 200, 230, 300, 380 mm) long. Cement mortar shall be trowled around each and
every joint. Voids in the duct bank, caused by the external shape of the corners of the conduit,
shall also be filled with mortar. The joining and joints of soapstone duct shall be done in
accordance with the manufacturer's recommendations.
110-3.3 DUCTS WITHOUT CONCRETE ENCASEMENT. Trenches for single-duct
lines shall be not less than 6 inches (150 mm) nor more than 12 inches (300 mm) wide, and the
trench for 2 or more ducts installed at the same level shall be proportionately wider. Trench
bottoms for ducts without concrete encasement shall be made to conform accurately to grade so
as to provide uniform support for the duct along its entire length.
Florida Keys Marathon Airport
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Taxiway Lights (2 TIW) and Airfield Guidance Sign
A layer of fine earth material, at least 4 inches (100 mm) thick (loose measurement) shall be
placed in the bottom of the trench as bedding for the duct. The bedding material shall consist of
soft dirt, sand or other fine fill, and it shall contain no particles that would be retained on a 1/4-
inch (6 mm) sieve. The bedding material shall be tamped until firm.
Unless otherwise shown in plans, ducts for direct burial shall be installed so that the tops of all
ducts are at least 18 inches (45 cm) below the finished grade.
When two or more ducts are installed in the same trench without concrete encasement, they shall
be spaced not less than 2 inches (50 mm) apart (measured from outside wall to outside wall) in a
horizontal direction and not less than 6 inches (150 mm) apart in a vertical direction.
Trenches shall be opened the complete length before duct is installed so that if any obstructions
are encountered, proper provisions can be made to avoid them.
110-3.4 DUCT MARKERS. The location of the ends of all ducts shall be marked by a
concrete slab marker 2 feet (60 cm) square and 4 inches (100 mm) thick extending
approximately 1 inch (25 mm) above the surface. The markers shall be located above the ends of
all ducts or duct banks, except where ducts terminate in a handhole, manhole, or building.
The Contractor shall impress the word "duct" on each marker slab. He shall also impress on the
slab the number and size of ducts beneath the marker. The letters shall be 4 inches (100 mm)
high and 3 inches (75 mm) wide with width of stroke Y2-inch (12 mm) and 1I4-inch (6 mm) deep
or as large as the available space permits.
110-3.5 BACKFILLING. After concrete-encased ducts have been properly installed and the
concrete has had time to set, the trench shall be backfilled in at least two layers with excavated
material not larger than 4 inches (100 mm) in diameter and thoroughly tamped and compacted to
at least the density of the surrounding undisturbed soil. If necessary to obtain the desired
compaction, the backfill material shall be moistened or aerated as required.
Trenches shall not be excessively wet and shall not contain pools of water during backfilling
operations.
The trench shall be completely backfilled and tamped level with the adjacent surface: except
that, when sod is to be placed over the trench, the backfilling shall be stopped at a depth equal to
the thickness ofthe sod to be used, with proper allowance for settlement.
Any excess excavated material shall be removed and disposed of in accordance with instructions
issued by the Engineer.
For ducts without concrete envelope, 8 inches (200 cm) of sand, soft earth, or other fine fill
(loose measurement) shall be placed around the ducts and carefully tamped around and over
them with hand tampers. The remaining trench may be filled with regular run of excavated
material and thoroughly tamped as specified above.
Florida Keys Marathon Airport
L-11O-4 (FAA) May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
110-3.6 RESTORATION. Where sod has been removed, it shall be replaced as soon as
possible after the backfilling is completed. All areas disturbed by the trenching, storing of dirt,
cable laying, pad construction and other work shall be restored to its original condition. The
restoration shall include any necessary topsoiling, fertilizing, liming, seeding, sprigging, or
mulching. All such work shall be performed in accordance with the FAA Standard Turfing
Specifications. The Contractor shall be held responsible for maintaining all disturbed surfaces
and replacements until final acceptance.
METHOD OF MEASUREMENT
110-4.1 Underground duct shall be measured by the linear feet (meter) of duct installed,
measured in place, including concrete encasement, backfill and asphalt or turf, complete in place
and accepted. Separate measurement shall be made for the various types and sizes. JUllqtionppx:
and base can shall be paid for at the contract unit price per each, installed complete and accepted.
BASIS OF PAYMENT
110-5.1 Payment will be made at the contract unit price for ea type and size of single-
or multi-way duct comple cepted. Payment will be t the contract un'
each junction box and . stalled complete and.. This price s
compensation for furnis. terials and for all. preparation . sembly, and ins
these materials, and for all labor, equipment, tools, duct markers and incidentals ne . sary to
complete this item, including encasement (concrete), backfill (suitable material) and asphalt or
turf.
Payment will be made under:
Item L-ll 0-5.1 1 W2 Duct (2" PVC,Schedtile40,TyPe I)-per linear foot
Item L-llO-5.2 2W2Concrete Encased Duct (2" PVC, Schedule 40, type I)
- per linear foot
Item L-llO-5.3 . Fumish and install cable junction box (size D, L-867, class I, load
bearing) - per each
Item L-11O-5.4 Furnish and install L-867 base can (12" dia. Class I) complete
in place - per each (N/ A)
MATERIAL REQUIREMENTS
Fed.Spec.W-C-571 Conduit and Fittings, Nonmetal, Rigid; (Asbestos-Cement or Fire-
Clay Cement), (For Electrical Purposes)
Fed.Spec.W -C-l 094 Conduit and Fittings; Nonmetallic, Rigid, (Plastic)
Florida Keys Marathon Airport L-11O-5 (FAA) May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
Underwriters
Laboratories
Standard 6
Underwriters
Laboratories
Standard 514
Underwriters
Laboratories
Standard 543
Underwriters
Laboratories
Standard 1242
Rigid Metal Conduit
Fittings for Conduit and Outlet Boxes
Impregnated-Fiber Electrical Conduit
Intermediate Metal Conduit
END OF ITEM L-110
Florida Keys Marathon Airport
L-llO-6 (FAA) May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
ITEM L-125 - INSTALLATION OF AIRPORT LIGHTING SYSTEMS
DESCRIPTION
125-1.1 This item shall consist of airport lighting systems furnished or relocated and
installed in accordance with this specification, the referenced specification, and the applicable
Advisory Circulars. The systems are installed at the location and in accordance with the
dimensions, design, and details shown in the plans. This item shall include the furnishing of all
equipment, materials, services, and incidentals necessary to place the systems in operation as
completed units to the satisfaction of the Engineer.
125-1.2 Additional details pertaining to a specific system covered III this item are
contained in the latest edition of Advisory Circulars listed below:
a. AC 150/5340-4, Installation Details for Runway Centerline and
Touchdown Zone Lighting Systems.
b. AC 150/5340-19, Taxiway Centerline Lighting System.
c. AC 150/5340-24, Runway and Taxiway Edge Lighting System.
d. AC 150/5345-46A Runway and Taxiway Light Fixtures
125-1.3 SUBMITTALS. Shop drawings of each airfield lighting component, indicating
FAA approval shall be submitted to the Architect/Engineer for review and approval and be
approved prior to ordering any materials for this item. This submittal shall include the proposed
method of installation for all airfield lighting components. The submittal shall include data on all
component parts of the item or system, and shall include the manufacturers list of recommended
spare parts. The data submitted shall be sufficient, in the opinion of the Architect/Engineer, to
determine compliance with the Contract Documents.
125-1.4 QUALIFICATIONS. The Architect/Engineer reserves the right to reject any
and all equipment, materials or procedures which, in the Architect/Engineer's opinion, does not
meet the system design and the standards and codes specified herein.
EQUIPMENT AND MATERIALS
125-2.1
GENERAL.
a.
Airport lighting equipment and materials covered by FAA specifications shall
have the prior approval of the Federal Aviation Administration, Airports Service,
Washington, D.C. 20591, and shall be listed in the latest edition of Advisory
Circular 150/5345-53, Airport Lighting Equipment Certification Program.
Florida Keys Marathon Airport
L-125-l May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
b. All other equipment and materials covered by other referenced specifications shall
be subject to acceptance through the manufacturer's certification of compliance
with the applicable specification, when requested by the Engineer. In all cases,
equipment shall be new and a first-grade product.
c. List of equipment and materials required for a particular system are contained in
the applicable FAA Advisory Circulars.
125-2.2 TAPE. Rubber and plastic electrical tapes shall be Scotch Electrical Tape
Numbers 23 and 88, respectively, as manufactured by the Minnesota Mining and Manufacturing
Company, or an approved equal.
125-2.3 CONCRETE. Concrete shall conform to Florida Department of Transportation
(FDOT) "Specifications for Road and Bridge Construction" Section 345, Class I, with a
minimum 28-day compressive strength of 3000 psi.
The concrete supplier (ready-mix company) shall submit a certification to the Engineer prior to
start of work that all concrete delivered meets the requirements of Section 345 for Class I
concrete with a minimum 3000 psi compressive strength. Each truckload of ready-mix delivered
must be accompanied with the certification stipulated in Section 345-43. Failure to provide the
certifications shall result in the concrete being rejected.
125-2.4 CONDUIT. Rigid steel conduit and fittings shall conform to the requirements of
Underwriters Laboratories Standard 6, 514 and 1252. Flexible metal conduit and fittings shall be
liquid-tight and shall conform to UL360, and comply with specification L-Il O.
125-2.5 SQUEEZE CONNECTORS. Squeeze connectors, if specified, shall be equal to
Crouse-Hinds Company, type CGB cable connector with neoprene rubber bushing or an
approved equal, and shall comply with specification L-I08.
125-2.6 TEES. Large radius bend tees, if specified, shall be equal to Crouse-Hinds
Company No. ET or equal.
125-2.7 HEAT SHRINKABLE TUBING KIT. Heat shrinkable tubing kits shall be
equal to type APL, as manufactured by Raychem Corporation or an approved equal, and shall
comply with specificaiton L-l 08.
125-2.8 SAFETY SWITCHES. Safety switches shall be heavy duty, quick-make,
quick-break, with visible blades. Enclosure shall have interlocks to prevent operation when
cover is open and to prevent cover from being opened when switch is in "ON" position.
125-2.9 POWER ADAPTERS. Power adapters shall be self-protected, watertight and
designed for direct earth burial. Output voltage shall be 120 Volt AC or 120/240 volt AC as
required, and equal to ADB P A-2, P A-3 or P A-4.
Florida Keys Marathon Airport
L-125-2 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
125-2.10 GENERAL PURPOSE TRANSFORMERS. General purpose transformers
shall be dry type, two winding, in weatherproof enclosure and shall comply with NEMA ST -20
and UL 506. Rating shall be as indicated on Drawings.
125-2.11 LIGHTING CONTACTOR. Lighting Contactor shall be electrically held with
120 volt coil and solid neutral. Enclosure shall be NEMA 3R with "Hand-Off-Auto" selector
switch on cover. Rating of Contactor shall be as indicated. Photocell control shall be for use on
120 volt system and rated at 2000 watts.
125-2.12 LIGHT BASES. All light bases (base cans) shall meet the requirements of FAA
AC 150/5345-42C. The light bases shall be L-867 type for the non-load bearing units and L-868
for the load bearing units. The sizes of the units shall be as shown on the Plans and in this
specification. Telescoping base cans may be used for the L-867 non-load bearing base cans.
Two-piece base cans may be used where paving interferences require their use. All light bases,
transformer houses and junction boxes shall be Class 1, galvanized steel.
125-2.13 ISOLATION TRANSFORMER. The isolation transformers shal be L-830, 6.6
amp primary to 6.6 amp secondary, sized per the fixture manufacturer's recommendations and
conforming to AC 150/5345-47A.
125-2.14
CABLES. Cables and connectors shall comply with specification L-l 08.
125-2.15 FRANGIBLE COUPLINGS. All elevated items shall be installed on frangible
couplings in accordance with the respective Federal Aviation Administration Advisory Circular.
Frangible couplings shall be metallic and provide an electrical grounding patch between the
fixture and the base can.
125-2.16 LAMPS. Airfield lighting fixture lamps shall be quartz of size and type to
provide distribution and minimum output requirements of isocandela curves shown for each size
in AC 150/5345-46A. All airfield lighting fixtures shall be installed with lamps.
Lamps shall be a generic standard design manufactured by at least two (2) of the following
manufacturers:
a.
b.
G.E. Lighting
Sylvania
Phillips
c.
Proprietary lamps, that is, lamps intended to be used only for one manufacturer's product(s) and
that are manufactured for this sole purpose, are not acceptable.
Lamps shall be readily available from local commercial electrical supply dealers for assured
availability and supply to the airport.
Florida Keys Marathon Airport
L-125-3 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
125-2.17 COLORED FILTERS. Colored filters, or colored lenses, to be used for Airfield
Lighting Fixtures shall conform to the requirements of Military Specification MIL-C-250-50-
Type 1 and the applicable FAA Advisory Circulars.
125-2.18 CABLE IDENTIFICATION TAGS. The identification tags shall be 2-inch
diameter brass tags with the circuit identification stamped onto the tags, all as shown on the
plans and details. The identification shall be permanently stamped. Text height shall be 3/8 inch.
125-2.19 IDENTIFICATION TAPE. Non-magnetic electronically detectable
identification tape shall be installed in the trenches above the ducts, as and where shown for the
Plans.
125-2.20 REINFORCING STEEL. All reinforcng steel shall be deformed steel bars
conforming to ASTM A-615 grade 60.
125-2.21 BOL TING HARDWARE. All airfield bolting hardware shall be stainless steel
and shall meet FAA requirements. All bolts Y4 inch and larger shall be hex head type. All bolts
smaller than Y4 inch trade sixe shall be recessed Allen type. All bolted connections shall utilize
an anti-rotational locking type device. The base can cover and fixture mounting bolts shall
extend through the base can mounting flange into the base can a minimum of 0.5 inch. The bolts
shall have enough thread length so they do not shoulder out before the fixture is securely
tightened.
125-2.22 ANTI-SEIZE COMPOUND. The anti-seize compound shall be Ideal "Noalox"
or approved equal. Use Dow Corning Compound In valve lubricant non-curing sealant to seal
between sections of base cans, spacer rings, adapter rings or fixtures.
125-2.23 STRAIN RELIEF CONNECTORS. Strain relief connectors shall be Liquid
Tight Thomas & Betts 2500 series with WMG-PG wire mesh cable grip or approved equal.
CONSTRUCTION METHODS
125-3.1 GENERAL. The installation and testing details for the systems shall be as
specified in the applicable Advisory Circulars or manufacturers specifications as approved by the
Engineer.
The contractor shall ascertain that all lighting system components furnished by him (including
FAA Approved Equipment) are compatible in all respects with each other and remainder of the
new/existing system. Any non-compatible components furnished by this contractor shall be
replaced by him, at no additional cost to the Airport sponsor, with a similar unit, approved by the
Engineer (different model or different manufacture) that is compatible with the remainder of the
airport lighting system.
Wiring diagrams shown on Drawings are generic and may not reflect actual field conditions or
specific equipment requirements. The Contractor shall verify field conditions and follow
Florida Keys Marathon Airport
L-125-4 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
instructions in installation manuals provided by equipment manufacturer and, if required, make
the necessary modifications to insure proper operation of equipment.
125-3.2 PLACING EQUIPMENT. All new or relocated equipment shall be installed at
the location indicated in the plans or as directed by the Engineer. All bolts or threaded parts,
such as breakable couplings, shall be greased with an antirust compound such as "Never-Seez."
125-3.3 OPERATING MANUALS. Operating manuals shall be submitted for all
principal items of electrical equipment. The submittal of manuals shall be submitted prior to
Final Acceptance. The manuals shall be complete with operational and repair part data on all
component devices in the principal equipment for which the manuals are submitted. The
Contractor shall also provide to the Owner's authorized representative instructions in the
operation and maintenance of the systems at such times as directed by the Owner and permit his
video taping of operating and maintenance instructions.
125-3.4 REMOVAL OF EXISTING L-86l EDGE LIGHT FIXTURES (STAKE
MOUNTED). The Contractor shall remove all existing L-861 stake mounted fixtures, including
concrete encased bases and transformers. The light fixtures shall be disposed off airport property
or may be used as spare parts for remaining stake mounted lights.
The existing concrete encased light base stake and any concrete encased L-830 transformers are
to be removed and disposed of off airport property by the Contractor.
All holes remaining after removal of the stake and related bases shall be filled with suitable
material and compacted to at least density and condition of the original material. In paved areas,
the existing pavement is to be sawcut and removed so as to make a square or rectangular hole
prior to backfill. The square or rectangular hole shall be backfilled and compacted as stated
above except the top one and a half inches (1.5") of backfill shall be asphalt conforming to
FDOT asphalt specifications or four inches (4") of concrete painted in black at the Contractor's
choice.
125-3.5 REMOVAL AND REINSTALLATION OF EXISTING L-86l EDGE
LIGHT FIXTURES (BASE MOUNTED). The Contractor shall remove and reinstall the
existing L-861 base mounted fixtures, including base stems, base plates, L-823 cord sets and L-
830-1 transformers. The fixtures shall be carefully removed so as not to damage the lens, fixture,
base stern/plate, L-823 cord set and transformers.
The existing cables shall be spliced together with an L-823 type connector and neatly coiled. The
base can shall be removed and disposed of off airport property.
All holes remaining after removal of the base mounted light and related bases shall be filled with
suitable material and compacted to at least the density and condition of the original material. In
paved areas, the existing pavement is to be sawcut and removed so as to make a square or
rectangular hole prior to backfill. The square or rectangular hole shall be backfilled and
compacted as stated above except the top one and a half inches (1.5") of backfill shall be asphalt
Florida Keys Marathon Airport
L-125-5 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
conforming to FDOT asphalt specifications or four inches (4') of concrete painted in black at the
Contractor's choice.
METHOD OF MEASUREMENT
125-4.1 The quantity of units to be paid for under this items shall be the number of each
type installed as completed units in place, ready for operation, including base accesories, backfill
and compact, and accepted by the Engineer.
BASIS OF PAYMENT
125-5.1 Payment will be made at the Contract unit price for each complete unit, that is
installed in place, removed including base, accessories, backfill and compact, relocated including
splicing of existing cables, transformers, foundation, base can, backfill and compact and
accepted by the Engineer. This price shall be full compensation for furnishing all materials and
for all preparation, assembly, and installation of these materials, and for all labor, equipment,
tools, and incidentals necessary to complete these items.
Payment will be made under:
Item L-125-5.1
Furnish and install L-861 T Taxiway
Edge Lights (base mounted), complete
in place
Per each
Item L-125-5.2
Remove existing L-861 T Taxiway
Edge Lights, base mounted or stake
mounted
Per each
(N/A)
Item L-125-5.3
Relocate existing L-861 T taxiway
edge light base mounted, including
excavations, backfilling, and
accessories, complete in place
Per each
(N/A)
MATERIAL REQUIREMENTS
Underwriters
Laboratories
Rigid Metal Conduit - Standard 6
Underwriters
Laboratories
Liquid- Tight Flexible Conduit - Standard 360
U nderwri ters
Laboratories
Fittings for Conduit and Outlet Boxes - Standard 514
Underwriters
Florida Keys Marathon Airport
L-125-6 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
Laboratories
AC 150/5345-3
AC 150/5345-42
AC 150/5345-46
AC 150/5345-47
AC 150/5345-51
Intermediate Metal Conduit - Standard 1242
Specification For L-821 Panels For Remote Control of
Airport Lighting
Specification For Airport Light Base and Transformer
Housings, Junction Boxes and Accessories
Specification For Runway and Taxiway Light Fixtures
Isolation Transformers For Airport Lighting Equipment
Specification For Discharge Type Flashing Light
Equipment
END OF ITEM L-125
Florida Keys Marathon Airport
L-125-7 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
ITEM T -904
SODDING
DESCRIPTION
904-1.1 The work specifi
disturbed areas of the projec
maintaining the sodded areas such
tand of grass, within the
fertilizer, watering, and
QUALITY ASSURANCE
904-2.1 Requirements of Regulator)' Agencies:
Work performed under this Section shall be strictly governed by local and state
authorities of this area.
WARRANTY
904-3.1 All sod shall be nted for one (1) year after Fina
During the warranty period, t Contractor shall replace, at his e
that dies or is not e ished during this time if the causes fOr suc
or poor workmanshIp the Contractor.
ance by the Engineer.
11 sod under the Contract
cts are a result of negligence
All sod missing or defective due to the Contractor's negligence shall be replaced ina
manner acceptable to the Engineer.
MATERIALS
904-4.1 SOD. Grass sod shall be Bermuda grass. The Engineer may, at his discretion, di the
Contractor to match existing grass species. Sod shall be well matted with grass roots. The $0 11
be taken up in rectangles, preferably 12-inchx. -' h, s be a mininmm of two (2) ipches in
thickness, and shall be live, fresh, and uninjure . ti . . .lantiIlg..It shall have a soil mat of
sufficient thickness adhering to the roots to withs an . all nece ry handling.
The sod sh
until it is planted. D
Replanting . . e pe
approved ma er and pr.
hours shall not be used unle
Soft spots and inequalities in grade shall be corrected before starting sod work.
Planting shall not begin until the Engineer has approved the condition of the soil.
Soil.shallbe . watered before thesodisplanted.
Sod shall be installed without voids. Tamp onollall newly installed sod.
Sod shall be thoroughly watered.
Florida Keys Marathon Airport
T -904-1 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
The surface shall be within 1/10 of one (1) foot of specified finished grades and shall be
even and firm at all points. Hand raking shall be required to ensure such conditions.
Where sodding is used in drainage ditches (along the line of water flow in swales), the
setting ofthe pieces shall be staggered so as to av' continuous seam along the line offlow. Along
the edges of such staggered areas, the offsets of dual strips s 11 not exceed six (6) inches. In
order to prevent erosion cause by vertical. edges at the outer Ii' he outer pieces of sod shall be
tamped so as to produce a feather-edge effect. On steep slopes, the Contractor shall, if so directed by
the Engineer, prevent the sod from sliding by means of wooden pegs driven through the sod blocks
into firm earth, at suitable intervals. Sod shall be placed in rows at right angles to slope.
904-4.2 FERTILIZER. Fertilizer shallbeslll'face~gglied>t9n.~Wly iIlstalled.8odwitha
mechanical spreading device capable ofunifO~~),<lism15tltiIlg t1'1.efertjJizer. atthea15oYe-;~g~cjfied
rates. Fertilizer for sodded areas, a cOmrnerciaLgran~larf~rtHizercontaining 16 percent. nitrogen, 4
percent phosphorous and.8 percent potassium. Fertilizers shall be applied at the following rate:
· Eighteen(1S)poum:lsper 1,000 square feet of.sod
Fertilizer shall be applied as a top dressing only and shall not be mixed in with the
backfill material at time of installation. The Contractor shall apply fertilizers at time of inf:ltallation
and 90 days after installation at the rates stated above.
904-4.3 WATER. Water for sod .establishment may be obtained from any approved municipal
water system. In the event.. that an approved municipal water system is not available, water for
establishment of all sod ll1a~~~~L sh~HEe sUPBli~dby the Contractor..The water shall be free of
excess and1'1armful. chemicals,aci<l.~,~lk~lis, or anY .Sl115~tanc~tha~Il1i~~tge ha~fultoplantgrowth
or.obnoxious to. tr~ffic. S~I!watershallnot.beused; .Applywat~rperthe following recommended
schedule and application rates:
1. Suggested Watering Schedule:
a. First three (3)weeks - Five (5)times>i per week (daily except for
weekends).
b. Second five (5) weeks - Two (2) times per week.
c. Third five (5) weeks - One (1) time per week.
2. SuggestedApplicati()nRate:
Sod - Six (6) gallons per square yard per application.
3. Suggested\Vatering. requirelTI~IltsduringtheTemainderof the establishment period
shall be as necessary to ensure the health and vigor of the sod material for th~
duration ofthe establishment period.
4. In the event that City and/or County emergency water restrictions are in effect for
the duration of the project, then the .use of reclaimed water will be permitted at the
same schedule. If sufficient quantity of reclaimed (non-potable) water is
unavailable, then the Contractor shall water to the maximum allowed by the water
Florida Keys Marathon Airport
T-904-2 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
restrictions. Sod installation shall be scheduled on days allowed for irrigation with
potable sources of water. The Contractor is t 'all necessary permits required
for the use of reclaimed water on t tion rates for reclaimed water
shall be the same as potable water
CONSTRUCTION.METHODS
904-5.1 GENERAL. Areas to be solid, strip, or spot sodded shall be shown on the plans. Areas
requiring special ground surface preparation such as tilling and those. areas in a satisfactory condition
which are to remain undisturbed shall also be shown on the plans.
Suitable equipment necessary for proper preparation of the ground surface and for the handling and
placing of all required materials shall be on hand, in good condition, and shall be approved by the
Engineer before the various operations are started. The Contractor shall demonstrate to the <Engineer
before starting the various operations that the application of required materials will be made at the
specified rates.
904-5.2 PREPARING THE GROUND SURFACE. After grading of areas has been completed
and before applying fertilizer and limestone, areas to be sodded shall be raked or otherwise cleared. of
stones larger than 2 inches (50 mm) in y diameter, sticks, s d oth 's wh~c 'ght
interfere with sodding,. growth of su' any
damage by erosion or other cause er e , , e ap .' 'on
of fertilizer and ground limestone, ,ctor. sh , , ' This may include filling
gullies, smoothing irregularities, and repairing other incidental damage.
904-5.3 APPLYING FERTILIZER AND OUND LIMEST
surface preparation, fertilizer. shall be unifo . Thes
the soil to a depth of not less than 2 inches. ( discin ,
to the Engineer. Any stones larger than 2 inc e 0 mm) in any
other litter brought to the surface by this operation shall be removed.
N]:. Following ground
all be incorporated into
ther methods accept
lameter, large clods, roots, an
904-5.4 OBTAINING AND DELIVERING SOD. After inspection and approval of the source
of sod by the Engineer, the sod shall be cut with a proved sod cutters to such a thickness that after it
has been transported and pI n the ar efore ithas pacte' ve a
uniform thickness of not less. n 2. in ( dsections 0 'ps shall b orm
widths, not less than 10 inches (250 rnm); andinl hs of not less than 18 inches (45 cm), but of
such length as may be readily lifted without breakillg; tearing, or loss of soil. Where strips are
required, the sod must be rolled without damage witlithe grass folded inside, The Contractor may be
required to mow high grass before cutting sod.
The sod shall be transplanted within 24 hours fr he time, it is stripped, unless circumstances
beyond the Contractor's control make storing nec . . In such cases, sod shall be stacked, kept
moist, and protected from exposure to the air an and shall be kept from freezing, Sod: shall be
cut and moved only when the soil moisture conditions are such that favorable results can be
expected. Where the soil is too dry, permission to cut sod may be granted only after it has been
watered sufficiently to moisten the soil to the depth the sod is to be cut.
904-5.5 LAYING SOD. Sodding shall be performed only during the seasons when satisfactory
results can be expected. Frozen sod shall not be used and sod shall not be placed upon frozen soil.
Florida Keys Marathon Airport
T-904-3 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
Sod may be transplanted during periods of drought with the approval of the Engineer, provided the
sod bed is watered to moisten the soil to a depth of at least 4 inches (lOOmm) immediately prior to
laying the sod.
The sod shall be moist and shall be placed on a moist earth bed. pitch forks shall not be used to
handle sod, and dumping from vehicles shall not be rmitted. The sod shall be carefully placed by
hand, edge to edge and with staggered joints, in :f . right an to the slopes, commencing at the
base of the area to be sodded and working upward. The sod sha ediately be pressed. firmly into
contact with the sod bed by tamping or rolling with approved equipment to provide a true. and even
surface, and insure knitting without displacement of the sod or deformation of the surfaces of sodded
areas. Where the sod may be displaced during sodding operations, the workmen when replacing it
shall work from ladders or treaded planks to prevent further displacement. Screened soil of good
quality shall be used to fill all cracks between sods. The quantity of the fill soil shall not cause
smothering of the grass. Where the grades are such that the flow of water will be from paved
surfaces across sodded areas, the surface of the soil in the sod after compaction shall be set
approximately 1 inch (25 low avement edge. Where the flow will be over the sodded
areas and onto the paved s arou manholes and inlets, the surface of the soil in the sod after
compaction shall be placed flush with pavement edges.
On slopes steeper than 1 vertical to 2-1/2 horizontal and in v-shaped or flat-bottom ditches or gutters,
the sod shall be pegged with wooden pegs not less than 12 inches (300 mm) in length and have a
cross-sectional area of not less than 3/4 square inch (18 square millimeter). The pegs shall be driven
flush with the surface of the sod.
904-6.1
ESTABLISHING TURF
a. General. The Contractor shall provide general care for the sodded areas as soon as
the sod has been laid and shall continue until final inspection and acceptance ofthe work.
b. Protection. . All sodded areassp.allbe protected against traffic or other use by
warning signs or barricades approved by the Engine~r.
c. Mowing. The Contractor shall
equipment, depending upon climatic.
In the event that weeds
either cut or uncut, the
clippings raked and removed from
mow the sodded areas with approved mowing
ditions and eeds for mowing specific areas.
on are perml ..... . to grow to such an extent that,
odded species, they shall be mowed and the
904-7.1 REPAIRING. . When .thesurfaceha~ibecome .bulliedOl,otherwise . damaged. during the
period covered by this contract, the affected areas<shall be repaired to re-establish the grade and. the
condition of the soil, as directed by the Engineer;
904-8.1 MAINTENANCE.UntilF'i~al Acc~ptance Of the work and throughout theone(t) year
warranty period, the.Colltractor sh~ll; . atllis ~J'(~ell~~tmaintain t~~so~ded.areas in.asatisfactory
condition. This maintenanceshalljncludewatering,edging,andt~erepairing of all damaged areas
and replacing areas in which the establishment of the grass does not appear to bederveloping
satisfactorily. Mowing shall occur at thefrequenc:y required to mailltain. sod height of two (2) inches
for Bermuda sod. Maximum allowable height of sod between mowing shall. be four (4)iriches for
Bermuda.
Florida Keys Marathon Airport
T -904-4 May 2004
Taxiway Lights (2 TIW) and Airfield Guidance Sign
904-9.1
FINAL INSPECTION.
At the end of the warranty period finarinspection.ofs9dwillbemadelJyth~! Engineer
upon written request from the Contractor..Sucharequest shall besubmi1:t~!<ito theProject.J.V.[anager at
least three (3) days before the inspection is to takepla.ce. All defects discovered shall be replaced or
repaired by the Contractor prior to Final Inspection.
METHOD OF MEASUREMENT
904-10.1 This item shall be measured on the basis of the area in square yard of the surface covered
with sod and accepted.
BASIS OF PAYMENT
904-11.1 This item will be paid for on the basis. of the contract unit price per square yard for
sodding, which price shall be full compensation for all labor, ... equipment, material, staking, and
incidentals necessary to satisfactorily complete the items as specified.
Payment will be made under:
Item T -904-11.1 Sodding...................~..........~............. ....;.. ......;..........Persquare yard
END OF ITEM T-904
Florida Keys Marathon Airport
T -904-5 May 2004
Taxiway Lights (2 T/W) and Airfield Guidance Sign
--- I
AtOR~M CERTIFICATE OF LIABILITY INSURANCE OA TE (MM/OOIYYYY)
11/29/2004
PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Bowen, Miclette & Britt, Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
1111 North Loop West HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
Suite 400 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
Houston TX 77008
INSURERS AFFORDING COVERAGE NAIC#
INSURED INSURERA: Continental Casualty Co. 20443
Florida Industrial Electric, Inc. INSURER B: RSUI Indemnity 22314
1050 Miller Dr. INSURER C: Transportation Insurance Comp 20494
Altamonte Springs FL 32701 INSURER D: American Cas. Co. of Reading, 20427
INSURER E:
COVERAGES
The policies of Insurance listed below have been issued to the insured named above for the policy period indicated.
Notwithstanding any requirement, term or condition of any contract or other document with respect to which this
certificate may be issued or may pertain, the insurance afforded by the policies described herein is subject to all
the terms, exclusions and conditions of such Dolicies. Aaareaate limits shown may have been reduced bv Daid claims.
'~SR r..~~'~ POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS
TR
A ~NERAL LIABILITY GL257290904 11/1/2004 11/1/2005 EACH OCCURRENCE $1,000,000
X COMMERCIAL GENERAL LIABILITY ~~EMISES lEa occ~~nce\ $ 250,000
I CLAIMS MADE ~ OCCUR MED EXP (Anyone person) $5,000
>--- PERSONAL & ADV INJURY $ 1,000,000
f-- GENERAL AGGREGATE $2,000,000
~'L AGGRE~E LIMIT APAS PER: PRODUCTS - COMP/OP AGG $ 2,000,000
POLICY X P'~RT LOC
A ~OMOBILE LIABILITY BUA2057290918 11/1/2004 11/1/2005 COMBINED SINGLE LIMIT $1,000,000
X ANY AUTO (Ea accident)
-
- ALL OWNED AUTOS APP-n".\i ~e~',~\~N ~ Elf! BODILY INJURY
$
SCHEDULED AUTOS (Per person)
-
~ HIRED AUTOS 8Y _ _. ".~
\A\ l (])~ BODilY INJURY $
X NON-OWNED AUTOS (Per accident)
>--- DATE '.'.0...'_.
I :~__ YES PROPERTY DAMAGE $
Wl\I\/r:n ");/\ (Per accident)
i =rAGE LIABILITY AUTO ONLY. EA ACCIDENT $
I ANY AUTO OTHER THAN EA ACC $
AUTO ONLY: AGG $
B I OESS/UMBRELLA LIABILITY NHN027704 11/1/2004 11/1/2005 EACH OCCURRENCE $ 5,000,000
I OCCUR D CLAIMS MADE AGGREGATE $ 5,000,000
$
Fl DEDUCTIBLE $
X RETENTION $10,000 $
C WORKERS COMPENSATION AND WC257290885 11/1/2004 11/1/2005 X T T~g$T~N;; T TOJ~-
D EMPLOYERS' LIABILITY WC257290868 11/1/2004 11/1/2005 $1,000,000
ANY PROPRIETOR/PARTNER/EXECUTIVE EL. EACH ACCIDENT
OFFICER/MEMBER EXCLUDED? EL. DISEASE - EA EMPLOYEE $1,000,000
If yes, describe under El. DISEASE - POLICY LIMIT $1,000,000
SPECIAL PROVISIONS below
OTHER
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS
Re: Taxiway Airfield Lighting, marathon Airport AIP#3-12-0044-1499 Certificate holder is completed to read: Office of
the Director of Purchasing. Certificate holder is named as additional insured as respects to general liability and
auto liability as required by written contract.
CERTIFICATE HOLDER
Monroe County Board of County Commissioners
Attn: Bevette Moore-Key West Int'l Airport
3491 S. Roosevelt Blvd.
Key West FL 33040
CANCELLATION
Should any of the described policies be cancelled before
the expiration date thereof, the issuing company will
endeavor to mail 60 days written notice to the certificate
holder named to the left, but failure to mail such notice
shall impose no obligation or liability of any kind upon
the company, its agents or representatives.
ACORD 25 (2001/08)
@ ACORD CORPORATION 1988
POLICY NUMBER: GL257290904
COMMERCIAL GENERAL LIABILITY
CG 25 03 03 97
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
DESIGNATED CONSTRUCTION PROJECT(S)
GENERAL AGGREGATE LIMIT
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Designated Construction Projects:
Re: Taxiway Airfield Lighting, marathon Airport AIP#3-12-0044-1499 Certificate
holder is completed to read: Office of the Director of Purchasing. Certificate
holder is named as additional insured as respects to general liability and auto
-. . . - . . -. .
(If no entry appears above, information required to complete this endorsement will be shown in the Declarations
as applicable to this endorsement.)
A. For all sums which the insured becomes legally
obligated to pay as damages caused by
"occurrences" under COVERAGE A (SECTION
I), and for all medical expenses caused by acci-
dents under COVERAGE C (SECTION I), which
can be attributed only to ongoing operations at a
single designated construction project shown in
the Schedule above:
1. A separate Designated Construction Project
General Aggregate Limit applies to each
designated construction project, and that limit
is equal to the amount of the General Aggre-
gate Limit shown in the Declarations.
2. The Designated Construction Project General
Aggregate Limit is the most we will pay for
the sum of all damages under COVERAGE
A, except damages because of "bodily injury"
or "property damage" included in the
"products-completed operations hazard", and
for medical expenses under COVERAGE C
regardless of the number of:
a. Insureds;
b. Claims made or "suits" brought; or
c. Persons or organizations making claims
or bringing "suits".
3. Any payments made under COVERAGE A
for damages or under COVERAGE C for
medical expenses shall reduce the Desig-
nated Construction Project General Aggre-
gate Limit for that designated construction
project. Such payments shall not reduce the
General Aggregate Limit shown in the Decla-
rations nor shall they reduce any other Des-
ignated Construction Project General Aggre-
gate Limit for any other designated construc-
tion project shown in the Schedule above.
CG 25 03 03 97
4. The limits shown in the Declarations for Each
Occurrence, Fire Damage and Medical Ex-
pense continue to apply. However, instead of
being subject to the General Aggregate Limit
shown in the Declarations, such limits will be
subject to the applicable Designated Con-
struction Project General Aggregate Limit.
B. For all sums which the insured becomes legally
obligated to pay as damages caused by
"occurrences" under COVERAGE A (SECTION
I), and for all medical expenses caused by acci-
dents under COVERAGE C (SECTION I), which
cannot be attributed only to ongoing operations
at a single designated construction project shown
in the Schedule above:
1. Any payments made under COVERAGE A
for damages or under COVERAGE C for
medical expenses shall reduce the amount
available under the General Aggregate Limit
or the Products-Completed Operations Ag-
gregate Limit, whichever is applicable; and
2. Such payments shall not reduce any Desig-
nated Construction Project General Aggre-
gate Limit.
C. When coverage for liability arising out of the
"products-completed operations hazard" is pro-
vided, any payments for damages because of
"bodily injury" or "property damage" included in
the "products-completed operations hazard" will
reduce the Products-Completed Operations Ag-
gregate Limit, and not reduce the General Ag-
gregate Limit nor the Designated Construction
Project General Aggregate Limit.
Copyright, Insurance Services Office, Inc., 1996
o
Page 1 of 2
D. If the applicable designated construction project
has been abandoned, delayed, or abandoned
and then restarted, or if the authorized contract-
ing parties deviate from plans, blueprints, .de-
signs, specifications or timetables, the project
will still be deemed to be the same construction
project.
E. The provisions of Limits Of Insurance (SECTION
III) not otherwise modified by this endorsement
shall continue to apply as stipulated.
Page 2 of 2
Copyright, Insurance Services Office, Inc., 1996
CG 25 03 03 97
o