xt7v416t1r8p https://exploreuk.uky.edu/dips/xt7v416t1r8p/data/mets.xml  United States Housing Authority 1939 51 leaves; 27 cm. UK holds archival copy for ASERL Collaborative Federal Depository Library Program libraries and the Federal Information Preservation Network.Call Number FW 3.9:9/rev. bulletins English Washington, D.C.: Federal Works Agency, United States Housing Authority Contact the Special Collections Research Center for information regarding rights and use of this collection. Works Progress Administration Housing Publications Construction contracts -- United States Public housing -- United States Construction Contracts/Federal Works Agency, United States Housing Authority September 1, 1939 text Construction Contracts/Federal Works Agency, United States Housing Authority September 1, 1939 1939 2019 true xt7v416t1r8p section xt7v416t1r8p Vt 7 UNIVERSITY OF KENTUCKY ‘ ’
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FEDERAL WORKS AGENCY
( UNITED STATES HOUSING AUTHORITY
_': H: H}, _gr .2 WASHINGTON, D. c.
m -_J" ‘ ‘1 \ .1:
Minimum ____CON____TRACTS
Bulletin No. 9 on Policy and Procedure
. Substituted for Bulletin No. 9 dated
/ June 28, 1958 and Addendum No. 1
dated November 14, 1938
: Table of Contents
, scien- P..__as_e
Purpose and Scepe of Bulletin 1
, Relationship Between USHA and Local
~V Authorities During Construction 2
Contract Documents 6
Advertisement and Bid Documents 7
Instructions to Bidders 8
Contract and Performance Bond 10
General Conditions 11
‘ Appendix
Advertisement and Bid Documents 1
Form of Advertisement for Bids 1
Bid Documents 2
Bid Formr 2
Affidavit Form 4
Form of Statement of Bidder's
Qualifications 5
Bid Bond Form 6
Instructions to Bidders 10
Contract Form 18
Directions for Preparation of Contract 21
Directions for Preparation and Execution
of Bid, Performance and Payment Bonds 22 ‘
General Conditions , 24
September 1, 1939

:1 CONSTRUCTION CONTRACTS
‘ This Bulletin has been prepared to aid Local Authorities in draft—
ing, awarding and administering contracts for the construction of low—
rent housing projects in accordance with applicable provisions of the
United States Housing Act of 1937, as amended, and of the Loan Contracts
between the respective Local Authorities and the USHA.

This Bulletin is divided into two chapters:

‘ Chapter I deals generally with the relationship between the USHA
and Local Authorities during construction.

Chapter II discusses Specifically the set of contract document
forms (hereinafter referred to as the Appendix) which have been_pre—
pared and appended for the guidance of Local Authorities.

The revision of this Bulletin has been made in order to incorpo~
rate therein some of the suggestions of contractors‘ associations, ar—
chitects and Local Authorities as well as to clarify some of the items
therein and to make necessary changes in the light of experience gained
through the use of the forms included.

THE FORMS SET FORTH IN THE APPENDIX COVER ONLY ONE TYPE OF CONTRACT

, WHEREIN ALL WORK, EXCEPT DEMOLITION AND LANDSCAPING, IS INCLUDED UNDER
ONE CONTRACT. LOCAL AUTHORITIES ARE WARNED THAT IF THE WORK IS DIVIDED
INTO MORE THAN ONE CONTRACT EITHER GEOGRAPHICALLY OR BY TRADES OR IF
DEMOLITION OR LANDSCAPE WORK IS INCLUDED, THE FORMS MUST BE REVISED TO
MEET THESE CONDITIONS.
' SEPARATE FORMS FOR DEMOLITION AND LANDSCAPE WORK HAVE BEEN PREPARED
AND ARE AVAILABLE. .
In using the forms attached hereto, Local Authorities are requested:
(1) to take into consideration the particular nature of
their contract, and if changes in the form are re—
quired to make such changes and not follow verbatim
the form attached.
(2) not to amplify through a series of supplemental Gen~
eral Conditions or other attachments provisions in— '
consistant with those set forth in the Appendix.
(3) to coordinate the provisions of the detailed specifi—
cations with the forms in the Appendix.

(4) not to complicate bidding by numerous alternates and

bids.
'81011 H-l

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(5) not to restrict bidding by indicating preferences for
local materials, supplies, labor, equipment, insur—
ance, etc., or by narrowing the type of material to
be used to a few suppliers.

(6) if the work is divided into several contracts to as»
Sign to each contractor his proper work and not to
include in every contract general items such as job
offices, signs, temporary heating, etc.. when it is
only intended that they be furnished.by one contrac— ‘ .
tor; and

' (7) not to include work that the City has agreed to do
or that is not proper work to be paid for out ofv
the development fund.
Chapter I '
General

1. Construction Adviser. Prior to the time the Local Authority
invites bids for the construction of a project or any part thereof, the
Administrator will designate a representative of the USHA at the site
of the project, who will be known as the Construction Adviser. After
the final plans and specifications for the project have been approved
by the USHA, all matters in connection with the project which involve

_ construction work will be taken up with or through the Construction Ad~
viser. The Construction Adviser shall render advice and suggestions to
the Local Authority, but shall not give orders to the Contractor.

3- E3932 of Authority. In all matters relating to construction,
the Construction Adviser shall be the representative of the Administra-
tor on the site. The scepe of authority of the Construction Adviser
shall be so defined by the Administrator as to permit as many deCiSionS
and approvals as feasible on the site. In connection with the powers
of the Construction Adviser, he will be instructed by the Administrator
as to such matters as must be first submitted to the Administrator or
to such other representatives of the USHA as he may designate, for'con~
sideration and approval before action thereon can be taken by the Con~
struotion Adviser.

3. Other USHA Field Forces. In addition to the Construction Ad~
viser, there will be such additional field force of the USHA: either
Permanently or periodically at the site, as the USHA may consider neces~
sary to observe and review the construction of the project for complin

_ ance with the provisions of the Loan Constrct between the USHA and the
“ Local Authority. The Local Authority will be advised by the Construc~
tion Adviser as to the sc0pe of the duties of such additional personnel.
81011 H—1 2

a a

4. page gggyisition. (see USHA Bulletin No. 8 on Policy and Pro—
cedure). Before the USHA will authorize the Local Juthority to adver—
tise for bids for construction work, the Local Authority Shall have ac—
quired the site or assured the USHA that the site will be acquired within
sufficient time to enable the Local Authority to execute a contract based
upon any bids received. Authorization to accept any proposal or to enter
into any contract for construction work will not be given by the USHA
unless good title to the project site has been obtained by the Local Au~
thority. .

5. Plans apd_Specifications. Plans and Specifications for the con;
struction of the project or any part thereof, together with the other
contract documents, should be submitted to and approved by the USHA be—
fore the Local Authority invites bids for such work. Suggestions as to
the manner in which the plans and specifications should be prepared and
submitted to the USHA for approval are set forth in USHA Bulletin No. 11
on Policy and Procedure. The contract documents, as proposed for adver~
tising, should be in the hands of the USHA at least 15 days before the
proposed date of advertisement.

6. Responsibilipg :23 Projecg. While the USHA will review the
plans and Specifications and all other documents submitted to it and
furnish technical assistance, the responsibility for design and Specifi—
cations and the observance of all the requirements of the Loan Contract
rests with the Local Authority.

7. Eype of Contract. All work should be performed on a ”Fixed
Price Contract“ basis. It is recommended, in those cases where such
procedure is locally deemed advisable, that the Local Authority give
consideration to the dividing of the_project into SuTeral sections, so
that separate bids can be requested for the work included in each such
section, as well as bids for the entire work as noted hereinafter. This
would enable Smaller contractors who cannot undertake the entire project
to bid on part of the work and would thereby encourage competition, par~
ticularly where a large project is involved. If the project is divided
into several sections, all trades within each such section should, so
far as possible, be included in one contract. It is not recOmmended,
unless required by State or local law, that the work be divided in ac~
cordance with the several trades (plumbing, heating, masonry, etc.) or
a contract awarded on such a basis.

If the work is thus divided into sections, the sections should be
so laid out that the different contractors may proceed with their work
independently of each other. Care should also be taken to define exactly
the work to be performed in each section so there will be no conflict.

If such a division is made, bids for the work in the several sections,
as well as for-the entire work, should be advertised and opened at the
same time so that a determination can be made of the cost of the entire
work. In the interest of economy of construction and unless prohibited
81011 H—1 3

'1‘: c.
by state law, the USHA will require that one over—all bid which shall ’
include all work in connection with the development of the project shall
be requested. Demolition and landscape work and the purchase of items
of equipment such as ranges, refrigerators, shades, etc., need not be in—
cluded in such a bid. '

8. AdVertisement for Bids. In accordance with the provisions of
the Terms*§hd Conditibnsj—ell contracts for work in connection with the
development of the project shall be let only after public advertisement.
Such advertisement shall run for a sufficient time and be circulated in
such a manner as to give opportunity to bidders to secure plans and
specifications and to figure the work. The Local Authority is urged
to seek the widest possible competition. In order to COOperate with
the Local Authority, the USEA has made arrangements through contractorsI
associations to obtain a wide dissemination of information to contrac—
tors and the Local Authority shall, promptly after publication of any
advertisement for bids, furnish 12 cepics of the advertisement to the
USHA. These cepies shall be forwarded to the USHA in Washington marked
for the attention of the "Informational Service Division".

9 9. Award 9: Contract. The Local Authority should not take any
final action in regardﬂtb_the acceptance or rejection of any bid without
first submitting the details of its proposed action to the USEA, and has
been advised by the USHA that there is no objection to the preposed ac—
tion. In the event it is proposed to accept any bid, the Local Author—
ity should submit to the Construction Adviser a written statement of all
bids received, the name of the contractor to whom the Local Authority
prOposes to make the award and the alternates, if any, it proposes to
accept. If the award is to be made to any one other than the lowest
bidder, the reasons therefor shall be stated. The policy of the USHA
in regard to the acceptance and rejection of bids is being incorporated
in a further Bulletin.

10. Eepresentative 9f the Local Authority. The Local Authority
should, through appropriate action of its governing body, designate the
person who will represent it in the administration of the construction
contract and should define the scepe of his authority. Such representa—
tive should be empowered to perform the functions of the Local Authority
as required by the General Conditions, with such limitations as the L0—
cal Authority may desire. As delays in arriving at decisions and order~
ing changes when they become necessary often interfere with construction
work and may result in claims for damages by the Contractor against the
Local Authority, it is essential that the person designated as the rep—
resentative of the Local Authority be readily available to the Contrac—
tor at all times.

11. Legal ﬁnthorigst Inspegtion. During the development of the
project, the Local Authority shall provide and maintain competent and
adequate architectural and engineering supervision and inepection of the
project. Adequate supervision will necessitate a sufficient force of
81011 Hal 4

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capable architects, engineers, and construction men to enable the Locw.
Authority to supply to the Contractor promptly any additional or changed
designs that may be needed, and to enforce compliance by the Contractor
with the provisions of the contract. While the USHA will have repre—
sentatives at the site of the project and will cooperate with the Local
Authority in calling to its attention any matters that it may not con~ ,
sider in conformity with the contract, the USHA does not undertake the
responsibility for the performance of any of the duties required under
the Loan Contract to be performed by the Local Authority.

The General Conditions, as set forth in the Appendix, contemplate
that the Architect will supervise the work to be performed under the
construction contract. If the Architect is not to provide such super~
vision, the Local Authority should designate a.supervising engineer and
staff to perform this function, and in this event, the General Condi~
tions should be modified accordingly.

12. Submittals.tg anstruction Adviser.

(a) After entering into a construction contract, the Local
Authority should submit_to the USHA, before final decision is made thereon
by the Local Authority:
(1) A11 matters required by the Terms and Conditions to be
submitted to the USHA before a decision is made thereon by
the Local Authority, including any change order involving
more than $1,000. (See Terms and Conditions, PART III, Para— graph I, and Section 2 of the General Conditions). (ii) All proposed interpretations and decisions of the Local Authority or the Architect as to whether items of work are required under the contract, the omission of which might af~ feet the cost of the project in an amount exceeding$1,000.
(iii) All samples required to be submitted by the Contractor.
(iv) All proposed decisions of the Local Authority which
might impair the rights of the USHA under the Loan Contract.
(See Terms and Conditions, Part III).
(V) All proposed Change Orders or interpretations extending
the time of completion of any work.

In submitting any of the matters set forth in (a) (i), (ii), (iii),
(iv) and (v) above, there should also be submitted all data in connection
therewith such as estimates, drawings, and correspondence between the

Local Authority, the Architect, and the Contractor.
81011 H~1 5

D t
(b) In addition to the foregoing, there should also be sub»
mitted by the Local Authority (though not necessarily prior to the ac~
tion of the Local Authority thereon):
(i) Copies of change orders, interpretations, and decisions
(other than those mentioned in (a) (i) and (ii) of this Para—
graph which are required to be submitted prior to the deci~
sion thereon by the Local Authority).
(ii) Copies of shop drawings after approval by the Architect;
and cOpies of approved as—built and change—order drawings
showing clearly all deviations of work as actually installed
from contract drawings.
(iii) COpies of all pertinent correSpondence relating to the
contract between the Local Authority, the Architect, and the
Contractor.
(iv) Copies of all complaints to the Local Authority by em—
ployees of the Contractor.

I (c) Construction reports, Reports to the U. S. Department of
Labor, project data and records, and pay rolls and affidavits relating
to the Kick—Back Statute should be submitted as required by the Terms
and Conditions. (See Terms and Conditions, Part III, Paragraphs 1?: 189
19 and Part IV).

Chapter II
Contract Documents

The forms of contract documents now to be discussed, and appended
to this Bulletin, were not prepared with any particular project or State
in mind, and hence must be revised or amended so that every contract as
advertised and entered into will conform with applicable State and local
laws. It is requested, however, for the sake of uniformity and in order
to expedite the checking of documents by the USHA, that the general form
thereof be maintained so far as possible and the order of the particular
divisions of the documents followed.

The following specific discussion of thifbrms of contract docu—
ments falls into four main sections conforming to the four main types
of forms contained in the Appendix:

Section A — Advertisement andeid Documents (Bid, Affidavit,
Bidders Qualifications and Bid Bond).
Section B ~ Instructions to Bidders.
81011 H—l 5

8‘ a
Section C ~ Contract and Performance Bond,
Section D — General Conditions.
Section A - Advertisement and Bid Documents (Bid, Affidavit,
Bidders Qualifications and Bid Bond).

1. Advertisement. The form and method of advertising should com-
ply with State or local laws and should indicate the type of work, and
clearly designate the place where and the time when bids are to be re~
ceivod and Opened, and the address at which contract documents can be
obtained. The period of advertising should be sufficient to allow pro—
spective bidders ample time to visit the site and examine the contract
documents for the purposes of preparing their estimates. A suggested
form of advertisement is included in the Appendix.

2. hid. The bid form incorporated in the Appendix sets forth in
general the matters which should be covered. Care should be exercised ‘
in setting up the Bid Form so that bidders will understand them and
that the bids when submitted will be clear and unambiguous, particularly,
in those instances where the work has been divided or where one or more
alternates have been requested. Particular attention is called to Bul—
letin No. 13 on Policy and Procedure, revised April 17, 1939, Pages 6
and 7, Paragraph (3), for a full discussion of this subject.

3. Affidavit as to Collusive Practices. In order to effect the
intent of Section 24 of the United States Housing Act, each bidder should
be required to sign an affidavit in the form of that set forth in the
Appendix. In addition, subcontractors and materialmen for the electri—
cal, heating and plumbing work, whether such work is included in one
general contract or let separately, will be required to furnish the af— V
fidavits and information as set forth in Section 17 of Instructions to
Bidders. ‘

4. Bidders' Qualifications and Egg Bond. The Appendix includes a
form of statement of biddersl qualifications, which should be completed
in order to show the responsibility of the bidder. The Associated Gen—
eral Contractors of America, Inc. has suggested the use of the standard
form of the Contractor’s Financial Statement, as prepared and issued by .
the Joint Conference on Construction Practices, Standard Form No. 42.

The substitution of this Form for the one included in the Appendix is
left for the discretion of the Local Authority. The Appendix also in—
cludes a suggested form of bid bond. An investigation of the State law
governing the Local Authority should be made to determine whether any
particular form of bid guaranty or bid bond is required. The bid guar—
anty should be in a sufficient sum to insure the bidder's financial re—
sponsibility and to protect the Local Authority against damage occa~
sioned by the failure or refusal of the successful bidder to enter into

. 81011 Eel 7

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a contract. In general, where bids are anticipated to be in excess of
one million dollars ($1,000,000), two and a half per cont (8%%) of the bid price is usually considered sufficient. Where the bid price is antic— ipated to be less than one million dollars ($1,000,000), the percentage
of the bid price required as security should be increased. The Appendix
(Section C) also contains directions for preparation and execution of
bid, performance and payment bonds.
Section B ~ Instructions to Bidders

l. EEEEXEl' The ”Instructions to Bidders" should advise bidders as
to any special conditions that might exist in connection with the work and
set forth the time for completion and the amount of liquidated damages to
be charged in the event the work is not completed within the specified
time. It should also inform bidders as to the general requirements in
regard to the preparation and submittal of bids, and should cover the
issuance of any addenda that might be required for revisions in the plans
and specifications. Suggested "Instructions to Bidders” are included in
the Appendix.

2. Time :33 Completign. The original Bulletin Contained the follow~
ing suggestion:

”The Local Authority should give consideration to permitting

the bidder to specify, within a restricted range, the number

of days that will be required by him to complete the job. No

bonus should be provided for completing ahead of time. If

the bidder is asked to specify the number of days required to

complete, provision should be made in the contract documents

for the method of evaluating such bids. Section 14 of the

Instructions to Bidders sets forth a suggested method for bid—

ding in this manner. For the purpose of evaluating bids, it

is suggested that the amount per day inserted in Section 14

be the same as that inserted in Section 15, so that the same

amount be deducted for each day saved as is required by the

contract to be paid for liquidated damages for delay in com~

pletion."

Experience has indicated that the use of this method of determining
the time of completion has tended to complicate bidding, and, for this
reason, it is not now recommended for use by the USEA. The Local Authority
should determine and fix a time for completion which has a reasonable rela~
tionship to the amount of work to be performed and the difficulties attend-
ant upon the same.

The Local Authority should set the amount of liquidated damages to be
paid by the Contractor in such sum as will be,in reasonable proportion to
the actual loss that might be sustained by the Local Authority through the
81011 891 8

)1 q \
failure of the Contractor to complete on time. In this connection, cone
sideration should be given to the loss that the Local Authority will sus~
tain by virtue of a corresponding delay in receiving Federal annual con~
tributions. The amount of liquidated damages, however, should not be
fixed so high as to discourage the submittal of bids by responsible bid—
ders.

3. Estimates of Cost 9: Dwelling Facilitieg. This Bulletin pre—
viously required a breakdown in the bid of certain items of costs to be
used for the purpose of determining whether the cost of the work was
within the limitations of the United States Housing Act. Due to the un—
familiarity of bidders with the intent of these provisions, the figures,
in many instances, submitted with the bid have been valueless. For this
reason, this requirement has been eliminated, and in lieu thereof, the
successful bidder is now required, after the opening of bids, to assist
in the breakdown of his bid price in order to show the division of costs
between the dwelling facilities and non~dwelling facilities. (See Para—
graph 19 of the Instructions to Bidders).

4. Discrimination. Paragraph 6, Part III, of the Terms and Condi—
tions and Section 43 of the suggested General Conditions appearing in the
Appendix provide that there shall be no discrimination because of race,
creed, color, or political affiliations in the employment of persons for
work on the project. Section 18 of the Instructions to Bidders sets forth
the method by which the Local Authority shall give effect to these provi~
sions with respect to Negro labor.

5. Taxes. The Local Authority should ascertain whether or not State
or local sales or business privilege taxes are applicable to the work to
be performed by the contractor. If the applicability of the law is not

. clear, eveny effort should be made by the Local Authority to obtain a rul~
ing from the appropriate officer of the State or locality, i.e., the
Attorney General of the State, the Collector of Taxes, the State Tax Com—
mission, etc. If it appears clear to the Local Authority that any such
sales or public privilege taxes are not applicable to the work to be per~
formed by the contractor, an appropriate clause should be inserted in the
Instructions to Bidders informing them of this fact and instructing them
not to include in their bids any amounts to pay such sales or business
privilege taxes. If, however, contractors on work of this kind, are re—
quired to pay such sales or business privilege taxes, no reference to such
taxes should be made in the Instructions to Bidders or in any other part
of the Specification.

6. The form of Instructions to Bidders contains a section on unit
prices drafted upon the theory that unit prices for extras will be pre-
determined by the Local Authority and inserted in the contract. It is
recommended that this practice be followed. If the prices are determined
in advance and are equitable, any possible controversy between the con~
tractor and the Local Authority in regard to the cost of extra work is
eliminated as to those items for which units have been established. In
the form attached, the usual items which are commonly the subject of
81011 H91 9

1' O
changes in the average contract. have been listed. These may be amplified
or restricted in accordance with the needs of a particular contract. The
USHA does not recommend the asking of bids on a unit price basis wherein
bidders are permitted to bid separately both on the cost of additional
work and the cost for deductions from the work specified. Such a practice
has been found to upset bids in that the prices quoted by contractors for
deductive units are much smaller than those given by the contractor for
additions. As an alternative to either predetermining unit prices and
including them in the contract or requesting that bids be given on a unit
price, it is possible to agree with the contractor, after the opening of
bids. upon acceptable units and unless the prices are predetermined and
included in the contract. this method is recommended.

' Section C — Contract and Performance Bond.

1. Contract. The contract form should contain a description and
location of the work and the Specification and Drawings should be identi~
fied by number, name and date of issuance. The adjusted contract price
(that is, the amount determined by adding to or subtracting from the base
bid the amount of any alternates accepted) should be set forth in the con~
tract. In many instances, it is customary to accept a bid by a letter of
acceptance to be conditioned upon the execution of the formal contract
and the submitting of the required bonds by the contractor. However, such
procedure is not required of the Local Authority, and the procedure of
accepting the bid and entering into the contract may be adjusted to con~

' form to the procedure prevailing in the particular locality where the work
is to be performed. Care should be taken to have the proposal accepted
and the contract signed by a duly authorized agent or officer of the Local
Authority. A contract form is included in the Appendix, as well as direc—
tions for the preparation of contract.

2. Performance Bond. The performance and payment bond or bonds
should conform to State Law. If the amount of such bond or bonds is not
prescribed by State Law, the amount of such bond or bonds should be not
less than 50% of the contract amount. Most of the States have laws pre~
scribing the conditions of such bond or bonds and a complete investigation
of the law applicable to each project should be made. If there is no ap~
plicable statute, such bond or bonds should be used as have been passed
on by the State courts as valid. The bond or bonds in addition to afford—
ing protection to the Local Authority should require payment by the cone
tractor to all persons furnishing labor and material incorporated in the

, Project. Suggested forms of performance and payment bonds are not in— ‘
cluded in the Appendix as it is necessary to conform the provisions thereof
in each instance with State or local laws. The USHA will. upon request,
assist the Local Authority in the preparation of proper forms of perform~
ance and payment bonds.

81011 H—l lO

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The Local Authority should exercise care in the administration of its
contracts which are secured by performance bonds (particularly in ordering
changes) to avoid any act which might release the surety. In any doubtful
case the consent of the surety to any contemplated action should be ob~
tained in advance.

Section D — General Conditions
Note: The paragraphs of this Section are numbered in
the same relation to their subject matter as
are the sections in the Form of General Condi~
tions contained in the Appendix.

1. Definitions. The definition of all terms which might not be
familiar to the Contractor should be included in the contract documents.

' 2. Changes in the Work. The amount (as contemplated by Paragraph
1(a) (5) of Part III—of'the~Terms and Conditions) to be fixed in the cone
tract as the limit of the amount involved which should not be exceeded in
any change without the submittal of the change to the USHA should, in
general, be One Thousand Dollars (\$1,000). This amount may in particular
contracts be increased or decreased when the size of the contract or other
circumstances would make some other amount more appropriate. Aside from
the above this Section should not be changed substantially.

§'§g_§, inclusive, are suggested sections. It is believed that the
substance of these sections, together with the other suggested sections,
should be embodied in the contract documents for the protection of the
Local Authority and for clearly setting out the general obligations and
duties of the Contractor, In special instances, particularly where the
contract is for supplemental work, some of these provisions, such as the
one covering temporary heating, may not be applicable.

Z_shou1d not be changed. ,

The Local Authority's attention is called to the fact that specifica~
tion writers on occasion require guarantees of results as differentiated
from a guarantee as to workmanship and material. In the event that such
a guarantee is required, it should be made explicit that the result is
required irrespective of the details of the specification and that the
contractor in bidding on the work accepts the plans and specifications as
adequate for the accomplishment of the result guaranteed. Unless the
language is clear and explicit, it is often difficult to determine, should

the question arise, whether the guarantee requires only good workmanship
and material or requires the result even though the claim is urged that
the plans and specifications are inadequate to produce that result. A pr0~
vision to this effect was included in the previous draft of this Bulletin
under Section 4 of Instructions to Bidders. However, contractors have so
81011 Hrl 11

d h
strenuously objected to the broad language used therein that it is felt
desirable to eliminate this language in the general forms. Should such a
guarantee be desired for any part of the work it should be inserted in the
detailed specification and made applicable to that portion of the work
OIL-ly-

g t9 lg, inclusive, are suggested sections.

18. Permits. The Cooperation Agreement between the Local Authority _
and the City usually provides that permits will be issued without cost to
the Local Authority and that there will be no inspection fees. According1Y!
this section has been drafted to advise the contractor that he shall not
include in his estimates any costs for the permits or inspection. The
Local Authority is cautioned in drafting the detailed specifications,
particularly, for the mechanical trades, not to include a requirement that
the contractor pay for such permits and inspection. This section, as
drafted, provides that the work be done in accordance with applicable
local, state and national codes, and further provides that in the event
the plans and specifications vary from the codes and a change is required
in order to meet code requirements, that the contract price will be
adjusted. It is, therefore, essential for the Local Authority to assure
itself, that the specifications, as drafted, comply with all codes, laws
and ordinances or that approved amendments or modifications of the same
have been obtained. V

1%, l§.§BQ.L§ are suggested sections.

17. Disputeg, In this Section,