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General Provisions (00100-00999)

110INDEMNIFICATION, BONDING, AND INSURANCE

ME · 2020 Standard SpecificationsBook pages 125127View official source ↗

adjustments to compensation or time are not shown on the face o f the Contract Modification, then there are no such adjustments. All Contract Modifications must be signed by the Project Manager or Resident. By signing a Contract Modification, t he Contractor agrees to all t he terms thereof and waives any and all claims for additional compensation, time, or other Work requirement adjustments relating to the issue that is the subject of the Co ntract Modification. All Contract Modifications are to be noted in Progress Meeting minu tes.

Scope of Section This Section contains general requirements f or indemnification, bonding, and insurance by the Contractor.

110.1Indemnification The Contractor agrees to indemnify, def end, and hold

harmless the Department and its officers, directors, employees, agents, and consultants from and against all claims, actions, torts, costs, losses, and dama ges for bodily injury (including sickness, disease, or death) and property damage arising out of or relating to this Contract or the performance of Work by the Contractor, its Subcontractors, subconsultants, engineers, suppliers, any individuals or entities directly or indirectly e mployed by any of them, or anyone for whose acts any of them may be liable, excepting only claims directly and solely caused by the negligence of the Department. Damages covered in clude, but are not limited to, all Dispute resolution costs, including court costs, attorn ey’s fees, and the fees of engineers and consultants, arbitrators, and other professionals related to Dispute defense and preparation. This indemnification obligation shall not be limited in any wa y by any limitation on the amount or type of damages, compensation, or benefits payabl e by or for the Contractor or any Subcontractor, subconsultant, engineer, supplier, or other individual or entity under Workers’ Compensation acts, disability benefit acts, or other e mployee benefit acts.

110.2Bonding

110.2.1 Bonds The Contractor shall provide signed, valid, and enforceable Performance and Payment Bonds complying with the Contract. The Department may also require Warranty and Maintenance Bonds for specific items using a Contract specific special provision. For a related provision, see Section 103.5 - Award Conditions. The Contractor shall procure bonds from a company organized an d operating in the United States, licensed or approved to do business in the State of Maine by the State of Maine Department of Professional and Financial Regulation, Bure au of Insurance, and listed on the latest Federal Department of the Treasury listing for “C ompanies Holding Certificates

of Authority as Acceptable Sureties on Federal Bonds and as Acc eptable Reinsuring Companies.” The bonds shall each be in the full Contract amount, payable t o the “Treasurer - State of Maine,” and on the Department’s forms, on exact copies thereof, or on forms that do not contain any significant variations from the Department’s forms as solely determined by the Department. By issuing a bond, the Surety agrees to be bound by all terms of the Contract, including those related to payment, time of performance, qualit y, warranties, and the Department’s self-help rem edy provided in Section 112.1 - Defau lt to the same extent as if all terms of the Contract are contained in the bond(s). Regarding claims related to any obligations covered by these b onds, the Surety shall provide, within 60 Days of Receipt of written notice thereof, f ull payment of the entire claim or written notice of all bases upon which it is denying or cont esting payment. Failure of the Surety to provide such notice within the 60-Day period constitu tes the Surety’s waiver of any right to deny or contest payment and the Surety’s acknowled gment that the claim is valid and undisputed. If the Surety becomes financially insolvent, ceases to be lice nsed or approved to do business in the State of Maine, or stops operating in the Unite d States, the Contractor shall file new bonds complying with this Section within 10 Days of th e date the Contractor is notified or becomes aware of such change. For a related provision, see Section 106.9.4 - Other Warranty Provisions. 110.2.2 Bond for Use of Municipal Roads A bond for use of mun icipal Roads may be required as provided in Section 105.5 - Hauling of Materials and Equipment. 110.2.3 Bonding for Landscape Maintenance Period The Contract or shall provide a signed, valid, and enforceable Landscape Warranty Bond when spe cified in Special Provision 621. The Landscape Warranty Bond shall be presented to the Resident at the time of Physical Work Complete. Payment for the Landscape Warranty Bond shall be incidental to the Landscape Items. The bond shall be in the full amount f or all Pay Items for work pursuant to Section 621 - Landscape, payable to the “Treasurer - State of Maine,” and on the Department’s forms, on exact copies thereof, or on forms that d o not contain any significant variations from the Department’s forms as solely determined by the Department. The Contractor shall pay all premiums and take all other actio ns necessary to keep said bond in effect for the duration of the Landscape Establishment Period described in Special Provision 621.0036 - Maintenance Period. If the Surety becomes financially insolvent, ceases to be licensed or approved to do business in the State of Maine, or stops operating in the United States, the Contractor shall file new b onds complying with this Section within 10 Days of the date the Contractor is notified o r becomes aware of such change.

All Bonds shall be procured from a company organized and opera ting in the United States, licensed or approved to do business in the State of Mai ne by the State of Maine Department of Business Regulation, Bureau of Insurance, and lis ted on the latest Federal Department of the Treasury listing for “Companies Holding Certi ficates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuri ng Companies.” By issuing a bond, the Surety agrees to be bound by all terms of the Contract, including those related to payment, time for performance, quali ty, warranties, and the Department’s self-help rem edy provided in Section 112.1 - Defau lt to the same extent as if all terms of the Contract are contained in the bond(s). Regarding claims related to any obligations covered by the bon d, the Surety shall provide, within 60 Days of Receipt of written notice thereof, f ull payment of the entire claim or written notice of all bases upon which it is denying or cont esting payment. Failure of the Surety to provide such notice within the 60-Day period constitu tes the Surety’s waiver of any right to deny or contest payment and the Surety’s acknowled gment that the claim is valid and undisputed.

110.3Insurance The Contractor shall provide signed, valid, a nd enforceable

certificate(s) of insurance comp lying with this Section. All i nsurance must be procured from insurance companies licensed or approved to do business in the State of Maine by the State of Maine, Department of B usiness Regulation, Bureau of In surance. The Contractor shall pay all premiums and take all other actions necessary to keep required insurances in effect for the duration of the C ontract obligations, excluding warranty obligations. 110.3.1 Workers' Compensation For all operations performed by the Contractor and any Subcontractor, the Contractor and each Subcontractor shall carry Workers’ Compensation Insurance or shall qualify as a self-insurer with the State of Maine Workers’ Compensation Board in accordance with the requirements of the l aws of the State of Maine. If maritime exposures exist, coverage shall include United States Long Shore and Harbor Workers coverage. 110.3.2 Commercial General Liability With respect to all oper ations performed by the Contractor and any Subcontr actors, the Contractor and any S ubcontractors shall carry commercial general liability insurance in an amount not less th an $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate. The coverage mu st include products, completed operations, and Contractual liability coverages, and Insurance Services Office

(ISO)form #CG25031185 or equivalent. The Contractual liabilit y insurance shall cover the

Contractor’s obligations to indemnify the Department as provide d in this Contract, including Section 110.1 - Indemnification. The coverage shall also inclu de protection against damage claims due to use of explosives, collapse, and underground cove rage if the Work involves such exposures.

Source: Maine Standard Specifications for Road and Bridge Construction, 2020 Edition. Pages 125127 of 817.