1-25 SECTION 103 – TAXES AND INSURANCE
103.01 CONSTRUCTION EQUIPMENT TAX . The Co ntractor shall pay all construction equipment tax
assessed under 32 V.S.A. § 3603 for machinery and other personal estate .
103.02 WITHHOLDING OF TAXES . The Contractor shall comply with the requirements of 32 V.S.A. ,
Chapter 151 , Subchapter 4 relating to the withholding of taxes from employe es, and all taxes withheld pursuant to 32 V.S.A., Chapter 151, Subchapter 4 shall be reported and paid to the Commissioner of the Vermont Department of Taxes.
103.03 STATE SALES TAX . Contractors are not required to pay the Vermont sales tax for material s
incorporated into a state funded project completed on property owned or held in trust for the benefit of any governmental body or agency and used exclusively for public purposes , or ow ned or held in trust for the benefit of any organization holding a valid exemption certificate and used exclusively in the conduct of its business or purpose, or for material s incorporated in a rail line in connection with the construction, maintenance, re pair, improvement, or reconstruction of the rail line (see 32 V.S.A. § 9743(4) , 32 V.S.A. § 9741(30) , 32 V.S.A. § 9741(44) , the Vermont Sales and Use Tax Regulations , Reg. § 1.9741(34) -5, and the Vermont Sales and Use Tax Regulations , Reg. § 1.9743 ). Therefore, no sales tax shall be included in the cost of these material s. Contractors are responsible for maintaining records sufficient to justify eligibility for sales tax exemption. Forms for maintaining these records are available from the Vermont Depa rtment of Taxes.
103.04 INSURANCE REQUIREMENTS . Insurance obtained by the Contractor to cover the below -listed
requirements shall be procured from an insurance company with an A.M Best R ating of A - or better and which is registered and licensed to do business in Vermont. Before the Contract is executed, the Contractor shall file with the Agency a certificate of insurance, executed by an insurance company or its licensed agents, on a form satisfactory to the Agency, stating that with respect to the Contract awarded, the Contractor carries insurance in accordance with the following requirements. Renewal certificates for keepi ng the required insurance in force for the duration of the Contract shall also be filed as specified above. No warranty is made that the coverages and limits listed herein are adequate to cover and protect the interests of the Contractor and any subcontra ctor for the Contractor’s and subcontractor’s operations. These are solely minimums that have been established to protect the interests of the state.
a.Workers’ Compensation Insurance . With respect to all operations performed the Contractor shall carry workers’ compensation insurance in accordance with 21 V.S.A. , Chapter 9 . The Contractor shall also ensure that all subcontractors carry wo rkers’ compensation insurance in accordance with 21 V.S.A. , Chapter 9 for all work performed by them. 1-26 (b) Commercial General Liability Insurance . With respect to all operations performed by the Contractor and subcontractors, the Contractor shall carry commercial general liability insurance on an occurrence form providing all major divisions of coverage, including but not limited to:
1.Premises – operations
2.Independent contractors
3.Products and completed operations continuously in effect for three years past the acceptance date
4.Personal injury liability
5.Contractual liability applying to the Contractor’s obligations under Subsection 107.1 5, broad form property damage
6.Limits of coverage shall be not less than: $2,000,000 Each occurrence . $4,000,000 General aggregate with a per project aggregate. In case s of Contracts with multiple projects, the per project aggregate applies to the entire Contract. $2,000,000 Products/completed operations .
c.Automobile Liability Insurance . The Contractor shall carry automobile lia bility insurance covering all motor vehicles including owned, hired, borrowed, and non -owned vehicles, used in connection with the project.
1.Combined single limit for bodily injury and property damage shall not be less than $2,000,000 .
2.If performa nce of the Contract involves the transport of hazardous materials , the policy shall include the MCS -90 endorsement.
d.Railroad Protective Liability Insurance . When the Contract involves work on, over, or under the right -of-way of any railroad, the Contractor shall carry, with respect to operations performed by the Contractor or by the Contractor’s subcontractors, railroad protective liability insurance in a form and amount as required by the Operating Railroad and as specified in 23 C.F.R. § 646.107 . If not available from insurance companies registered and licensed to do business in Vermont, this insurance may be procured from Eligible Surplus Lines companies approved by the Vermont Department of Financial Regulation. 1-27 Upon request by the Agency the Contractor shall provide a copy of the railroad protective liability policy within 24 hours. The Contractor shall defend, indemnify, and save harmless th e Operating Railroad and all of its officers, employees, and agents against any claim or liability arising from or based on any delay to the Contractor as a result of railroad construction or maintenance, whether by the Operating Railroad, its employees, o r agents.
e.Contractor Pollution Legal Liability Insurance . With respect to all operations performed by the Contractor and subcontractors, the Contractor and , if applicable, its subcontractors , shall maintain a policy covering third -party injury and property damage, contractual liability, and claims arising from owned and non -owned disposal sites utilized. Coverage will also include clean -up costs as a result o f pollution conditions arising from the Contractor ’s operations and completed operations. Limits of coverage shall not be less than $2,000,000 per occurrence or claim and $2,000,000 in the aggregate. The Contractor is responsible for reporting all pollution incidences in accordance with federal and state laws, regulations , and applicable insura nce policy reporting deadlines.
f.General Insurance Conditions . All applicable insurance coverages shall be maintained until the acceptance date. Completed operations coverage under Subsection 103.04(b) and all coverage under Subsection 103.04(e) shall be maintained continuously in effect for three years past the acceptance date. Under Subsection 103.04(d) , the liability protective policy shal l remain in force until all work required to be performed on railroad property is completed to the satisfaction of the Operating Railroad and of the authorized representative of the Agency. The contractual liability insurance requirements detailed in the Contract, including Subsection 107.1 5, are to indemnify, defend, and hold harmless the municipalities, the state, the Agency, and Operating Railroads, as applicable, and their officers, agents, representatives, and employees, with respect to any and all cl aims, causes of actions, losses, expenses, or damages that arise out of, relate to, or are in any manner connected with the Contractor’s work or the supervision of the Contractor’s work on the project. Each policy, except the workers’ compensation policy, shall name the municipalities, the state, the Agency, and Operating Railroa ds, as additional insureds for actions, losses, expenses, or damages that arise out of, relate to, or are in any manner connected with the Contractor’s work or the supervision of th e Contractor’s work on the project. The additional insured endorsements under Subsection 103.04(b) and Subsection 103.04(e) shall use Insurance Services Office form CG 20 10 and form CG 20 37 or its equivalent and will be on a primary, noncontributory basi s. 1-28 All policies shall include a waiver of subrogation in favor of the state of Vermont. Umbrella or excess liability policies may be used in conjunction with primary automobile liability and commercial general liability policies only to comply with any of the limit requirements specified above. Claims -made coverage forms are not acceptable without the prior written consent of the Agency. The Contractor or the insurance company shall investigate and shall either adjust or defend all claims against the insured for damages covered, even if groundless. Each policy furnished shall contain a rider or non -cancellation clause reading in substance as follows: There shall be no cancellation or non -renewal of insurance coverage s without 30 calendar days ’ written prior notice to the state, except for non -payment of premium , which will require 15 calendar days ’ written prior notice to the state. There shall be no directed compensation allowed the Contractor on account of any premi um or other charge necessary to take out and keep in effect such insurance or bond . The cost of any premium or other charge shall be considered included in the general cost of the work.
g.Contract Insurance Requirements . In cases that a discrepancy betwe en the stated insurance requirements of Bulletin 3.5 Attachment C: Standard State Provisions for Contracts and Grants and this section occurs, the higher limit shall govern. 1-29 SECTION 104 – SCOPE OF WORK
104.01 INTENT OF THE CONTRACT . The intent of the Contract is to provide for the construction and
completion of the work described. The Contractor shall furnish all labor, material s, equipment , tools, transportation, and supplies required to complete the work in accordance with the Contract.
104.02 ALTERATION OF PLANS OR CHARACTER OF WORK . To suit conditions disclosed as the
work progresses, the Engineer may, without notice to the suretie s on the Contractor’s bonds, make alterations in the design, in type of material s, in the quantities or character of the work or material s required, in the cross -sections, in dimensions of structu res, in length of project , in locations, and any other ways deemed appropriate. Alterations will not constitute a change in other parts of the Contract or a waiver of any condition of the Contract and shall not invalidate any of the provisions of the Contr act. Payment for work occasioned by changes or alterations will be made according to Subsection 109.04 and Subsection 109.05 . If the altered or added work is of sufficient magnitude to require additional time in which to complete the project , a time adjustment will be made in accord ance with the demonstrated impact to the critical path caused by the altered work .
104.03 EXTRA WORK . The Contractor shall perform extra or unforeseen work for which there is no
quantity and price included in the Contract according to the Contract or as directed by the Engineer whenever it is deemed necessary or desirable by the Engineer in order to complete the work as contemplated . Payment for extra work will be made pursuant to Subsection 109.06 .
104.04 Maintenance of Traffic .
a.Maintenance of Vehicular and Pedestrian Traffic .
1.All Facilities Safe and Passable . All facilities to be used by the traveling public, including temporary highway s, bridge s, pedestrian facilities , and approaches as necessary to accommodate the vehicular or pedestrian traffic diverted from the facility undergo ing improvements, shall be provided and maintained in a safe and passable condition. All traffic control plan s and devices shall conform to the MUTCD .
2.Service Shall Be Maintained . During working hours, the Contractor shall maintain, at a minimum, alternating one -way vehicular traffic unless otherwise shown on the Plans or directed by the Engineer. Working hours will be limited to the period between sunrise and sunset for daytime o perations and the approved scheduled night shift for night work.
Source: Vermont Standard Specifications for Construction, 2024 Edition. Pages 41–44 of 1,380.