Chapter X: Contracts and Specifications

=106. Importance of the Subject.=—Sewers may be constructed by day labor or by contract. Under the day labor plan a city official or commission is charged with the purchase of material, the hiring and firing of employees, and the management of the work. Under the contract system a private individual or company contracts to supply all the material and labor necessary for the completion of the work.

Under the day labor plan all persons engaged are “working for the City.” There is not the same sense of individual responsibility, the same incentive to economize, the same feeling of loyalty that is inspired by work under the personality of a contractor. Under either the day labor or contract plan unscrupulous politics are likely to enter into the relations of the employees of the city and the city officials or between the contractor and the city officials. Neither the day labor nor the contract plan offer a sure cure for unscrupulous political misdealings. Under the contract plan the contractor is led to keep his bid as low as possible, realizing the competition of other bidders, and during construction he will obtain greater efficiency from his labor because of their realization of the different conditions under which they are working. In some states and cities it is illegal for the municipality to do sewer construction except under the contract method.

The contract method is therefore used in the majority of cases, and it is to the interest of the engineer that he be acquainted with the essentials of contracts and specifications necessary for the proper prosecution of sewer construction.

=107. Scope of Subject.=—The making of a contract is one of the most common episodes of every day life. The contract may be an informal verbal agreement to meet at a certain place at a certain time, or it may be a formal document hedged about by confusing legal phraseology and bearing varieties of penalties and dire consequences in the event of its breach. The purpose of this chapter is to explain only those general features of an engineering contract which have particular bearing upon sewerage construction. Only the most essential points can be touched in the limited space available to this subject, it being presumed that the engineer is previously grounded in the principles of business law.[74]

=108. Types of Contracts.=—Contracts are known as lump sum, cost-plus, unit-price, and by other titles indicating the method of payment.

A lump sum contract is one in which a stated amount is fixed upon, before the execution of the contract, to be paid for all the work to be done and materials to be furnished under the contract. Such an arrangement is not advisable for a sewer contract, as the cautious contractor will bid high enough to protect himself in the event of any probable emergency. The principal must therefore pay whether the emergency or unforeseen difficulty is met or not. The advantage of this type of payment is that the principal knows exactly the cost of the work to him before construction is commenced.

Cost-plus contracts are those in which the cost of the work to the contractor is to be paid by the principal, plus, (_a_) a fixed sum of money, (_b_) a percentage of the cost of the work, (_c_) a percentage of the cost of the work but with a fixed limit, (_d_) a percentage of the difference between the cost of the work and some fixed sum, or other variations of this principle. Such contracts have the advantage that the principal assumes all the risk in construction and therefore pays for only those contingencies which actually arise. Except for the last named form, they have the disadvantage that there is little or no incentive for the contractor to keep the cost of the work down. They are most successful where the contractor can be selected by the principal, but where it is necessary to let contracts to the lowest bidder, the “cost-plus” contract is not easily managed. In most states a municipality cannot make a cost-plus contract.

A unit-price contract is one in which the amount to be paid is fixed in proportion to the amount of work done or materials supplied. This type of contract is the most suitable for sewer construction for a municipality where the contract must be let to the lowest bidder. The contractor is protected in the event of many unforeseen emergencies and the principal is protected against a raise in bids to cover such emergencies and against increase in the cost of the work in order to increase the profits under a “cost-plus” contract.

It is sometimes desirable for the principal to furnish a portion of the materials, the bidders being notified beforehand that this material will be furnished. In this manner the quality of material is assured, contractors with the necessary skill but small capital may be attracted to bid, and uncertainties in the procuring of materials is eliminated.

=109. The Agreement.=—A contract is an agreement between two or more interested parties to do a certain thing. A contract for the construction of a sewer is an agreement between a municipality or individual desiring sewerage facilities and a company or individual engaged in the construction of sewers. The latter promises to construct a sewer in return for which the former promises to pay a certain amount of money.

The various portions of the agreement which are bound together as the complete contract are: I. The Advertisement, II. Information and Instructions for Bidders, III. Proposal, IV. General Specifications, V. Technical Specifications, VI. Special Specifications, VII. Contract, VIII. Bond, and IX. Contract Drawings. These should be fastened together in pamphlet form and constitute the complete instrument called the contract. No binding contract and specifications can be drawn upon logical deductions alone as legal precedent and tried methods must be followed to insure success. To draw up an original contract requires the combined knowledge of an engineer and a lawyer. The engineer of to-day writes his specifications by copying copiously from specifications used on work which has been completed successfully. In order that selections may be made with judgment and discrimination some examples have been selected from existing published specifications and contracts.

=110. The Advertisement.=—This should contain: (1) A heading indicating the type of work, (2) A statement as to when, where and how bids will be received and opened, (3) A brief description of the character and amount of work to be done, (4) The method of payment, (5) The conditions under which further information can be obtained, (6) A statement as to the amount of money which must be deposited with the bid, and (7) Any other pertinent facts concerning the work.[75] An example of an advertisement follows;

Sewer Construction

Construction Turkey Creek Sewer

Kansas City, Missouri.

Bids for the construction of the Turkey Creek Sewer, two sewage
pumping stations to be used in connection therewith, and certain
laterals and extensions of existing sewers thereto, for Kansas
City, Missouri, will be received up to 2 p.m. August 19, 1919, at
the office of the Board of Public Works, City Hall, Kansas City,
Missouri.

The main sewer will be about one and one-fifth miles long, and the
laterals and extensions about three and one-half miles: the main
sewer will be constructed of reinforced concrete, the laterals and
extensions will consist of concrete, segment blocks, and clay
pipe.

This work is estimated to cost from $1,500,000 to $1,750,000.
Payment for the work will be made in four year special tax bills,
bearing 7 per cent interest, payable one-fourth each year. Time
600 working days, barring strikes, bad weather, etc.

Bidders are required to deposit $15,000 in cash or a certified
check with bid, to insure signing of contract when let. Same to be
returned on execution of the contract or rejection of bid.

Complete plans and specifications for the work may be had and all
information obtained by seeing or writing to A. D. Ludlow,
Engineer of Sewers, City Hall, Kansas City, Missouri. Twenty-five
($25.00) Dollars will be required to be deposited for a set of the
plans, but $20.00 thereof will be refunded upon return of the
plans in good condition.

BOARD OF PUBLIC WORKS,

Kansas City, Missouri,

by F. E. McCabe, Secretary.

There are usually legal restrictions which require that the advertisement be inserted a certain number of times in specified newspapers or other advertising mediums before the opening of bids. If the contract is of sufficient size to attract outside contractors, the advertisement should be inserted in engineering and contracting journals of wide circulation. Although the advertisement appears separately from the other portions of the contract, a copy is usually bound in as the first page of the pamphlet containing the contract and specifications and is made an integral part thereof.

=111. Information and Instructions for Bidders.=—This is somewhat on the order of an introduction to the pamphlet in which the specifications, contract, and contract drawings are published. As examples of the type of information and instructions given to prospective bidders the abstracts below have been taken from the “Contract, Specifications, Bond, and Proposal for the North Shore Sanitary Intercepting Sewer” by the Sanitary District of Chicago. The information and instructions to bidders can be divided into the following sections: 1st. Examination of Site, 2nd. Character and Quantity of Work, 3rd. Qualification for Bidding, 4th. Instructions for Making out Proposal, 5th. Certified Check, and 6th. Rejection of Bids.

REQUIREMENTS FOR BIDDING AND INSTRUCTIONS TO BIDDERS

Bidders are required to submit their bids upon the following express
conditions:

Bidders must carefully examine the entire sites of the work
and the adjacent premises, and the various means of approach
to the sites, and shall make all necessary investigations to
inform themselves thoroughly as to the facilities for
delivering and handling materials at the sites and to inform
themselves thoroughly as to all the difficulties that may be
involved in the complete execution of all work under the
attached contract in accordance with the specifications hereto
attached.

Bidders are also required to examine all maps, plans, and data
mentioned in the specifications, contract or proposal as being
on file in the office of the Chief Engineer, for examination
by bidders. No plea of ignorance of conditions that exist or
that may hereafter exist or of conditions or difficulties that
may be encountered in the execution of the work under this
contract, as the result of a failure to make the necessary
examinations and investigations, will be accepted as an excuse
for any failure or omission on the part of the Contractor to
fulfill in every detail all of the requirements of said
contract, specifications and plans, or will be accepted as a
basis for any claims whatsoever for extra compensation. Upon
application all information in the possession of the Chief
Engineer will be shown to bidders, but the correctness of such
information will not be guaranteed by the Sanitary District.

The following schedule of quantities, although stated with as
much accuracy as is possible in advance, is approximate only,
and is assumed solely for the purpose of comparing bids.

Then follows an itemized schedule of the quantity of work to be done after which comes the following:

Bidders must determine for themselves the quantities of work that
will be required, by such means as they may prefer, and shall
assume all risks as to variations in the quantities of the
different classes of work actually furnished under the contract.
Bidders shall not at any time after the submission of this
proposal, dispute or complain of the aforesaid schedules of
quantities or assert that there was any misunderstanding in regard
to the amount or the character of the work to be done, and shall
not make any claims for damages or for loss of profits because of
a difference between the quantities of the various classes of work
assumed for comparison of bids and the quantities of work actually
performed.

Proposals that contain any omissions, erasures, or alterations,
conditions or items not called for in the contract and plans
attached hereto, or that contain irregularities of any kind, will
be rejected as informal.

Bids manifestly unbalanced will not be considered in awarding the
contract.[76]

No bid will be accepted unless the party making it shall furnish
evidence satisfactory to the Board of Trustees of the Sanitary
District of Chicago of his experience and familiarity with work of
the character specified and of his financial ability to
successfully and properly prosecute the proposed work to
completion within the specified time.

Each bid shall be accompanied by a certified check, or cash, to
the amount of ten (10) per cent of the total amount of said bid
figured on the quantities given herewith, the lowest alternative
total being allowed. Said amounts deposited with bids, shall be
held until all of the bids have been canvassed and the contract
awarded and signed. The return of said check or cash to the bidder
to whom the contract for said work is awarded will be conditioned
upon his appearing and executing a contract for the work so
awarded and giving bond satisfactory to said Board of Trustees,
for the fulfillment of each contract in the amount of fifty (50)
per cent of the amount of each contract.

The said Board of Trustees reserves the right to reject any or all
bids.

Accompanying the contract form are plans which, together with the
specifications, show the work on which said tenders are to be
made.

The proposal must not be detached herefrom or from the contract by
any bidder when submitting a bid.

=112. Proposal.=—The proposal is a blank printed form on which the bidder is required to enter the prices for which he proposes to do the work. The proposal blank is necessary in order that the bids may be sufficiently uniform for proper comparison. Sewers are often paid for, particularly for small sizes, per foot of completed sewer as measured along the center line of the pipe parallel to the surface of the ground with the exterior length of manholes and other structures deducted. Sometimes, under other conditions, a different rate is allowed for each additional two feet of depth of sewer, and special structures, such as manholes, catch-basins, flush-tanks, etc., are paid for at a unit price according to the depth. Water connections to flush-tanks are paid for per foot of length of service pipe laid. In especially large or difficult work, materials are paid for at a unit-price, for example, per cubic yard of excavation, per cubic yard of concrete, per thousand feet board measure of lumber, etc.

The following example is taken from the contract for the North Shore Intercepting Sewer previously quoted, to indicate the type of Proposal used:

PROPOSAL

FOR THE CONSTRUCTION OF THE NORTH SHORE INTERCEPTING SEWER

To the Honorable, the President and the Board of Trustees of the
Sanitary District of Chicago:

Gentlemen:__The undersigned hereby certi____ that ____ ha____
examined the specifications and form of contract and the
accompanying plans for the construction of the North Shore
Intercepting sewer, and ha____ also examined the premises at and
adjacent to the sites of the proposed work, as herein described,
and the means of approach to the said sites.

The undersigned ha____ also examined the foregoing “Requirements
for Bidding and Instructions to Bidders” and propose ____ to do
all the work called for in said specifications and contract, and
shown on said plans, and to furnish all materials, tools, labor
and all appliances and appurtenances necessary to the full
completion of said work at the rates and prices for said work as
follows, to_wit:

(1_a_) For six (6) by nine (9) foot concrete sewer, complete in
place, as specified, the sum of ____ Dollars and ____ cents ($
____ ) per linear foot.

(6_a_) For manholes, concrete, complete in place, as specified the
sum of ____ Dollars and ____ cents ($ ____ ) each.

The following plans showing the work to be performed in accordance
with the attached specifications, have been examined by the
undersigned in preparing the foregoing proposal, to-wit: ____ ____
In accordance with the requirements set forth in the attached
Information and Instructions for Bidders, there is deposited
herewith the sum of ____ ____ Dollars and ____ cents ($ ____ )
which under the terms therein mentioned entitle ____ to bid on
said work, the said sum to be refunded to ____ ____ upon the
faithful performance of all conditions set forth in the
Information and Instructions for Bidders.

Name ____
Address ____

Blanks are provided for each item. No place is left at the end for a summary. The proposal ends with an acknowledgment that the contract has been examined completely and all preliminary directions therein have been complied with. A blank is prepared for inserting the amount of the required certified check, and finally for the signature of the bidders.

=113. General Specifications.=—The specifications, both general and technical, are occasionally incorporated in the contract form, but more frequently they are printed separately and are bound in the pamphlet preceding the contract. The general specifications relate to the conditions under which all work must be performed and are as applicable to the construction of a pumping station as to the smallest lateral, unless otherwise specified. It is not possible to include a complete set of General Specifications in the limited space of this text, but the more important specifications will be emphasized by examples taken from specifications in use.[77]

The subjects covered in General Specifications are:

(1) Definitions of doubtful terms.

(2) The Engineer to settle disputes.

(3) Duties of the Engineer.

(4) Duties of the Contractor.

(5) Hours and days of work.

(6) No work to be done in the absence of an inspector.

(7) Contractor to be represented at all times.

(8) Time of commencing and completing the work.

(9) Liquidated damages for delay in completion.

(10) The City may change the plans.

(11) The City may increase the amount of the work.

(12) Inspection and its conduct.

(13) The Contractor to be acquainted with laws relating to the work.

(14) Contractor responsible for damages to persons or property.

(15) City to be protected against patent claims.

(16) Abandonment of contract and its remedy.

(17) Estimates of work done and moneys due.

(18) Payments for extra work.

(19) Character of workmen to be employed.

(20) City may reserve a sum for repairs during stipulated term after
completion.

(21) City may use money due Contractor to pay claims for labor or
materials used on the work and not paid for by the Contractor.

(22) The Contractor shall have no claim for damages on account of delay
or unforeseen difficulties.

(23) The Contractor may not assign nor sublet the contract without the
City’s consent.

(24) Cleaning up after completion.

(25) The Contractor’s relations to other contractors.

(26) The portions composing the contract.

The following examples cover the subjects named in the preceding titles:

1. Definitions. The word Engineer whenever not qualified shall
mean the Chief Engineer of the Commission, acting either directly
or through his properly authorized agents, such agents acting
severally within the scope of the particular duties entrusted to
them.

This article may include words that may be in dispute or ambiguous such as: Board of Trustees, Elevation, City, Contractor, Rock, Earth, etc., etc.

2. Disputes. To prevent disputes and litigations, the Engineer
shall in all cases determine the amount, quality, and
acceptability of the work which is to be paid for under the
contract; shall decide all questions in relation to said work and
the performance thereof, and shall in all cases decide every
question which may arise relative to the fulfillment of the
contract on the part of the Contractor. His determination,
decision and estimate shall be final and conclusive, and in case
any question shall arise between the parties touching the
contract, such determination, decision, and estimate shall be a
condition precedent to the right of the Contractor to receive any
moneys under the contract.

3. Duties of the Engineer. The Engineer shall make all necessary
explanations as to the meaning and intentions of the
specifications and shall give all orders and directions, either
contemplated therein or thereby, or in every case in which a
difficulty or unforeseen condition shall arise in the performance
of the work. Should there be any discrepancies in or between, or
should any misunderstanding arise as to the import of anything
contained in the plans and specifications, the decision of the
Engineer shall be final and binding. Any errors or omissions in
plans and specifications may be corrected by the Engineer, when
such corrections are necessary for the proper fulfillment of their
intentions as construed by him.

4. Duties of the Contractor. The Contractor shall do all the work
and furnish all the labor, materials, tools and appliances
necessary or proper for performing and completing the work
required by the contract, in the manner called for by the
specifications, and within the contract time. He shall complete
the entire work at the prices agreed upon and fixed therefor to
the satisfaction of the Commission and its Chief Engineer and in
accordance with the specifications, the drawings, and such
detailed drawings as may be furnished from time to time, together
with such extra work as may be required for the performance of
which written orders may be given and received as hereinafter
provided.

The Contractor shall place sufficient lights on or near the work
and keep them burning from twilight to sunrise; shall erect
suitable railings, fences or other protections about all open
trenches, and provide all watchmen on the work, by day or night,
that may be necessary for the public safety. The Contractor shall,
upon notice from the Engineer that he has not satisfactorily
complied with the foregoing requirements, immediately take such
methods and provide such means and labor to comply therewith as
the Engineer may direct, but the Contractor shall not be relieved
of this obligation under the contract by any such notice or
directions given by the Engineer, or by neglect, failure, or
refusal on the part of the Engineer to give such notice and
directions.

The Contractor shall furnish such stakes and the necessary labor
for driving them as may be required by the Engineer. He shall
maintain the stakes when set, with reasonable diligence, and
stakes misplaced due to the carelessness of the Contractor or his
workmen shall be reset under the direction of the Engineer, at the
Contractor’s expense.

5. Night, Sunday, and Holiday Work:[78] No night, Sunday, nor
holiday work requiring the presence of an engineer or inspector
will be permitted except in case of emergency, and then only to
such an extent as is absolutely necessary and with the written
permission of the Engineer; provided that this clause shall not
operate in the case of a gang organized for regular and continuous
night, Sunday, or holiday work.

6. Absence of Engineer or Inspector. Any work done without lines,
levels, and instructions having been given by the Engineer or
without the supervision of an assistant or inspector, will not be
estimated or paid for except when such work is authorized by the
Engineer in writing. Work so done may be ordered removed and
replaced at the Contractor’s sole cost and expense.

7. Absence of Contractor. During the absence of the Contractor he
shall at all times have a duly authorized representative on the
work. The Contractor shall give written notice to the Commission
of the name and address of said representative and shall state
where and how such representative can be reached, at any and all
hours, whether by day or night.

Whenever the Contractor or his representative is not present at
any place on the work where it may be necessary to give orders or
directions, such orders or directions will be given by the
Engineer and they shall be received and promptly obeyed by the
superintendent or foreman who may have immediate charge of the
particular work in relation to which the order may be given.

8. Commencing Work. The Contractor agrees to begin the work
covered by this contract within —— days of the execution of the
contract and to prosecute the same with all due diligence and to
entirely complete the work within —— days.

It is understood and agreed that time is of the essence of this
contract, and that a failure on the part of the Contractor to
complete the work herein specified within the time specified will
result in great loss and damage to said Sanitary District and that
on account of the peculiar nature of such loss it is difficult, if
not impossible, to accurately ascertain and definitely determine
the amount thereof.

9. Liquidated Damages. It is therefore covenanted and agreed that
in case the said Contractor shall fail or neglect to complete the
work herein specified on or before the date hereinbefore fixed for
completion, the said Contractor shall and will pay the said
Sanitary District the sum of —— Dollars for each and every day the
Contractor shall be in default in the time of completion of this
contract.

Said sum of —— Dollars per day is hereby agreed upon, fixed and
determined by the parties hereto as the liquidated damages which
said Sanitary District will suffer by reason of such defaults, and
not by way of a penalty.

10. Changes in Plans. The Board reserves the right to change the
alignment, grade, form, length, dimensions or materials of the
sewers or any of their appurtenances, whenever any condition or
obstructions are met that render such changes desirable or
necessary. In case the alterations thus ordered make the work less
expensive to the Contractor a proper deduction shall be made from
the contract prices and the Contractor shall have no claim on this
account for damages or for anticipated profits on the work that
may be dispensed with. In case such alterations make the work more
expensive, a proper addition shall be made to the contract prices.
Any deduction or addition as aforesaid shall be determined and
fixed by the Engineer.

11. Extensions and Additions. In the event that any material
alterations or additions are made as herein specified which in the
opinion of the Engineer will require additional time for execution
of all the work under this contract, then, in that case the time
of completion of the work shall be extended by such a period or
periods of time as may be fixed by said Engineer and his decision
shall be final and binding upon both parties hereto, provided that
in such case the Contractor, within four (4) days after being
notified in writing of such alterations and additions, shall
request in writing an extension of time, but the provisions of
this paragraph shall not otherwise alter the provisions of this
contract with reference to _liquidated damages_, and the said
Contractor shall not be entitled to any damages or compensation
from the said Sanitary District on account of such additional time
required for the execution of the work.

12. Inspection. All materials of whatsoever kind to be used in the
work shall be subject to the inspection and approval of the
Engineer and shall be subject to constant inspection before
acceptance. Any imperfect work that may be discovered before its
final acceptance shall be corrected immediately, and any
unsatisfactory materials used in the work or delivered at the site
shall be rejected and removed on the requirement of the Engineer.
The inspection of any work shall not relieve the Contractor of any
of his obligations to perform proper and satisfactory work as
herein specified, and all work which, during the progress and
before the final acceptance, may become damaged from any cause,
shall be removed and replaced by good and satisfactory work
without extra charge therefor. The Engineer and his assistants
shall have at all times free access to every part of the work and
to all points where material to be used in the work is
manufactured, procured or stored and shall be allowed to examine
any material furnished for use in the work under this contract.

All inspection of any and all material furnished for use in work
to be performed under this contract shall be made at the site of
the work after the delivery of the material, provided, that, if
requested by the Contractor the Engineer may at his option
perform, or have performed, inspection of materials at points
other than the site of the work. In any such case the Contractor
shall pay the Sanitary District the extra cost of such inspection,
including the necessary expenses of the inspector for the extra
time expended in performing any such inspection at said other
points.

13. Legal Requirements. The Contractor shall keep himself fully
informed of all existing and future national and state laws and
local ordinances and regulations in any manner affecting those
engaged or employed in the work, or the materials used in the
work, or of all such orders and degrees of bodies or tribunals
having any jurisdiction or authority over the same, and shall
protect and indemnify the party of the first part against any
claim or liability arising from or based on the violation of such
law, ordinance, regulation, order or decree, whether by himself or
his employees.

14. Damages. If any damage shall be done by the Contractor or by
any person or persons in his employ to the owner or occupants of
any land or to any real or personal property adjoining, or in the
vicinity of the work herein contracted to be done or to the
property of a neighboring contractor the Engineer shall have the
right to estimate the amount of said damage and to cause the
Sanitary District to pay the same to the said owner, occupant, or
contractor, and the amount so paid shall be deducted from the
money due said Contractor under this contract. Said Contractor
covenants and agrees to pay all damages for any personal injury
sustained by any person growing out of any act or doing of himself
or his employees that is in the nature of a legal liability, and
he hereby agrees to indemnify and save the Sanitary District
harmless against all suits or actions of every name and
description brought against said Sanitary District, for or on
account of any such injuries, or such damages received or
sustained by any person or persons; and the said Contractor
further agrees that so much of the money due to him under this
contract, as shall be considered necessary by the Board of
Trustees of said Sanitary District, may be retained by the
Sanitary District until such suit or claim for damages shall have
been settled, and evidence to that effect shall have been
furnished to the satisfaction of said Board of Trustees.

15. Patents. It is further agreed that the Contractor shall
indemnify, keep and save harmless said Sanitary District from all
liabilities, judgments, costs, damages and expenses which may in
any wise come against said Sanitary District, or which may be the
result of an infringement of any patent by reason of the use of
any materials, machinery, devices, apparatus, or process furnished
or used in the performance of this contract, or by reason of the
use of designs furnished by the Contractor and accepted by the
Sanitary District, and in the event of any claim or suit or action
at law or in equity of any kind whatsoever being made or brought
against said Sanitary District, then the Sanitary District shall
have the right to retain a sufficient amount of money in the same
manner and upon the conditions as hereinafter specified.

16. Abandonment of Contract. If the work to be done under the
contract shall be abandoned by the Contractor, or if at any time
the Engineer shall be of the opinion, and shall so certify, in
writing, to the Commission, that the performance of the contract
is unnecessarily or unreasonably delayed, or that the Contractor
is willfully violating any of the conditions of the
specifications, or is executing the same in bad faith, or not in
accordance with the terms thereof, or if the work be not fully
completed within the time named in the contract for its
completion, the Commission may notify the Contractor to
discontinue all work thereunder, or any part thereof, by a written
notice served upon the Contractor, as herein provided; and
thereupon the Contractor shall discontinue the work, or such part
thereof, and the Commission shall thereupon have the power to
contract for the completion of said work in the manner prescribed
by law, or to procure and furnish all necessary materials,
animals, machinery, tools and appliances, and to place such and so
many persons as it may deem advisable to work at and complete the
work described in the specifications, or such part thereof, and to
charge the entire cost and expense thereof to the Contractor. And
for such completion of the work or any part thereof, the
Commission may for itself or its contractors, take possession of
and use or cause to be used any or all such materials, animals,
machinery, tools and implements of every description as may be
found on the line of the said work. The cost and expense so
charged shall be deducted from, and paid by the City out of such
moneys as may be due or may become due to the Contractor, under
and by virtue of the contract. In case such expense shall exceed
the amount which would have been payable under the contract, if
the same had been completed by the Contractor, he shall pay the
amount of such excess to the City. When any particular part of the
work is being carried on by the Commission, by contract or
otherwise, under the provisions of this clause of the contract,
the Contractor shall continue the remainder of the work in
conformity with the terms of his contract, and in such manner as
in no wise to hinder or interfere with the persons or workmen
employed by the Commission by contract or otherwise as above
provided, to do any part of the work or to complete the same under
the provisions hereof.

17. Estimates. The Engineer shall from time to time as the work
progresses, on or about the last day of each month, make in
writing an estimate, such as he shall believe to be just and fair,
of the amount and value of the work done and the materials
incorporated into the work by the Contractor under the
specifications, provided however that no such estimate shall be
required to be made when, in the judgment of the Engineer the
total value of the work done and the materials incorporated into
the work since the last preceding estimate is less than ——
dollars. Such estimates shall not be required to be made by strict
measurements, but they may be approximate only.

The Contractor shall not be entitled to demand from the Commission
as a right, a detailed statement of the measurements or quantities
entering into the several items of the monthly estimates, but he
will be given such opportunities and facilities to verify the
estimates as may be deemed reasonable by the Commission.

When in the opinion of the Engineer, the Contractor shall have
completely performed the contract on his part, the Engineer shall
make a final estimate, based on actual measurements, of the whole
amount of the work under and according to the terms of the
contract, and shall certify to the Commission in writing, the
amount of the final estimate at the completion of the work. After
the completion of the work the City shall pay to the Contractor
the amount remaining after deducting from the total amount or
value of the work, as stated in the final estimate, all such sums
as have theretofore been paid to the Contractor under any of the
provisions of the contract, except such sums as may have been paid
for extra work, and also any sum or all sums of money which by the
terms thereof the City is or may be authorized to reserve or
retain; provided that nothing therein contained shall affect the
right of the City, hereby reserved, to reject the whole or any
portion of the aforesaid work, should the said certificate be
found or known to be inconsistent with the terms of the contract
or otherwise improperly given. All monthly estimates upon which
partial payments have been made, being merely estimates, shall be
subject to correction in the final estimate, which final estimate
may be made without notice thereof to the Contractor, or of the
measurements upon which it is based.

18. Extra Work. The Contractor shall do any work not herein
otherwise provided for, when and as ordered in writing by the
Engineer or his agents specially authorized thereto in writing,
and shall when requested by the Engineer so to do, furnish
itemized statements of the cost of the work ordered and give the
Engineer access to accounts, bills, vouchers, etc. relating
thereto. If the Contractor claims compensation for extra work not
ordered as aforesaid, or for any damages sustained, he shall
within one week after the beginning of any such work or the
sustaining of any such damage, make a written statement of the
nature of the work performed or the damage sustained, to the
Engineer, and shall, on or before the fifteenth day of the month
succeeding that in which any such extra work shall have been done
or any such damage shall have been sustained, file with the
Engineer an itemized statement of the details and amount of any
such work or damage; and unless such statement shall be made as so
required, his claim for compensation shall be forfeited and he
shall not be entitled to payment on account of any such work or
damage.

For all such extra work the Contractor shall receive the
reasonable cost of said work, plus fifteen (15) per cent of said
cost.

19. Competent Employees. The Contractor shall employ only
competent skillful men to do the work; and whenever the Engineer
shall notify the Contractor, in writing, that any man employed on
the work is, in his opinion unsatisfactory, such man shall be
discharged from the work and shall not again be employed on it,
except with the consent of the Engineer.

20. Money Retained. Upon the completion of the work and its
acceptance by the City, the City shall reserve and retain five (5)
per cent of the total value of the work done under the contract as
shown by the final estimate, over and above any and all other
reservations which the city by the terms thereof is entitled or
required to retain and shall hold the said five (5) per cent for a
period of nine (9) months from and after the date of completion
and acceptance, and the City shall be authorized to apply such
part of said five (5) per cent so retained to any and all costs of
repairs and renewals as may become necessary during such period of
nine (9) months, due to improper work done or materials furnished
by the Contractor, if the Contractor shall fail to make such
repairs or renewals within twenty-four (24) hours after receiving
notice from the City so to do.

Upon the expiration of said nine (9) months from and after the
completion and acceptance of the work, the City shall pay to the
Contractor the said five (5) per cent hereby retained, less such
sums as may have been retained hereunder.

21. Unpaid Claims against Contractor. The Contractor shall furnish
the City with satisfactory evidence that all persons who have done
work or furnished materials under the contract, and have given
written notices to the City, before and within ten (10) days after
the final completion and acceptance of the whole work under the
contract, that any balance for such work or materials is due and
unpaid, have been fully paid or satisfactorily secured. And in
case such evidence is not furnished as aforesaid, such amount as
may be necessary to meet the claims of the persons aforesaid shall
be fully discharged or such notices withdrawn.

22. Delays and Difficulties. The Contractor shall not be entitled
to any claims for damages on account of postponement or delay in
the work occasioned by forces beyond the control of the City, nor
for postponement or delay in the work where ten (10) days written
notice has been given the Contractor of such postponement or
delay, nor where unforeseen difficulties are encountered in the
prosecution of the work. In the event of a postponement or delay
ordered in writing by the City the time of completion of the
contract shall be extended a number of days equal to the number of
days that the work has been postponed or delayed.

23. Assignment of Contract. The Contractor shall not assign by
power of attorney or otherwise, nor sublet the work or any part
thereof, without the previous written consent of the party of the
first part, and shall not either legally nor equitably assign any
of the moneys payable under this agreement or his claim thereto
unless by and with the consent of the party of the first part.

24. Cleaning Up. On or before the completion of the work, the
Contractor shall, without charge therefor, tear down and remove
all buildings and other structures built by him, shall remove all
rubbish of all kinds from any grounds which he has occupied, and
shall leave the line of the work in a clean and neat condition.

25. Access to Work and Other Contractors. The Commission and its
engineers, agents and employees may at any time and for any
purpose enter upon the work and the premises used by the
Contractor, and the Contractor shall provide proper and safe
facilities therefor. Other contractors of the Commission may also
when so authorized by the Engineer, enter upon the work and the
premises used by the Contractor for all the purposes which may be
required by their contracts. Any differences or conflicts which
may arise between this Contractor and other contractors of the
Commission in regard to their work shall be adjusted and
determined by the Engineer.

26. The Contract. It is understood and agreed by the City and the
Contractor that the terms of this contract are embodied and
included in the Advertisement, Information and Instructions to
Bidders, Proposal, Specifications of every nature, the Bond and
the contract drawings hereto attached.

These few articles have been given as examples of some of the essential subjects to be treated in general specifications. It is to be understood that these examples do not represent a complete set of general specifications and items have been omitted the absence of which in a complete contract might be injurious to the successful completion of the work.

=114. Technical Specifications.=—These ordinarily follow the general specifications and have to do with the quality of materials, the manner of putting them together, and the method of doing the work. The subject headings in the Technical Specifications on the Baltimore Sewerage Commission are:

Excavation Tunneling Rock Excavation Sheeting Sheet Piling Sheeting and Bracing Piles Blasting Pumping and Drainage Foundations Refilling Repaving Underdrains Buildings Inlets and Catch-Basins Cement Mortar Concrete Brick Masonry Reinforced Concrete Vitrified Pipe Concrete and Brick Sewers Vitrified Pipe Sewers and Drains Manholes Iron Castings House Connections Obstructions Fences Flush-Tanks

Each of these subjects is treated in the appropriate section of this book.

An important part of each section of the technical specifications is the clause providing for the method of payment for the work specified. This is usually the last clause in the section. For example, the last clause in the Baltimore Specifications relating to Rock Excavation, is:

“Payment will be made for the number of cubic yards of rock
measured and allowed as above specified at the price of four
dollars and fifty cents ($4.50) per cu. yd., measured in place.
Payment for rock excavation will be made in addition to the prices
bid for excavation.”

=115. Special Specifications.=—These have to do with problems, methods of construction, or materials peculiar to certain contracts or certain portions of the work. It frequently occurs that the construction of sewerage works will be let out under a number of contracts, or bids will be called for on different alternatives to which the entire Advertisement, Information and Instructions for Bidders, Proposal, and General Specifications are applicable. The special specifications will apply only to the contract in question, e.g., in some work done under the direction of the author, the sewer on one contract came within twelve inches of the surface of a highway. The special specification relating to this piece of construction, was:

“Where crossing under the Chicago Road the pipe sewer shall be
embedded in concrete as shown on the contract drawings. The
concrete for this purpose shall be mixed in the proportions of one
(1) part cement, three (3) parts fine aggregate, and six (6) parts
coarse aggregate. Payment for the concrete so used will be made at
the unit price stated in the accompanying Proposal.”

In order to avoid confusion the special specifications are either incorporated directly in the Contract form, or follow the Technical Specifications and are grouped according to the contracts to which they apply.

=116. The Contract.=—The contract is a brief instrument which includes a simple statement of the obligations of each party involved. The following is an example of a form in successful use:

CONTRACT

This agreement made and entered into this ____ day of ____ in the
year one thousand nine hundred and ____ by and between the City of
____ by its duly constituted or elected authorities herein acting
for the City of ____ without personal liability to themselves,
party of the first part, hereinafter designated as the City, and
____ party of the second part hereinafter designated as the
Contractor.

WITNESSETH, that the parties to these presents each in
consideration of the undertakings, promises and agreements on the
part of the other herein contained, have undertaken, promised and
agreed, and do hereby undertake, promise and agree, the party of
the first part for itself, its successors and assigns, and the
part ____ of the second part for ____ and ____ heirs, executors,
administrators and assigns as follows, to-wit:

Art. I. To be bounden by all the articles of the General,
Technical, and Special Specifications applicable, and by the terms
of the Advertisement, Information and Instructions for Bidders,
Proposal and Contract Drawings hereto attached, and which are
understood and acknowledged to be an integral part of this
contract.

Art. II. The work to be completed under this contract is ____

Art. III. The City shall pay and the Contractor shall receive as
full compensation for everything furnished and done by the
Contractor under this contract, including all work required but
not specifically mentioned in the following items, and also for
all loss or damage arising from the nature of the work aforesaid,
or from the action of the elements, or from any unforeseen
obstruction or difficulty encountered in the prosecution of the
work and for well and faithfully completing the work as herein
provided, as follows:

Then follows a copy of the Proposal with the prices bid. The contract closes with the final clause:

In witness whereof the said City of ____, party of the first part
have hereunto set their hands and seals, and the Contractor has
also hereunto set his hand and seal and the party of the first
part and the Contractor have executed this agreement in duplicate,
one part to remain with the party of the first part and one to be
delivered to the Contractor this ____ day of ____ in the year one
thousand nine hundred and ____

City of ____
____
____

Contractor ____
____
____

=117. The Bond.=—The bond called for in the Information and Instructions for Bidders is bound in the pamphlet following the Contract. No uniform practice is followed in the amount of the bond required. It varies from 50 to 100 per cent of the contract price and may be stated as a lump sum before the contract price is known. There is a possibility that the Contractor may fail before he has commenced work and the City may be unable to procure another contractor to take up the work. The City should then be protected by a 100 per cent bond. Such a contingency is remote. The Contractor seldom fails until work is well under way, and other contractors are usually available, although the failure of one contractor tends to increase the bids of other contractors for the same work. In fixing the amount of the bond the judgment of the Engineer is called into play in order that the amount may be as low as possible in fairness to the Contractor, and high enough to protect the interests to the City. By reducing the amount of the bond the expense to the City is also reduced as the City ultimately must pay its cost.

Upon the acceptance of the bond and the execution of the Contract, the Engineer’s duties take him out of the designing office and into the construction field.