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CONDITIONS OF CONTRACT  For Retrofit Projects

CC 1 Definitions

In the Contract Documents the following definitions apply:

1.1   "Contractor" shall mean the individual, partnership or company whose proposal is accepted by the British
         Columbia Buildings Corporation.

1.2   "Corporation" means the British Columbia Buildings Corporation and its authorized representatives.

1.3   "Mandatory Price" means the base bid cost excluding options.

1.4   "Substantial Performance" means the work is ready for use or is being used for the purpose intended and
         has passed the test procedure in accordance with Clause PS9 of the Performance Specifications Section 15940
         and is so certified by the Corporation.

1.5    "Total Performance" shall mean that the entire work has been performed to the requirements of the Contract
         Documents and is so certified by the Corporation.

1.6   "Work" includes the whole of the works, materials, matters and things required to be done, furnished and
         performed by the Contractor under the Contract Documents.

1.7   "Owner'' shall mean the registered owner of the property and its authorized representatives.

CC 2 Subcontractors

2.1    Neither the whole nor any part of the work may be subcontracted by the Contractor without the written consent
         of the Corporation.

2.2    The Contractor shall preserve and protect the rights of the parties under the Contract Documents with respect to
         any work to be performed under subcontract and shall require subcontractors to perform their work in accordance
         with the Contract Documents. The Contractor shall be as fully responsible to the Corporation for subcontractor's
         acts or omissions, or of persons directly or indirectly employed by them, to the same extent as the Contractor is
         responsible under the Contract Documents.

2.3    Nothing contained in the Contract Documents shall create any contractual relationship between any Subcontractor
         and the Corporation.

CC 3 Assignment of Agreement

3.1    This Agreement, or any part thereof, shall not be assigned without the prior written consent of the Corporation.

CC 4 Disputes and Claims

4.1    In the case of a dispute arising between the Corporation and the Contractor as to their respective rights and
         obligations pursuant to the Contract Documents, either party shall, within SEVEN (7) days of the dispute arising,
         give written notice to the other party that the dispute exists, but the work shall continue. For FOURTEEN (14)
         days thereafter, or under such conditions or for such period of time as the parties may agree in writing, the parties
         shall attempt to resolve that dispute by negotiation. In the event the parties fail to resolve the dispute within the time
         limit or in the method agreed upon, the dispute shall be referred to a single arbitrator pursuant to the commercial
         Arbitration Act, SBC 1986, C3, as amended. The costs of that arbitration shall be borne equally by the parties.

CC 5 Signs and Publicity

5.1    Neither the Contractor, its subcontractors nor anyone directly or indirectly employed by any of them, shall post
         any site signs, nor release any publicity reports, photographs, sketches, plans or other information, orally or in
         writing, concerning the work performed or to be performed, without the prior written approval of the Corporation.


CC 6 Permits, Fees and By-laws

6.1    The Contractor will, within ONE (1) month from the effective date of the Contract Documents, pay to the appropriate
         municipal authorities an amount equal to all fees and charges which would be payable to the municipal authorities in
         respect of building permits as if the work were being constructed for a person other than the Corporation, and will
         comply with all the laws and regulations relating to the work, whether federal, provincial or municipal.

CC 7 Submittals

7.1    Drawings showing equipment locations, layouts, schematic diagrams wiring diagrams, real point naming list and
         point tag sheets, and equipment lists, shall be submitted to the Corporation for approval prior to the start of the project.

CC 8 As-built Drawings and Manuals

8.1    The Contractor shall provide an organized and complete As-Built Documentation Package in accordance with
         Clause 9.4 of the Performance Specifications, Section 15940. The Corporation's approval of this documentation
         shall be necessary before Substantial Performance is granted.

CC 9 Cleanup and Final Cleaning of Work

9.1    Promptly after the date of Substantial Performance the Contractor shall remove all his surplus products, tools,
         construction machinery and equipment not required for the performance of the remaining work, unless otherwise
         directed by the Corporation.

9.2    Promptly after the date of Total Performance of the work, the Contractor shall remove any waste products and
         debris and leave the site of the work in a clean and tidy condition suitable for use by the Corporation, its tenants,
         subtenants or the Owner.

CC 10 Records to be Kept by Contractor

10.1  The Contractor shall, for a period of TWO (2) years from the date of Total Performance, maintain and keep full
         records, vouchers, other writings and information in respect of his estimates and actual cost of the work, and shall
         make them available for copy, audit or inspection by the Corporation or its authorized representatives.

CC 11 Insurance

11.1  The Contractor shall provide the following insurances, to be placed with a company and in a form as may be
         acceptable to the Corporation. These insurances shall remain in force until the date of the Certificate of Total
         Performance, unless otherwise stipulated, and shall provide for THIRTY (30) days prior notice of cancellation,
         lapse or material change.

a)   Comprehensive General Liability Insurance protecting the Corporation, the Owner if not the Corporation,
      the Contractor, and their respective servants, agents or employees against damages arising from personal
      injury (including death) and claims for property damage which may arise out of the operations of the
      Contractor, its subcontractors, and their respective servants, agents or employees under this Agreement.

      This insurance shall be for an amount of not less than ONE MILLION DOLLARS ($1,000,000.) inclusive
      per occurrence and shall include a standard form of cross-liability clause. Completed operations coverage
      shall be maintained for at least TWELVE (12) months after the date of Certificate of Total Performance.

b)   Automobile Liability Insurance on all licensed vehicles owned by or leased to the Contractor, protecting
      against damages arising from bodily injury (including death) and from claims for property damage arising
      from the operations of the Contractor, its servants, agents or employees. This insurance shall be for an
      amount of ONE MILLION DOLLARS ($1,000,000.) inclusive per accident.

c)   Contractor's Equipment Insurance covering all equipment owned or rented by the Contractor and its
      servants, agents or employees against all risks of loss or damage with coverage sufficient to allow for
      immediate replacement, and shall contain a waiver of subrogation against the Corporation or the Owner
      if not the Corporation.

d)  All-Risks Insurance covering all property of every description to be used in the construction of the work.
     This insurance shall be primary, include the Corporation and the Owner as a named insured, and contain a
     waiver of subrogation against the Corporation and the Owner if not the Corporation.

          Evidence of these insurances shall be lodged with the Corporation prior to the commencement of any work.

11.2   The Contractor shall ensure that all subcontractors employed by him carry insurance in the form and limits
          specified in 11.1.

11.3   The liability of the Contractor under the Contract Documents shall not be affected by the provision of 11.

CC 12 Indemnity

12.1   Notwithstanding any insurance that may be provided by the Corporation, the Contractor agrees to indemnify
          the Corporation from all liability resulting from the operation of the Contractor or any subcontractors, or their
          respective servants, agents or employees under this Agreement, excepting liability arising out of the negligent
          act of the Corporation.

12.2   At the Corporation's option, the Contractor shall, at its own expense, promptly assume the defence of any claim,
          suit or other proceeding arising out of 12.1 above, and promptly pay any and all costs that may be incurred by
          or against the Corporation. The Corporation may, as a condition precedent to any payment hereunder, require the
          Contractor to submit waivers or releases to resolve any and all claims of any person(s) or corporate entities of any
          nature whatsoever to the Corporation.

12.3   If any encumbrance be placed upon or obtained against the property comprising the site of the work, or as the result
          of any such suit or proceeding, the Contractor shall forthwith cause the same to be discharged. In the event that the
          Contractor fails to remove the said encumbrance(s) then the Corporation may pay whatever monies are necessary to
          fully discharge these encumbrance(s) and all of its costs in that regard may be deducted from monies otherwise
          payable to the Contractor.

CC 13 Performance & Acceptance Testing

13.1   The Corporation shall, within TEN (10) working days of receipt of a written application from the Contractor for a
          Substantial Performance, make an inspection and assessment of the work to verify the validity of the application.

Before Substantial Performance will be granted, an acceptance testing period of SEVEN (7) calendar days will begin. All features of the contracted system will be shown to be operational to the owner's representatives as per Clause PS9 of the Performance Specifications, Section 15940. During this SEVEN (7)-day period, system communication must be maintained; the maximum aggregate down-time allowed is TWO (2) hours. If the system fails, the test shall begin again.

The Corporation shall, within SEVEN (7) days of its acceptance test, notify the Contractor of its approval or disapproval of the application. When the Corporation finds the work to be substantially performed as per Clause PS9 of the Performance Specifications, Section 15940, it shall issue such a letter.

13.2   The Corporation shall, within TEN (10) days of receipt of an application from the Contractor for certificate of
          Total Performance, make an inspection and assessment of work to verify the validity of the application. The
          Corporation, within SEVEN (7) days of its inspection, notify the Contractor of its approval or disapproval of the
          application. When the Corporation finds the work to be totally performed, it shall issue a letter of Total
          Performance and the date of this letter shall be the date of Total Performance of the Contract.

CC 14 Certificates and Payments

14.1   Upon expiration of THIRTY-ONE (31) days from The Corporation's issuance of a letter of Substantial
          Performance pursuant to Clause 13, an amount equal to the Contract Price:

a)    less twice the value of any deficiencies;

b)     less TEN PER CENT (10%) holdback,

          shall become due and payable by the Corporation to the Contractor, subject always to the terms of the Contract
          Documents.

14.2   Upon the expiration of FORTY (40) days from the date of the issuance by the Corporation of the Certificate of
          Substantial Performance referred to above, an amount equal to the amount of all funds retained pursuant to
          Sub-Clause 14.1_(b) shall become due and payable by the Corporation, subject always to the provisions of the
          Builder's Lien Act and Repairer's Lien Act, R.S.B.C. 1979, as amended, rectification of deficiencies and the terms
          of the Contract Documents.

CC 15 Liquidated Damages

In the event that the Contractor should fail to substantially perform the work by the agreed upon date, it is further agreed that liquidated damages for such breach of contract will be charged, as noted in the Proposal and Acceptance Form, predicted upon reasonably estimated costs to be incurred by the Owner as a result of the breach of contract and delay by the Contractor. The Contractor agrees to pay such damages on demand, or, in the alternative, that such damages may be deducted from any and all amounts due and owing to the said successful proponent by the Corporation.

CC 16 System Drainage and Refill

The Corporation shall be responsible for system isolation, any necessary drain-down/refills and addition of chemicals for the installation of field devices. The Contractor shall be responsible for all labour and materials, including making good. The Contractor shall coordinate this work with the building engineer.

CC 17 Redundant Equipment Removal and Disposal

The Contractor will remove the redundant equipment and hand it over to the Corporation as directed.

CC 18 Work Schedule

18.1   Cooperate at all times with project manager in all matters concerning scheduling of work, necessary interference
          with normal working routine, access to work areas, placing and removing of temporary barricades, and protection.

18.2   Electrical power shutdown to facilitate connection of equipment shall be done in cooperation with the building
          superintendent during off hours or during weekends.

CC 19 Control Strategies

The Contractor shall provide software that, at a minimum, controls the building to the state in which it was found. Existing security, smoke control, fire alarms and monitoring shall be uninterrupted by the installations.

CC 20 Safety Controls

Existing smoke and fire controls, freeze protection, and flame safety controls shall be uninterrupted by new construction.

If any of the above safety controls are non-existing or inoperative, it shall be brought to the attention of the project manager.


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