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4407WVOTE:' .,1 With proper validation this form constitutes an encroachment permit CITY OF �1.\APPLICATION LA QUINTA FOR PERMIT PUBLIC WORKS CONSTRUCTION (ENCROACHMENT) For the construction of public or private curbs, driveways, pavements, sidewalks, parking lots, sewers, water mains and other like public works improvements in connection with MINOR IMPROVEMENTS and APPROVED SUBDIVISIONS DATE: May 26, 05 Subdivision Improvement Permit — Class I I I Minor Improvement Permit Class IV LOCATION OF CONSTRUCTION _South East section of Afom ;nn Astpniip rnnA 5Arh Tract 32879 (Street address or Description of Location) t` PURPOSE OF CONSTRUCTION Clearing 198 acres ana Sketch (attach construction plans if appropriate) tree removal_ }� �r1 , .� 1 iV r` ✓� i DESCRIPTION OF CONSTRUCTION DIMENSION OF INSTALLATION OR REMOVAL s SIZE OF EXCAVATION, IF NEEDED APPROXIMATE TIME WHEN WORK WILL BEGIN Juttte 1 _ 05 APPROXIMATE TIME OF COMPLETION •111ne, 1, 0� ESTIMATED CONSTRUCTION COST $ 1 011 •7213• 2 a r r (Including removal of all obstruction, materials, and debris, backfilling, com- paction and placing permanent resurfacing and/or replacing improvements) _ In consideration of the granting of this permit, the applicant hereby agrees to: Indemnify, defend• and save the City, its authorized agents, officers, representatives and employees, harmless from and against any and all penalties, liabilities or loss resulting from claims or court action and arising out of any accident, loss or damage to persons or property happening or occurring as a proximate result of any work undertaken under the permit granted pursuant to this application. Notify the Administrative Authority at least twenty-four (24) hours in advance of the time when work will be started. Comply with all applicable City Ordinances, the terms and conditions of the permit and all applicable rules and regulations of�the City of La Quinta and to pay for any additional replacement necessary as the result of this work. Signature of Applicant or Agent, _ I Tirsa,np Went Hnnaing Tne R1 750 AvearttP 1;(1 Tnr%in rA 412201 S_ Name of Applicant (please print) 47-120 Dung PalmLBQineLkAdc6r@sste C Telephone No. Demo Unlimited 81750 Avenue 50, Indio, CA 92201 760--775-5884 Name of Contractor and Job Foreman Business Address Telephone No. RQIAS& Contractor's License No. Steadfast Insurance Company Applicant's Insurance Company FEES: Subdivision Improvement Permit —Class III Public improvements: 3% of'estimated construction costs Private improvements: 3% of estimated construction costs Minor Improvement Permit — Class IV: See attachedschedule Inspection Fee $ 30.390.00 100.00 Permit Fee Penalty Cash Deposit -Surety Bond if required TOTAL: $ 30,490.00 Receipt No. Received by Date Recorded by City Business License No. Sc03881955( ~ Policy Number / ,4 � 4407 PERMIT VALIDATION 4407 t PERMIT NO. DATE APPROVED 61?12 \\ EXPIRATION DATE DATAISSU�ED ���6171,2! gy X 3 n Administrative Authority Telephone: (760) 777-7075 i1 .,<�,, ��� • �. s .. �� - T-ihf 4 �a*rw PUBLIC WORKS DEPARTMENT APPLICATION FOR PERMIT Date: i Location of • • - ,% -1 -/-� Description of Construction: y n'K _ &,kl_ Dimension of Installation or Removal:2��_ Approximate Construction Start Date: Approximate Construction Completion Date: - _ 7 Estimated Construction Cost: $ 1, Off, Estimated Construction Cost shall include the removal of all bstructlons, materials, and debris, back -filling, compaction and placing permanent resurfacing and or replacing improvements Contact Name: Phone Number: �%]-D vv ct_ Name of Applicant: Applicant Address: . y7-/62e5l Applicant Telephone Number: 760 % % 2' - // -00 Name of Contractor: - Contractor Address: - aig Contractor Telephone Number: Zql6 5_- J_cV' Contractor State License Number: f' 3 2 Contractor City Business License Number: 1,5-46 ► A COPY OF THE CURRENT INSURANCE CERTIFICATE MUST BE PROVIDED -4 Applicant 0<9ontractor eneral Liability Insurance Company: Applicant o on eneral Liability Insurance Policy Number: SC Ce) 3 6�5- 1 I SSUE Office Use Only: Inspection Fee: 3 O' ? ^ O' c) J Permit Fee: 100 o D J As -Built '^ Deposit: Dust Control Deposit: Credit Amount: TOTAL FEE DUE: 30 ov Office Use Only: Assigned Permit Number- I Li O Approval Date: Expiration Date: Issue Date: Administrative Authority: f. l�. - i fyi AY 25 2005 2:32 PM FR HRH INSURANCE 760 360 4799 TO 97774305 P.01 DATE (M W001Y) CERTIFICATE OF LIABILITY INSURANCE os/25 05 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HRH Insurance Services of HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR S +-k--n Calif Lic# 0511289 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. ou 77-564 Country Club Dr., Ste 401 INSURERS AFFORDING COVERAGE Palm Desert, CA 92211 - - INSURED INSURER A: ? C Qmpban_ - Demo Unlimited, Inc., et al INSURER B: Peerl@ss In�Sl�ranPP CAmD3rii 81750 . Avenue 50 INSURER D: S>~"nA Indio, CA 92201 INSURER D: INSURER E: COVERAGES HAVE ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING THE POLICIES OF INSURANCE LISTED BELOW BEEN CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR ANY REOUIREME:NT, TERM OR CONDITION OF ANY DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, INSR POLICY EFFECTIVE POLICY EXPIRATION TYPE OF INSURANCE POLICY NUMBER D se D 7 UMITS GENERAL LIABILITY EACH OCCURRENCE $ -FIRE A X COMMERCIAL GENERAL LIAMUTY DAMAGE (Anyone lire) $ ^ 50 _0 CLAIMS MADE Fx] OCCUR SC0388195503 12/16/04 12/16/05 MED EXP (Any One P—n) $ X OCP PERSONAL & ADV INJURY $ GENERAL AGGREGATE 00. GEWL AGGREGATE LIMIT APPLIES PER: PRODUCTS • COMP/DP AGG $ POLICY X PRO LOC AUTOMOBILE L{ABILITY COMBINED SINGLE LIMIT $ (Ea accident) B X ANY AUTO 1 ALL OWNED AUTOS BODILY INJURY $ (Pee Person) SCHEDULED AUTOS BA9661905 12/15/04 12/15/05 X HIRED AUTOS BODILY iNJURY $ (Per aeclaent) X NON -OWNED AUTOS PROPERTY DAMAGER $ -"- (Per accm t) GARAGE UABIUTY AUTO ONLY • EA ACCIDENT $ OTHER THAN EA ACC S ANY AUTO $ AUTO ONLY: AGG EXCESS UABILITY EACH OCCURRENCE $-nnn, nnn AGGREGATE $ 8+pp A x OCCUR CLAIMS MADE SUC427494600 10/15/04 10/15/05 $ DEDUCTIBLE WC STATU• OTH- S RETENTION $ WORKERS COMPENSATION AND TOLIMITS R EL. EACH ACCIDENT 5 1,, C EMPLOYERS'LIABIUTY 046000942105 01/10/05 01/01/06 E.L. DISEASE - EA EMPLOYEE SR O T'��M0 E.L. DISEASE -POLICY LIMIT $$ OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLESIEXCLUSIONS ADDED BY ENDORSEd iE FXPECIAL PROVISIONS Operations by the insured for the certificate holder. *10 days notice of cancellation for non-payment of premium. 777" if.?OS dnATC V,11 nC0 an. a.e.,nen, rrrco. f:&N(`FI I ATInN SHOULD ANY Of THE ABOVE O£SCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION Trans West Housing, Inc DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAR 30 DAYS WRITTEN 9968 Hibert Street, Ste 102 NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO 00 SO SHALL San Diego, CA 92131 IMPOSE NO OBLIGATION OR LIABILITY Of ANY KIND UPON THE INSURER, TS ARENTS OR REPRESENTATIVES. AUTHORED REP ENTATIVE AGORD 25-S (7/97) v At-vmu bvnrvnsa 1 Iv1v 11000 MAY 25 2005 2:32 PM FR HRH INSURANCE 760 360 4799 TO 97774308 P.02 IMPORTANT if,the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement($). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does. not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25-S (7197) . ** TOTAL PAGE.02 ** PERMIT NO.4407 GRIFFIN RANCH / CLEAR AND GRUB ONLY / TRACT MAP NO. 32879 In addition to the standard permit conditions, the following shall apply: 1. Pursuant to Section 14.16.320 of the La Quinta Municipal Code (Ordinance 10 § 1 (part), 1982), all work shall be performed in accordance with the latest edition of the Standard Specifications For Public Works Construction (SSPWC) and as directed by and to the satisfaction of the City Engineer. 2. Trans West Housing, hereinafter referred to as "Permittee", shall be responsible for providing continuous dust and erosion. control. 3. Streets shall be kept clean. They shall be completely cleaned at the end of each working day and more frequently, if required. 4. This permit or copy of it shall be on the work site (usually the job trailer) for inspection during the actual work performed. 5. Any land on which Williamson Act contracts apply shall remain undisturbed. & The issuance of this permit and the City approval of the related construction improvement plans do. not provide a vested entitlement for all design parameters that may have been utilized for the plans. As such, plans approved for this permit maybe "at risk" for further modifications as it relates to any follow up improvement plan requirements as required by the city or existing errors & omissions by the architect or engineer of record. 7. The permittee shall haul all offsite debris to a certified landfill. Prior to hauling debris, the permittee shall inform the City (Inspection staff or 777-7089) of the name and location of the certified dump site. Pursuant to Section 6.08.050 of the La Quinta Municipal Code (Ordinance 18 § 1,1982), throughout the work site, the Permittee shall comply with City regulated work hours. Operation and maintenance of equipment within one-half mile of human occupancy shall be performed only during the following time periods: October 1 st to April 30: Monday -Friday 7:00 a.m. to 5:30 p.m. Saturday 8:00 a.m. to 5:00 p.m. May 1st to September 30: Monday -Friday 6:00 a.m. to 7:00 p.m.. Saturday 8:00 a.m. to 5:00 p.m. Work shall be prohibited on legal holidays and Sundays. Note: Construction work (including setting up traffic control devices) is not permitted on any Arterial street (ie any 4 lane street) before 8:00 a.m. Special Conditions Page 1 of 3 PERMIT NO.4407 GRIFFIN RANCH / CLEAR AND GRUB ONLY / TRACT MAP NO. 32879 9. Work within 500 feet of a signalized intersection shall be performed between the hours of 9 a.m. - 3 P.m. Traffic control shall be set up after 9 a.m. and removed before 3 p.m. The Permitted shall contact the Riverside Country Traffic Signal Maintenance Department at (909) 275-6894 if signal operation at the intersection is to be altered in any way. 10. Pursuant to Section 14.16.110 of the La Quinta Municipal Code (Ordinance 10 § 1 (part), 1982), Permittee shall assume responsibility for repair of any pavement damage to any public or private street and for any damage to other City streets or facilities as a result of work performed under this permit. 11. Pursuant to Section 14.16.2.50 of the La Quinta Municipal Code (Ordinance 10 § 1 (part), 1982), advance warning signs and traffic control shall be installed and maintained in accordance with Cal Trans Standards or the Work Area Traffic Control Handbook (WATCH Manual). A traffic control plan shall be prepared in accordance with the WATCH Manual and submitted to the City for review and approval one (1) week prior to starting any construction. It shall be the Permittee's responsibility to appropriately detour and barricade all construction sites. Pursuant to Section 14.16.290 of the La Quinta Municipal Code (Ordinance 10 § 1 (part), 1982), street closures shall not be permitted. A minimum of two (2) travel lanes of paved surface shall be maintained at all times. 12. Prior to excavating, if required, the Permittee shall contact Underground Service Alert at 1-800-422- 4133. It shall be the Permittee's responsibility to notify the Public Works Department of anticipated excavation which impact City facilities, including but not limited to traffic signal conduits and loops, irrigation lines, electrical conduits, and storm drain facilities. 13. Should additional work, materials, or modifications of the_ work be required in order to meet City standards, safety requirements, signage requirements, or to fit actual field conditions, the work shall be performed by the Permittee as directed by and to the satisfaction of the City Engineer at no cost to the City of La Quinta. 14. Pursuant to Section 14.16.370 of the La Quinta Municipal Code (Ordinance 10 § 1 (part), 1982), backfill compaction within street rights -of -way shall conform with Section 306-1.3 of the latest edition of the Standard Specifications For Public Works Construction (SSPWC), except as otherwise specified herein. Clear and Grub only. No excavations or backfills allowed within this permit. 15. All excavations within City of La Quinta-right-of-way shall be backfilled, and temporarily paved if within the existing travel way, at the end of every workday as directed by and to the satisfaction of the City Engineer for the protection of the public. Lengths of open trench shall not greatly exceed that which can not be backfilled in the same day. Excavated trenches shall not be allowed open overnight, however, Permittee may leave a length of excavated trench, not to exceed twenty (20) feet in length, open overnight at a point where construction will begin the next day, provided that this length of trench is completely covered by steel plating. Special Conditions Page 2 of 3 PERMIT NO.4407 GRIFFIN RANCH / CLEAR AND GRUB ONLY / TRACT MAP NO. 32879 16. All landscaping, irrigation, decorative rock, decorative concrete, lighting, etc.; shall be replaced to its original condition. 17. Access and egress to all local properties shall be maintained at all times. 18. Pursuant to Section 14.16.375 of the La Quinta Municipal Code (Ordinance 10 § 1 (part), 1982), permanent pavement replacement shall be completed no later than seven (7) days after the completion of the work. Permanent pavement replacement shall conform to the following conditions: No Asphalt Work allowed within this permit. 19. Permittee shall permanently stabilize any and all soil that was disturbed as a result of work performed under this permit with an approved dust control treatment. Soil stabilization shall be done immediately after completing the operation. 20. Pursuant to Chapter 12.56 of the La Quinta Municipal Code (Ordinance 10 § 1 (part), 1982) the City has designated certain city streets as Truck Routes. The weight limit for restricted streets (i.e., streets not part of the Truck Route network) is three (3) tons; trucks exceeding the weight limit may use a restricted street if making a delivery or pickup on the subject street, or if this permit specifically grants permission to use the street to deliver street construction materials and/or equipment. 21. The City of La Quinta reserves the right to revoke, suspend or void this permit at anytime. 22. The permittee shall indemnify, hold harmless and assume the defense of the City from all damages, delay costs, costs or expenses in law or equity that may arise out of work under this permit. Special Conditions Page 3 of 3 0- I City of La Quinta The following General and Special Provisions are attached to and made a part of Permit Number 4407 The following shall always apply., ENCROACHMENT ON PRIVATE PROPERTY: This permit authorizes work to be accomplished within the City of La Quinta's right of way ONLY. Whenever construction extends within private property, it is the responsibility of the permittee for his contractors to secure permission from abutting property owners. Such authorization must be secured by the permittee prior to starting work. TRACK -LAYING CONSTRUCTION EQUIPMENT: Cleated track -laying construction equipment shall not be permitted to operate on any paved surface unless fitted with smoother -faced street pads. All mechanical outriggers shall be fitted with rubber street shoes to protect the paving during excavations. Rubber -tired equipment only shall be used in backfill operation in paved areas. If the existing pavement is scarred, spalled, or broken during the term of this contract or if the pavement is marred, City of La Quinta shall request that these portions of road be resurfaced over their entire width. Resurfacing shall consist of one coat of two inches (2") of A.C. surfacing plus appropriate seal coat as specified above. PROTECTION OF TRAFFIC: All excavations and work areas shall be properly lighted and barricaded as deemed necessary by the City Engineer or City of La Quinta Public Works Inspectors. Suitable detours and detour signs shall be placed and maintained for the duration of the project. The City shall be notified twenty-four hours (24) in advance of any traffic detours or delineation. CARE OF DRAINAGE STRUCTURES: Any drainage structure to include corrugated metal pipe, concrete pipe, steel culvert and concrete structures encountered during excavation which necessitate removal shall be replaced in kind.' In the event it becomes necessary to remove or cut existing drainage structures, City of La Quinta shall be notified prior to commencement of this work. Drainage structures and open drains shall be kept free of debris at all times for proper drainage. RIGHT-OF-WAY CLEANUP: Any surplus material resulting from excavation and backfill operations shall be removed from the right of way. All paved surfaces shall be broomed clean of earth and other objectionable materials immediately after backfill and compaction. Existing gutter line and drainage ditches shall be replaced to their original standard or better. All excess material shall be removed prior to paving. Water tanker shall be used, as required, to sprinkle the job site to keep down dust conditions and shall be used immediately after backfill. DE -WATER OPERTATIONS: If de -watering operations are required and pumps are forcing water on City of La Quinta roads, it shall be the responsibility of the permittee (contractor) to control this water and to provide off-street barricades when necessary. CLOSING STREETS: No street shall be closed. A minimum of one lane of traffic shall be maintained at all times to provide limited access for the adjoining property owners and emergency vehicles. In the event it is felt by the permittee that he must close a street for any length of time, permittee shall contact this office to obtain the necessary permission. SPECIAL PROVISIONS The following shall apply when indicated: ® R1 NOTIFICATION: Permittee shall be notified the City at (760) 777 - 70-97 at.least forty-eight hours (48) in advance of starting construction. ® R2 UTILITY CLEARANCE: (Substructures) Prior to making any excavations within the City of La Quinta right-of-way authorized by permit, the permittee shall contact all concerned utility companies relative to the location of existing substructures. Damage to,existing substructures resulting from operations conducted under this permit shall be the sole responsibility of the permittee. ® R3 UTILITY CLEARANCE (Surface Structures) No work, shall be done under this permit until all utilities are clear of the proposed work site. The permittee shall notify all concerned utility companies of the proposed work. ❑ R4 PAVEMENT WIDENING: Area between the proposed concrete gutter line and the existing road pavement shall be surfaced with ( " N/A " ) inches of A.C. paving placed on ( " N/A " ) inches of ( " N/A " ) aggregate sub -base course having an "R" value of not less than ( " N/A ") and in conformance with the City of La Quinta Road Improvement Standards and Specifications, Ordinance #461. ® R5 PARKWAY GRADING: Area between the property line and top of the proposed concrete curb shall be graded to a slope of one-fourth inch ('/<") to one foot (1'). ❑ R6 GRADE CHECKING: City of La Quinta shall check grades upon receipt of plan and profile and/or grades as established by a licensed engineer. ❑ R7 CURB REMOVAL FOR DRIVEWAYS: A portion of the existing concrete curb and/or curb and gutter (" N/A ") feet shall be removed. Curb and/or curb and gutter shall be saw cut prior to removal. Depressed curb, matching concrete gutter and concrete driveway approach shall be constructed in conformance with City of La Quinta Standard #207. ❑ R8 DRIVEWAYS: A.C. driveways shall be constructed as not to alter existing drainage pattern. Surfacing between the property line and the existing road paving shall be two and a half inches (2 Y2") of A.C. paving on (" N/A ") of class (" N/A " ) aggregate base. ® R9 SIGHT CLEARANCE: Sight Clearance of six -hundred feet (600') in all directions shall be assured and maintained at all times. ❑ R10 SOIL STERILIZER: The area to be surfaced shall be treated with soil strerilizer. Rate of application shall comply with the manufacturer's specifications. L�• City of La Quinta COORDINATE WORK: The proposed work shall be subordinated to any operation, which the State of California or City of La Quinta may conduct in this area during the period of this permit. Work shall be coordinated with the State or City of La Quinta forces to preclude delay or interference with State or City of La Quinta projects. ® R12 SURVEY MONUMENTS: Prior to excavation or beginning of construction, all survey monuments which exist on the centerline of all streets or property lines when included shall be completely tied out so they may be readily and correctly, replaced by a licensed civil engineer or surveyor at the expense of the permittee. A complete set of notes showing the ties to these monuments shall be fumished to the City Engineer prior to the removal of any monuments. This office shall be notified upon completion or replacement of all survey monuments for proper clearance. ❑ R13 PAVEMENT CUTTING: Pavement will be mechanically saw cut to a straight edge prior to excavation. Method of pavement cutting shall be approved through the office of the City Engineer. (Under no circumstances shall excavating equipment be used to.excavate prior to cutting or pavement.) Excavation material shall be placed in such a position as to best facilitate the general flow traffic. Prior to final paving operations, any damage to pavement straight edges shall be corrected. ❑ R14 LIMIT OF EXCAVATIONS: Excavations shall be limited to one -thousand feet (1000') of open trench before backfill operations must begin. All excavations. shall be properly barricaded with lights overnight, on weekends and holidays for the protection of the traveling public. The Public Works Inspector shall determine the suitability of excavation barricading in each case. No excavation shall remain open for a period exceeding five (5) days. No excavation shall be made unless the construction material is actually on the work site. ❑ R15 BACKFILL MATERIAL: Backfill shall be free of brush, roots or other organic substance detrimental to its use for purposes of producing and adequately consolidated backfill. Ant material which the City of La Quinta deems unsuitable (spongy or saturated material) which is encountered during excavation shall not be used for backfill, but shall be supplemented or replaced by an approved sand or gravel. ❑ R16 BACKFILL SAND: Backfill shall be approved transit -mix sand or equivalent and shall be placed on lifts not greater than three feet (T) and vibrated using vibrostamper or equivalent equipment. Alternate methods may be substituted, but in any case, a relative compaction of ninety-five percent (95%) shall be maintained with the structural section of the roadway. ❑ R17 BACKFILL PLACEMENT: Backfill shall be applied in layers of not more than fifty percent (50%) of the total depth of the trench before flooding or a maximum of five feet (6) lifts where trenches are of excessive depths. Care is to be exercised that the backfill material is not subjected to extreme swell by flooding operations. Backfill material shall be placed so that the resulting compaction shall not be less than ninety percent (90%) or equivalent to the surrounding ground, whichever is the greater compaction. Where ponding or flooding is used for a maximum settlement, adequate dikes will be constructed to retain the water. Where jetting is used, the jets shall be of sufficient length to reach the bottom of each layer and the water supply shall be continuos. ❑ R18 COMPACTION TESTS: If so required by the inspector, compaction test shall be made at intervals of not more than one - thousand (1000') feet and a maximum of one (1) test on each road. One (1) copy of each test shall be forwarded tot the City Engineer for approval and filed prior to making permanent repairs. Compaction tests shall be made as outlined in Section 6.3.01 of the Standard Specifications, Division of Highways, State of California, dated January 1973. ❑ R19 COMPACTION TESTS: If so required by the Inspector, compaction tests shall be made for each crossing or service line. One (1) copy of each test shall be forwarded to the City Engineer for approval and filed prior to making permanent repairs. Compaction tests shall be made as outlined in Sections 6.3.001 of the Standard Specifications, Division of Highways, State of California, dated January 1973. ❑ R20 TEMPORARY PAVEMENT REPAIRS: After completion of backfill and compaction operations, a temporary patch consisting of two inches (2") of SC-800 shall be placed on a prepared sub -grade. The SC-800 temporary paving shall be placed after a maximum of three -thousand linear feet (3000') or trench has been excavated and backfill operations completed, but in no case shall the placement of the temporary pavement exceed a five (5) day limit. ❑ R21 PERMANENT PAVEMENT REPAIR: After backfill and compaction have been completed, a temporary patch consisting of two inches (2") of SC-800 shall be placed immediately. A permanent patch of ( "" N/A " ) inches of A.0 surfacing placed on a ( "" N/A "" ) inch ('" N/A " ) aggregate base shall be placed no later than ( "" N/A ") days after completion of temporary road repair. ❑ R22 FOG SEAL: A fog seal coat consisting of an application of asphaltic emulsion shall be applied over all patch areas as determined by the City Engineer. ® R23 STREET RESTRIPING: Where. street striping is still visible on street to be excavated, such striping shall be replaced upon completion of permanent repairs. ❑ R24 TREE RELOCATION OR REMOVAL: Tree relocation within the City of La Quinta road right-of-way shall be accomplished by a licensed, bonded and insured tree service, and handled safely without interference or hazard to the traveling public. It shall be the.responsibility of the permitte to maintain the tree in a vigorous growing condition at its new location. Trees to be removed shall be in sections, which can be handled safely without interference or hazard to highway traffic. The entire width of the tree stump, shall be removed and disposed of so that.no debris remains in view of the highway. The stump hole shall be backfilled and thoroughly compacted as specified in the following paragraph. Where it becomes necessary to restrict traffic, the work shall be restricted to a maximum of five -hundred feet (500') at any one time. Adequate signs, flagmen and or barricades shall be provided to protect the traveling public at all times. Large holes resulting from tree removal shall be backfilled and compacted to not less than ninety percent (90%) or equivalent tot the surrounding ground, whichever is the greater compaction as determined by the impact or field method. Compaction tests shall comply with Section 6.3.01 of the Standard Specifications, Division of Highways, State of California, dated January 1973. 04 • a I tl_ J , .m TRANS WEST HOUSING, INC GRIFFIN RANCH SUBCONTRACT AGREEMENT: 30-3009 COST CODE: 02-055 DATE: May 17, 2005 SUBCONTRACTOR: DEMO UNLIMITED, INC. .: 81750 Avenue 50 Indio, CA 92201-9411 Telephone: 800-337-5884 Fax: r' ` PHASE(S): — A & D THIS SUBCONTRACT AGREEMENT ("Agreement") is made by"' and between TRANS WEST HOUSING, INC. ("Contractor") and DEMO UNLIMITED, INC. ("Subcontractor"), for work to be performed on that real property (the "Property") of GRIFFIN RANCH LA QUINTA, LLC ("Owner"), situated in the Ci of La State of California, commonly known as GRIFFIN RANCH (the "Project"). ty Quinta, County of Riverside, FOR SUFFICIENT CONSIDERATION, the Contractor and Subcontractor hereby agree to work on the Project as follows: Y � 'TYPE OF WO _— 1 • Description o_ f V�rork; The work of improvement as defined id Civil Code,'§ 3106 is strictly limited to the Phase(s) designated above. The Sight on an ubcontractor acknowledges it has no ry,portion of the Property for the claim of a mechanic's lien except for that portion consisting of the above-designatedPhase(s). The Subcontractor shall perform and complete the following described work (the "Work")." P CLEARING & GRUBBING 2• Contract Documents: The Subcontractor shall perform the Work in strict accordance with the (the "Contract Documents") each of which is hereby specifically incorporated into this Agreementandmade a wing documents hereof: F w, p a• The "Standard Terms and Conditions" attached hereto. ' b• The "Scope of Work" attached hereto. ,a a C. Any and all exhibits attached hereto. F d• Any and all applicable city, county, state and federal rules and regulations. 3 • Scone of Work: The Subcontractor shall furnish all labor, materials, tools, equipment, transportation, skilled supervision,'insurance necessary to perform the work covered by this Agreement, Exhibit "A" the Scope of Work and completed in strict accordance with the General Conditions of Subcontract Agreement, plans and specifications, addenda thereto, and all other contract documents in strict conformity to all City, County, State, and Federal rules , and regulations. All work shall be conditioned on and subject to the satisfaction of the Contractor, such satisfaction to be determined at the Contractor's sole discretion and according to the Contractor's own standard(s) as long as the Contractor acts in good faith in making such determination. I • 4• Subcontract Price: Subject to'the terms hereof, the Contractor agreesto e s g pay the Subcontractor for the performance of this Agreement moneys as listed below: • Total $1,013,846.00 Notes/Conditions':, • All options must be billed separately (if applicable) ! • Billing must be received within 35 days of completion • Pay Schedule (Per the attached "Exhibit B — Pay Points") . r 5• Production Schedule: The Subcontractor acknowledges that time is of theessence and agrees to complete all work pursuant to the schedule as established by the Contractor's agent., 6• Effectiveness of Agreement: The submission of this Agreement by the Contractor to the Subcontractor does not constitute an offer by. the Contractor, but is merely an invitation for the Subcontractor to submit an offer to the Contractor by executing this Agreement and delivering it to the Contractor. This Agreement shall become effective and binding upon the Contractor only upon execution and delivery hereof by the Contractor to the Subcontractor. « « 7. Professional Standards: The Subcontractor shall at all times enforce strict discipline and good order among its employees and shall not employ on the Project any unfit person or anyone not skilled in the task assigned. The Subcontractor agrees and understands that it will strictly abide by. rules and regulations set forth by the Contractor as follows: AIITIAL ' ITIAL I Trans West housing, -Inc: Marty Butler Vice President Forward Planning 47-120 Dune Palms'Road, Ste. C. La Quinta, California 92253 760-777-4307 Cell: 760-277-0334 Fax: 760-777-4308 email: mbutlerBmccomic.com s Project: GRIFFIN RANCH Contract #: 30-3009 Page 2 a• No alcohol nor drugs (any substance abuse material) will be allowed on nor consumed during working hours or at any time while on the Project. Consumption of, or the bringing of alcohol or drugs to this Project, by its employees will constitute immediate dismissal of the Subcontractor from the Project and cancellation of this Agreement. b• No animals will be allowed on Project at any time. C. No loud playing radios, etc., allowed on the Project at any time. 8• Insurance: Prior to any commencement of work on this Project, the Subcontractor shall obtain and maintain, at its sole cost, insurance policies covering the Owner, Developer/Contractor, and all parties hereto, for any purpose pursuant to this Agreement. No work shall commence and no payments shall be made should the insurance certificates be incorrect in any manner. 9• Submission of Documents: Prior to commencement of the Work and/or the moving of any equipment or material the Project, the Subcontractor must submit and the Contractor must have received the following: son a• All required certificates of insurance. b• A copy of a valid and current contractor's license. C. A completed W-9 form with any attachments thereto. d• A list of principal suppliers of labor, services, equipment and materials. This list shall include the names, addresses and telephone numbers of all companies supplying rental equipment to the Project. e• A list of all phone numbers and/or pager numbers for job superintendent(s)/foremen. f. A copy of any required city license(s). 10. Other Requirements: Prior to commencement of the Work, the Subcontractor shall attend a pre job meeting. 11. Evidence Collection: Should any construction equipment and or material, regardless of ownership or possession, be involved in an occurrence, it will be the right and the duty of the General Contractor/Project Owner to collect and store all such equipment in a safe and secure place for no more than 7 days (or one week) after which the equipment will be formally released by the General Contractor/Project Owner claims adjustment personnel representing any insurance company bound to insure the Contractor/Project. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year SUBCONTRACTOR: DEMO UNLIMITE , y� {41rct1AEL P�,g�-l/a.SN 81750 Avenue 50 Indio, CA 92201-9411 Telephone: 800-337-5884 Fax: '-_�(np ..�qa_ 58qg CA Contractor's License No: Federal Tax ID No. Email address: above written. CONTRACTOR: TRANS WEST SIN , INC. By: Robe . Haig, Exec. Vice President 9968 Hibert Street, Suite 102 San Diego, CA 92131 Telephone: 858-653 -3003 Fax: 858-653-3001 License No: 701039 INITIAL STANDARD TERMS AND CONDITIONS 1.0 INDEPENDENT INVESTIGATION Project: GRIFFIN RANCH Contract #: 30-3009 Page 3 1.1 The Subcontractor agrees that it has carefully examined all Contract Documents, plans, drawings, specifications and addenda thereto, and also the site on which the work is to be performed, and that it has based its conclusion to execute this Agreement on such investigation, independent of any information furnished by the Contractor or the Owner. The Subcontractor agrees that it will not make any claim or demand upon the Contractor based upon or arising out of any misunderstanding or misconception on its part of the provisions and requirements of the plans and specifications or this Agreement. Any information given or statements made to the Subcontractor by the Contractor or others as to the nature or characteristics of the work included herein, or as to the particular details relating to the Subcontractor's work, shall not reduce the woA to be performed by the Subcontractor under this Agreement. 1.2 The Subcontractor acknowledges that it has fully examined and analyzed all conditions that could affect its performance and that to the best of its knowledge no conditions exist which would affect the progress, performance or price of this Agreement. The Subcontractor, before proceeding with any work under this Agreement will accurately check and verify where visible all previous and surrounding work done by others and determine the correctness of same. 1.3 The Subcontractor shall field measure all work relating to its work. The failure of the Subcontractor to detect and disclose any existing visible and known discrepancies or nonconformity's and report them to the Contractor, in writing, before commencing its work shall relieve the Contractor of any and all responsibility for same, and the Subcontractor shall be responsible and liable for all resulting damages, costs and expenses arising as a result of visible and known discrepancies and nonconformity's which should have been discovered by the Subcontractor, if proper staking and/or as-builts are available to the Subcontractor to facilitate the detection of these discrepancies and non -conformities. 1.4 The Subcontractor acknowledges that it understands the work of improvement is limited to the Phase(s) specifically designated in this Agreement and that it has verified which portion of the Property is within such Phase(s). 2•0 PLANS AND SPECIFICATIONS INSPECTIONS AND QUALITY CONTROL 2.1 The Subcontractor shall do all the work in accordance with the plans and Specifications attached hereto and included herein by reference. In this Agreement, the term "Project" shall include the labor, materials, services, machinery, equipment, and other items required by the plans and Specifications, and the construction plan, tools, equipment, materials, services, and facilities necessary in fully complying with the requirements of the plans and specifications and this Agreement. In this Agreement, the term "Specification" shall include any "trade specifications" attached to this Agreement, which are applicable to this Agreement or which in any way affect the work herein described. 2.2 The Subcontractor shall perform and furnish any and all work, labor, services and/or materials, mentioned, shown, depicted or required in, the plans and Specifications. In case of any ambiguity or discrepancy in this Agreement, the Subcontractor shall promptly submit the matter to the Contractor, in writing, otherwise the Subcontractor will be held solely liable to make any change necessary to correct same. Any decision or adjustment by the Subcontractor without a written determination by the Contractor shall be at the Subcontractor's sole risk and expense. Any labor or materials which are called for on the plans and not on the Specifications, or on the Specifications and not on the plans, shall be furnished and shall be deemed to have been called for on both the plans and Specifications. 2•3 All incidental work reasonably necessary to complete this Agreement shall be done by the Subcontractor notwithstanding the same may have been omitted from the plans and Specifications. Performance of the work or materials used shall be satisfactory to the Contractor and the Owner. - All plans and Specifications shall remain the property of the Owner. In the event -of any doubt or question arising with respect to the true meaning of the plans and Specifications, the decision of the Owner thereon shall be final and conclusive. 2•4 The Subcontractor represents that it is familiar with the applicable minimum property standards and requirements, including all amendments and additions thereto, of the FHA, VA and all city, county, state or other governmental agencies whose rules, regulations, ordinances, statutes and jurisdiction may affect any of the work to be performed herein, and Subcontractor shall be conclusively presumed to be familiar with all such standards and requirements. 2.5 The Subcontractor shall furnish to the Contractor and its authorized representatives ample facilities at all times for inspecting materials at the site of construction, or any place where materials under this Agreement may be in the course of preparation, process, manufacture or treatment. The Subcontractor shall further furnish to the Contractor, as often as required, full reports of the progress of the work at any place where materials under this Agreement may be in the course of preparation or manufacture. The reports shall show the progress of such preparation and manufacture in such detail as may be required by the Contractor, including any plans, drawings or diagrams made in the course of preparation. INITIAL X-TIAL Project: GRIFFIN RANCH Contract #: 30-3009 Page 4 2.6 The Contractor may request or order re-examination of any part of the work under this Agreement, and the Subcontractor must uncover such part upon request. Should such part of the work not conform to this Agreement and the Contract Documents, or any law, ordinance, or requirement of any public authority, the Subcontractor shall bear the full cost of uncovering and replacing such part of the work, and shall correct any and all deficiencies at his expense. Should such part of the work conform to the Contract Documents, the Contractor shall pay all costs of uncovering and replacing the same. 2.7 The Subcontractor shall use such methods, equipment and appliances for the performance of this Agreement as will secure work of first class quality and sufficient to complete Project in the time agreed upon. Equipment must be in a good state of repair and maintained in such state during the progress of work. No obsolete equipment shall be used. Contractor may order Subcontractor to improve, change or correct such methods, equipment and appliances if in its opinion they be inadequate or insufficient. 3.0 SCHEDULING OF WORK 3.1 The Subcontractor agrees to commence work no later than 24 hours after being notified to do so by the Contractor, and to prosecute the work diligently so as to conform to the Contractor's construction program and mutually agreed upon schedule and not to delay any work of the Contractor or any other trade or subcontractors involved in the project. 3.2 The Subcontractor shall do all the cutting, fitting or patching of its work that may be required to make its several parts come together properly, and fit to receive or be received by work of other subcontractors, shown upon or reasonably implied by the plans and specifications. Any cost caused by defective work of the Subcontractor shall be borne by the Subcontractor. It is further agreed that the Subcontractor shall not endanger any work by cutting, digging or otherwise, and shall not cut or alter the work of any other subcontractor, except with the written consent of the Contractor. 3.3 It is the responsibility of the Subcontractor to properly coordinate its work with other trades. In order to prevent duplication of errors, the Subcontractor is not to operate from or use as a basis errors made by other subcontractors. 3.4 Inconsistencies or errors are to be immediately reported to the Contractor by the Subcontractor in writing. Where specific branches of the work are affected by other branches of the work, those subcontractors concerned must confer and exchange drawings or measurements as may be necessary to insure complete coordination of the project in its entirety as contemplated by the plans and specifications. In the event of a dispute, the decision of the Contractor shall be final. 3.5 The Subcontractor shall furnish adequate. workmen in sufficient number to complete the work in the time required under this Agreement, skilled in their trade to do a first class job, and scheduled to provide a smooth flow of production as required by the Contractor. The Subcontractor shall be responsible for the coordination between his trade and all other trades. All work shall be performed in a workmanship like manner, all work shall be straight, true and plumb, and the Subcontractor shall correct any deficiencies in its work and materials before such work is covered by other trades. The Subcontractor shall be responsible for obtaining and complying with any and all inspections required. 4.0 PAYMENT 4.1 The Contractor agrees to cause Owner to pay the Subcontractor, in the manner described below, payments Of 90% of labor only which has been placed in position by the Subcontractor. The remaining 10% shall be retained for 30 days after the completion of the phase in which the work was done in. Acceptance will not be unreasonably withheld if the all contracted items have been completed. INVOICES SUBMITTED FOR PAYMENT MORE THAN 60 DAYS AFTER THE NOTICE OF COMPLETION MAY BE INVALIDATED UPON RECEIPT. INVOICES FOR `EXTRAS" AND OPTIONS MUST BE SUBMITTED TO CONTRACTOR WITHIN 30 DAYS OF COMPLETION OF SUCH EXTRA OR OPTION OR THE INVOICE MAY BE RENDERED INVALID, AND NOT PAID. INVOICES WHICH ARE IMPROPER REGARDING THE CONTRACT NUMBER, TRACT NUMBER, UNIT PRICES, QUANTITIES, RETENTION OR ANY OF THE PAYMENT REQUIREMENTS, SHALL BE RETURNED TO SUBCONTRACTOR UNPAID. 4•2 On a semi-monthly basis, Subcontractor is required to submit invoices to Contractor showing completion of milestones agreed upon between Contractor and Subcontractor. The percentage of the price shown on this Agreement for each milestone becomes due upon completion and acceptance by the Contractor of the milestone. Contractor shall have the right to inspect the work specified by Subcontractor in the invoices and reject any such invoice for incomplete or unworkmanlike work. In the event of such rejection, Contractor shall notify Subcontractor in writing specifying the problem so that it may be cured by Subcontractor. Subcontractor shall submit with its invoice(s) a wet signed lien release form which lists the pertinent invoice numbers and dollar amounts for each completed and approved milestone during that cut- off period. Owner will require on inal wet signed releases submitted with invoices. Faxed copies of releases and non -original wet signed releases will not be accepted. All extras must be invoiced separately. 4.3 Regardless of the terms of payment provided for herein, the Contractor shall not be required to make any payments to the Subcontractor that would leave a balance due Subcontractor insufficient to cover the retained percentage plus an amount sufficient to satisfy all obligations of the Subcontractor for labor, materials, equipment or services, furnished or to be furnished by the Subcontractor hereunder. Payment for OINIAL any work not covered by this Agreement will not be made unless covered by a change order siVnedbyhe Project: GRIFFIN RANCH Contract #: 30-3009 Page 5 Contractor's authorized representative on Contractor's form, and any such change order must be obtained prior to the start of such work. If a change order is not so obtained, no payments will be made for any work not covered by this Agreement. 4.4 The Subcontractor agrees, as a condition precedent to receiving any payments, that it will furnish the Contractor satisfactory releases, waivers of lien, affidavits, and such further evidence as may be required by the Contractor showing that all labor materials, equipment, services, union health, welfare and pension fund payments, payroll taxes, and other items, used in connection with or incorporated in the project have been paid for in full. All moneys paid to the Subcontractor under this Agreement are paid in trust, and the Subcontractor shall have no interest in such moneys until all material suppliers and laborers of the Subcontractor have been paid in full for their work and materials. 4.5 In the event that the Subcontractor fails to pay and discharge when due any bills of any kind or nature incurred by the Subcontractor in fulfillment of this Agreement, or if at any time there shall be any evidence of any lien or any claim against the Contractor or the Owner as a result of the Subcontractor's operations, the Contractor shall have the right to retain out of any payment herein due or any payment to become due an amount sufficient for the Contractor to completely indemnify the Contractor and Owner against any such lien or claim, including attorneys' fees incurred by reason thereof This right shall be in addition to any other rights or remedies the Contractor has under this Agreement or at law. 4.6 No payment made under this Agreement, including final payment, shall be evidence of the performance of this Agreement, either wholly or in part, and no payment shall be construed to be an acceptance of defective or unsatisfactory workmanship and/or materials. 4.7 The acceptance of any progress payments by the Subcontractor shall constitute a release of the Contractor and the Owner from any other liability, except retainage, due to any reason, arising or incurred during the payment period for all work represented by that payment. Acceptance of final payment by the Subcontractor constitutes a general release of the Owner, the Contractor and its surety. If the Subcontractor takes exception to so releasing the Owner or the Contractor by acceptance of payments, the Subcontractor must return said.payment with an affidavit by an officer listing each and every exception to the release, and stating that no other claim exists. 4•8 The Subcontractor will require any of its subcontractors, suppliers and materialmen to acknowledge in writing that the work of improvement is limited to the Phase(s) specifically designated in this Agreement. Except for such designated Phase(s), the Subcontractor for itself, its subcontractors, suppliers, materialmen and employees, waives, releases and relinquishes all rights to file any Stop Work Notice, Notice of Intent, Notice of Lien, Mechanic's Lien or other encumbrance against the Contractor or its surety, the Owner, the Property, the Project, or any moneys earned by the Contractor.. The filing or effectuating of such encumbrance shall constitute a material breach. The Subcontractor shall be responsible and liable for all damages and expenses, including bond premiums and attomey's fees to discharge and/or defend against same. The existence of any such encumbrance shall preclude the Subcontractor's right to receive payment until such encumbrance has been satisfied and removed. 4.9 On receipt by Contractor of a written notice from Subcontractor that. the Project is ready for final inspection, Contractor shall promptly inspect the Project and, if Contractor finds it has been substantially completed in accordance with this Agreement, Contractor shall execute, verify and record a Notice of Completion in the manner prescribed by law. Final acceptance of the Project by Contractor shall occur after all work is fully completed, including all punch -list and pick-up items ("Final Acceptance"). Prior to Final Acceptance, Subcontractor shall deliver to Contractor in writing all necessary approvals of applicable federal, state, or local agencies and/or authorities, including Certificates of Occupancy, if applicable. All guarantees, brochures, operating instructions, etc., must be supplied before the Project can receive Final Acceptance. Should local laws not provide for recordation of a Notice of Completion, then Completion shall be the same date as Final Acceptance. 4.10 Restionsibility for Defects. Neither recordation of a Notice of Completion of the Project by Contractor, Payment to Subcontractor by Contractor of the full contract price, or any acceptance, occupation or utilization of said Project or any part thereof by Contractor shall relieve Subcontractor of liability for defective materials or workmanship used in the construction of the Project or for failure to construct the Project according to the requirements of the Contract Documents. Acceptance of final payments shall constitute a waiver of all claims by the Subcontractor against the Contractor with respect to Contractor's performance of all its obligations under this Agreement, except any claim previously made in writing by Subcontractor and which remains unsettled. 5.0 CHANGE�ORDERS AND CHANGES IN RE UIREMENTS 5.1 The Contractor may at any time; without notice to the Subcontractor's surety and without invalidating this Agreement, make any changes in the plans and Specifications that the Contractor may deem expedient, whether such changes increase or diminish the amount of the job; but the Subcontractor shall not make any changes except upon written order from the Contractor. If no additional time is asked for by the Subcontractor within five (5) days following notice of any proposed change, it shall be construed that no additional time is required by the change. Increases or decreases in the payments shall be determined, where possible, by reference to unit prices. Otherwise, increases or decreases in the payments shall, at the Contractor's option, be a lump -sum agreed upon between the parties or 110 percent of the actual cost, labor, materials, and leased equipment saved by the Subcontractor or necessary to perform additional work, plus the actual cost of the overtime work saved or necessary to perform additional work. he INITIAL I IAL Project: GRIFFIN RANCH Contract #: 30-3009 Page 6 Subcontractor agrees that if the Contractor is not satisfied with the price quoted by the Subcontractor with respect to any additional work, the Contractor may engage another subcontractor to perform such work, and the Subcontractor agrees to cooperate fully with the substitute subcontractor. 5.2 The Subcontractor agrees that should the Contractor, in its discretion, decide that it will not construct the number of units described herein, or should the Contractor in its discretion decide to construct types of units other than those designated on the plans and Specifications, the Subcontractor relinquishes any claim for compensation or damages for any units not constructed, or for the construction of units from differing design plans and this Agreement shall be applicable only to such units as are in fact constructed pursuant to the terms hereof. 6.0 DEFAULT 6.1 Should the Subcontractor fail to perform in strict accordance with this Agreement, where or as the Contractor may so direct; or become insolvent, unable to or fail to pay its obligations as they mature; or fail, in the opinion of the Contractor, to properly prosecute and perform any part of its work, fail to exert its best performance efforts, be involved in labor disputes, or be terminated under any other contract with the Contractor; then the Subcontractor may be deemed by the Contractor to have materially breached this Agreement. 6.2 In the event that the Contractor shall declare this Agreement to be in default, the Contractor shall immediately give notice to the Subcontractor of such default. Thereafter, unless the Subcontractor shall, to the satisfaction of the Contractor, correct the circumstances which led the Contractor to declare the default within forty-eight (48) hours, the Contractor may, at its option, provide any labor or material necessary to performance of this Agreement, including the right to employ any other person or persons to finish the work and provide the materials therefor, and may deduct the cost thereof from any money then due or thereafter to become due to the Subcontractor under this Agreement. In the alternative the Contractor may, at its option, terminate Subcontractor's right to proceed with all or any part of the work under this Agreement and, in that event, the Contractor shall have the right to enter upon the premises of the Project and take possession, for the purpose of completing the work included under this Agreement, of all materials, tools, and appliances of the Subcontractor, and may employ any other person or persons to finish the work and provide the materials therefor. If the Contractor shall terminate the Subcontractor's right to proceed with the work under this Agreement, the Subcontractor shall not be entitled to receive any further payment under this Agreement until the work undertaken by the Contractor is completely finished. At that time, if the unpaid balance of the amount to be paid under this Agreement exceeds the expenses incurred by the Contractor in finishing the Subcontractor's work, such excess shall be paid by the Contractor to the Subcontractor; but, if such expense shall exceed such unpaid balance, then the Subcontractor shall promptly pay to the Contractor the amount by which such expense exceeds such unpaid balance. In determining the rights of the Contractor and the Subcontractor following termination by the Contractor of the Subcontractor's right to carry out the work under this Agreement, the expenses incurred by the Contractor shall include all expenses incurred by the Contractor for the furnishing of labor or materials for the finishing of the work under this Agreement, all attorneys' fees incurred by the Contractor in enforcing the Contractor's rights, under this provision and the indemnities and guarantees given by the Subcontractor to the Contractor under this Agreement, any and all damages sustained by the Contractor by reason of the Subcontractor's default, plus fifteen percent (15%) of all such expenses as the general overhead charge and ten percent (10%) of all such expenses as a charge for the Contractor's profit on any and all such expenses. The Contractor shall have a lien upon all materials, tools, and appliances of the Subcontractor, which are held by the Contractor pursuant to the provisions of this Agreement. If, at any time, the Contractor discovers evidence of. (1) defective work not remedied, (2) claims filed or reasonable evidence indicating probable filing of claims, (3) failure of Subcontractor to make payments properly to his workmen or subcontractors, or for material, labor, or fringe benefits, (4) a reasonable doubt that this Agreement can be completed for the balance then unpaid, or (5) damage to another subcontractor, the Contractor may withhold, to such extent as may be necessary to protect the Contractor from loss, any sums payable to the Subcontractor under the provisions of this Agreement. When the evidence of any of the conditions set forth in this paragraph has been removed to the Contractor's satisfaction, such amounts as are then due and owing to the Subcontractor shall be paid or credited to the Subcontractor by the Contractor. 7.0 TERMINATION 7.1 Contractor reserves the absolute right to terminate this Agreement. In the event of termination without cause, Subcontractor shall be entitled to payment only as follows: (a) Cost of the work actually performed in conformity with this Agreement; plus (b) Ten percent (10%) of costs referred to in subparagraph (a) above, for overhead and profit. However, in no event shall the Subcontractor be entitled to an amount that exceeds the amount itemized on this Agreement. of such work as 8.0 PERSONNEL OF SUBCONTRACTOR 8.1 The Subcontractor acknowledges that the Contractor is entering into this Agreement relying upon the experience and ability of the present officers, stockholders, partners or owners of the Subcontractor to fulfill the obligations of the Subcontractor under this Agreement. Should there be a change in the officers, stockholders, partners or owners of the Subcontractor, the Contractor shall have the right to Xclathis INITIAL Project: GRIFFIN RANCH Contract #: 30-3009 Page 7, Agreement terminated, and the Subcontractor shall have no claim upon the Contractor or the Owner other than for work already completed and accepted by the Contractor, less any offset the Contractor may have against such claims of the Subcontractor. 8.2 Employment of labor by the Subcontractor shall be effected under conditions satisfactory to the Contractor. The Subcontractor shall employ only competent, careful and orderly persons upon the project, and upon notification by the Contractor that the conduct of any person employed by the Subcontractor is unsatisfactory, shall immediately remove such person from the work. The Subcontractor shall from time to time furnish the Contractor on request, a list of all laborers and materialmen used by the Subcontractor in connection with the project. 8.3 The Subcontractor shall keep a representative at the job site during all times when the Subcontractor's work is in progress, and such representative shall be authorized to represent the Subcontractor as to all phases of the work. Prior to commencement of the work, the Subcontractor shall notify the Contractor who the Subcontractor's representative is to be, and in the event of any change of representative the Subcontractor shall notify the Contractor who the new representative is to be prior to such change becoming effective. 8.4 The Subcontractor is an independent contractor, and shall at its sole cost and expense, and without increase in the price to be paid the Subcontractor under this Agreement, comply with all laws, rules, ordinances, and regulations of all governing bodies having jurisdiction over the work to be performed under this Agreement. The Subcontractor shall also obtain all necessary permits and licenses therefor, and pay all manufacturers' taxes, sales taxes, use taxes, processing taxes, and all federal and state taxes, insurance and contributions for Social Security and unemployment which are measured by wages, salaries, or other remuneration's paid to Subcontractor's employees, whether levied under existing or subsequently enacted laws, rules or regulations. The Subcontractor shall, upon request, furnish evidence satisfactory to the Contractor that any and all of the foregoing obligations have been fulfilled. 8.5 If the work to be performed under this Agreement shall require installation of materials or equipment furnished by others to the Subcontractor, it shall be the responsibility of the Subcontractor to examine each and all of such items so provided, and to handle, store, and install such items with such skill and care as to insure a satisfactory installation. Any loss or damage to such items caused by acts of the Subcontractor shall be charged to the account of the Subcontractor, and deducted from moneys payable to the Subcontractor under this Agreement. 8.6 Subcontractor agrees to comply with all of the terms and conditions of those labor agreements in force insofar as Subcontractor may lawfully do so, and in particular agrees to comply with the terms and provisions of said agreements setting forth the jurisdiction and the scope of work claimed by each of such crafts and the procedure contained therein for resolution of jurisdictional disputes. In the absence of any such procedure, or if such procedure fails to promptly resolve the jurisdictional dispute, Subcontractor agrees, at his own cost and expense, upon request of Contractor, to take any and all lawful steps to secure a binding and final determination of said jurisdictional dispute by the National Labor Relations Board. Should there be picketing on the Contractor's job site, and the Contractor establishes a reserved gate for the Subcontractor's purposes, it shall be the obligation of the Subcontractor to continue the proper performance of his work without interruption or delay. Subcontractor further promises and agrees that he will bind and require all of its subcontractors and their subcontractors performing job site work of the type covered by any of the labor agreements specified above to agree to all of the foregoing promises and undertakings to the same effect as herein provided with respect to it. 9.0 TAXES 9.1 The Subcontractor is an independent contractor and not the employee of the Contractor. The Subcontractor shall be responsible for and shall pay any and all taxes, contributions, fees, social security, unemployment insurance, and other similar items, imposed directly or indirectly on account of its work, labor, material and services required under or relating to this Agreement. At no time shall there be an increase or escalation in the Subcontract Price on account of any such charge. The Subcontractor shall, on demand, substantiate that all taxes and other charges are being properly paid. If the Subcontractor is not required to pay in whole or in part any such tax which was included in the calculation of the Subcontract Price, then in such event the Subcontract Price shall be correspondingly decreased. 9.2 The Subcontractor's failure to pay any federal, state or local taxes or duties shall entitle the Contractor to withhold any sums due to the Subcontractor under this Agreement, and if such taxes are not paid within forty-eight (48) hours after the Contractor has given notice to the Subcontractor of such unpaid taxes, the Contractor may forthwith terminate this Agreement without further liability to the Subcontractor. INITIAL lI1V TIAL Project: GRIFFIN RANCH Contract #: 30-3009 10.0 SHIPPING. STORAGE AND USE OF EQUIPMENT Page 8 10.1 The Subcontractor agrees to prepay the transportation charges on all materials shipped to the job site. The Subcontractor shall store materials on the job site only in areas approved by the Contractor. The Subcontractor shall furnish and maintain in operating condition a sufficient amount of equipment, machinery, tools, and implements of the type necessary to perform the work herein specified. The Subcontractor shall not employ any tools, equipment, machinery or other implements 'on the site of the work that are not solely owned by the Subcontractor, unless the Subcontractor shall first obtain written permission from Contractor. The Subcontractor assumes full risk and responsibility for any loss or damage of any type whatsoever to his equipment, tools, machinery, and implements, while in use or stored at the job site. Unless otherwise provided, by written agreement between the Subcontractor and the Contractor, the Subcontractor shall furnish, erect, dismantle, and remove any and all scaffoldings, ladders, runways, staging, or other supportive or auxiliary structures or devices required to perform the work under this Agreement, at the sole risk and expense of the Subcontractor. 10.2 The Subcontractor shall provide at its own expense; in areas designated by the Contractor, whatever storage sheds, work shops and offices are necessary for the performance of the Subcontractor's obligations under this Agreement, and shall remove and thoroughly clean such premises at the completion of the work. The handling, unloading and safe storage of materials and equipment shall be the sole responsibility of the Subcontractor. The Contractor shall not be responsible for any damage or loss to any materials, equipment, kitchen or plumbing units, furnishings or furniture, furnished by the Subcontractor to the job site, whether stored in the Contractor's buildings on the Property or otherwise, until such time as such materials, equipment, kitchen or plumbing units, furnishings or furniture are incorporated in the structure of the buildings to be erected on the Property, and such buildings have been accepted by the Contractor as completed. 10.3 Notwithstanding the foregoing, title to all goods and materials to be furnished by the Subcontractor under the terms of this Agreement shall be deemed to vest in the Contractor at the earliest time such goods and materials are "identified" to the contract, as that term is used in Section 2501 of the California Uniform Commercial Code. 10.4 The Subcontractor agrees that the use of any of the Contractor's equipment or storage facilities given, loaned or rented to the Subcontractor, shall be on the distinct understanding that the Subcontractor uses the equipment or storage facilities at its own risk, takes them "as is" after satisfying itself by examination as to their condition and returns them to Contractor in as good a condition as when received. 11.0 PROTECTION OF WORK 11.1 The Subcontractor shall protect its own work and be responsible under all circumstances for the condition thereof until final acceptance of the entire Project by the Contractor. The Subcontractor shall likewise protect adjacent property from damage arising out of the Subcontractor's work, and shall repair or otherwise make good any such damage or injury. The Subcontractor shall be responsible for any loss or damage to its work or materials supplied by it prior to the time of final acceptance by the Contractor of the work to be performed under this Agreement. 11.2 The Subcontractor shall take all precautions necessary for the safety of any and all persons. working at the site of the subcontract work, and shall comply with all applicable provisions of any federal, state, county, or municipal safety laws, ordinances, regulations, or building codes to prevent injury to such persons while in, about, or adjacent to the site of the contract work. The Subcontractor shall properly erect and maintain at all times necessary, such fences, barricades, caution lights, and other safety appliances or devices necessary for the protection of any and all persons and property on the site of the subcontract work, as the conditions and progress of the subcontract work may require. 11.3 The Subcontractor shall furnish and be responsible for placement of any safety guards required in connection with the operations covered by this Agreement, and shall indemnify the Contractor from any penalties incurred by non-compliance with state and federal 'safety codes. This shall include but is not limited to observation of "Hard Hat" signs, where posted. 11.4 The Subcontractor, for itself, its agents and employees, agrees to be bound by and comply with (and as to its agents and employees enforce compliance with) all requirements and provisions of the Williams -Steiger Occupational Safety and Health Act of 1970 or any modification thereto, and all other applicable federal, state and local safety codes and regulations. 12.0 INDEMNIT 12.1 Subcontractor shall defend, indemnify and hold harmless the Contractor, Owner, Owner's partners and their partners and the partners, employees, officers, directors, affiliates and agents of each of them, from all claims, liabilities, causes of action, costs, losses, damages, expenses and judgments (including attorneys' fees) (collectively, "Claims") arising in any way out of the performance of Subcontractor's work under this Agreement, including any such claims arising from designs prepared by or obtained by Subcontractor. Subcontractor's obligations as stated above shall apply regardless of fault or negligence, active or passive, on the part of Subcontractor or its sub -tier subcontractors, and regardless of fault on the part of any indemnified party, it being the intent of the parties that Subcontractor's indemnity obligations be interpreted in the broadest possible manner; provided that, as to any indemnified party and to the extent mandated by California Civil Code Sections 2782 through 2784, Subcontractor's obligations to indemnify shall n t be INITIAL I It Project: GRIFFIN RANCH Contract #: 30-3009 ' Page 9 applicable to inj ury, death or damage to property arising from the sole negligence or sole willful misconduct of any such indemnified party or of contractors who are directly responsible to such indemnified party or for defects of design provided by Owner; but provided further that the foregoing limitations shall not apply as to any insurance required by this Agreement. 12.2 Subcontractor shall attach and incorporate Attachment 1 into any sub -tier subcontract which it enters into for this Project, so that each such sub -tier subcontractor likewise indemnifies the above -described parties from claims arising out of said sub -tier subcontractor's work. 13.0 INS_ URANCE 13.1 Subcontractor shall maintain the insurance coverage(s) set forth in Attachment 3 hereto. 14.0 PERMITS LICENSES AND SAFETY REGULATIONS 14.1 The Subcontractor shall obtain at its expense all permits and licenses, and comply with all laws, ordinances, rules, regulations, orders and requirements of the city, county, state and federal governments and of any board or commission or other duly qualified body having jurisdiction, which shall or might affect or apply to the project; and shall maintain a valid contractor's license as required by the State of California. 14.2 The Subcontractor, at its sole expense, shall comply with all ordinances, statutes, regulations and requirements of any union contract if Subcontractor has an union agreement, governing or affecting safety standards for the performance of work and working conditions in the Subcontractor's trade or in trades employed by the Subcontractor, in performing the terms of this Agreement. 14.3 Subcontractor is aware of the requirements of the Injury and Illness Prevention Program Act (1991, Senate Bill 198) and confirms that its program complies with the Act as summarized in the following outline. Subcontractor's program includes: (i) an effective written program for identifying and evaluating workplace hazards, including scheduled periodic inspections to identify unsafe conditions and work practices; (ii) identification of the person(s) responsible and accountable for administering the employer's Injury Prevention Program; (iii) procedures for correcting unsafe and unhealthy conditions in a timely manner based upon the severity of the hazard; (iv) establishment of regularly scheduled safety meetings; (v) occupational safety and health training programs to instruct employees in general safety and health work practices and instruction regarding the hazards specific to each employee's job; (vi) a system for ensuring employees' compliance with safety and health work practices, which may include disciplinary action; and (vii) ongoing documentation/record keeping of the steps taken to implement and maintain the Injury and Illness Prevention Program. Subcontractor confirms the program, as outlined above, will be implemented in full on the Project. It is understood that neither Contractor nor Owner has responsibility for the safety of employees of Subcontractors. 15.0 WARRANTY AND GUARANTEE 15.1 The Subcontractor guarantees and warrants that the work performed by the Subcontractor and the materials and equipment furnished by the Subcontractor under this Agreement are free from ` any defects in workmanship or in the equipment and materials, and this guarantee and warranty shall inure directly to the Contractor, the Owner and the original and subsequent purchasers of residences. The Subcontractor agrees, at its own expense, to make good any loss or damage arising from any defect in materials or workmanship furnished to the project, and all corrective work arising out of the work performed by the Subcontractor,or required by VA or FHA. The Subcontractor further agrees to deliver to the Contractor all manufacturers' equipment warranties accompanying equipment furnished by the Subcontractor to the project, at -the time such equipment is delivered to the job site and to assign to the Owner all guarantees, warranties, or bonds of and for material and workmanship running in favor of the Subcontractor. 15.2 All work and materials which are determined by the Contractor to be defective or deficient in any manner shall be remedied or removed and replaced by the Subcontractor in a manner reasonable to the Contractor. The Subcontractor shall bear all expenses and shall make good damage caused by such remedy, or removal and replacement. If the Subcontractor fails to so remedy or remove and replace within seven (7) days after receiving notice from the Contractor that work or materials have been found defective or deficient, or within twenty-four (24) hours if the defect is in plumbing or electrical work, the Contractor may cause the defective or deficient work or materials to be remedied or removed and replaced and the Subcontractor immediately shall pay the expenses thereby incurred. 15.3 The guarantee period for all portions of the work, shall be one (1) year from the date of final acceptance by the Owner of the Project unless a longer period specifically is required as to any or all of the project Specifications. Where such longer period is required, the guarantee period shall also commence on the date of final acceptance by the Owner of the Project. 16.0 REMOVAL OF DEBRIS AND CLEANING 16.1 The Subcontractor, at its sole cost shall keep the Project free of rubbish, empty bags having contained lime, cement or other dust -producing materials, scrap lumber (shall be piled on site for removal by others), waste materials and shall remove all other rubbish at the direction of the Contractor. All rubbish shall be removed from the Project daily and work areas shall be maintained free from accumulation of combustible debris. The Subcontractor shall clean to the satisfaction of the Contractor all dirt, grease marks, or imilar INITIAL TIAL Project: GRIFFIN RANCH Contract #: 30-3009 Page 10 stains. If the Subcontractor refuses or fails to clean as directed by the Contractor, the Contractor shall have the right and power to proceed with the cleaning and charge the Subcontractor with all costs incurred by the Contractor, deducting the amount from the payments due the Subcontractor. 16.2 Upon completion of the Subcontractor's work, the Subcontractor shall remove all his plans, tools, materials and other articles from the Property; otherwise, the Contractor, at its option and without waiver of any other rights, may, on forty-eight (48) hours notice, treat all property.as abandoned property. 17.0 RELATIONSHIP TO OWNER 17.1 Contractor and Subcontractor acknowledge that Owner is not a party to and has no obligation under this Agreement, but that this Agreement has been entered into for the express benefit of Owner. 17.2 At any time, and from time to time, Owner may request any information or documentation it deems reasonably necessary from Subcontractor relating to this Agreement and Subcontractor shall, to the extent available, provide such information to Owner within three (3) business days. 17.3 Subcontractor will, upon Owner's request, recognize Owner as an Owner -Builder and as the successor -in - interest to Contractor under this Agreement. In no event, however, shall Owner be liable for any contractual obligations under this Agreement prior to the date upon which Owner becomes the successor - in -interest under this Agreement. Nothing herein, however, shall limit any rights Subcontractor may have under California Civil Code §§ 3109 through 3154 or other laws relating to the enforcement of rights by mechanics, materialmen, contractors and the like. 18.0 NON-DISCRIMINATION IN EMPLOYMENT 18.1 During the term of this Agreement, neither Subcontractor nor any of its affiliates, employees or agents shall unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, age or sex. The Subcontractor and its affiliates, employees and agents shall assure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. Subcontractor and its affiliates, employees and agents shall comply with the provisions of the California Fair Employment and Housing Act (Section 12900 et seq. of the California Government Code) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated herein by this reference and are made a part hereof as if set forth herein in full. 18.2 Subcontractor and its affiliates, employees and agents shall give notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. Subcontractor shall include the foregoing nondiscrimination compliance provisions in all contracts to perform work or provide services under this Agreement. During the term of this Agreement, Subcontractor, its affiliates, employees and agents shall conduct their respective activities in accordance with Title VI of the Civil Rights Act of 1964 and the rules and regulations promulgated therein. 19.0 EXCULPATORY CLAUSE AND WAIVER 19.1 The Subcontractor will have no direct dealings with prospective purchasers from Contractor during the life of this Agreement. All submittals, correspondence, changes, extras, payroll reports, claims, and any other communications made by the Subcontractor shall be directed to the Contractor. Subcontractor further agrees that prompt, efficient and courteous service to any owner, present or future, to correct, repair or adjust the work performed hereunder following completion shall be a part of this Agreement. 20.0 MISCELLANEOUS PROVISIONS 20.1 Time of Essence. Time is of the essence of this Agreement. Should Subcontractor's improper performance of work cause a delay to the work to be performed by other subcontractors, or the Project, it shall be liable for any and all loss and damages sustained by Contractor as a result thereof. The Subcontractor shall conform to the Contractor's mutually agreed upon progress schedule, subject to any and all modifications made by the Contractor, and shall at all times keep the Contractor fully advised of the progress of the Subcontractor pursuant to the. Contractor's progress schedule. The Subcontractor shall use his best effort to coordinate the work performed under this Agreement with that of all other subcontractors and the Contractor in a manner that will facilitate the efficient completion of the entire Project. 20.2 Waiver. The waiver by the Contractor of any breach of any term, covenant or condition herein contained, including the waiver of any time of performance, shall not be deemed to be a waiver of any subsequent such breach. No covenant, term or condition of this Agreement shall be deemed waived by Contractor unless done so in a writing signed by the Contractor. 20.3 Assignment and Subletting. Subcontractor shall not assign or sublet any portion of this Agreement, either voluntarily or by operation of law, without first obtaining permission in writing from the Contractor and then only subject to the provisions of this Agreement. Any reorganization, merger, sale of an ownership interest in the Subcontractor by any shareholder or partner of the Subcontractor, and any act of insolvency or bankruptcy, or any general assignment for the benefit of creditors, shall be deemed an assignment within INITIAL, IAL r-- Project: GRIFFIN RANCH Contract #: 30-3009 the meaning of this paragraph. Any such 'assignment may, at the option of the Contractor, termin tegthis Agreement. 20.4- Attorneys' Fees. The Subcontractor shall pay to the Contractor and the Owner in any action brought under this Agreement and in any action brought against the Subcontractor by third parties in which the Contractor or the Owner is joined as a party, whether the same proceeds to judgment or not, the Contractor's and the Owner's attorneys' fees; this provision shall also apply to any suit on any bond furnished hereunder. 20.5 California Law to Apply. The laws of the State of California shall govern as to the interpretation, validity and effect of this Agreement. It is -hereby expressly understood and agreed between the parties that in the event a dispute should arise as to the performance of the obligations of the parties pursuant to this Agreement, the parties will adjudicate any such dispute in the courts of the State of California; accept service of process outside of the State of California with the same force and effect as if it had been served within the State of California; and agree that the courts of California have personal jurisdiction over the parties in connection with this Agreement. 20.6 Successors. This Agreement shall inure to the benefit of, and be binding upon, the heirs, executors, administrators and successors of the parties hereto and the assigns of Contractor. 20.7 Captions. Captions of the Sections of this Agreement are for convenience and reference only, and the words therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction or meaning of the provisions of this Agreement. 20.8 Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be delivered or sent, as the case may be, by any of the following methods: (i) personal delivery; overnight commercial carrier or delivery service; (iii) registered or certified mail (with postage prepaid and return rec pt requested) or regular first class mail with postage prepaid; or, (iv) telecopy/fax. The addresses for purposes of the giving of notices hereunder are set forth on the signature page of this Agreement. Notice of change of address shall be given by written notice in the manner detailed in this paragraph. 20.9 Arbitration. Unless otherwise settled in accordance with the provisions of section 21 below any controversy arising out of the construction of the Project, regarding interpretation of this Agreement or any sub -subcontract is subject to arbitration. Contractor, Subcontractor and all other subcontractors, sub - subcontractors, material suppliers, and other parties concerned with the Project are bound, each to the other, by this arbitration clause, provided the party has signed this Agreement, an agreement that incorporates this Agreement by reference, or any other agreement to be bound by this arbitration clause. On demand of the arbitrator or any party to an arbitration initiated under such provisions, Subcontractor and all parties bound by this arbitration provision agree to join in and become parties to and be bound by such arbitration proceedings. Arbitration shall take place in accordance with the Construction Industry Rules of the American Arbitration Association that are in effect at the time of the arbitration. If any party refuses or neglects to appear at or to participate in arbitration proceedings, the arbitrators are empowered to decide the controversy in accordance with whatever evidence is presented by the participating party or parties. The arbitrators are authorized to award any party or parties such sums as they deem proper for the time, expense, and trouble of arbitration, including arbitration and attorneys' fees. This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. The arbitrator's award shall be final and judgment may be entered upon it in any court having jurisdiction thereof. All arbitrations shall be held in San Diego County. 20.10 Entire Agreement. This Agreement and any exhibits, attachments, riders, addenda or amendments hereto contain the entire agreement between the parties. No subsequent alteration, amendment, change or addition to this Agreement shall be binding on the Contractor unless reduced to writing and signed by the Contractor. 21.0 RESOLUTION OF DISPUTES INVOLVING OWNER 21.1 Notwithstanding any contrary provisions in this Agreement, Subcontractor agrees that all disputes concerning the Project, in which the Owner is made or becomes a party, shall be resolved as follows: (a) The parties shall first attempt to resolve their disputes through good faith negotiation. If they are unable to resolve the dispute, then they shall conduct in good faith a non -binding mediation as follows. Any dispute or disagreement shall be promptly submitted to non -binding resolution before the Judicial Arbitration and Mediation Service (the "Service") in San Diego, California, in. accordance with the provisions hereof. The party seeking resolution shall give a written Notice of Demand to Resolve Dispute (the "Demand") to the party and to the Service to decide the dispute ("Mediator") and a copy of this Clause. Within ten (10) days after receipt of Notice, the other arty shall give written notice (the "Response") to the demanding party and the Service of any additional issues to be resolved, its response to the issues raised by the demanding party and whether it agrees to the Mediator chosen and, if not, the name of another Mediator from the Service. If there is no response within the time allotted, the Service, through the Mediator named, shall proceed with the resolution by giving written notice to all parties of its proceedings and hearings in accordance with its usual procedures. Within ten (10) days after receipt of the Response, the demanding party may respond to the issues ,1 raised by responding party and may object to the Mediator chosen by the responding party, If the INITIAL WITIAL Project: GRIFFIN RANCH Contract #: 30-3009 Page 12 demanding party fails to so object to the Mediator; then the service, through such Mediator, shall proceed with the resolution by giving written notice to all parties of its proceedings and hearings in accordance with its usual procedures. In the event the parties cannot agree upon a Mediator, the Service shall select and name a Mediator to conduct the hearings. In the event the Service is no longer in business and there is no comparable successor, then the Mediator shall be chosen pursuant to the reference provisions of Code of Civil Procedure Section 638, et seq. r The resolution hearings shall be conducted in accordance with the Code of Civil Procedure Sections 638, et seq., except as may otherwise be provided herein. The parties shall be entitled to full rights of discovery as set forth in the Code of Civil Procedure for civil actions tried in the Superior Court of the State of California, subject to such orders as may be made by the, j Service.' The Mediator shall follow the substantive laws of the State of California, including the Rules of Evidence, and his decision shall be subject to review thereon as would the decision of the Superior Court of the State of California sitting without a jury; provided, however, that no decision shall be reversed for the Mediator's failure to follow the rules of procedure for trial courts of the State of California. The Mediator shall not consider anything outside the record unless notice is given to all parties with the opportunity to respond to such matters. The costs of the resolution shall be split equally between the parties. Each party shall be responsible for its own attorney's fees. All parties to this Agreement expressly consent to the jurisdiction of the Service and to the Superior Court of the State of California, in and for the County of San Diego. (b) If the parties cannot resolve their disputes through negotiation or mediation, then Contractor and Owner mutually agree to submit the dispute to binding arbitration pursuant to section 20.9 above. (c) Subcontractor further agrees to incorporate Attachment 2 in any contract it enters into with a sub - subcontractor for this Project, so as to bind such sub -subcontractor to these dispute resolution terms. INITIAL INITIAL 9 . I I Project: GRIFFIN RANCH Contract #: 30-3009 Page 13 ATTACHMENT 1 INDEMNIFICATION Notwithstanding any other provision in this Agreement, Subcontractor shall defend, indemnify and hold harmless the Contractor, Owner, Owner's partners and the partners, employees, officers, directors, affiliates and agents of each of them, from all claims, liabilities, causes of action, costs, losses, damages, expenses and judgments (including attorneys' fees) (collectively, "Claims") arising in any way out of the performance of Subcontractor's work under this Agreement, including any such claims arising from designs prepared by or obtained by Subcontractor. Subcontractor's obligations as stated above shall apply regardless of fault or negligence, active or passive, on the part of Subcontractor or its sub -tier subcontractors, and regardless of fault on,,the part of any indemnified party, it being the intent of this Agreement that Subcontractor's i indemnty obligations be interpreted in the broadest possible manner; provided that, as to any indemnified party and to the extent mandated by California Civil Code Sections 2782 through 2784, Subcontractor's obligations to indemnify shall not be applicable to injury, death or damage to property arising from the sole negligence or sole willful misconduct of said indemnified parties or of contractors who are directly responsible to the indemnified party or for defects of design provided by Owner; but provided further that the foregoing limitations shall not apply as to any insurance required by this Agreement. Ly M1 INITIAL ITIAL Project: GRIFFIN RANCH Contract #: 30-3009 ATTACHMENT 2 Page 14 RESOLUTION OF ANY DISPUTES INVOLVING OWNER Dimnute Resolution Procedures. Notwithstanding any contrary provisions in this Agreement, Subcontractor agrees that all disputes concerning the Project, in which the project owner ("Owner") is made or becomes a party, shall be resolved as follows: W The parties shall first attempt to resolve their disputes through good faith negotiation. If they are unable to resolve the dispute, then they will submit to a formal non -binding mediation in accordance with section 21 of the Standard Terms and Conditions of the contract. 00 If the parties cannot resolve their disputes through negotiation or mediation, then Contractor and Owner mutually agree to submit the dispute to binding arbitration pursuant to section 20.9 of the Standard Terms and Conditions of the contract. (iii) Subcontractor further agrees to incorporate this Attachment in any contract it enters into with a sub -subcontractor for this project, so as to bind such sub -subcontractor to these dispute resolution terms. INITIAL INITIAL Project: GRIFFIN RANCH Contract #: 30-3009 ATTACHMENT 3 Page 15 INSURANCE REQUIREMENTS for SUBCONTRACTORS, CONSULTANTSAND SUPPLIERS Prior to entering into a contract with the Contractor/Developer, a subcontractor, consultant or supplier whose work includes being on the Project must submit proof of the insurance specifications detailed below: Commercial General Liability: a) Type of Coverage (Must be listed in Certificate): (Mandatory) Occurrence Owner's and Contractor's Protective (must be stand alone dedicated to this project) • Contractual Products/Completed Operations (For Applicable Trades) Broad Form Property Damage Explosion, Collapse and Underground Hazard b) Limits: $1,000,000 General Aggregate $1,000,000 Products - Completed Operations Aggregate $1,000,000 Personal & Advertising Injury $1,000,000 Each Occurrence c) Additional Insured (must read exactly as follows): TRANS WEST HOUSING, INC. MCCOMIC CONSOLIDATED, INC. GRIFFIN RANCH LA QUINTA, LLC. NOTE: Additional parties may be added. d) Deductible (must read as follows under Description of Operations): "This Certificate applies to all operations of the insured on behalf of the certificate holder (and all jobsite products). Certificate holder and all others required by the contract documents are hereby named additional insured per Form B (CG 20 10 11/85 attached) or (its equivalent. waiver of subrogation on workers' comp included." In addition, Form B of either (CG 20 10 11/85) or its equivalent must be attached to Certificate. e) * Subcontractor agrees to maintain the above insurance for the benefit of Contractor, Owner and those named in section C of additional insured (see above) for a period of ten years, or the expiration of the Statue of Limitations pursuant to Code of Civil Procedure, Section 337.15, whichever is later. Automobile Liability: a) All Owned or Scheduled Autos: This includes all company owned vehicles as well as specified company owned vehicles covered by this particular policy. If a company does not own any vehicles and their policy does not include this coverage, the subcontractor must provide a letter on his letterhead explaining this situation and guaranteeing that he will not bring such vehicles onto the site in the future without first securing the additional insurance coverage. b) Hired Autos: This includes company leases and/or temporary rental vehicles. The same procedure as described above under "Owned or Scheduled autos should be followed if the company does not use hired vehicles. C) Non -Owned Auto: This covers employee -owned, -leased, or -rented autos which may be brought onto the site. Personal auto insurance policies are not acceptable in lieu of a business auto policy given that the limits are usually significantly less than $100,000 and because monitoring such policies is not reasonable. INITIAL 9ITI Project: GRIFFIN RANCH Contract #: 30-3009 16 d) Any Auto: The designation "Any Auto" would include all of the above conditions and isgthe simplest and preferable way to meet all of the auto coverage requirements described above. e) Limits: $1,000,000 Combined Single Limit. Workers' Compensation: a) Statutory Limits: Workers' Compensation policies do not have limits but are "Statutory". Therefore the important items required on the certificate are: 1) the policy number, 2) the effective and expiration dates, and 3) the certificate holders. b) Employers'Liability: $1,000,000EachAccident $1,1000,000 Disease - Policy Limit $1,000,000 Disease - Each Employee c) Waiver of Subrogation (for applicable trades) Professional Liability: A. In addition to the above requirements, all professional consultants are required to carry Professional Liability Insurance. This insurance should be maintained in force until expiration of the applicable statue of limitations for claims related to design defects for the project. a) Limits: .$1,000,000 Each Claim $1,000,000 Aggregate b) Deductible: $10,000 DETAILS OF INSURANCE REQUIREMENTS Subcontractor shall obtain and maintain the following: 1 • Workers' Compensation Insurance complying with applicable State and Federal Statutes. 2• Employer's Liability Insurance of not less than $1 million each accident; $1 million bodily injury each employee; and, $1 million policy limit for bodily injury by disease. .3. Commercial General Liability Insurance providing coverage on an occurrence basis with a maximum deductible amount of $5,000 per occurrence and Subcontractor shall assume any and/or all of the deductible, and with limits of not less than $1 million each occurrence for bodily injury and property damage liability combined, $1 million annual general aggregate, and $1 million products and completed operations annual aggregate and including: a. Premises and Operations Liability coverage. b. Owners and Contractor Protective Liability coverage. C. Products and Completed Operations Liability coverage. d• Broad Form Property Damage Liability coverage including Complete Operations. e. Blanket Contractual Liability coverage including, to the maximum extent possible, coverage for the indemnification of Owner and Contractor contained in this Subcontract and the obligations under the subcontracts, including the indemnification provisions contained therein. f. Deletion of any limitations relating to liability arising out of explosion, collapse or underground hazards. 9. Personal and Advertising Injury Liability coverage with no limitations on coverage for contractual assumptions or employment -related offenses. h. Deletion of any limitation on contractual liability or other coverage for operations within fifty (50) feet of a railroad property. i• A provision that the insurance company has a duty to defend all insureds under the policy and a provision that defense costs are paid in addition to and do not deplete any of the Policy limits. j • A provision that the annual general aggregate and products and completed operations annual aggregate apply separately to each project for which Subcontractor provides services away from premises owned by or rented to Subcontractor. 4. Automobile Liability Insurance with limits of at least $1 million each occurrence for bodily injury and property damage liability combined and insuring liability arising out of the ownership, maintenance or use of any owned, hired or non -owned vehicles. WA INITIAL i I f Project: GRIFFIN RANCH ' Contract #: 30-3009 Page 17 5. Aircraft and/or Watercraft Bodily Injury and Property Damage Liability Insurance if Subcontract r uses or intends to use owned or non -owned watercraft and/or aircraft in its operations, with limits of not less than $2 million per occurrence.for bodily injury and property damage liability combined. B. Each policy of insurance carried pursuant to this Agreement shall: Be issued by an insurance company licensed to do business in California, with a rating classification of "A" or better and a financial size category rating of "VII" or better according to the latest addition of the A.M. Best Company Key Rating Guide and acceptable to Contractor and Owner. 2. State that such policy is primary and non-contributory with any insurance carried by Owner or Contractor. Be maintained in force from the date construction commences until final completion of the improvements. In addition, the Commercial General Liability Insurance coverage shall be maintained in force after completion of the improvements until expiration of the applicable statute of limitations for claims related to latent defects and construction improvements for real estate. 4. Be otherwise satisfactory to Contractor and Owner. C. Any insurance required to be maintained by Subcontractor pursuant to this Agreement may be made part of a blanket policy of insurance, so long as such blanket policy contains all of the provisions required pursuant to this Agreement and does not reduce the coverage, impair the rights of Contractor, Owner or is affiliates as contemplated in this Agreement, or in any way fail to fulfill all of the requirements set forth in this Agreement. D. All policies of insurance required to be maintained by Subcontractor pursuant to this Agreement, with the exception of Workers' Compensation, Employer's Liability and Automobile Liability policies, shall name Contractor, Owner, any general or limited partners of Owner and their partners, an overnmental entity requesting coverage and any third -party lenders as additional insured using Insurance Services Offices Form B (CG 20 10 11/85) or its equivalent. Owner and any general or limited partners of Owner and its partners shall be provided the same extent of coverage as provided to Subcontractor. All endorsements effecting such additional insured status shall be acceptable to Owner and Contractor. E. Prior to the execution of this Agreement, Subcontractor shall have furnished to Owner and Contractor either: (a) the original or a certified copy of each insurance policy required to be in force upon the commencement of this Agreement, bearing notations evidencing the payment of premiums and au endorsement showing the required additional insured; or . (b) a certificate of insurance accompanied by an endorsement showing the required additional insureds satisfactory to Owner and Contractor in substance and form, certifying the issuance and effectiveness of such policy in the amount of coverage afforded thereby and certifying that the policy shall not be canceled without thirty (30) days after such insurance is first obtained, and (c) evidencing renewal of all insurance required to be maintained by Contractor pursuant to this Subcontract not less than thirty (30) days prior to the expiration of the insurance. Notwithstanding the requirements of this paragraph, at Owner's request Subcontractor shall provide to Owner a certified copy of each insurance .policy required to be in force at any time pursuant to the requirements of this Agreement or its exhibits or attachments. F. Subcontractor for itself and to the extent legally possible to do so, on behalf of it insurers, hereby waives and releases Owner and Contractor from any liability for any loss or damage or loss of property located upon the Project, which loss or damage is of the type covered by the insurance required to be maintained by it hereunder, irrespective of any negligence on the part of Owner or Contractor which may have contributed to or caused such loss. Subcontractor shall obtain a waiver of any right of subrogation which its insurers may acquire against Owner or Contractor by virtue of the payment of any such loss covered by such insurance. G. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, WAIVER OF ANY INSURANCE REQUIREMENTS SPECIFIED IN THIS ATTACHMENT, INCLUDING THE AMOUNT OR EXTENT OF INSURANCE COVERAGE, MAY ONLY BE OBTAINED UPON WRITTEN AUTHORIZATION OF TRANS WEST HOUSING, INC. INITIAL NITIAL Project: GRIFFIN RANCH Contract #: 30-3009 Page 18 ATTACHMENT 4 EVIDENCE COLLECTION AGREEMENT Should any construction equipment and or material, regardless of ownership or possession, be involved in an occurrence, it will be the right and the duty of the General Contractor/Project Owner to collect and store all such equipment in a safe and secure place for no more than 7 days (or one week) after which the equipment will be formally released by the General Contractor/Project Owner claims adjustment personnel 'representing any insurance company bound to insure the Contractor/Project. GENERAL, INITIAL i OWNER E V, S v TITLE f12, DATE DATE EXHIBIT B PRICE & PAY SHEET GRIFFIN RANCH DEMO UNLIMITED, INC. CMT# 30-3009 CLEARING & GRUBBING . . . . .... . . . . - - - - - - - - - - Mobilization 1 LS Clearing & Grubbing 1 LS Removal of Tamarisk Trees— 1 EA Total: J— $12,500.00 $276,780.00 $730,566.00 $1)013,846.00 Note: PLEASE ATTACH A COPY OF SCHEDULE WHEN SUBMITTING AN INVOICE FOR PAYMENT INDICATING WHAT IS BEING BILLED I Initial Initial EXHIBIT "A" SCOPE OF WORK CLEARING & GRUBBING GRIFFIN RANCH PART 1. SPECIFIC INCLUSIONS A. All work performed by Demo Unlimited, Inc., from here forth known as Subcontractor, under this contract shall comply with all specifications and requirements of the CITY OF LA QUINTA and all governmental agencies having jurisdiction thereof and TRANS WEST HOUSING, INC., and their assigns. B. This contract specifically includes, but is not limited to the following items of work all of which are included in the contract amount prices established in EXHIBIT B herewith;, all of the following, unless noted otherwise, include labor, material, equipment installation, supervision and all applicable taxes, fees, insurance, all Federal, State and local governing agency requirements by these agencies which will supersede and be stringent to this Scope of Work, excess Federal, State personnel wage requirements. 1 • Subcontractor will furnish all labor, materials and equipment for mass, clearing and grubbing work in accordance with plans, specifications and SLADDEN ENGINEERING, Geotechnical Report February 10, 2005 and Grading Plans: MSA INC., dated May 2, 2005. L• Subcontractor agrees to complete all operations, meeting all requirements of plans, soils reports, codes and specifications and per all applicable inspecting agencies including, but not limited to the following: all tree removal, brush, shrubs, misc. vegetation, all trash and debris. Contractor is to furnish clearing permits as required by the CITY OF LA QUINTA. Any fee required for permit to be paid by Contractor. It is understood that Subcontractor retains all the expertise in his field of work and has a professional understanding of the work required to complete project. This is a lump sum "turn key" contract; thus, there will be no extras to this contract. 3 • Tamarisk Tree Removal will cover the entire site except those trees on 50 Street. All other removals of Tamarisk's will include excavation of all roots and root balls which may require a TO deep x 15'0 square section to be removed per tree. Subcontractor has met with Griffin Group's representatives and agrees to use every means possible to save all Tamarisk's trees on South side of remaining parcel adjacent to TWHI's P.L. to Griffin parcel. (Griffin.side only.) 4• Plans and specifications are complimentary with all governing codes, and any omissions from plans and -specifications shall not relieve this Subcontractor from the responsibility for furnishing all operations required by applicable governing bodies, or usually furnished, made, or installed in a project of the scope and general character indicated by the plans and specifications. 5• The Subcontractor shall review all layout dimensions between various plans, details, and will contract and work close cooperation with the other trades whose work is dependent or associated with his scope of work to eliminate construction errors and ensure harmonious continuation of job progress. Construction errors resulting from lack of contact or operation of created by this co Subcontractor or by party creating said error, shall be remedied oat no cost to the Contractor. 6• All staking shall be at the expense of Contractor. Subcontractor shall pay for restaking required due to the carelessness of the part of this Subcontractor, as a result of stakes lost due to Subcontractor's failure to perform, or any additional staking required due to Subcontractor displacement of stakes, or wrongly placed by Subcontractor instruction. One set of P.L. stakes will be provided. Each stage of staking will be provided once; any additional stakes or restaking will be at the expense of the Subcontractor. It is the responsibility of this Subcontractor to schedule staking with Contractor's representative (engineer), within 48 hours to reschedule, and any backcharges to be notified in writing within 48 hours prior to restaking. 7• Contractor agrees and will provide all drinking water and temporary toilet facilities. Contractor will provide all water supply for grading operation and will obtain the proper construction meter from the Coachella Valley Water District. Subcontractor to provide all filing apparatus and transportation equipment including highline if required from meter to storage tank or standpipe (on project). Cost for above mentioned items are included in contract costs, except actual water cost which will be paid by contractor. Water bills to be for to Contractor for payment. 8• Contract includes all listed items; Contract excludes soil testing, engineering, inspections, permit fees. This proposal includes dust control exclusively in our areas of operation during the hours on a 7/2 cents basis all PM10 measures are included in. Retention to be paid 30 days after completion of this subcontractor's work; All traffic control and sweeper provided by subcontractor. 9• Mobilization shall include all labor and equipment to transport all clearing equipment, supplies and safety personnel. Subcontractor to provide all necessary transportation permits, fees and emergency vehicles, traffic control personnel, detour equipment and supplier, per State, local laws and codes to transport equipment. Initial Page 1 of 3 Initial f � 1 � 1 '1 � '0. Subcontractor agrees and understands that he will provide and deploy maximum number/type of grading equipment and manpower at all times during his scope of work, including providing fuel and maintenance service and all equipment during all grading and related work through completion. If, because of failure to provide adequate equipment or manpower, or to perform to an agreed production schedule with Contractor, this Subcontractor shall be in default of this Contract. Production Schedule will be an Exhibit to this contract. 11. Subcontractor agrees to maintain the agreed upon production schedule of4 weeks, barring ' IZ16 unknown act of God. Production will begin on about May 16, 2005 and should be complete by J,dfy 20, 2005. 7 fl11-G> CIO 12. This contract is a "lump sum" contract. The only exceptions are excess over -ex and re -compact and/or a substantial change in plans or soil report recommendations. Excess over -ex and re - compact must be verified by cross section issued by Soils Engineer. 13. Subcontractor is required to notify and locate any present underground utilities and will be responsible for any damage of any underground utilities caused by his clearing operation. Subcontractor is aware that existing water lines are on 541s Street as well as a line adjacent to Mery Griffm's house near west side of Tamarask's trees. is located where grading operations will occur. Subcontractor will take special care to prevent damage to these utilities. 14. This Subcontractor shall at all times enforce strict discipline and good order among his employees and shall not employ on the project any unfit person or anyone not skilled in the task assigned to him. Subcontractor agrees and understands that he will strictly abide by rules and regulations set forth by TRANS WEST HOUSING, INC. as follows: a) No alcohol or drugs (any substance abuse material) will be allowed on, or consumed during working hours or at any time while on the project. b) No animals will be allowed on the premises at any time. c) No loud playing radios allowed on the job at any time. Consuming of or bringing alcohol or drugs to this project will constitute immediate dismissal of the Subcontractor from the project and cancellation of this contract. 15. Prior to any commencement of work on this project, this Subcontractor agrees and will obtain and maintain, at their sole cost, insurance policies covering Contractor's property for any purpose pursuant to this Agreement. See Attachment 3 regarding insurance requirements that accompanies this contract. 22. Prior to commencement of work, Subcontractor must supply the following: a) Certificate of Insurance for all required insurance and a copy of a valid and current Contractor's license; b) A completed W-9 form; c) A list of principal suppliers of labor, services, equipment and materials. This list shall include the names, addresses and telephone numbers of all companies supplying rental of all equipment to the job; d) Home phone numbers of Subcontractor, Superintendent and Foreman; e) Subcontractor shall schedule and attend a pre -job meeting with Coachella Valley Water District prior to water line construction. Subcontractor has read and understood the Soils Report and Addendum's prepared for the site. Subcontractor shall comply with all Soil Report recommendations. fl; A list of all hazardous materials to be used on site, if any. 16. Subcontractor shall: a. Comply fully with all laws, orders, citations, rules, regulations, standards and statutes with . respect to substance abuse, occupational health and safety, accident prevention, safety equipment and practices prescribed by Owner, Contractor, Federal, County, City and any other agency or body having jurisdiction or cognizance over the work being performed; b. Indemnify, defend penalties, damages, liability, loss, costs, and expenses, including attorney fees, arising from any alleged violation or infraction of the foregoing by subcontractor, its agents, employees or third parties. C. It is a requirement that all subcontractors comply with Trans West Housing, Inc.'s safety policies and procedures. It is therefore mandatory that they know our policies prior to work starting on a particular job. It is a Trans West Housing requirement that all Initial_Gsubcontractors participate in a pre -job safety compliance meeting where the sa ety ' Initial Page 2 of 3 e . � t � � program for the site will be outlined and communicated both orally and in writing. Safety audits will be performed to monitor subcontractor compliance to safety guidelines outlined at this meeting. d. Provide copies of the Material Safety Data Sheets (MSDS) for those covered products and substances that you have supplied to Trans West Housing, Inc., in accordance with the Federal OSHA Hazard Communication Standard (29 CFR 1910.1200) and' the various State "Right to Know" Acts. SUBCONTRACTOR: DEMO UNLIM D, IN By: ., Date: — Contractors License No.: Ll Initial CONTRACTOR, WES OU G, INC. By: Robert K. aig, Executive Vice President Date: Page 3 of 3 Initial 0