CONSTRUCTION MANAGER BOND AGREEMENT
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1 CONSTRUCTION MANAGER BOND AGREEMENT This Supplemental Agreement dated as of April 29, 2014 between Pepper Construction Company ( Construction Manager ) and Northbrook Public Library ( Owner ) regarding Auditorium & First Floor Renovation ( Project ). WHEREAS, on or about April 4, 2013 the parties hereto executed that certain Owner-Construction Manager Master Agreement ( CMMA ), with respect to the Project which the parties wish to modify and amend to the extent set forth herein. NOW THEREFORE, for good and valuable consideration receipt of which is hereby acknowledged, the parties hereto agree as follows: 1. This Supplemental Agreement shall, to the extent set forth herein, modify, supplement and supersede anything to the contrary in the CMMA, however, the CMMA shall otherwise remain valid and binding. 2. Construction Manager shall not be required to provide a Payment and Performance Bond for one hundred percent of the value of the Project (as evidenced by the Final Cost Estimate) but shall instead provide a limited Payment and Performance Bond with respect to, and with penal sum equal to, the sum of Construction Manager s General Conditions (the GC Bond ), guarantying only Construction Manager s obligation under the CMMA as modified by this Supplemental Agreement (collectively the Contract ) to provide those General Conditions items set forth on Exhibit A annexed hereto, in an amount not to exceed, in the aggregate, Seven Hundred, Fifty-Three Thousand, Three Hundred Fifty-Three Dollars ($753,353.00), which aggregate sum is subject to adjustment to the extent Construction Manager is entitled to additional compensation for General Conditions listed in Exhibit A and with Surety s consent whenever there is a material change of 15% or more of the total contract price. 3. The Surety s liability and responsibility pursuant to the GC Bond shall be limited to providing those General Conditions items set forth on Exhibit A subject, however, to the penal sum of the GC Bond. If the penal sum of the GC Bond is increased for additional general conditions costs for which the Construction Manager is entitled to additional general conditions under the CMMA, the additional costs, if any, shall be passed on to the Library. 4. The CMMA is amended to limit the coverage of the performance and payment bonds provided by Pepper Construction Company as the result of Prime Trade Contractors providing performance and payment bonds to cover their contracted obligations as specified in the documents issued between Pepper Construction Company and the Prime Trade Contractor.
2 Specifically, the performance and payment bond provided by Pepper Construction Company does not provide the Owner any remedies for a Prime Trade Contractor s default of their contracted obligations for bid packages. The Owner s sole remedy for non-performance of the specified Prime Trade Contractors is the performance and payment bonds provided by the Prime Trade Contractors. 5. Promptly upon submission of the GC Bond to the Owner (in the form annexed hereto as Exhibit B), Owner shall pay the full amount of Construction Manager s actual premium cost therefore, anticipated to be approximately Four Thousand Seven Hundred Fourty-Six Dollars ($4,746.00), without retention. OWNER: Northbrook Public Library CONSTRUCTION MANAGER: Pepper Construction Company By: By: Anna Amen Jim Creath Its: Business Manager Vice-President
3 Exhibit A NORTHBROOK PUBLIC LIBRARY AUDITORIUM & 1 ST FLOOR RENOVATION CM Performance & Payment Bond Unassigned Allowances $57,540 General Conditions $322,390 Pre Construction $8,500 Contingency $200,577 Insurance $55,345 Fee $109,001 Total CM Bonded Amount $753,353
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