Your Committee on Contracts last year presented a proposed form of contract, including bond, for use in municipal construction, and also a detailed report discussing certain matters affecting the letting of municipal work. This report and form of contract were published and distributed to the membership in advance of the proceedings, with a request for further discussion and suggestions. Only one definite criticism was received. In response to this criticism, a slight modification has been made in the terms of the contract as previously printed. The committee still feels that the policies underlying the proposed form as published last year are correct, and is unwilling to make any radical changes in the intent of the various clauses. Since the submission of this form by the American Society for Municipal Improvements Committee last year, the Joint Conference on Standard Construction Contracts has published a general form for engineering contracts. This form has apparently received the tentative approval of the Engineering Societies participating in the Joint Conference and, with minor modifications, will in all probability be generally adopted.

Because of the general terms in which it is written, this form is not satisfactory for use in municipal work, but your committee feels that any proposed form of municipal contract should recognize the existence of the Standard Joint Conference form and should conform thereto in so far as is reasonably possible. The committee has, therefore, rewritten the proposed municipal contract form and has adopted the general order of subjectmatter used in the Joint Conference form. In its rewriting, it has use the language of the Joint Conference form in so far

as it was reasonably applicable, but in many instances has substituted the clauses of the American Society for Municipal Improvements contract for the corresponding clauses of the Joint Conference form.

In the preparation of this draft the committee is indebted to Mr. Ward P. Christie, Engineer of the Joint Conference, for criticisms and suggestions of great value. For this assistance it desires to express its grateful appreciation.

Your committee does not recommend the arbitration clause contained in the Joint Conference form and has adopted instead the provision for review of decisions, printed last year.

It may be possible, after further discussion, to bring the two documents into still closer harmony, and for that reason the committee recommends that the form as now presented be printed and distributed to the membership and that the Secretary be authorized to arrange for a Conference Committee between your committee of the American Society for Municipal Improvements and a corresponding committee of the Associated General Contractors. Respectfully submitted,

as principal, hereinafter called the Contractor, and.

as surety, parties of the first part (4) and the City of..

(1) party of the second part,

of

WITNESSETH:

WHEREAS, the..

the authority vested in the said.

(2) of the said City of

(1) under the provisions. (3) approved 19......., and by virtue of .(2)

did let unto the said party of the first part, the work of constructing

NOW, THEREFORE, In consideration of the payments and covenants hereinafter mentioned to be made and performed by said second party, the first party hereby covenants and agrees to do the work above mentioned in a substantial and workmanlike manner in conformity with the plans and specifications of such work hereto attached, and the conditions of this contract.

Article 1. Scope of the Work. The work to be done is to furnish all tools, machinery, materials and labor necessary and required, and to perform in accordance with the terms and specifications of this contract the work of (5).

Article 2. Time of Completion. Construction work must begin within. days after written notice to do so shall have been given to the contractor by the engineer and shall be carried on regularly and uninterruptedly at a rate to secure its full completion within. ..calendar days

thereafter, unless the time shall have been extended as provided in Paragraph nine (9) of the Conditions and then within said period plus the additional time allowed, the rate of progress and time of completion being essential conditions of this agreement. If the contractor fails to complete the work within the time above specified, an amount sufficient to pay the cost of the engineering and inspection for the extra period necessary to complete this contract shall be deducted from sums due the contractor.

Notes: (1) Insert name of Municipality. (2) Insert title of contracting board, council, etc. (3) Insert specific authority for contract, as-Ordinance No. 1997. (4) If customary in a particular locality, designations of party of first and second part may be reversed thruout, or the surety may be designated as a separate party.

Note: (5) Insert general statement of character and scope of work.

Additional Deductions for Not Commencing and Completing on Time. If the contract work is not commenced and fully completed according to the terms of the contract within the time herein limited for its performance, unless further time for the commencement and completion be granted to the contractor by said party of the second part, the contractor shall pay for each day that may elapse after the time so limited for its completion and before its final and full completion the sum of... dollars per day, when the gross amount to be paid to the contractor shall be less than three thousand dollars, and one dollar per day additional for every one thousand dollars above that sum as liquidated damages.

Amount to Be Deducted. Where the forfeiture or damages (or either or all) are imposed by the terms of this contract for the failure, neglect or default of the contractor in the performance of this contract or where such forfeiture is imposed or declared by the laws of the State or the ordinances of the municipality, the amount of every such forfeiture, when incurred by the contractor, may be deducted and withheld from any money whatscever due or to become due from the municipality to the contractor, and when so deducted and withheld shall be deemed and taken as a payment to that extent.

Article 3. Payment - Unit Prices. The contractor will be paid for the amounts and quantities of work done and materials furnished of the following classes, the estimated quantities of which are as follows: (7).

Approximate Quantities.

Payment-Prices Paid. In consideration of the completion. by the contractor, party of the first part, of all the work embraced in this agreement in conformity with the plans, specifications and conditions herein made a part of this agreement, the City of party of the second

Note: (7) If desired to pay only for completed work, first sentence must be rewritten. In most cities it is customary to pay either 85% or 90% on amount of estimates, depending on the character of the work.

part, hereby agrees to pay said party of the first part the following prices: (6)

For

For

etc.

Article 4. Progress of Payments. On or before the tenth day of the month next succeeding that in which any materials have been furnished and built into the work or delivered upon the site of the work and paid for by the contractor, or in which any labor has been performed upon the work embraced in the agreement, the City shall pay the contractor.

per centum of the amount of such materials furnished and labor done during the preceding month, as set forth in the engineers' estimates thereof. Such estimates shall not be required to be made by strict measurement, but may be made either by measurement or by estimation, or both, as the engineer may deem just and fair, and it shall be sufficient if they are approximate only. It is further agreed that all such estimates may be withheld if, in the opinion of the engineer, the work is not proceeding in accordance with the terms of this agreement, and if withheld, they shall not be considered as due the contractor.

Article 5. Acceptance and Final Payments. The final estimate, to which shall be attached a certificate of acceptance by the engineer stating that the work has been fully completed in substantial compliance with the terms of the agreement, specifications and plans or authorized modifications of the same and to his entire satisfaction, shall be filed with the City and contractor within thirty days after the work is completed. If the contractor accepts such final estimate, he must so indicate by affixing thereto his approval. If he does not accept, he shall, within fifteen (15) days after the date of the engineer's formal acceptance as aforesaid, file in writing with the City his detailed objections thereto, which shall be duly considered and the City shall give the contractor an opportunity to be otherwise heard within a period of thirty (30) days after filing his objections. Within thirty (30) days after such

Note: (6) See recommended bid items for use in sewers or paving work, appended.