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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Requirements for Bidding and Instructions To Bidders

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For the Construction of the North Shore Intercepting Sewer

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

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

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

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

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

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

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

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

The subjects covered in General Specifications are:

(1)

Definitions of doubtful terms.

(2)

The Engineer to settle disputes.

(3)

Duties of the Engineer.

(4)

Duties of the Contractor.

(5)

Hours and days of work.

(6)

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

(7)

Contractor to be represented at all times.

(8)

Time of commencing and completing the work.

(9)

Liquidated damages for delay in completion.

(10)

The City may change the plans.

(11)

The City may increase the amount of the work.

(12)

Inspection and its conduct.

(13)

The Contractor to be acquainted with laws relating to the work.

(14)

Contractor responsible for damages to persons or property.

(15)

City to be protected against patent claims.

(16)

Abandonment of contract and its remedy.

(17)

Estimates of work done and moneys due.

(18)

Payments for extra work.

(19)

Character of workmen to be employed.

(20)

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

(21)

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

(22)

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

(23)

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

(24)

Cleaning up after completion.

(25)

The Contractor’s relations to other contractors.

(26)

The portions composing the contract.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CONTRACT

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

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

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

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

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

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

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

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

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