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HomeMy WebLinkAbout5.A.2. Special Inspection and Construction Testing Services for New Fire StationCity of Shakopee MEMORANDUM TO: Mayor and City Council Mark McNeil, City Administrator FROM: Kris Wilson, Assistant City Administrator II di SUBJECT: Special Inspection & Construction Testing Services for New Fire Station DATE: March 30, 2011 Introduction The Council is asked to authorize the hiring of American Engineering and Testing, Inc. to perform special inspections and construction testing services for the new fire station project, at an estimated cost of $24,407. Background Construction of the new fire station is scheduled to begin shortly. One of the professional services the City will need at various points throughout the project is known as "special inspection and construction testing" servies. Oertel Architects has obtained a quote for the work from American Engineering and Testing, Inc. (AET), which is the same firm that conducted soil borings of the site during the design phase. AET's services will involve monitoring and testing the soil corrections, excavating, concrete and key structural work required of the general contractor to ensure the work meets our expectations and will result in a structurally sound building that will serve the City for many years to come. A copy of AET's proposal, which includes a complete description of their services is attached. Budget Impact Funds for these services are included in the overall project budget and the quote from AET is within the budgeted amount for this service. It should be noted, however, that this is only a price estimate and that conditions or circumstances at the site may result in changes to this price once the project is underway. If necessary, costs in excess of the estimated amount would come from the project's contingency fund. Relationship to Vision This specific item is largely housekeeping, however, the overall construction of the new fire station is intended to contribute toward Goal A: Keep Shakopee a safe and healthy community, and Goal B: Positively manage the challenges and opportunities presented by growth, development and change. Recommendation Staff and Oertel Architects recommend the hiring of American Engineering and Testing to provide special inspection and construction testing services for the new fire station at an estimated cost of $24,407. Requested Action If the Council concurs, it is asked to offer a motion to accept the proposal of American Engineering and Testing to provide special inspection and construction testing services for the new fire station at an estimated cost of $24,407. AMERICAN ENGINEERING TESTING, INC. mon March 22, 2011 City of Shakopee do Oertel Architects, Ltd. 1795 St. Clair Avenue St. Paul, Minnesota 55105 Attn: Mr. Jeff Oertel, AIA RE: Proposal for "Special Inspection" and Construction Testing Services Shakopee Fire Station #2 Shakopee, Minnesota AET Proposal No. 22 -00582 Dear Mr. Oertel, CONSULTANTS ENVIRONMENTAL r GEOTECHNICAL MATERIALS FORENSICS Thank you for the opportunity to provide you with a proposal to perform "Special Inspection" and construction testing services for the Shakopee Fire Station #2 project. American Engineering Testing, Inc., (AET) is pleased to provide this letter which presents our anticipated scope of services, our unit rates and a fee estimate to perform these services. Geotechnical Information We performed a geotechnical exploration and analysis for this project and presented our results in our Report of Geotechnical Exploration and Review dated September 28, 2010 (AET Project No. 20- 10166). We also performed an additional geotechnical exploration and analysis in November, 2010 and presented our results in our Addendum to the Report of Geotechnical Exploration and Review dated December 22, 2010. In the reports, the site soil profile is generalized as 2 to 9 feet of fill underlain by naturally deposited coarse alluvial soils consisting of sand, sand with silt, gravelly sand and gravel. We recommended that the existing fill be subeut from the building pad, including appropriate lateral oversizing, followed by placement of non - organic granular soils, compacted to design grades according to the project specifications. Please refer to our reports for more details regarding site conditions and our recommendations. Project Information We understand the proposed construction will consist of a new fire station building. We further understand this building will: • Have one above grade level except for the west end of the building which has a mezzanine level and three story hose tower. • Have a first floor elevation of 796.5 feet. • Have an "L" shaped footprint with dimensions of about 101 feet by 187 feet. • Be supported by conventional spread footings designed using an allowable soil bearing pressure of 3,000 pounds per square foot (psf). 550 Cleveland Avenue North 1St. Paul, MN 55114 Phone 651 -659 -9001 ;Toll Free 800- 972 -6364 !Fax 651 - 659 -1379 lwww.amengtest.com IAAIEEO This document shall not be reproduced, except in full, without written approval from American Engineering Testing, Inc. irwo Shakopee Fire Station #2 AET Proposal No. 22 -00582 March 22, 2011 Page 2 of 7 • Have masonry walls with some structural steel columns and beams to support the metal deck roof. The mezzanine level will have precast plank for the first and second floors. • Be able to tolerate normal amounts of settlement for this type of structure (up to 1 -inch total and '/z-inch differential). Site work for the project will include construction of new exterior concrete pavement for the parking lot and drive areas and new site utilities. Scope of Services Based on our review of the available plans, specifications, and our discussion with you, our anticipated scope of services are outlined below. Excavation Observations and Soil Testing During excavation for the fire station building and parking lot/drive areas, a Staff Engineer from our firm will be at the site on a part-time basis to perform the following services: • Observe the soils in the bottoms of the excavations. • Perform shallow hand auger borings in the excavations. • Perform hand cone penetrometer (HCP) probes in the excavations. • Evaluate the suitability of the soils present in the excavations to support the anticipated fill and structural' loads. • Document the approximate elevations at various locations at the bottoms of the excavations. • Document that adequate oversizing of the excavations is provided to support lateral loads from the footings through the fill based on staking provided by others. During placement of fill in the building, pavement, and utility trench excavations, a Senior Engineering Technician will visit the site on a part-time basis to test the compaction of the fill. The technician will perform the following services: • In -place field density tests to evaluate the compaction of the fill soils using a nuclear density gauge. • Standard Proctor tests for each different type of fill encountered at the test locations. We have estimated 4 trips will be required by the Staff Engineer to perform the excavation and test roll observations and 30 trips will be required by the Senior Engineering Technician to perform the compaction testing of the fill soils. Reinforcing Steel Observations Prior to placement of concrete, AET will observe the mild reinforcing steel placed in the formwork for cast -in -place concrete elements for the building. These observations will be performed on a will -call basis by an experienced Engineering Technician II working wider the Shakopee Fire Station #2 AET Proposal No. 22 -00582 March 22, 2011 Page3 of7 guidance of ICC certified personnel. While at the site, the AET personnel will perform the following services: • Review the most recent plans and specifications available at the jobsite. • Observe that the correct number, size, alignment, and spacing of the bars are provided for the Structural elements observed. • Observe that the reinforcing steel bars are provided with the specified cover from formwork, the ground surface, and any future concrete elements. • Observe that the bars are free of dirt, rust, scale, ice, or other deleterious materials that will . reduce adhesion to the concrete. Any discrepancies or deficiencies that are observed will be brought to the attention of the contractor and/or their subcontractor. Daily reports of our observations will be available to the contractor and/or authorized personnel at the site. AET does not provide surveying services, therefore, our observations of the reinforcing steel will be based on the positioning of the formwork by the contractor and/or their subcontractors. We are not responsible for the exact locations of the formwork, structural bolts, or embedded items. Concrete Testing Personnel from AET will perform testing of concrete on a will -call basis when requested by the contractor. These services will be performed by experienced, ACI certified Engineering Technicians at the frequencies required by the project specifications. On site visits when we are observing reinforcing steel, we will have the same Engineering Technician remain at the site to perform testing of the concrete, thus reducing mobilization charges. Our services will include the following: • Document that the correct mix is delivered to the site by checking the delivery slips. • Test the slump of the plastic concrete delivered to the site. • Test the air content of the plastic concrete delivered to the site. • Measure the temperature of the plastic concrete delivered to the site. • Comparing the test results to the requirements of the project specifications. Any discrepancies from the project specifications will be brought to the attention of the contractor and/or their subcontractor. Daily field reports of our observations and testing will be available to the contractor and other authorized personnel at the site. During placement of the concrete, our Engineering Technicians will also cast test cylinders for compressive strength testing. The project specifications require one set of test cylinders be cast for each 150 cubic yards of each type of concrete placed each day and for each 5,000 square feet of slabs placed each day. Each set will consist of four cylinders; one which will be tested after 7 days and two which will be tested after 28 days. AET will also pick up the cylinders from the Shakopee Fire Station #2 AET Proposal No. 22 -00582 March 22, 2011 Page 4 of 7 site and return them to our laboratory for moist curing and testing. The results of our compressive strength tests will be presented periodically, as they become available. Masonry Observations and Testing During construction, AET personnel will perform observations during masonry wall construction. Our observations and testing will be performed by an experienced Engineering Technician II on a will -call basis, and will include the following services: • Observe that the proper size units are used. • Observe that the units are clean, sound and dry when placed. • Observe that the masonry bearing surfaces are clean. • Observe the placement and alignment of vertical reinforcing bars and dowels, and document that the correct sizes of bars are used. • Observe the placement and alignment of horizontal reinforcing bars, and document that the correct sizes of bars are used. • Observe that the correct lengths of bar lap splices are provided. • Observe that the proper clearance is provided between the bars and the masonry units. • Observe the general construction practices, including compliance with proper cold or hot weather protection as required by the project specifications. Any discrepancies from the project specifications will be brought to the attention of the contractor and/or their subcontractor. Daily field reports of our observations and testing will be available to the contractor and other authorized site personnel. While at the site the Engineering Technician II will also sample the mortar and grout. The grout "prism" specimens will be cast for compressive strength testing according to IBC guidelines. One set of four grout "prisms" will be cast for each 5,000 square feet of wall. One of the "prisms" will be tested for compressive strength after 7 days and two will be tested after 28 days. The fourth specimen will be held for testing, if required. AET personnel will cast 3 inch by 6 inch test cylinders of the mortar being used. One set of four mortar cylinders will be cast for each 5,000 square feet of wall. One cylinder will be tested after 7 days, and two will be tested after 28 days. The fourth cylinder will be held for testing, if required. The project specifications require that compressive strength testing be conducted on one set of masonry block prisms for each 5,000 square feet of wall. Each set will include 3 prisms. The prisms will be fabricated at the site and delivered to our laboratory for testing. The testing will be performed in accordance with ASTM: C1314. The results of our masonry observations and testing will be presented in final reports as they become available. Shakopee Fire Station #2 AET Proposal No. 22 -00582 March 22, 2011 Page 5of7. Observations of Welded and Bolted Connections During erection of the structural steel, steel joists, and metal deck roof, AET will provide an AWS Certified Welding Inspector to perform observations of the welded and bolted connections. These services will be performed on a will -call basis when requested by the contractor. Our services will include the following: • Observe bolted connections for compliance with Section 9a of the "Specification for Structural Joints using ASTM: A325 or ASTM: A490 Bolts" approved by the Research Council on Structural Connections. • Observe welded connections for compliance with the requirements of Section 6 of the AWS "Structural Welding Code" D1.1. Fillet welds will be visually observed for length, quality and suitability. Any deficiencies or deviations which are observed will be reported to personnel from the contractor and/or their subcontractor. Daily field reports of our observations and testing will be available to the contractor and other authorized site personnel. Exterior Concrete Pavement Subgrades and Testing During or after final grading of the pavement subgrade soils, AET personnel will also observe proofrolling of the pavement subgrade soils. These observations will be performed by a Staff Engineer on a periodic basis. Our scope of services will include the following: • Observe the reaction/stability of the pavement subgrade soils as they are proofrolled by a loaded, tandem -axle dump truck. • Evaluate the subgrade deflections under the wheel loads, and mark areas of excessive deflection. Areas of excessive deflection will be shown to personnel from the contractor and/or their subcontractors. • Provide recommendations for correction of the unstable subgrade soils. • Present the results of our observations in a written report. After placement of the Class 5 aggregate base, an Engineering Technician from our firm will test the compaction of these materials. The results will be compared to the Standard Proctor maximum dry density. Reporting Reports presenting the results of our observations and testing services will be provided periodically during the various phases of construction. At the completion of construction, we will issue a final report summarizing the results of all observations and testing services, if requested. Shakopee Fire Station #2 AET Proposal No. 22 -00582 March 22, 2011 Page 6 of 7 Estimated Fees Our services will be provided on a unit cost basis according to the unit rates provided in the attached Fee Schedule tabulation. Our monthly invoices will be determined by multiplying the number of personnel hours or tests by their respective unit rates. We have also estimated a total cost which we anticipate will be required to complete the previously described observations and testing services. This estimated total cost is based on our review of the project plans, specifications, our geotechnical report, and our discussion with you. This cost includes reductions in the quantity of inspection and testing as we discussed on March 22, 2010. We estimate our total cost will be $24,407. If additional testing is required according to the project specifications our fees will be increased, extended at the unit rates shown on the attached fee schedule. We caution that this is only an estimated cost. Often, variations in the overall cost of the services occur due to reasons beyond our control, such as construction change orders, weather delays, changes in the contractor's schedule, unforeseen conditions or retesting of services. These variations will affect the actual invoice totals, either increasing or decreasing our total costs for the project from those estimated in this proposal. If more time or tests are required, additional fees may be needed to complete the project testing services. If less time or tests are needed, a cost savings will be realized. We will not, however, exceed the estimated total cost for the project without first obtaining your authorization. AET currently operates as a non -union entity, and our Fee Schedule reflects this. Should we be required to provide unionized personnel on this project, we reserve the right to renegotiate appropriate fee increases from those shown on the attached Fee Schedule. If this is not possible, we reserve the right to terminate this contract on three (3) days written notice to the Client. We will not be liable for work performed by others after our services have been terminated and will not be responsible for any penalties or costs from the Client, Owner and their successors, assignees, joint - venturers, Contractors, Subcontractors or any other parties involved with the project related to claims, liabilities, damages or consequential damages directly or indirectly related to AET being required to provide unionized personnel on the project. Terms and Conditions Our services will be performed in accordance with the terms and conditions outlined in our "Service Agreement" and "Construction Testing Services Supplement." Copies are attached. Acceptance This proposal is presented in duplicate. Please indicate your acceptance of this proposal by endorsing the enclosed copy and returning it to us. Please keep the original proposal. Shakopee Fire Station #2 AET Proposal No. 22 -00582 March 22, 2011 Page 7 of 7 General Remarks If you have any questions regarding this proposal please contact us. Sincerely, American Engineering Testing, Inc. Ryan F. Schmidt, PE Senior Engineer Cell: (612) 965 -9292 rschmidt@amengtest.com Attachments: Fee Schedule Service Agreement Construction Testing Services Supplement PROPOSAL ACCEPTED BY: Signature: Typed Name: Company: Date: 5 A-L Jay P.Brekke, PE Project Engineer SERVICE DESCRIPTION PROJECT BUDGET ESTIMATED UNIT BUDGET UNITS RATE AMOUNT TOTAL AMOUNTS INVOICED THROUGH 511111 # Units Amount Invoice Amount Through 511111 # Units Amount Excavation Observations and Compaction Testing 1. Staff Engineer for observation of excavations, pavement subgrade test roll observations, consultation, and reporting (services provided on a part-time basis - assumes 4 trips to the jobsite). 10 hours $98.00 $980.00 0.0 $0.00 0.0 $0.00 2. Engineering Technician II for soil compaction testing and reporting (services provided on a part-time basis • assumes 30 trips to the jobsite). 60 hours $55.00 $3,300.00 0.0 $0.00 0.0 $0.00 3. Personal or Company vehicle mileage (Engineers and Technicians). 34 trips $39.00 $1,326.00 0.0 $0.00 0.0 $0.00 4. Soil compaction tests (nuclear gauge). 90 tests $15.00 $1,350.00 0.0 $0.00 0.0 $0.00 5. Standard Proctor tests. 5 tests $105.00 $525.00 0.0 $0.00 0.0 $0.00 6. Sieve analysis tests. 2 tests $85.00 $170.00 0.0 $0.00 0.0 $0.00 Reinforcing Steel and Concrete Testing 1. Engineering Technician II for observations of reinforcing steel and testing of concrete (services provided on a will -call basis - assumes 5 trips to the jobsite). 15 hours $62.00 $930.00 0.0 $0.00 0.0 $0.00 2. Engineering Technician I for testing of concrete only - NO OBSERVATIONS OF REINFORCING STEEL (services provided on a will - call basis - assumes 16 trips to the jobsite). 64 hours $55.00 $3,520.00 0.0 $0.00 0.0 $0.00 3. Personal or Company vehicle mileage (Engineers and Technicians). 21 trips $39.00 $819.00 0.0 $0.00 0.0 $0.00 4. Curing, handling and compressive strength testing of 4" x 8" or 6" x 12" concrete test cylinders (includes handling of non - tested cylinders). 100 cyls. $20.00 $2,000.00 0.0 $0.00 0.0 $0.00 5. Concrete cylinder pick -up service from jobsite. 15 trips $50.00 $750.00 0.0 $0.00 0.0 $0.00 Masonry Observations and testing 1. Engineering Technician II for observations of masonry construction, sampling of grout, consultation and report preparation (services provided on a will -call basis - assumes 15 trips to the jobsite). 45 hours $62.00 $2,790.00 0.0 $0.00 0.0 $0.00 2. Personal or Company vehicle mileage (Engineers and Technicians). 15 trips $39.00 $585.00 0.0 $0.60 0.0 $0.00 3. Curing, handling and compressive strength testing of masonry grout test "prism" specimens (includes handling of non - tested specimens). 24 tests $40.00 $960.00 0.0 $0.00 0.0 $0.00 4. Curing, handling and compressive strength testing of masonry mortar test cylinders (includes handling of non - tested specimens). 24 tests $20.00 $480.00 0.0 $0.00 0.0 $0.00 5. Masonry specimen pick -up service from jobsite. 6 trips $50.00 $300.00 0.0 $0.00 0.0 $0.00 6. Compressive strength testing of masonry prisms per ASTM: C 1314 (sets of 3 masonry prisms). 3 sets $250.00 $750.00 0.0 $0.00 0.0 $0.00 Welded & Bolted Connection Observations 1. NDT Level II ICC /CWI Technician for observations of field welded and bolted connections, consultation and report preparation (services provided on a will -call basis - assumes 3 trips to the jobsite). 10 hours $70.00 $700.00 0.0 $0.00 0.0 $0.00 2. Personal or Company vehicle mileage (Engineers and Technicians). 3 trips $39.00 $117.00 0.0 $0.00 0.0 $0.00 Project Management & Coordination 1. Project Manager for coordination of AET personnel and activities, attending meetings (if requested), consultation and report preparation. 15 hours $110.00 $1,650.00 0.0 $0.00 0.0 $0.00 2. Principal Engineer for special consultation and report review. 3 hours $135.00 $405.00 0.0 $0.00 0.0 $0.00 TOTAL MONTHLY ESTIMATED BUDGET $24,407.00 INVOICED $0.00 INVOICE $0.00 THROUGH TOTAL 511111 rec al{..rteuuLe PROJECT TESTING SERVICES - PER PROJECT SPECIFICATIONS SHAKOPEE FIRE STATION #2 SHAKOPEE, MINNESOTA AET PROPOSAL NO. 22-00582 El AMERICAN ENGINEERING TESTING, INC. Page 1 of 1 SERVICE AGREEMENT - TERMS AND CONDITIONS Page 1 of 4 SECTION 1 - RESPONSIBILITIES 1_1 - The party to whom the proposal/contract is addressed is considered the Client of American Engineering Testing, Inc. (AET). The terms and conditions stated are binding, upon acceptance, on the Client, its successors, assignees, joint ventures and third -party beneficiaries. Verbal proposal acceptance or authorizing purchase orders from the Client are considered formal acceptance of AET's terms and conditions. By signing the proposal or verbally authorizing the services, the authorizing party attests that they have the authority to legally bind the Client to agreement. 1_2 - Prior to AET performing services, Client will provide ART with all information that may affect the cost, progress, safety and performance of the services. This includes, but is not limited to, information on proposed and existing construction, all pertinent sections of contracts between Client and property owner, site safety plans or other documents which may control or affect AET's services. If new information becomes available during AET's services, Client will provide such information to AET in a timely manner. Failure of client to timely notify AET of changes to the project including, but not limited to, location, elevation, loading, or configuration of the structure or improvement will constitute a release of any . liability of AET. Client will provide a representative for timely answers to project - related questions by AET. 1_3 - Services performed by AET will not relieve other persons of their responsibilities according to the contract documents or specifications, and AET will not be held responsible for work or omissions by Client or other persons. AET does not perform construction management, general contracting or surveying services and our presence on site does not constitute any assumption of those responsibilities. AET will not be responsible for directing or supervising the work of others, unless specifically authorized and agreed to in writing. 1_4 - Services performed by AET often include sampling at specific locations. Inherent with such sampling is variation of conditions between sampling locations. Client recognizes this uncertainty and the associated risk, and acknowledges that opinions developed by AET, based on samples so taken, are qualified to that extent. 1_5 - AET is not responsible for interpretations or modifications of AET's recommendations by other persons. 1_6 - Should changed conditions be alleged, Client agrees to notify AET before evidence of alleged change is no longer accessible for evaluation. 1.7 — AET reserves the right to charge for time to negotiate new terms and conditions from those portrayed in our proposal or should the Client require the use of their contract format. If mutually acceptable terms cannot be established, AET shall have the right to withdraw their proposal without any liability to the Client, Owner or other parties and assigns associated with the project. If Client requests use of their contract format after the services have already been authorized, ART will be compensated for services rendered prior to approval of the Client's contract by both parties according to the AET Terms and Conditions. 1 — The AET proposal accompanying these terms and conditions is valid for sixty (60) days after the proposal issuance date to the Client. If Client authorizes the services after the expiration date, AET reserves the right to review and revise the proposal as necessary. SECTION 2 - SITE ACCESS, RESTORATION AND UTILITIES 2.1 - Client will furnish AET safe and legal site access. 2 - It is understood by Client that in the normal course of its services ART may unavoidably alter existing site conditions or affect the environment in the area being studied. AET will take reasonable precautions to minimize alterations to the site or existing materials. Restoration of the site is the responsibility of the Client. 2 — If AET is required to locate public or private underground utilities or subsurface structures ( "hidden features ") in its efforts to conform with reasonable standards of care, AET is entitled to rely on the location information provided by locating vendors. Client shall provide AET with any information available or reasonably obtainable to help prevent our services from encountering such hidden features. AET will not accept liability for encounters with hidden features. SECTION 3 - SAFETY 3.1 - Client shall inform AET of any known or suspected hazardous materials or unsafe conditions at the site. If, during the course of AET's services, such materials or conditions are discovered, AET reserves the right to take measures to protect AET personnel and equipment or to immediately terminate services. Client shall be responsible for payment of such additional protection costs. 3_2 - AET shall only be responsible for safety of AET employees at the site. The Client or other persons shall be responsible for the safety of all other persons at the site. SECTION 4 - SAMPLES 4_1 - Client is responsible for informing AET of any known or suspected hazardous materials prior to submittal to AET. All samples obtained by, or submitted to, AET remain the property of the Client during and after the services. Any known or suspected hazardous material samples will be returned to the Client at AET's discretion. 4_2 - Non - hazardous samples will be held for 30 days and then discarded unless, within 30 days of the report date, the Client I provides a written request that AET store or ship the samples, at the Client's expense. ACS 401 (12 /10) AMERICAN ENGINEERING TESTING, INC. SERVICE AGREEMENT - TERMS AND CONDITIONS Page 2 of 4 SECTION 5 - PROJECT RECORDS The original project records prepared by AET will remain the property of AET. AET shall retain these original records for a period of three years following submission of the report, during which period the project records can be made available to Client at AET's office at reasonable times. SECTION 6 - STANDARD OF CARE AET performs its services consistent with the level of care and skill normally performed by other firms in the profession at the time of this service and in this geographic area, under similar budgetary constraints. SECTION 7 - INSURANCE AET maintains Worker's Compensation, Comprehensive General Liability, Automobile Liability and Professional Liability insurance. AET will furnish certificates of insurance to Client upon request. 7.1 - Commercial General Liability insurance will include coverage for Products /Completed Operations (extending two (2) years after final acceptance of the Project by Owner or such longer period as the Contract Documents may require), Broad Form Property Damage including Completed Operations, Personal Injury, and Blanket Contractual Liability insurance applicable to AET's indemnity obligations under this Agreement. 7_2 - Automobile Liability insurance shall include coverage for all owned, hired and non -owned automobiles. 7_3 - Professional Liability Insurance is written on a claims -made basis and coverage will be maintained for two years after final acceptance of the Project by Owner or such longer period as the Contract Documents may require. Renewal policies during this period shall maintain the same retroactive date. 7_4 - AET can, if requested by client and permitted by AET's insurer, endorse its Commercial General Liability (including Products /Completed Operations coverage) to add Client and Owner as an "additional insured" with respect to liability arising out of the Services performed for Client or Owner by or for AET. Such insurance afforded to Client and Owner as an additional insured under AET's policies shall be primary insurance and not excess over, or contributing with, any insurance purchased or maintained by Client or Owner. 7 - AET will maintain in effect all insurance coverage required by this Agreement at its sole expense, provided such insurance is reasonably available, and with insurance carriers licensed to do business in the state in which the Project is located and having a current A.M. Best rating of no less than A minus (A -). 7 Upon request, prior to commencing the Services hereunder, AET will furnish Client with Certificates of Insurance evidencing that all insurance obligations required by the Contract Documents are in full force and in effect and will remain in effect for the duration required by the Contract Documents. 7_7 — AET reserves the right to charge Client for additional coverage, coverage limits or policy modification including waiver of subrogation and other project specific requirements not known at the time of our proposal, subject to approval by AET's insurance providers. SECTION 8 - DELAYS If delays to AET's services are caused by Client or Owner, work of others, strikes, natural causes, weather, or other items beyond AET's control, a reasonable time extension for performance of work shall be granted, and AET shall receive an equitable fee adjustment. SECTION 9 - PAYMENT, INTEREST AND BREACH 9_1 - Invoices are due on receipt. Client will inform AET of invoice questions or disagreements within 15 days of invoice date; unless so informed, invoices are deemed correct. In any case, Client shall pay for services of AET within 30 days of invoice. 9_2 - Client agrees to pay interest on unpaid invoice balances at a rate of 1.5% per month, or the maximum allowed by law, whichever is less, beginning 30 days after invoice date. 9.3 - If any invoice remains unpaid for 60 days, such non - payment shall be a material breach of this agreement. As a result of such material breach, AET may, at its sole option, terminate all duties to the Client or other persons, without liability as well as withhold any and all data from Client until such invoice payments are restored to a current status. 9_4 - Client will pay all AET collection' expenses and attorney fees relating to past due fees which the Client owes under this agreement. ACS 401 (12 /10) AMERICAN ENGINEERING TESTING, INC. SERVICE AGREEMENT - TERMS AND CONDITIONS Page 3 of 4 SECTION 10 - MEDIATION 10.1 - Except for enforcement of AET's rights to payment for services rendered or to assert and/or enforce its lien rights, including without limitation assertion and enforcement of mechanic's lien rights and foreclosure of the same, Client and AET agree that any claim, dispute or other matter in question arising out of or related to this Agreement shall be subject to mediation as a condition precedent to arbitration or the institution of legal or equitable proceedings by either party; provided however that if either party should fail to respond to a request for mediation within 60 days after the request, this requirement for mediation as a condition precedent to arbitration or the institution of legal or equitable proceedings shall be of no force and effect. 10.2 - Unless Client and AET mutually agree otherwise, mediation shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association. Request for mediation shall be in writing and the parties shall share the mediator's fee and any filing fees equitably. The mediator shall be acceptable to both parties and shall have experience in commercial construction matters. SECTION 11- LITIGATION REIMBURSEMENT Payment of AET costs for Client lawsuits against AET which are dismissed or are judged substantially in AET's favor will be the Client's responsibility. Applicable costs include, but are not limited to, attorney and expert witness fees, court costs, and AET costs. SECTION 12 - MUTUAL INDEMNIFICATION 12.1 - AET agrees to indemnify Client from and against liability arising out of AET's negligent performance of the services, subject to Section 13 and any other limitations, other indemnifications or other provisions Client and AET have agreed to in writing. 12.2 - Client agrees to indemnify AET from and against liability arising from the negligent conduct of the Client, Owner, Client's Contractors /Subcontractors or other third parties, subject to any limitations, other indemnifications or other provisions Client and AET have agreed to in writing. 12.3 - If Client has indemnity agreement with other persons, the Client shall include AET as a beneficiary. 12.4 — AET's indemnification to the CIient is limited solely to losses or damages caused by its failure to meet the standard of care and only to the extent of its negligence 12.5 — AET will not accept any obligation to defend Client other than to meet the standard of care. If a court of competent jurisdiction rules that defense is implied or if required by law, AET's obligation for the costs of defense is only to the extent due to AET's negligent acts, errors or omissions. SECTION 13 - LIMITATION OF LIABILITY Client agrees to limit AET's liability to Client arising from AET's negligent acts, errors or omissions, such that the total liability of AET shall not exceed $50,000.00. SECTION 14 — UNIONIZATION AET reserves the right to renegotiate an appropriate fee increase or to terminate its contract on three (3) days written notice to Client and will not accept any liability for any penalties or costs from Client, Owner and their successors, assignees, joint - venturers, Contractors and Subcontractors, or any other parties involved with the project for claims, liabilities, damages or consequential damages directly or indirectly related to AET being required to provide unionized personnel on the project. Reservation of this right on the part of AET represents neither approval nor disapproval of unions in general or the use of collective bargaining agreements. SECTION 15 - POSTING OF NOTICES ON EMPLOYEE RIGHTS 15.1 — Effective June 21, 2010, prime contracts with a value of $100,000 or more and signed by federal contractors on projects with any agency of the United States government must comply with 29 CFR Part 471, which requires physical posting of a notice to employees of their rights under Federal labor laws. The required notice may be found at 29 Code of Federal Regulations Part 471, Appendix A to Subpart A. The regulation also has a "flow- down" requirement for subcontractors under the prime agreement for subcontracts with a value of $10,000 or more. AET requires strict compliance of its subcontractors working on federal contracts subject to this regulation. The regulation has specific requirements for location of posting and language(s) for the poster. SECTION 16 - TERMINATION After 7 days written notice, either party may elect to terminate work for justifiable reasons. In this event, the Client shall pay AET for all work performed, including demobilization and reporting costs to complete the file. ACS 401 (12/10) AMERICAN ENGINEERING TESTING, INC. SERVICE AGREEMENT - TERMS AND CONDITIONS Page 4 of 4 SECTION 17 - SEVERABILITY Any provisions of this agreement later held to violate a law or regulation shall be deemed void, and all remaining provisions shall continue in force. However, Client and AET will in good faith attempt to replace an invalid or unenforceable provision with one that is valid and enforceable, and which comes as close as possible to expressing the intent of the original provision. SECTION 18 - GOVERNING LAW This Agreement shall be construed, and the rights of the parties shall be determined, in accordance with the Laws of the State of Minnesota. SECTION 19 - ENTIRE AGREEMENT This agreement, including attached appendices, is the entire agreement between AET and Client. Regardless of method of acceptance of AET's proposal and general conditions by the Client, this agreement nullifies any previous written or oral agreements, including purchase /work orders. Any modifications to this agreement must be mutually acceptable to both parties and accepted in writing. No considerations will be given to revisions to AET's general conditions or alternate contract format submitted by the Client as a condition for payment of AET's accrued services. ACS 401 (12/10) AMERICAN ENGINEERING TESTING, INC. CONSTRUCTION TESTING SERVICES SUPPLEMENT TO TERMS AND CONDITIONS Page 1 of 1 SECTION 1- UNDERGROUND FACILITIES AET is not responsible for locating underground facilities on construction sites. We proceed on the assumption that underground facilities have been located and cleared, and we will not accept liability for damaging same. An underground facility is an underground line, fixture, system, and its appurtenances used to produce, store, convey, transmit, or distribute communications, data, electrical power, heat, gas, oil, petroleum products, water including storm water, steam, sewage, and other similar substances. SECTION 2 - CONTRACTUAL RESPONSIBILITY 2.1 - AET observes and tests earthwork and other construction operations and materials, and may provide opinions, conclusions and recommendations regarding the same. However, AET's work does not relieve the contractors of their contractual responsibility to perform their work in accordance with approved plans, specifications and building code requirements. 2.2 - AET personnel do not have authority to accept, reject, direct or otherwise approve the work of the contractor. AET can not stop work or waive or alter the requirements of the project documents. Any authority given to AET by Client must be in writing prior to the start of work. 2_3 - AET does not perform construction management, general contracting or surveying services and our presence on site does not constitute any assumption of those responsibilities. SECTION 3 - WILL -CALL SERVICES 3.1 - Unless specifically directed, AET's services will be performed on a will -call basis at the direction of the Client or their authorized representatives. The client and its authorized representatives accept that there are inherent risks associated with performing engineering judgments and testing services on a will -call basis. Work performed on a will -call basis does not permit complete evaluation of the work being performed. AET can not, with certainty, document or provide complete judgments regarding work which we did not observe or test. Our opinions, conclusions, and recommendations are qualified to that extent. 3_2 - Density tests of fill and soil represent conditions only at the locations and elevations tested and do not necessarily represent conditions elsewhere. Judgments made regarding the engineering capability of the entire fill sequence should not be based on random, non - representative tests. 3 - AET requires a minimum of 24 hours notice of the need for services. AET will not be liable for claims, damages, or delays related to failure of Client to provide adequate advance notice to AET. SECTION 4 - CONSTRUCTION STAKING 4.1 - Normally, the location and elevation of a proposed structure or facility is staked (with offsets) by others. Our measurements are made in relation to those stakes. The reliability of any opinions, conclusions, and recommendations based on those measurements is strictly dependent on the accuracy of the staking done by others. 4_2 - During construction, observations and testing services are based on the positioning of the formwork by the contractor or their subcontractor. AET will not be held responsible for any errors that result from improper location or positioning of the formwork. SECTION 5 - CHANGE OF PLANS 5_1 - Earthwork and construction activities are done to support a particular structure (type, size, and shape) or facility at a specific location and elevation. If the type of structure or facility (structural type, size, shape, location, elevation, etc.) changes, the earthwork or construction activities completed may no longer provide suitable structural support or be capable of supporting the intended construction. Additional earthwork or redesign of all or a part of the structure or facility may be needed. 5_2 - Failure of client to timely notify AET of changes to the project including, but not limited to, location, elevation, loading, or configuration of the structure or improvement will constitute a release of any liability of AET. SECTION 6 - DEEP BORINGS Deep test borings are recommended for a project to evaluate the deeper soil and ground water conditions. Judgments made by AET personnel regarding the suitability of materials and ground water conditions below the bottom of an excavation are limited if deep_test borings are not requested by the Client. AET's opinions, conclusions and recommendations are qualified to that extent. ACS403(10/02) AMERICAN ENGINEERING TESTING, INC.