The contract is for the construction management of the Fleet Fueling Station Improvements project, with a guaranteed maximum price of $7,900,000. The project involves the construction of a fueling station, and the contractor is responsible for providing preconstruction services, including estimating, scheduling, and procurement. The contract also includes provisions for dispute resolution, termination, and liquidated damages. The City of St. Petersburg is the owner, and Ajax Building Company, LLC is the contractor. Some key points of the contract include:
• The contractor is responsible for providing a guaranteed maximum price proposal, which includes a detailed estimate of the cost of the work, a construction schedule, and a list of subcontractors.
• The owner has the right to terminate the contract if the contractor fails to perform its obligations, and the contractor is responsible for paying liquidated damages in the event of termination.
• The contract includes provisions for dispute resolution, including mediation and arbitration, and the contractor is responsible for paying the costs of dispute resolution.
• The contractor is responsible for providing a corrective action plan in the event of a discharge or spill, and the owner has the right to deduct damages from payments due to the contractor.
Some of the benefits of this contract include:
• The guaranteed maximum price provides a level of cost certainty for the owner, and the contractor is incentivized to complete the project efficiently and effectively.
• The contract includes provisions for dispute resolution, which can help to avoid costly and time-consuming litigation.
• The contractor is responsible for providing a corrective action plan in the event of a discharge or spill, which can help to minimize the impact on the environment and the community.
However, there are also some potential drawbacks to the contract, including:
• The contract is complex and includes many provisions and requirements, which can make it difficult to navigate and understand.
• The contractor is responsible for paying liquidated damages in the event of termination, which can be a significant financial burden.
• The contract includes provisions for dispute resolution, which can be time-consuming and costly.