Sec. 748.404. - Required contract terms.

In addition to other terms and conditions that are a part of a contract awarded under this Part, the following items shall be a part of each contract: (a) The contract shall provide for a schedule of payments to the contractor for the work to be accomplished. If this schedule is not included in the contract, the contractor shall forecast his funds requirements and the City Engineer, with the advice of the City Highway Engineer and Director of Finance and Administration, and the contractor shall agree on a schedule of payments, which shall be appended to the contract, before a notice to proceed is issued or work is commenced under the contract. If the City Engineer and the contractor cannot agree on a schedule of payments, the City Engineer, with the advice of the City Highway Engineer and Director of Finance and Administration, is authorized to establish a schedule of payments unilaterally, which shall be appended to the contract, or, in the alternative, to terminate the contract. (b) The contract shall provide that the City will reserve not less than ten percent of the total contract price for adjustments, which amount will be paid to the contractor after acceptance of the project by the City, less any sums deducted because of contract work not performed at all or not performed to the satisfaction of the City Engineer, because of work required to be done by the City or others on behalf of the City which was not contemplated by the contract and was necessitated by the neglect, negligence or refusal to perform of the contractor or because of any other reason stated in the contract for which the City may deduct from the amount owed to the contractor, except liquidated damages and penalties, if any. This term shall not be inserted in a contract for consultant services in connection with a project. (c) The contract shall provide for a voucher system of making payments to the contractor, as provided in Section 748.405 . The contract shall state that payments of vouchers submitted by the contractor and approved for payment by the City are subject to the availability of funds in the City's account in the State Treasury to pay them, that vouchers do not constitute a claim against any other funds in the City Treasury and that, if sufficient funds are not available in the City's account in the State Treasury to pay a voucher when it is approved for payment, the voucher shall be and constitute a prior claim against the first funds coming available in the City's account in the State Treasury. (d) The contract shall provide that changes in the contract price, the scope or quantum of work to be done, the time for completion of the work and other material terms and conditions shall be made only by means of a change order executed by the contractor and by the City in the same manner as the original contract. The City Engineer may, by rule, establish a general procedure for change orders, and the contract need only refer to the general procedure except in cases where a different procedure is agreed upon. (e) The contract shall provide that the Mayor, upon the advice and recommendation of the Director of Public Works, may terminate the contract for the convenience of the City in the following instances: (1) When the City and the contractor cannot agree on a schedule of payments and the City Engineer elects to recommend termination rather than approve a unilateral schedule of payments. (2) When the Council does not approve the continuation or completion of the project by the assignment of a final priority other than "1A" or "1B", in an ensuing fiscal year. (3) When the obligation authority for the project is withdrawn after the project has been deemed rejected or abandoned by the Council pursuant to the provisions of Section 748.205 (a). (4) When the obligation authority is reduced by the abandonment or carrying over a part or all of the project by the City Highway Engineer pursuant to the provisions of Section 748.205 (a) and the reduced obligation authority will not permit the further continuation of the contract. (5) When the obligation authority for the project is for any other reason withdrawn or reduced and, if reduced, the resulting obligation authority will not permit the further continuation of the contract. (6) When the Council does not appropriate sufficient surplus gas tax funds to fund the obligation authority contained on the road program. (7) When the review required by Section 748.407 indicates that the total surplus gas tax funds estimated to be available in the current fiscal year will be insufficient to fund the obligation authority. The determination of insufficiency with respect to a particular obligation authority is within the sole discretion of the City. In each of the foregoing instances, the notice of termination may be given upon 24 hours' notice or upon the longer period of time as the Mayor in his discretion may determine to be in the best interests of the City. (Ord. 78-329-131, § 1; Ord. 78-744-361, § 10; Ord. 83-591-400, § 1; Ord. 2016-140-E , § 16) Editor's note— Ordinance 2007-839-E, § 18, authorized updated department/division names pursuant to reorganization. Note— Former § 620.404.