HomeMy WebLinkAboutContracts & Agreements_7-1987_CCv0001.pdf 22TTUREFUT AgREEMMENT-s- CZEI E ELE �E DF BX152M CLAIM
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This settlement agreement, general release of existing
claims and indemnification is executed by and between ECUS
CONSTRUCTIO14 GOLF; ("Ellis") and the CITY OF REDLANDS
("City') with .reference to the following facts
1. Following formal solicitation of bads for the con-
struction of the City's Eire Station No. 3, the City awarded
a contract for they construction of the Fire Station to Ellis
on July 31, 1985, and the contract itself was executed by the
City on August 23r 1985 .
2. Ellis contends the following:
a. The contract awarded by City upon which the
Ellis bid was made did not contain a requirement for payment
of prevailing wages.
b. Before the bid, Ellis asked City personnel
whether prevailing wages were required; on the job and was
told f 11 ° the contract provisions.
c. ,after bid was accepted and contract awarded b
Cityr both City and Ellis became aware that prevailing wage
previsions should have been part of the contract and that
prevailing wages were required on the job (Pias Station No.
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d. After construction of the fire station had
already commenced, Ellis advised the City that at the time h
submitted his bid to the City he had been unaware of the
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provisions of California L-ab-or -CD—d-e- #1774 which requires the
payment of prevailing wages to all workmen employed on the
job and that he prepared his bid based upon the contract with
the assumption that less than the prevailing wage rate could
be paid to the workmen employed on the job.
3. City contends the following: City had no obligation
to provide Ellis with Labor Code #1774 and that its failure
to provide Ellis with notice of the Labor Code provisions in
the contract did not absolve him from the legal respon-
sibility to insure payment of prevailing wages required to be
paid to workmen and the wages Ellis had agreed to pay his
subcontractors and their workmen.
4. Neither City nor Ellis admits legal responsibility
for failure to pay prevailing wages on this job. It is
understood and agreed that this settlement is the compromise
of a doubtful and disputed claim, and that the payment made
is not to be construed as an admission of liability on the
part of the parties hereby released and that said parties
deny liability therefore and intend merely to avoid litiga-
tion.
5 . In settlement of the disagreement between Ellis and
the City, it was agreed that Ellis would provide the City
with certified payroll records for himself and for all
subcontractors on the job, and that the City would increase
the final contract payment to Ellis in an amount equal to the
difference between the prevailing wages and associated em-
ployer costs which are legally required to be paid, and the
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wages and associated employer costs which Ellis and his
subcontractors had actually paid or had anticipated paying
for all certified payroll records provided. It was further
agreed that Ellis would undertake responsibility for dis-
bursement of the sums necessary to provide each workman on
the job with his or her prevailing wages, as required by law,
and would release the City and indemnify it from any further
claim or liability for additional payment relating to work
performed pursuant to the contract between Ellis and the City
for construction of Fire Station No. 3 ,
6® Pursuant to their settlement agreement, the City has
reviewed the certified payroll records and other documen-
tation provided by Ellis and has agreed to increase the final
contract payment to Ellis by the amount of $83,795 .85 . Ellis
has agreed to accept this sum as final contract payment in
consideration of all claims, known and unknown, for work
performed pursuant to the contract to construct Fire Station
No. 3 and in exchange for the release and indemnification
hereinafter set forth.
In consideration of the sum of $83,795 .85, Ellis and
his heirs, executors, administrators and assigns hereby fully
releases and discharges the City and relinquishes all rights,
claims, and actions that Ellis and its successors now have or
may have after the execution of this Release against City
arising out of the contract to construct Fire Station No. 3
in exchange for the Release and Indemnification hereinafter
set forth.
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NOW, THEREFORE, in consideration of the City' s
payment to Ellis of the sum of $83 ,795 .85 as final payment
for work performed to construct Fire Station No. 3, Ellis
hereby releases and discharges the City from all claims for
further payment for such work and agrees to hold the City
harmless, indemnify and defend it from and against all claims
of further liability to Ellis, any subcontractor, workman, or
employee, and any person, entity or agency whatever, for work
performed pursuant to the contract to construct Fire Station
No. 3 or for failure to provide for payment of prevailing
wages to workmen as required by law, including any claims
known or unknown which hereafter may be asserted. Ellis
acknowledges and agrees that the City shall be relieved of
any further obligation to provide for payment of prevailing
wages for said work, and that Ellis shall be responsible for
disbursement of funds required to achieve compliance with the
California Labor Code.
FLUS CdSTRUCTIO COMPANY
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Dated: By
Jon Ellisi7
L,
CITY OF REDLANDS
C,
Dated: 7rnawg) By—�'�
Joh"o]-mes, City Manager
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