107.01 Laws to be Observed. Stay fully informed of all Federal and State laws, all local laws, ordinances, and regulations, and all orders and decrees of authorities having any jurisdiction or authority that affect those engaged or employed on the Work, or that affect the conduct of the Work. Observe and comply with all such laws, ordinances, regulations, orders, and decrees. The Contractor shall protect and indemnify the State and its representatives against any claim or liability arising from or based on the violation of any such law, ordinance, regulation, order, or decree, whether by the Contractor or the Contractor’s employees, subcontractors, or agents.
The Contractor agrees that in the hiring of employees for the performance of Work under this Contract or any subcontract hereunder, neither the Contractor, the subcontractor, nor any person acting on behalf of such Contractor or subcontractor shall, by reasons of race, religion, color, sex, or national origin, discriminate against any citizen of the united States in the employment of labor or workers, who is qualified and available to perform the Work to which the employment relates.
Neither the Contractor, the subcontractor, nor any person on their behalf shall, in any manner, discriminate against or intimidate any employee hired for the performance of Work under this Contract on account of race, religion, color, sex, or national origin.
Comply with OAC-4121:1-3, entitled “Specific Safety Requirements of the Industrial Commission of Ohio Relating to Construction,” effective November 1, 1979 and as amended, and with the Federal Occupational Safety and Health Act of 1970 and Code of Federal Regulations, Title 29, Chapter XVII, Part 1926 and as amended.
107.02 Permits, Licenses, and Taxes. Procure all permits and licenses; pay all charges, fees, and taxes; and provide all notices necessary and incidental to the due and lawful prosecution of the Work.
107.03 Patented Devices, Materials, and Processes. Before employing any design, device, material, or process covered by letters of patent or copyright, provide for its use by suitable legal agreement with the patentee or owner. The Contractor and the Surety shall indemnify and save harmless the State, any affected third party, or political subdivision from any and all claims for infringement of patented design, device, material, process, or any trademark or copyright, and shall indemnify the State for any costs, expenses, and damages that it may be obliged to pay by reason of any infringement, at any time during the prosecution or after the completion of the Work.
107.04 Restoration of Surfaces Opened by Permit. The Director may grant to the municipality in which the Work is performed a reservation of rights to construct or reconstruct any utility service in the highway or street or to grant permits for same, at any time.
Any individual, firm, or corporation wishing to make an opening in the highway must secure a permit. Allow parties bearing such permits, and only those parties, to make openings in the highway. When ordered by the Engineer, make in an acceptable manner all necessary repairs due to such openings. The necessary repairs will be paid for as Extra Work, or as provided in the Contract Documents, and will be subject to the same conditions as the original Work performed.
107.05 Federal-Aid Provisions. When the united States Government pays for all or any portion of the Project’s cost, the Work is subject to the inspection of the appropriate Federal agency.
Such inspections will not make the Federal Government a party to this Contract. The inspections will in no way interfere with the rights of either party to the Contract.
107.06 Sanitary Provisions. Provide and maintain sanitary accommodations in a neat condition for the use of employees and Department representatives that comply with the requirements of the State and local Boards of Health, or of other authorities having jurisdiction over the Project.
107.07 Public Convenience and Safety. At all times, ensure that the Work interferes as little as possible with the traffic. Provide for the safety and convenience of the general public and the residents along the highway and the protection of persons and property. Do not close any highways or streets unless specifically allowed by the Contract.
107.08 Bridges Over Navigable Waters. Conduct all Work on navigable waters so that it does not interfere with free navigation of the waterways and that it does not alter the existing navigable depths, except as allowed by permit issued by the U.S. Coast Guard. Work within the flood plain of a navigable stream may require a permit from the U.S. Army Corps of Engineers. If an U.S. Army Corps of Engineers permit is required, provide all documentation submitted to obtain the permit(s) and a copy of the permit(s) to the Department.
107.09 Use of Explosives. When the use of explosives is necessary for the prosecution of the Work, exercise the utmost care not to endanger life or property, including new Work. The Contractor is responsible for all damage resulting from the use of explosives.
Obtain written permission to perform in-stream blasting from the Chief of the Division of Wildlife, Ohio DNR according to ORC 1533.58. Provide the Engineer with all documentation submitted to obtain this permit and with a copy of the permit.
The Contractor agrees, warrants, and certifies that it will observe State laws and local ordinances and regulations relative to the use and storing of explosives kept on the Project site.
Perform all blasting operations according to Item 208.
107.10 Protection and Restoration of Property. The Contractor is responsible for the preservation of all public and private property impacted by the Contractor’s operations.
The Contractor is responsible for all damage or injury to property, during the prosecution of the Work, resulting from any act, omission, neglect, defective work or materials, or misconduct in the manner or method of executing the Work. The Contractor will remain responsible for all damage and injury to property until the Project is accepted under 109.12, except for portions of the Work accepted under 109.11.
If the Contractor causes any direct or indirect damage or injury to public or private property by any act, omission, neglect, or misconduct in the execution or the non-execution of the Work, then it must restore, at its own expense, the property to a condition similar or equal to that existing before the damage or injury.
If mail boxes, road, or street name signs and supports interfere with the Work, then remove and erect them in a temporary location during construction in a manner satisfactory to and as directed by the Engineer. After completion of the Work and before final acceptance of the Project, erect the mailboxes, road, or street name signs and supports in their permanent locations according to the plans unless otherwise directed by the Engineer. Consider the cost of this Work as incidental to the affected items.
Cooperate with the Engineer in protecting and preserving cornerstones and boundary that are affected by the Work as required by ORC 5519.05.
Right-of-Way are placed at the corners of each
parcel of permanent Right-of-Way. are property boundary monuments set to comply with Ohio
Administrative Code Section 4733.37,
“Minimum Standards for Boundary Surveys in the State of Ohio” and ORC 5519.05 and are recited in the
Right-of-Way deeds to convey the property or easement rights. If shown in the
Right-of-Way plans, Right-of-Way monuments will be set after acquisition and
prior to construction activities by the Department. These monuments normally
delineate the boundary secured for the highway construction. There are
situations where temporary Right-of-Way easements are purchased to construct
the work and it is expected that the permanent Right-of-Way monuments within
the temporary easements may get destroyed to perform the work. Any permanent
Do not begin grading or resurfacing operations until the Contractor has referenced and verified the position of all known cornerstones, and boundarymarkers in the area to be improved, relative to the survey information provided to the Contractor by the Department. Make a reasonable search effort using common iron pin locating devices to locate boundary survey markers at normal probable locations (i.e. offsets at occupation lines) if no monuments are shown on the plans. If monuments, cornerstones, and markers are unexpectedly encountered, then protect, reference, and preserve them in the same manner. Referencing, as indicated above, shall mean locating the positions relative to a project control network, traverse line or centerline using standard acceptable surveying measurements and techniques suitable to meet the requirements of OAC Section 4733-37-04, Measurement Specifications. The locating method, field data recording procedures and equipment to be used will be reviewed and approved by the Engineer prior to performing the work.
Provide the Engineer with a report indicating the monuments, cornerstones, and boundarymarkers located. List project coordinates and/or station and offset relative to the plan centerline and a description of the markers found, including size, material, condition, any cap stamping or markings and noting any differences from the plan locations of any of the . The Engineer shall compare the Contractor’s preconstruction monument report with the plans and any preconstruction checks provided by the Department.
The Engineer will provide the Contractor with a list of monuments and survey markers that the Contractor is to protect and preserve during the performance of the work and a list of monuments and survey markers that may be destroyed during the performance of the work. When specified in the plans, the contractor will construct the adjustable monument assemblies without the iron pin and cap.
If cornerstones, and boundary markers are encountered in the performance of the Work, and adjustable monument assemblies are not listed in the Proposal, then the Department will furnish them and supervise their precise location and installation in conformity with ORC 5519.05. Furnish all labor, equipment, and materials required to perform such installations. The Department will pay for any labor, equipment, or materials furnished during the installation according to 109.05. Perform relocation Work under the supervision of a registered surveyor.
The Engineer will deduct from the estimates the cost incurred by the Department for repair, re-determination of location, and replacement of any cornerstones, or markers within the highway that were damaged, destroyed, or made inaccessible during the progress of the Work by the Contractor or its employees, subcontractors, or their agents, in violation of these provisions.
107.11 Contractor’s Use of the Project Right-of-Way or Other Department-Owned Property.
A. Disposal of Waste Material and Construction Debris and Excavation of Borrow on the Project Right-of-Way or on Other Department-Owned Property. Dispose of waste material according to 105.16 and dispose of construction debris according to 105.17. In addition to the rights granted in 104.03, the Contractor’s use of the Project Right-of-Way or other Department-owned property for the disposal of waste material and construction debris and excavation of borrow material is restricted as follows:
1. If the Contract Documents identify locations for the disposal of waste material and construction debris or excavation of borrow material within the Project Right-of-Way or on other Department-owned property, then only perform these operations in these designated locations.
2. If the Contract Documents do not identify locations for the disposal of waste material and construction debris or excavation of borrow material within the Project Right-of-Way or on other Department-owned property, then do not Bid assuming that the Department will make such locations available.
If the Contractor’s request to use locations within the Project Right-of-Way or on other Department-owned property is approved by the Engineer, then the Department may allow the Contractor to dispose of waste material and construction debris or excavate borrow material for a fee of $0.50 per cubic yard.
B. Contractor’s Use of Portable Plants Within the Project Right-of-Way or on Other Department-Owned Property. The Contractor’s use of portable plants within the Project Right-of-Way or on other Department-owned property is limited as follows:
1. If the Contract Documents identify locations within the Project Right-of-Way or on other Department-owned property to place a portable plant, then only place a portable plant in these designated locations subject to the requirements of 107.11.C.
2. If the Contract Documents do not identify locations within the Project Right-of-Way or on other Department-owned property to place a portable plant, then do not bid assuming that the Department will make such locations available.
However, the Department will consider a Value Engineering Change Proposal (VECP) for the placement of a portable plant within the Project Right-of-Way or on other Department-owned property and, if accepted, may allow the use of a particular site on its property subject to the requirements of 107.11.C.
C. Placement of a Portable Plant within the Project Right-of-Way or on Other Department-Owned Property. To place a portable plant within the Project Right-of-Way or on other Department-owned property, comply with the following requirements:
1. Local noise ordinances.
2. Obtain any necessary EPA permits for the operation of the plant. Provide the Department with a copy of the information submitted to obtain the permit and a copy of the permit.
3. Provide the Engineer written certification that the plant will supply material only for the Project for which it was approved. Do not use the plant to supply any other project or to sell materials commercially.
4. Submit a traffic control plan to the Engineer for approval that details the anticipated truck movements and provides acceptable protection, warning, and guidance to motorists, pedestrians, and the workers.
D. Equipment Storage and Staging. The Contractor may use, fee-free, any portion of the Project within the Project Right-of-Way for staging, equipment storage, or an office site with the approval of the Engineer, provided such usages do not interfere with the Work and are not prohibited by the Contract Documents. Do not bid in anticipation of using any properties within the Project Right-of-Way or Department-owned property outside the Project Right-of-Way for equipment storage or staging.
107.12 Responsibility for Damage Claims and Liability Insurance. The Contractor shall indemnify and save harmless the State and all of its representatives, municipalities, counties, public utilities, any affected railroad or railway company, and any fee owner from whom a temporary Right-of-Way was acquired for the Project from all suits, actions, claims, damages, or costs of any character brought on account of any injuries or damages sustained by any person or property on account of any negligent act or omission by the Contractor or its subcontractors or agents in the prosecution or safeguarding of the Work.
The Contractor shall procure and maintain insurance for
liability for damages imposed by law and assumed under this Contract, of the
kinds and in the amounts hereinafter provided from insurance companies
authorized to do business in the State. The cost of insurance is incidental to all contract
items. Before the execution of the
Contract by the Director, furnish to the Department a certificate or
certificates of insurance in the form satisfactory to the Department
demonstrating compliance with this subsection.
Provide an insurance certificate or certificates that show that the
Contractor’s liability and auto policies coverage are not reduced, restricted,
or canceled until 30 days written notice has been given to the Department by
the insurer. Mail all certificates and
notices to: Administrator, Office of
Contracts, Ohio Department of Transportation,
The types and minimum limits of insurance are as follows:
A. Workers’ Compensation Insurance. Comply with all provisions of the laws and rules of the Ohio Bureau of Workers’ Compensation covering all operations under Contract with the Department whether performed by it or its subcontractors. In addition, if a portion of the Work is performed from a barge or ship or requires unloading material from a barge or ship on a navigable waterway of the united States, it is the responsibility of the Contractor to arrange coverage for that portion of the Work under the Longshore and Harborworkers’ Compensation Act [33 USC Section 901 et seq.] and the Jones Act [5 USC Section 751 et seq.] and provide proof of coverage to the Department.
B. Commercial General Liability Insurance. The minimum limits for liability insurance are as follows:
General Aggregate Limit $2,000,000
Products - Completed Operations
Aggregate Limit $2,000,000
Personal and Advertising Injury Limit $1,000,000
Each Occurrence Limit $1,000,000
Obtain the above minimum coverages through primary insurance or any combination of primary and umbrella insurance. In addition, the Department will require the General Aggregate Limit on a per project basis.
Ensure that the Commercial General Liability Insurance policy names the State of Ohio, Department of Transportation, its officers, agents, and employees as additional insureds with all rights to due notices in the manner set out above. Obtain Explosion, Collapse, and Underground (XCU) coverage at the same limits as the commercial general liability insurance policy. In addition, if blasting is to be performed, obtain XCU coverage providing a minimum Aggregate Limit of $5,000,000 and Each Occurrence Limit of $1,000,000. Submit proof of insurance, endorsements, and attachments to the Engineer prior to starting the Work.
C. Comprehensive Automobile Liability Insurance. The Comprehensive Automobile Liability policy shall cover owned, non-owned, and hired vehicles with minimum limits as follows:
Bodily Injury and Property Damage Liability Limit
Each Occurrence $1,000,000
Insurance coverage in the minimum amounts set forth neither relieves the Contractor from liability in excess of such coverage, nor precludes the Department from taking such other actions as are available to it under any other provisions of this Contract or otherwise in law.
Clearly set forth all exclusions and deductible clauses in all proof of insurance submitted to the Department. The Contractor is responsible for the deductible limit of the policy and all exclusions consistent with the risks it assumes under this Contract and as imposed by law.
If the Contractor provides evidence of insurance in the form of certificates of insurance, valid for a period of time less than the period during which the Contractor is required by terms of this Contract, then the Department will accept the certificates, but the Contractor is obligated to renew its insurance policies as necessary. Provide new certificates of insurance from time to time, so that the Department is continuously in possession of evidence that the Contractor’s insurance is according to the foregoing provisions.
If the Contractor fails or refuses to renew its insurance policies or the policies are canceled or terminated, or if aggregate limits have been impaired by claims so that the amount available is under the minimum aggregate required, or modified so that the insurance does not meet the requirements of 107.12.C, the Department may refuse to make payment of any further monies due under this Contract or refuse to make payment of monies due or coming due under other contracts between the Contractor and the Department. The Department in its sole discretion may use monies retained pursuant to this subsection to renew or increase the Contractor’s insurance as necessary for the periods and amounts referred to above. Alternatively, should the Contractor fail to comply with these requirements, the Department may default the Contractor and call upon the Contractor’s Surety to remedy any deficiencies. During any period when the required insurance is not in effect, the Engineer may suspend performance of the Contract. If the Contract is so suspended, the Contractor is not entitled to additional compensation or an extension of time on account thereof.
Nothing in the Contract Documents and insurance requirements is intended to create in the public or any member thereof a third party beneficiary hereunder, nor is any term and condition or other provision of the Contract intended to establish a standard of care owed to the public or any member thereof.
107.13 Reporting, Investigating, and Resolving Motorist Damage Claims. The Contractor and the Department are required to report, investigate, and resolve motorist damage claims according to 107.10 and 107.12 and as follows.
When a motorist reports damage to its vehicle either verbally or in writing to the Contractor, the Contractor shall within 3 days make and file a written report to the District’s construction office. Forward the report to the Department’s Court of Claims Coordinator who, as a co-insured party, may then contact the Contractor’s insurance company and request that the insurance company investigate and resolve the claim. In the event that the Department directly receives the motorist’s claim, the Department will send the claim report to the Contractor and may send a copy of the claim report to the Contractor’s insurance company. If the Contractor or their insurance company does not resolve the claim in a timely manner, the Department may advise the motorist of the option of pursuing the claim in the Ohio Court of Claims.
In the event of a lawsuit filed against the Department in the Ohio Court of Claims by the motorist, the Department, as co-insured party, may request the Contractor’s insurance company to defend this lawsuit and hold the Department harmless according to 107.12.
If the lawsuit claim amount is $2,500 or less and the Court of Claims Coordinator determines that the Contractor is responsible for the claimed damages then the Department's Court of Claims Coordinator may, after notifying the Contractor, determine that it would be in the best interest of the Department to settle the claim. Any settlement amount including court costs may be assessed to the Contractor and deducted from the project. The Contractor or the Contractor's insurance company may appeal the assessment decision of the Court of Claims Coordinator to the Engineer. The Engineer's determination of the assessment is final.
107.14 Opening Sections of Project to Traffic. The Engineer may order the Contractor to open a section of the Work to the safe use of traffic at any time. The Department will make an adjustment according 108.06 and 109.05 to compensate the Contractor for the added costs and delay, if any, resulting from such an opening.
107.15 Contractor’s Responsibility for Work. Until the Final Inspector accepts the Work during the Final Inspection according to 109.12.A, the Contractor is responsible for the Project and will take every precaution against injury or damage to any part thereof by the action of the elements or from any other cause, whether arising from the execution or from the non-execution of the Work. Rebuild, repair, restore, and make good all injuries or damages to any portion of the Work occasioned by any of the above causes before final acceptance. Bear the expense of the repairs except when damage to the Work was due to unforeseeable causes beyond the control of and without the fault or negligence of the Contractor, including but not restricted to weather, civil disturbances, or governmental acts.
In the event that the Engineer determines that damage to completed permanent items of Work results from traffic using a substantially completed section of Roadway, the Department may compensate the Contractor for repair of the damage as authorized by Change Order. To receive compensation for the damage the Contractor must meet the following requirements.
A. Notify the Engineer of each occurrence of damage in writing within 10 Calendar Days.
B. Contact the local law enforcement agency to determine if the accident was investigated and a report filed. If an accident report was filed, obtain the report and notify the motorist, and copy their insurance company, via registered mail that the motorist is responsible for the cost of damage repairs. If the motorist does not respond within 30 days, make a second attempt to contact the motorist and copy the insurance company via registered mail.
C. If no response is received from the motorist or insurance company within 30 days, send a letter to the Engineer and include documentation of good faith effort to seek recovery from responsible parties.
If there is no accident report on file and no means of identifying the guilty motorist, the Contractor will likewise be compensated to repair the damaged Work.
In case of suspension of Work by the Contractor or under the provisions of 105.01, the Contractor is responsible for the Project and shall take necessary precautions to prevent damage to the Project; provide for normal drainage; and erect any necessary temporary structures, signs, or other facilities at its expense. During such period of suspension of Work, properly and continuously maintain in an acceptable growing condition all living material in newly established plantings, seedings, and soddings furnished under the Contract, and take adequate precautions to protect new tree growth and other important vegetative growth against injury.
The Engineer may direct the Contractor to remove graffiti any time during the Work. The Department will make an adjustment according to 108.06 and 109.05 to compensate the Contractor for the added costs and delays, if any, resulting from all ordered graffiti removal.
107.16 Contractor’s Responsibility for Utility Property and Services. At points where the Contractor’s operations are adjacent to properties of railway, cable, telephone, and power companies, or are adjacent to other property, and any damage to their property may result in considerable expense, loss, or inconvenience, do not commence with the operation until all arrangements necessary for the protection of the property have been made.
Cooperate with the owners of any underground or overhead utility lines in their removal and rearrangement operations to ensure these operations progress in a reasonable manner, that duplication of rearrangement Work may be reduced to a minimum, and that services rendered by those parties will not be unnecessarily interrupted.
In the event interruption to underground or overhead utility services results from an accidental breakage or from being exposed or unsupported, immediately alert the occupants of nearby premises as to any emergency that the accidental breakage may create at or near such premises. Then notify the Engineer and the owner or operator of the utility facility of the disruption and cooperate with the said utility owner or operator in the restoration of service. If water service is interrupted, perform the repair work continuously until the service is restored unless the repair work is performed by the local governmental authority. Do not begin Work around fire hydrants until the local fire authority approves provisions for continued service.
107.17 Furnishing Right-of-Way. The Department is responsible for securing all necessary Right-of-Way in advance of construction. The Bid Documents will indicate any exceptions. The Department will notify all prospective Bidders in writing before the date scheduled for receipt of Bids regarding the specific dates certain parcels will be made available to the Contractor.
107.18 No Waiver of Legal Rights. The following Department actions do not waive the Department’s rights or powers under the Contract, or any right to damages herein provided:
A. Inspection by the Engineer or by any of Engineer’s duly authorized representatives.
B. Any order, measurements, or certificate by the Director, or Department representatives.
C. Any order by the Director or Department representatives for the payments of money or the withholding of money.
D. Acceptance of any Work.
E. Any extension of time.
F. Any possession taken by the State or its duly authorized representatives.
The Department will not consider any waiver of a breach of this Contract to be a waiver of any other subsequent breach.
107.19 Environmental Protection. Comply with all Federal, State, and local laws and regulations controlling pollution of the environment. Avoid polluting streams, lakes, ponds, and reservoirs with fuels, oils, bitumens, chemicals, sediments, or other harmful materials, and avoid polluting the atmosphere with particulate and gaseous matter.
Fording of streams is prohibited. Causeways for stream and river crossings or for Work below a bridge are permitted provided:
A. The causeway is constructed according to 207.03.B.8.b.
B. The causeway complies with the requirements of the 404 Permit the Department obtained for the Project.
C. The Contractor obtains a 404 Permit from the U.S. Army Corps of Engineers if the Department has not obtained such a permit. Obtain the 404 Permit prior to beginning construction of the causeway. The Department does not guarantee that the Contractor will be able to obtain a 404 Permit.
Comply with all current provisions of the Ohio Water Pollution Control Act, (OWPCA), (ORC Chapter 6111). The Department will obtain a storm water permit under the OWPCA provisions when the plan work acreage requires a permit. The storm water permit will not cover the Contractor’s work outside the Project limits shown on the Plans. Apply for a permit to cover operations outside the Project limits shown on the plans as required by the OWPCA provisions. When the Department has not applied for a permit on the Project and a permit is required under the provisions of the OWPCA because of the total area of the Contractor’s work, apply for, obtain, and comply with the required permit for both the Work within Project limits and the Contractor’s work.
The Department has
obtained the required permits from the U.S. Army Corps of Engineers and Ohio
EPA for Work in the “Waters of the
When equipment is working next to a stream, lake, pond, or reservoir, spill response equipment is required in the event of a hydraulic leak. Do not stockpile fine material next to a stream, lake, pond, or reservoir.
Take precautions to avoid demolition debris and discharges associated with the excavation and hauling of material from entering the stream. Remove any material that does fall into the stream as soon as possible.
When excavating in or adjacent to streams, separate such areas from the main stream by a dike or barrier to keep sediment from entering the stream. Take care during the construction and removal of such barriers to minimize sediment entering the stream.
Accomplish control of ground water and water in excavations in a manner that prevents the degradation of the water quality of any surface water. Install wells and well points with suitable screens and filters where necessary to prevent the continuous pumping of fines. Pump sediment-laden water in a manner to prevent degradation of streams, lakes, ponds, or other areas of water impoundment. Such prevention may involve but is not limited to the means and methods described in Item 207. Use the current version of the Sediment and Erosion Control Handbook to plan this work. Use the methods necessary to prevent adverse effects to surface waters as provided in OAC-3745-1-04. The cost of constructing and maintaining these measures is incidental to the Contract.
Treat water from aggregate washing or other operations containing sediment by filtration, settling basins, or other means sufficient to reduce the sediment concentration to not more than that of the stream or lake into which it is discharged by using means and methods described in Item 207. Use the current version of the Sediment and Erosion Control Handbook to plan this work. The cost of constructing and maintaining these measures is incidental to the Contract.
Control the fugitive dust generated by the Work according to OAC-3745-17-07(B), OAC-3745-17-08, OAC-3745-15-07, and OAC-3745-17-03 and local ordinances and regulations. In addition, use dust control measures when fugitive dust creates unsafe conditions as determined by the Engineer. Perform this work without additional compensation except for Item 616.
Perform open burning according to 105.16.
107.20 Civil Rights. Comply with Federal, State, and local laws, rules, and regulations that prohibit unlawful employment practices including that of discrimination because of race, religion, color, sex, or national origin and that define actions required for Affirmative Action and Disadvantaged Business Enterprise (DBE) programs.
107.21 Prompt Payment. Make payment to each subcontractor and supplier within 10 Calendar Days after receipt of payment from the Department for Work performed or materials delivered or incorporated into the Project, according to ORC 4113.61, provided that the pay estimate prepared by the Engineer includes Work performed or materials delivered or incorporated into the public improvement by the subcontractor or supplier.
Also require that this contractual obligation be placed in all subcontractor and supplier contracts that it enters into and further require that all subcontractor and suppliers place the same payment obligation in each of their lower tier contracts. If the Contractor, subcontractors, or supplier subject to this provision fail to comply with the 10 Calendar Day requirement, the offending party shall pay, in addition to the payment due, interest in the amount of 18 percent per annum of the payment due, beginning on the eleventh Calendar Day following the receipt of payment from the Department and ending on the date of full payment of the payment due plus interest.
Repeated failures to pay subcontractors and suppliers timely pursuant to this subsection will result in a finding by the Department that the Contractor is in breach of Contract and subject to all legal consequences that such a finding entails. Further, repeated failures to pay timely pursuant to this subsection will result in a lower evaluation score for the Contractor and those subcontractors who are subject to evaluation by the Department.