AVEC RFP No. PUR-97G-03/12 - Alaska Village Electric Cooperative

(b) Licenses. Contractor and subcontractors are also required to hold
current state business licenses in order to perform work in the state wherein fabrication shall be
performed. Contractor’s license and business license numbers shall be inserted in the appropriate
place on the proposal form. Evidence of subcontractors’ compliance with the above shall be
submitted to AVEC’s Engineer (hereafter “Engineer”) before starting subcontract work.
(c) Progress Reports. Prior to starting construction, the Contractor shall
prepare and submit to the Engineer for review, a progress schedule showing approximately the dates
on which each part or division of the work is expected to be started and finished. The progress
schedule shall be brought up to date and submitted to the Engineer at the end of each month or at
such other times the Engineer may request. The Contractor shall also forward to the Engineer at the
end of each month an itemized report of the delivery status of major and critical items of purchased
equipment and material, including shop drawings and the status of shop and field fabricated work.
These progress reports shall indicate the date of the purchase order, the current percentage of
completion, estimated delivery and the cause of any delay.
(d) Remedial Plan. If the completion of any part of the work or the
delivery of materials is behind the approved schedule, the Contractor shall submit in writing a plan
acceptable to the Engineer for bringing the work up to schedule.
2. Materials. Contractor will purchase all materials and Equipment (other than
Owner-furnished materials) outright and not subject to any conditional sales agreements, bailment,
lease, or other agreement reserving to the seller any interest therein. All materials incorporated into
the project shall be in new, high-quality condition. Used or defective materials shall not be
incorporated into the project. All Equipment furnished hereunder shall be subject to the inspection,
tests, and approval of the Owner and the Contractor shall furnish all information required
concerning the nature or source of any Equipment and provide adequate facilities for testing and
inspecting the Equipment at the plant of the Contractor. The Equipment furnished hereunder shall
become the property of the Owner upon delivery, provided, however, that the Owner, within one (1)
year after delivery or within the period for which the Equipment is guaranteed, whichever is longer,
may reject any Equipment which does not comply with the Specifications attached hereto and made
a part hereof or with the guarantees, if any, of the Contractor. Upon any such rejection, the
Contractor shall repair or replace such defective Equipment within a reasonable time after notice in
writing from the Owner and in the event of failure by the Contractor so to do, the Owner may make
such replacement and the cost and expense thereof shall be paid by and recoverable from the
Contractor.
3. Independent Contractor Status. Contractor is not a joint venturer or partner
with Owner, and Contractor is providing services under this Contract as an independent contractor.
12/12/12 CONTRACT, AVEC RFP No. PUR-97G-03/12 Page 5 of 8