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Okaloosa County BOCC — December 1, 2015 — 5) Standard Form of General Conditions — reading text
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5) Standard Form of General Conditions — extracted reading text
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action or proceeding. Design-Builder agrees to keep Owner informed of all
developments in the defense of such actions.
7.1.2 If Owner is enjoined from the operation or use of the Work, or any part thereof, as the
result of any patent or copyright suit, claim, or proceeding, Design-Builder shall at its sole
expense take reasonable steps to procure the right to operate or use the Work. If Design-Builder
cannot so procure such right within a reasonable time, Design-Builder shall promptly, at Design-
Builder’s option and at Design-Builder’s expense, (i) modify the Work so as to avoid infringement
of any such patent or copyright or (ii) replace said Work with Work that does not infringe or violate
any such patent or copyright.
7.1.3 Sections 7.1.1 and 7.1.2 above shall not be applicable to any suit, claim or proceeding
based on infringement or violation of a patent or copyright (i) relating solely to a particular process
or product of a particular manufacturer specified by Owner and not offered or recommended by
Design-Builder to Owner or (ii) arising from modifications to the Work by Owner or its agents after
acceptance of the Work. If the suit, claim or proceeding is based upon events set forth in the
preceding sentence, Owner shall defend, indemnify and hold harmless Design-Builder to the
same extent Design-Builder is obligated to defend, indemnify and hold harmless Owner in
DBIA Document No. 535 Page 15
Standard Form of General Conditions of Contract Between Owner and Design-Builder
© 2010 Design-Build Institute of America
Section 7.1.1 above.
7.1.4 The obligations set forth in this Section 7.1 shall constitute the sole agreement between
the parties relating to liability for infringement of violation of any patent or copyright.
7.2 Tax Claim Indemnification.
7.2.1 If, in accordance with Owner’s direction, an exemption for all or part of the Work is
claimed for taxes, Owner shall indemnify, defend and hold harmless Design-Builder from and
against any liability, penalty, interest, fine, tax assessment, attorneys’ fees or other expenses or
costs incurred by Design-Builder as a result of any action taken by Design-Builder in accordance
with Owner’s directive. Owner shall furnish Design-Builder with any applicable tax exemption
certificates necessary to obtain such exemption, upon which Design-Builder may rely.
7.3 Payment Claim Indemnification.
7.3.1 Provided that Owner is not in breach of its contractual obligation to make payments to
Design-Builder for the Work, Design-Builder shall indemnify, defend and hold harmless Owner
from any claims or mechanic’s liens brought against Owner or against the Project as a result of
the failure of Design-Builder, or those for whose acts it is responsible, to pay for any services,
materials, labor, equipment, taxes or other items or obligations furnished or incurred for or in
connection with the Work. Within three (3) days of receiving written notice from Owner that such a
claim or mechanic’s lien has been filed, Design-Builder shall commence to take the steps
necessary to discharge said claim or lien, including, if necessary, the furnishing of a mechanic’s
lien bond. If Design-Builder fails to do so, Owner will have the right to discharge the claim or lien
and hold Design-Builder liable for costs and expenses incurred, including attorneys’ fees.
7.4 Design-Builder’s General Indemnification.
7.4.1 Design-Builder, to the fullest extent permitted by law, shall indemnify, hold harmless and
defend Owner, its officers, directors, and employees from and against claims, losses, damages,
liabilities, including attorneys’ fees and expenses, for bodily injury, sickness or death, and
property damage or destruction (other than to the Work itself) to the extent resulting from the
negligent acts or omissions of Design-Builder, Design Consultants, Subcontractors, anyone
employed directly or indirectly by any of them or anyone for whose acts any of them may be
liable.
7.4.2 If an employee of Design-Builder, Design Consultants, Subcontractors, anyone employed
directly or indirectly by any of them or anyone for whose acts any of them may be liable has a
claim against Owner, its officers, directors, employees, or agents, Design-Builder’s indemnity
obligation set forth in Section 7.4.1 above shall not be limited by any limitation on the amount of
damages, compensation or benefits payable by or for Design-Builder, Design Consultants,
Subcontractors, or other entity under any employee benefit acts, including workers’ compensation
or disability acts.
7.5 Owner’s General Indemnification.
7.5.1 Owner, to the fullest extent permitted by law, shall indemnify, hold harmless and defend
Design-Builder and any of Design-Builder’s officers, directors, and employees, from and against
claims, losses, damages, liabilities, including attorneys’ fees and expenses, for bodily injury,
sickness or death, and property damage or destruction (other than to the Work itself) to the extent
resulting from the negligent acts or omissions of Owner’s separate contractors or anyone for
whose acts any of them may be liable.
DBIA Document No. 535 Page 16
Standard Form of General Conditions of Contract Between Owner and Design-Builder
© 2010 Design-Build Institute of America
Article 8
Time
8.1 Obligation to Achieve the Contract Times.
8.1.1 Design-Builder agrees that it will commence performance of the Work and achieve the
Contract Time(s) in accordance with Article 5 of the Agreement.
8.2 Delays to the Work.
8.2.1 If Design-Builder is delayed in the performance of the Work due to acts, omissions,
conditions, events, or circumstances beyond its control and due to no fault of its own or those for
whom Design-Builder is responsible, the Contract Time(s) for performance shall be reasonably
extended by Change Order. By way of example, events that will entitle Design-Builder to an
extension of the Contract Time(s) include acts or omissions of Owner or anyone under Owner’s
control (including separate contractors), changes in the Work, Differing Site Conditions,
Hazardous Conditions, and Force Majeure Events.
8.2.2 In addition to Design-Builder’s right to a time extension for those events set forth in
Section 8.2.1 above, Design-Builder shall also be entitled to an appropriate adjustment of the
Contract Price provided, however, that the Contract Price shall not be adjusted for Force Majeure
Events unless otherwise provided in the Agreement.
Article 9
Changes to the Contract Price and Time
9.1 Change Orders.
9.1.1 A Change Order is a written instrument issued after execution of the Agreement signed
by Owner and Design-Builder, stating their agreement upon all of the following:
9.1.1.1 The scope of the change in the Work;
9.1.1.2 The amount of the adjustment to the Contract Price; and
9.1.1.3 The extent of the adjustment to the Contract Time(s).
9.1.2 All changes in the Work authorized by applicable Change Order shall be performed under
the applicable conditions of the Contract Documents. Owner and Design-Builder shall negotiate in
good faith and as expeditiously as possible the appropriate adjustments for such changes.
9.1.3 If Owner requests a proposal for a change in the Work from Design-Builder and
subsequently elects not to proceed with the change, a Change Order shall be issued to reimburse
Design-Builder for reasonable costs incurred for estimating services, design services and
services involved in the preparation of proposed revisions to the Contract Documents.
9.2 Work Change Directives.
9.2.1 A Work Change Directive is a written order prepared and signed by Owner directing a
change in the Work prior to agreement on an adjustment in the Contract Price and/or the Contract
Time(s).
DBIA Document No. 535 Page 17
Standard Form of General Conditions of Contract Between Owner and Design-Builder
© 2010 Design-Build Institute of America
9.2.2 Owner and Design-Builder shall negotiate in good faith and as expeditiously as possible
the appropriate adjustments for the Work Change Directive. Upon reaching an agreement, the
parties shall prepare and execute an appropriate Change Order reflecting the terms of the
agreement.
9.3 Minor Changes in the Work.
9.3.1 Minor changes in the Work do not involve an adjustment in the Contract Price and/or
Contract Time(s) and do not materially and adversely affect the Work, including the design,
quality, performance and workmanship required by the Contract Documents. Design-Builder may
make minor changes in the Work consistent with the intent of the Contract Documents, provided,
however, that Design-Builder shall promptly inform Owner, in writing, of any such changes and
record such changes on the documents maintained by Design-Builder.
9.4 Contract Price Adjustments.
9.4.1 The increase or decrease in Contract Price resulting from a change in the Work shall be
determined by one or more of the following methods:
9.4.1.1 Unit prices set forth in the Agreement or as subsequently agreed to between the
parties;
9.4.1.2 A mutually accepted lump sum, properly itemized and supported by sufficient
substantiating data to permit evaluation by Owner;
9.4.1.3 Costs, fees and any other markups set forth in the Agreement; or
9.4.1.4 If an increase or decrease cannot be agreed to as set forth in items 9.4.1.1
through 9.4.1.3 above and Owner issues a Work Change Directive, the cost of the
change of the Work shall be determined by the reasonable expense and savings in the
performance of the Work resulting from the change, including a reasonable overhead and
profit, as may be set forth in the Agreement.
9.4.2 If unit prices are set forth in the Contract Documents or are subsequently agreed to by
the parties, but application of such unit prices will cause substantial inequity to Owner or Design-
Builder because of differences in the character or quantity of such unit items as originally
contemplated, such unit prices shall be equitably adjusted.
9.4.3 If Owner and Design-Builder disagree upon whether Design-Builder is entitled to be paid
for any services required by Owner, or if there are any other disagreements over the scope of
Work or proposed changes to the Work, Owner and Design-Builder shall resolve the
disagreement pursuant to Article 10 hereof. As part of the negotiation process, Design-Builder
shall furnish Owner with a good faith estimate of the costs to perform the disputed services in
accordance with Owner’s interpretations. If the parties are unable to agree and
