SECTION 3  LEGAL REQUIREMENTS

SP-3.01       Indemnification of the Maryland Aviation Administration

A.            The Contractor shall pay, indemnify, and save harmless the Maryland Aviation Administration, the Maryland Department of Transportation, the State of Maryland, the Engineer, their agents and employees, from all suits, actions, claims, demands, damages, losses, expenses, and/or costs of every kind and description to which the Maryland Aviation Administration, the Maryland Department of Transportation, the State of Maryland, the Engineer, their agents and employees, may be subjected to or put by reason or injury (including death) to persons or property resulting from the manner or method employed by the Contractor, his/her agents and employees, or subcontractors, or from any neglect or default of the Contractor, his/her agents or employees, or subcontractors, in the performance of the Contract, or any part thereof, or from, by or an account of, any act or omission of the Contractor, his/her agents and employees, or subcontractors, and whether such suits, actions, claims, demands, damages, losses, expenses, and/or costs be against, suffered or sustained by the Maryland Aviation Administration, the Maryland Department of Transportation, the State of Maryland, the Engineer, their agents and employees.  The whole or so much of the monies due or to become due the Contractor under the Contract, as may be considered necessary by the Maryland Aviation Administration, may be retained by the MAA until such suits or claims for damages or injuries shall have been settled or otherwise disposed of, and satisfactory evidence to that effect furnished to the Engineer.

B.            The Contractor shall also agree to indemnify, protect, and save harmless the State, its officers, agents and employees with respect to any claim, action, cost of judgment, and patent infringement arising out of the purchase or use of materials, supplies, equipment or services covered by this Contract.

C.            Furthermore, the Contractor agrees to indemnify, protect and save harmless the State, its officers, agents and employees with respect to any claim, action, cost, or judgment arising from any dispute concerning the validity of any patent which in any way relates to the process that is required by the specifications for the removal, or disposition, of asbestos as more specifically set forth in the Contract Specifications.  This indemnification obligation is not limited by, but is in addition to, the insurance obligations and performance bonds contained in this Contract.

D.            Whenever the Contractor is required by any existing Federal, State, local, and/or municipal laws, ordinances, rules or regulations, or by any Federal, State, local, and/or municipal laws, ordinances, rules or regulations that may be enacted hereafter pertaining to the work to be done under this Contract, to secure any permits or licenses to carry any operations in connection with the performance of this Contract, and/or to act under the direction or supervision of the Engineer and/or his/her representatives in connection with any such operation or operations, the Contractor shall be solely liable for all suits, actions, costs, and damages of every kind and description resulting or which may result, directly or indirectly, from any such operation or operations, and shall indemnify and save harmless the Maryland Aviation Administration, the Maryland Department of Transportation, the State of Maryland, and the Engineer, their agents and employees from any and all suits, actions, costs, and damages of every kind and description arising or which may arise, directly or indirectly, from the said operation or operations.

SP-3.02       Compensation, Liability, and Property Damage Insurance

A.            Except as otherwise provided by law, the Contractor shall at all times maintain and keep in force: such insurance as will protect him/her from claims under Worker's Compensation Acts, and a Certificate of such insurance shall be delivered within ten (10) days after the date of recommended award of the Contract and approved by the Engineer before any work is begun.

B.            The Contractor shall, at his/her own cost, obtain and maintain such insurance as will protect him/her and the Maryland Aviation Administration and its employees on an occurrence basis from, and provide legal representation to address, any claims for damages and personal injury, which may arise from the operations under this Contract, whether such operations be by the Contractor or any subcontractor or by any one directly or indirectly employed by them.

C.            The liability insurance shall under no circumstances be less than TWO HUNDRED THOUSAND DOLLARS ($200,000) for injuries sustained by any one (1) person, and TWO MILLION DOLLARS ($2,000,000) for injuries sustained by two (2) or more persons in any one (1) accident.  The amount of property damage insurance shall not be less than ONE MILLION DOLLARS ($1,000,000) or a combined single bodily and property damage limit of not less than FIVE MILLION DOLLARS ($5,000,000) per accident.  The liability insurance shall include comprehensive automobile liability insurance with a combined single limit of FIVE MILLION DOLLARS ($5,000,000) (including garage liability, all automotive equipment owned, operated, leased, hired, and non-owned) for bodily injury and property damage for each accident. 

1.       Restricted Areas (Non-Movement Area Access – Aircraft Ramp Areas).  A limit of not less than Five Million Dollars ($5,000,000) for each accident.

2.       Restricted Areas (Movement Area Access – Runways and Taxiways).  A limit of not less than Ten Million Dollars ($10,000,000) for each accident.

Said levels of insurance are to cover claims arising solely in connection with this Contract and shall not be subject to any degree of depletion as a result of claims arising in connection with other activities undertaken by the Contractor.  Said insurance is to be issued with the Maryland Aviation Administration and its employees, as an additional insured, not as a named insured.

D.            The property damage insurance which the Contractor shall provide in its name shall also cover the collapse of, or structural injury to, any building or structure, or damage to any public or private property and damage to underground property.  The insurance policy provided for the protection of the Contractor shall cover liability assumed under Section GP-7.14.  The Maryland Aviation Administration shall be furnished with certified evidence that said insurance issued in the name of the Contractor is in force and is in such form that the Maryland Aviation Administration may require.

E.            The certified evidence concerning the insurance shall be delivered to the MAA, Director, Capital Program Division, within ten (10) days after the date of recommended award of the Contract and shall be approved by the Director, Capital Program Division, before any work is done.  No policies shall be canceled unless fifteen (15) days prior notice is given to the Director, Capital Program Division, and such minimum notice of cancellation shall be provided for in the polices.

F.            The requiring of any and all insurance as set forth in these Specifications or elsewhere shall be in addition to and not in any way in substitution for, all other protection provided under the Contract Documents.

G.           No acceptance and/or approval of any insurance by the Maryland Aviation Administration shall be construed as relieving or excusing the Contractor or the Surety on his/her bond from any liability or obligations imposed upon either or both of them by the provisions of the Contract Documents.

SP-3.03       Third Party Beneficiary Clause

It is specifically agreed between the parties executing the Contract that it is not intended by any of the provisions of any part of the Contract to create the public or any member thereof a third party beneficiary or to authorize anyone not a party to the Contract to maintain a suit for personal injuries or property damage pursuant to the terms or provisions of the Contract.

SP-3.04       Builder’s Risk Insurance

Contractor shall at its own cost insure the work on an "all risk" basis and keep it insured at all times during the period of construction, until receipt of notice of final acceptance from the Administration.  The amount of insurance shall be, at all times, at least equal to the amount paid on account of work and materials plus the value of work and materials furnished or delivered but not yet paid for by the Administration.  The Administration shall be named as loss payee under the builder's risk policy.

SP-3.05       Insurance Requirements for Asbestos Removal

A.            For work at the project sites involving asbestos removal, the Contractor shall procure and pay for insurance specified herein issued by companies acceptable to the Administration and licensed and authorized to do business in the State of Maryland. 

B.            The Contractor shall forward to the Administration at the time of execution of the Contract, a Certificate of Insurance issued by the Insurer(s), including special endorsements.  The Contractor shall furnish policies satisfactory to the Administration as to contents and carriers, and such insurance will contain the following provision:

1.          Sixty (60) days prior notice to the Administration of cancellation.

2.          Inclusion of the Administration, the Engineer, and their directors, officers, representatives, agents, and employees as additional Insured in respect to work or operations in connection with the Contract.

3.          Endorsement providing that such insurance is primary insurance and no insurance of the Administration will be called in to contribute to a loss.

C.            If at any time the required insurance policies should be canceled, terminated, reduced in the limit of liability, or modified so that the insurance is not in full force and effect as required herein, the Administration may terminate this Contract for default or obtain insurance coverage equal to that required herein, the cost of which shall be charged to the Contractor and deducted from any monies due or that may become due the Contractor.

D.            Insurance similar to that required by the Contractor shall be provided by or on behalf of all subcontractors of any tier and other entities to cover their operation(s) performed under this Contract.  The above provisions are to be included in all subcontracts.

E.            The Contractor shall not commence work under the Contract until evidence of all the insurance coverage required has been received, reviewed, and approved by the Maryland Aviation Administration.

F.            Insurance coverage:  The coverage of insurance under such policy or policies shall be at policy limits not less than as specified herein.

1.            Workers' Compensation and Employers' Liability:  Providing statutory coverage in the State of Maryland, to include All States endorsement, and occupational disease or toxic exposure, and Employers' Liability (Coverage B), with a minimum limit of ONE MILLION DOLLARS ($1,000,000.00).

2.            General Liability Insurance with a combined single limit of liability of ONE MILLION DOLLARS ($1,000,000.00) per occurrence.  The Contractor shall secure the following coverage endorsements:

a.    Comprehensive General Liability Broad Form;

b.    Contractual Liability;

c.     Premises - Operations Liability;

d.    Product and Completed Operations Liability;

e.    Broad Form Property Damage;

f.     Fire Legal Liability;

g.    Independent Contractors Liability; and

h.    The Contractor shall secure coverage for its asbestos abatement operations under the Contract.  In the alternative, the Contractor shall show evidence of the deletion of the asbestos/toxic exposure exclusion to the policy.

G.           The Contractor shall maintain all of the above coverages until such time as he/she receives notice from the Administration of the final acceptance of the project as defined within the Contract.

SP-3.06       Bankruptcy Notification

In the event the Contractor enters into proceedings related to bankruptcy, whether voluntary or involuntary, the Contractor agrees to furnish, by certified mail, written notification of the bankruptcy to the Procurement Officer responsible for administering the Contract.  This notification shall be furnished within five days of the initiation of the proceedings related to bankruptcy filing.  This notification shall include the date on which the bankruptcy petition was filed, the type of bankruptcy petition filed, and the identity of the court in which the bankruptcy petition was filed.  This obligation remains in effect until after final payment has been issued.