# Star Operations, Inc. and Great American Insurance Company of New York v. Dig Tech, Inc. > Texas Court of Appeals, 3rd District (Austin) · November 24, 2015 URL: https://www.frixlaw.com/law-library/cases/4075618 ## Case - **Court:** Texas Court of Appeals, 3rd District (Austin) - **Decided:** November 24, 2015 - **Precedential status:** Published - **Opinion:** Opinion - **Cited by:** 0 later opinions in the Frix Law Library ## Citator (automated) - No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases. - Full citator and citing cases: https://www.frixlaw.com/law-library/cases/4075618 ## Opinion text ACCEPTED 03-15-00423-CV 7966631 THIRD COURT OF APPEALS AUSTIN, TEXAS 11/24/2015 10:53:22 AM JEFFREY D. KYLE CLERK IN THE THIRD COURT OF APPEALS FILED IN 3rd COURT OF APPEALS NO. 03-15-00423-CV AUSTIN, TEXAS 11/24/2015 10:53:22 AM STAR OPERATIONS, INC. JEFFREY D. KYLE Clerk and GREAT AMERICAN INSURANCE COMPANY OF NEW YORK Appellants VS. DIG TECH, INC. Appellee Appealed from the 22nd Judicial District Court Caldwell County, Texas BRIEF OF APPELLANTS STAR OPERATIONS, INC. AND GREAT AMERICAN INSURANCE COMPANY OF NEW YORK James H. Robichaux SBN 17083000 jrobichaux@branscombpc.com Clinton W. Twaddell, III SBN 24071537 ctwaddell@branscombpc.com BRANSCOMB PC 802 N. Carancahua, Suite 1900 Corpus Christi, TX 78401-0036 Telephone: 361/886-3800 Telecopier: 361/886-3805 ORAL ARGUMENT REQUESTED {C1208515.DOCX:} IDENTITY OF PARTIES AND COUNSEL Appellant: Star Operations, Inc. Lead Counsel at Trial & on Appeal: James H. Robichaux BRANSCOMB PC 802 N. Carancahua, Suite 1900 Corpus Christi, TX 78401-0036 Telephone: 361/886-3800 Telecopier: 361/886-3805 Appellant: Great American Insurance Company of New York Lead Counsel on Appeal 1: Clinton W. Twaddell, III BRANSCOMB PC 802 N. Carancahua, Suite 1900 Corpus Christi, TX 78401-0036 Telephone: 361/886-3800 Telecopier: 361/886-3805 Appellee: Dig Tech, Inc. Lead Counsel at Trial & on Appeal: Brian Melton Chanler A. Langham SUSMAN GODFREY, LLP 1000 Louisiana Street, Suite 5100 Houston, TX 77002 Telephone: 713/651-9366 Telecopier: 713/651-6666 1 James H. Robichaux was lead trial counsel for Great American Insurance Company of New York. {C1208515.DOCX:} i RECORD LEGEND References to the one-volume Clerk’s Record are denoted “CR __.” References to live testimony in the Reporter’s Record are denoted “RR Vol. __ at [page]: [line]–[line].” Reporter’s Record Volumes 23-34 containing the trial exhibits are not internally paginated. Accordingly, references to trial exhibits are denoted “RR Vol. __: PX/DX __, at__,” with Plaintiff’s exhibits denoted “PX” and Defendants’ exhibits denoted “DX.” STATEMENT OF THE CASE Dig Tech, Inc. (“Dig Tech”) brought this lawsuit against Star Operations, Inc. (“Star Operations” or “Star”) alleging breach of an oral contract. Dig Tech claimed to be Star’s subcontractor on a federally funded highway project (the “Project”). The Project’s purpose was to construct sections of the SH130 toll road southeast of Austin, Texas. Great American Insurance Company (“GAIC”) was the payment bond surety for Star on the Project. Star denied the existence of any enforceable contract between itself and Dig Tech. Star also asserted that Dig Tech had failed to comply with federally mandated and applicable statutes, rules, and regulations that were conditions precedent to (1) the formation and/or enforcement of any purported contract between Star and Dig Tech; and (2) any obligation of Star to pay Dig Tech on any purported contract. {C1208515.DOCX:} x condition precedent to any payment obligation arising against Star in favor of Dig Tech on any purported contract between Star and Dig Tech ...................................................................................................23 C. Issues 5-7: The trial court erred in awarding Dig Tech contract damages because it was undisputed that Dig Tech failed to: (1) obtain a written contract with Star; (2) obtain TxDOT approval to its purported verbal contract with Star; or (3) provide statutorily compliant “certified payroll” to Star ........................................................25 II. Issues 8-11: The trial court erred in applying the law to Dig Tech’s claim(s) against the GAIC payment bonds ....................................................26 A. Issue 8: The trial court erred in refusing to dismiss Dig Tech’s claim(s) against the GAIC payment bonds for lack of jurisdiction because the federal Miller Act applied to the claim(s).............................26 B. Issue 9: If the Texas McGregor Act applied to Dig Tech’s payment bond claim(s), the trial court erred in ruling as a matter of law that Dig Tech perfected any claim against the bonds......................................27 C. Issue 10: If the McGregor Act applied to Dig Tech’s payment bond claim(s), the trial court erred in denying GAIC’s Motion for Instructed Verdict and its Motion for Judgment Notwithstanding the Verdict because Dig Tech failed as a matter of law to perfect any payment bond claim under the McGregor Act ..................................32 D. Issue 11: Alternatively, if the McGregor Act applied to Dig Tech’s payment bond claim(s) and a fact issue existed as to whether Dig Tech perfected any claim against the bonds, the trial court erred in refusing to submit GAIC’s proposed jury questions on whether Dig Tech substantially complied with the McGregor Act’s notice requirements .............................................................................................32 {C1208515.DOCX:} iii III. Issue 12: The trial court erred in awarding damages to Dig Tech without any evidence of Dig Tech’s actual damages as net loss after reduction of income tax payments or unpaid income tax liability as required by TEX. CIV. PRAC. & REM. CODE § 18.091 ............. 33 IV. Issue 13: The trial court erred in awarding attorney’s fees to Dig Tech because Dig Tech failed to segregate recoverable attorney’s fees from unrecoverable attorney’s fees ...................................................35 V. Issue 14: The trial court erred in awarding Dig Tech costs of deposition transcripts as “taxable costs” when Dig Tech did not notice or initiate the depositions ...............................................................37 Conclusion ...................................................................................................................39 Prayer ...........................................................................................................................40 Certificate of Compliance ............................................................................................41 Certificate of Service ...................................................................................................41 Index to Appendix ........................................................................................................42 {C1208515.DOCX:} iv INDEX OF AUTHORITIES FEDERAL AUTHORITIES U.S. Supreme Court: American Tel. and Tel. Co. v. Central Office Telephone, Inc., 524 U.S. 214 (1998) .................................................................................................16 Federal Crop Ins. Corp. v. Merrill, 332 US 380 (1947) ...................................................................................................22 U.S. Courts of Appeal: Century Marine, Inc. v. U.S., 153 F.3d 225 (5th Cir. 1998).....................................................................................22 Clem Perrin Marine Towing, Inc. v. Panama Canal Co., 730 F.2d 186 (5th Cir. 1984) ...................................................................................14 Continental Cas. Co. v. C.O. Brand, Inc., 355 F.2d 969 (5th Cir. 1966).....................................................................................26 Gen. Eng’g & Mach. Works v. O’Keefe, 991 F.2d 775 (Fed. Cir. 1993)............................................................................15, 22 U.S. v. New Orleans Pub. Surv., Inc., 553 F.2d 459 (5th Cir. 1977) (vacated on other grounds, New Orleans Public Service, Inc. v. U.S., 436 U.S. 942 (1978)) ............................14 Worthen v. Fidelity Nat. Prop. & Cas. Ins. Co., 463 Fed. Appx. 422 (5th Cir. 2012) ..........................................................................22 U.S. District Courts: Dingle v. Halliburton Co., Civil Action No. H-05-3719, 2006 WL 2729286 (S.D. Tex. Sept. 25, 2006) (not reported) .................................15 Ex rel. United Rentals, Inc. v. Hartford Fire Ins. Co., 339 F. Supp.2d 799, 801-02 (W.D. Tex. 2004) .......................................................27 {C1208515.DOCX:} v UPMC Braddock v. Harris, 934 F. Supp. 2d 238 (D.D.C., 2013) vacated on other grounds as moot 584 Fed.Appx.1 (D.C. Cir. 2014) ..............15, 22 U.S. Court of Claims: G.L. Christian and Assocs. v. U.S., 312 F.2d 418 (Ct. Cl. 1963) ...............................................................................14, 19 U.S.C.: 40 U.S.C. § 3131 ......................................................................................................26 C.F.R.: 23 CFR § 635.102 ....................................................................................................20 23 CFR § 635.103 ....................................................................................................14 23 CFR § 635.116(b) ...............................................................................................20 TEXAS AUTHORITIES Texas Supreme Court: Associated Indem. Corp. v. CAT Contracting, Inc., 964 S.W.2d 276 (Tex. 1998)........................................................................21, 24, 33 Centex Corp. v. Dalton, 840 S.W.2d 952 (Tex. 1992)....................................................................................21 Christus Health Gulf Coast v. Aetna, Inc., 397 S.W.3d 651 (Tex. 2013)....................................................................................34 Clayton W. Williams, Jr., Inc. v. Olivo, 952 S.W.2nd 523, 529 (Tex. 1997) .........................................................23, 24, 25, 33 Combs v. Healthcare Services, Corp., 401 S.W.3d 623 (Tex. 2013)....................................................................................34 {C1208515.DOCX:} vi Hohenberg Bros. Co. v. George E. Gibbons & Co., 537 S.W.2d 1 (Tex. 1976) ........................................................................................21 In re Bank One, N.A., 216 S.W.3d 825 (Tex. 2007) ...................................................................................19 In re 24R, Inc., 324 S.W.3d 564 (Tex. 2010)....................................................................................19 Jones v. Liberty Mutual Ins. Co., 745 S.W.2d 901 (Tex. 1988)....................................................................................34 McKinley v. Stripling, 763 S.W.2d 407, 410 (Tex. 1989)..........................................................23, 24, 25, 33 NAFTA Traders, Inc. v. Quinn, 339 S.W.3d 84 (Tex. 2011) ......................................................................................16 Nat’l Prop. Holdings, LP v. Westergren, 453 S.W.3d 419 (Tex. 2015) (per curiam) ..............................................................22 Tex. Dep’t. of Parks & Wildlife v. Miranda, 133 S.W.3d 173 (Tex. 2004)....................................................................................27 Tony Gullo Motors I, L.P. v. Chapa, 212 S.W.3d 299 (Tex. 2006)....................................................................................35 Wallace v. Briggs, 348 S.W.2d 523, 527 (Tex. 1961)............................................................................38 Texas Courts of Appeal: Big Bird Tree Service v. Gallegos, 365 S.W.3d 173 (Tex. App. – Dallas 2012, pet. denied.) ........................................34 Bundren v. Holly Oaks Townhomes Ass’n, Inc., 347 S.W.3d 421 (Tex. App.—Dallas 2011, pet. denied) ...................................37, 38 Capital Indemn. Corp. v. Kirby Restaurant Equipment {C1208515.DOCX:} vii Dist.] 2007, no pet.); Big Bird Tree Service v. Gallegos, 365 S.W.3d 173, 179 (Tex. App. – Dallas 2012, pet denied). A court may not judicially amend a statute and add words that are not explicitly contained in the language of the statute. Jones v. Liberty Mutual Ins. Co., 745 S.W.2d 901, 902 (Tex. 1988). As the Supreme Court stated recently, “the bar for reworking the words of our Legislature passed into law is high and should be.” Combs v. Healthcare Services, Corp., 401 S.W.3d 623, 630 (Tex. 2013). Stated differently, the Supreme Court has said that in matters of statutory construction, the Court takes the Legislature “at its word.” Christus Health Gulf Coast v. Aetna, Inc., 397 S.W.3d 651, 654 (Tex. 2013). The Court’s analysis begins (and often ends) with the Legislature’s chosen language. Id. at 653. This voted-on language is what constitutes the law; “the Judge’s inquiry is at an end.” Id. at 653-654. The language of the statute is clear. As a precondition to recovery of its damages, Dig Tech was required to present evidence of such lost earnings after reduction for any income tax payments made or unpaid tax liability that would have accrued as a result of such recovery. Since the invoices would be ordinary revenue, they would constitute “earnings” within the meaning of the Internal Revenue Code and federal income tax would be due and owing. Dig Tech’s failure to present evidence net of the unpaid tax liability precludes Dig Tech’s recovery. {C1208515.DOCX:} 34 Appellants objected to the failure of the charge – specifically Jury Questions Nos. 4 and 8 – on the grounds that they failed to comply with § 18.091. (RR Vol. 9 at 144:25–145:15). Accordingly, Appellants are entitled to reversal and rendition of a take nothing judgment in their favor as to actual damages in light of Dig Tech’s failure to present the evidence in the statutorily required manner and its failure to secure a jury finding of damages in compliance with § 18.091. IV. Issue 13: The trial court erred in awarding attorney’s fees to Dig Tech because Dig Tech failed to segregate recoverable attorney’s fees from unrecoverable attorney’s fees Dig Tech readily admitted that in order to recovery attorney’s fees, it was required to segregate incurred attorney’s fees relating solely to a claim for which attorney’s fees are unrecoverable pursuant to the Supreme Court decision of Tony Gullo Motors I, L.P. v. Chapa, 212 S.W.3d 299, 313-14 (Tex. 2006). (RR Vol. 5 at 191:21–192:2 (Dig Tech attorney David Pfeuffer)). Simply because the facts are “intertwined” does not make fees incurred on an unrecoverable claim – such as Star’s tort counterclaim – recoverable. Failure to segregate such fees precludes recovery. In cross-examination Dig Tech’s sole witness on the issue of attorney’s fees – David Pfeuffer – freely admitted that he made no attempt to look at the discovery submitted by Star to Dig Tech on its counterclaims. Instead he concluded that the unrecoverable attorney’s fees Dig Tech incurred in drafting and responding to {C1208515.DOCX:} 35 RECORD LEGEND References to the one-volume Clerk’s Record are denoted “CR __.” References to live testimony in the Reporter’s Record are denoted “RR Vol. __ at [page]: [line]–[line].” Reporter’s Record Volumes 23-34 containing the trial exhibits are not internally paginated. Accordingly, references to trial exhibits are denoted “RR Vol. __: PX/DX __, at__,” with Plaintiff’s exhibits denoted “PX” and Defendants’ exhibits denoted “DX.” STATEMENT OF THE CASE Dig Tech, Inc. (“Dig Tech”) brought this lawsuit against Star Operations, Inc. (“Star Operations” or “Star”) alleging breach of an oral contract. Dig Tech claimed to be Star’s subcontractor on a federally funded highway project (the “Project”). The Project’s purpose was to construct sections of the SH130 toll road southeast of Austin, Texas. Great American Insurance Company (“GAIC”) was the payment bond surety for Star on the Project. Star denied the existence of any enforceable contract between itself and Dig Tech. Star also asserted that Dig Tech had failed to comply with federally mandated and applicable statutes, rules, and regulations that were conditions precedent to (1) the formation and/or enforcement of any purported contract between Star and Dig Tech; and (2) any obligation of Star to pay Dig Tech on any purported contract. {C1208515.DOCX:} x INDEX TO APPENDIX • Item 1 .................................................................................................. Final Judgment • Item 2 ................................................................................... Jury Charge and Verdict • Item 3 ............................................................................................TEX. R. CIV. P. 140 • Item 4 ............................................................................................TEX. R. CIV. P. 141 • Item 5 .......................................................................................... 23 C.F.R. § 635.102 • Item 6 .......................................................................................... 23 C.F.R. § 635.103 • Item 7 ........................................................................................... 23C.F.R. § 635.116 • Item 8A........................................................ TEX. CIV. PRAC. & REM. CODE § 18.091 • Item 8B ........................................................ TEX. CIV. PRAC. & REM. CODE § 31.007 • Item 9 ............................................................................................... 40 U.S.C. § 3131 • Item 10 ........................................................................ TEX. GOV’T CODE § 2253.001 • Item 11 ........................................................................ TEX. GOV’T CODE § 2253.041 • Item 12 ........................................................................ TEX. GOV’T CODE § 2253.047 • Item 13 ........................................................................ TEX. GOV’T CODE § 2253.048 • Item 14 ............................ DX1: Star/Central Texas Subcontract CSUB116 Excerpts • Item 15 ................... DX2: Dig Tech/Central Texas Subcontract CSUB122 Excerpts • Item 16 ............................ DX3: Star/Central Texas Subcontract CSUB140 Excerpts • Item 17 ........................ DX119: Facility Concession Agreement Excerpt (page 175) • Item 18A........................ DX119: Facility Concession Agreement Excerpt (page 69) • Item 18B ........................................... Rule 11 Regarding Supplementation of Record • Item 19 .....................................................DX9: Dig Tech Certified Payroll Excerpts • Item 20 ...... PX63: Mike Kiehnau Email Regarding Communication from Dig Tech • Item 21 ...................................................................PX183: Dig Tech Letter to GAIC {C1208515.DOCX:} 42 mandated condition precedent to formation and/or enforcement of any purported contract between Star and Dig Tech. Issue No. 3 The trial court erred in refusing to submit proposed jury question(s) on Dig Tech’s failure to obtain TxDOT’s approval to its purported contract with Star, which was a federally mandated condition precedent to formation and/or enforcement of any purported contract between Star and Dig Tech. Issue No. 4 The trial court erred in refusing to submit proposed jury question(s) on Dig Tech’s failure to provide statutorily compliant “certified payroll” to Star, which was a federally mandated condition precedent to any payment obligation arising against Star on any purported contract between Star and Dig Tech. Issue No. 5 The trial court erred in awarding Dig Tech contract damages because a writing was a federally mandated condition precedent to contract formation and enforceability, and it was undisputed that Dig Tech failed to comply with such condition. Issue No. 6 The trial court erred in awarding Dig Tech contract damages because TxDOT approval to any purported contract with Star was a federally mandated {C1208515.DOCX:} xii - - - - - - - - - - - - · - · - - - ---· CAUSE 12·0•337 § § IN THE DISTRICT COURT Plaintiff, § § § § 22I'Il> JUDICIAL DISTRieT ST!\.R OPERATIONS, INC. § GREAT AMERICAN INSURANCE § 'COI\I(P.AN¥ OF NEW YORK § § Cb.LDWJ!)J.,;L C"OlJ'NT'i'; § TEXAS Defendants. § FJ~M.. ln'JD:GMENT On 'February 2:0, :20T5, the Court entered a traditional summary judgment against DefehdantStat Operations, Inc.'s (''Star Opet;ations") counterclaim for fraud. On February 23, 201.5, the Court JUDICIAL DISTRieT ST!\.R OPERATIONS, INC. § GREAT AMERICAN INSURANCE § 'COI\I(P.AN¥ OF NEW YORK § § Cb.LDWJ!)J.,;L C"OlJ'NT'i'; § TEXAS Defendants. § FJ~M.. ln'JD:GMENT On 'February 2:0, :20T5, the Court entered a traditional summary judgment against DefehdantStat Operations, Inc.'s (''Star Opet;ations") counterclaim for fraud. On February 23, 201.5, the Court l ~':l rdl,h J !'II. Pl-.,·n~;th' lh.·rJ Jl..,,,.J, d l'!!il\ ofC~r,+-.,. 5. Prejudgment interest, .fJ'IfSiiaffi tQ 'Fex~ Prgp@l't'i Code § 28.003-, on the unpaid '5% ~ "i11 't~C1.7Lj- Apr."llb ~111 invoice amounts at the rate of 1-8% in the amount of$68,HM' up to Mareh G, 20Hi, flfte aeettting ., daily iR tQ.s ame.'Bnt of $11:2...79. ~~il the date q£ thfg; Judgtneilt. 6. Post judgment interest on all of the above amounts at the rate of 5% compounded annually, from the date of this Judgment is entered until all mounts are paid in full. It is further ORDERED that Star Operations take nothing on its fraud and tortious interference counterclaims against Dig Tech. 2 3619506vl/014338 1621 ~ ------~------- ------------- It is further ORDERED that Dig Tech substantially complied with the noti~e .Provisions of the McGregor Act in order to perfect its bond claim against GAIC. Accordingly, GAIC is obligated under the terms of its bond to make the payments that Star Operations failed to make. "'-1'Ji1S: (l)riignten€ fimilty; tl"fupn"S\7S rof'',altclallns:;aml ·all p·arlies./anlt IS.,san'-appealablc 3. For representation at the petition for review stage in the Supreme Court of Texas. Answer: · d/ ?J 1 6a. S ·co 4. For representation at the merits briefing stage in the Supreme Court of Texas. Answer: .:t[ ~ 1 b a~. tagoxda, Medina, Refugio, Wharton and Nllaon Counties in Texas , HEAVY CONSTHIJCTlON PROJf~CTS (excluding darn construction). !HGJllvJ\Y CONt;'l'RUCTIDN l'ROJJ::C'J'S (excluding tunnels, building structures in rein: aJ:ea p:~.-ojectu k rail -road consT..ruct.i.on; bascuJ.e , l:luspension & J>pandrel - an:h b r idges desiqned foJ: . conmu~.rcia l navigation , bridges i1wolving marine construction; and other major bridqes) . t•todificat ion Number Publication Date 0 02/09/2007 SUTX2005-023 09/08/2005 H!!:A'J'( CONS'I'RIJCTION i.>P,OJECTS HIGHI~A.Y COl~STRUC'i'lON PROJECTS Fringes Carpenter, ... . .. . . ........ . .. $ 11.70 Mechanic ., . . . . . . . . . . . . . . . . . . .. $ 12.18 A~~\ ,alc Ol~t~ibu~UL o ~~ldLUL •• , $ 12.57 Asphal1: paving machine ope-cator.';l 1 1 .60 Asphalt Rake 1: . . .. . •... , .. . ..... $ l. O, 63 Asphill t: Shoveler •.......... . ... $ 9. 23 Brom or: S1~eeper Operator ... . , . $ 9, 32 Bulldozt'!-J: operator .. . .. . , .... -~ 11. 69 Concca&e Finiuher, Paving . , . ... $ 11.64 Co ncrete J:i!li::~her, StruccUJ:es .. $ 10 . 23 Concrete Rubber: . . . . . , . . . . . , .. . . $ 9. 00 Crans , Clrunshell , Backhoe, DGrrick, Dragltne, Shovel Ope~ator .. ... ... . . . .. , . .. .. . . . . G 12 . 00 I!J.ag9er . . ........ . . . .... , , , . . .. S 8.60 rorm Bui l der/Setter., Structures$ J.O.Sl li'orm Settur, Pavin g & Curb .... . $ 9.48 1-'o>Jndat ion Dl:i ll Operator., · Tr.uck Mounted .................. $ 14.58 f'ront End l.oade:;: OperattJr ...•.. $ 10.62 Laborer, coL'llllon. , •.. . .•.... _..• $ 0.91 Laborer , Utility. , . ...... . ..... $ 9.21 Motor Grader Operator Pine Grade .. .....• . .. .. . . ... . . . . . .. - ~ 15 . 15 Hotor Grader Ope r ator RQUgh .. . . $ 12 , 95 Pavement 11arking t-1achioe Opexator .... . ..... . ..... . ... , .. $ 13 . 32 ··. Pipelayer . . •.. . , . ..... . , , . . .. . . $ 9.71 \_ Roller Op(~ rul:or, l'ueumatic, Page 98 of 135 Pagss Excerpt from raclllty Concession Agreement § 635.103 Applicability., 23 C.F.R. § 635.103 Code of Federal Regulations Title 23. Highways Chapter I. Federal Highway Administration, Depattment ofTranspmtation Subchapter G. Engineering and Traffic Operations Part 635. Construction and Maintenance (Refs & Aunos) Subpart A. Contract Procedures (Refs & Aunos) 23 C.F.R. § 635.103 § 635.103 Applicability. Currentness The policies, requirements, and procedures prescribed in this subpart shall apply to all Federal-aid highway projects. Credits [62 FR 6873, Feb. 14, 1997; 69 FR 7118, Feb. 13, 2004] SOURCE: 51 FR 27534, Aug. I, 1986; 52 FR 36921, Oct. 2, 1987; 53 FR 1922, Jan. 25, 1988; 56 FR 37004, Aug. 2, 1991; 58 FR 38975, July 21, 1993; 60 FR 44273, Aug. 25, 1995; 62 FR 6872, Feb. 14, 1997; 64 FR 71289, Dec. 21, 1999; 67 FR 75924, Dec. 10, 2002; 71 FR 66454, Nov. 15, 2006; 72 FR 45336, Aug. 14, 2007; 78 FR 5717, Jan. 28,2013, unless otherwise noted. AUTHORITY: Sec. 1525 ofPub.L. 112-141, Sec. 1503 orPub.L. 109-59, 119 Stat. 1144; 23 U.S.C. 101 (note), 109, 112, 113, 114, 116, 119, 128, and 315; 31 U.S.C. 6505; 42 U.S.C. 3334,4601 et seq.; Sec. 1041(a), Pub.L. 102-240, 105 Stat. 1914; 23 CFR 1.32; 49 CFR 1.85(a)(l). Current through Oct. 15, 2015; 80 FR 62427. End of Document !l) 2015 Thomson Reuters_ No claim to original U.S. Government Works. V\t:!;....~!.:.!t~~c:.I.g....:~.l!'~ · ~O.·~Se:J:...,,;___ __ 0 - ~ llillarer cr mec1'1311lc 1is'tecr.iil.lli2·al10fsi~hi;!oc>):Pa ';!lmva por1od ale: dllli: te§'JS.!eiei' in ':i 156713 lil:e ~~e-,ti.U.':iilf pt~. r&g!s[W.led.SlaWs ~l!Mof L21!or, 6/"lr no.SUCII~~ eJ:Isls.ltrn ~· ~~ (e~d.w'..l{,Uta SUfea/J or.Ap;ite'ntlcasht/l=d Tla~"lg.·UrilCOd Sltlles'Pitpai",.rilentoor Labor. (~) t~Yw·..r.:P.E FRINGE l'li;N~ AAE I?Altl:To APF\iOilED'Pt:ANs', 'Fl.JNOS,·PR i>!lOOAAMS ·o I!>~ lo :h3. tmsldtp>~.'\'~~ .~es pO:Ito-eaelt ~or m~c i::le.d 1o the·a'Scl.•" re.'M!tlced p~oif, Pf!Y~!s of;Jr~c ~~ lliO.l(sfaC.ln l!1JI ~c! f>'8' to at~pro;>i"~ programs ~ lhe. bet'.&li! of such amj)!I:>)IU3.=ilir as llo!Ctf iri ~, .4(c) tictcwt. · § 2253.001. Definitions, TX GOVT § 2253.001 Notes of Decisions (42) V. T. C. A., Government Code§ 2253.001, TX GOVT § 2253.001 Current through the end of the 2015 Regular Session of the 84th Legislature End of Document (!J 20 J 5 Thomson Reuters. No claim to original U.S. Government Works 'NP"·ll·'C'.VNext © 2015 Thomson F\euters. No claim to original lJ S Government Works. 3 § 2253.041. Notice Required for Claim for Payment for Labor... , TX GOVT § 2253.041 Vernon's Texas Statutes and Codes Annotated Government Code (Refs & Annas) Title 10. General Government (Refs & Annas) Subtitle F. State and Local Contracts and Fund Management Chapter 2253. Public Work Performance and Payment Bonds (Refs &Annas) Subchapter C. Notice Requirements V.T.C.A., Government Code§ 2253.041 § 2253.041. Notice Required for Claim for Payment for Labor or Material Currentness (a) To recover in a suit under Section 2253.073 on a payment bond for a claim for payment for public work labor performed or public work material delivered, a payment bond beneficiary must mail to the prime contractor and the surety written notice ofthe claim. (b) The notice must be mailed on or before the 15th day of the third month after each month in which any of the claimed labor was performed or any of the claimed material was delivered. (c) The notice must be accompanied by a sworn statement of account that states in substance: (I) the amount claimed is just and correct; and (2) all just and lawful offsets, payments, and credits known to the affiant have been allowed. (d) The statement of account shall include the amount of any retainage applicable to the account that has not become due under the terms of the public work contract between the payment bond beneficiary and the prime contractor or between the payment bond beneficiary and a subcontractor. Credits Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. I, 1993. Editors' Notes REVISOR'S NOTE 2008 Main Volume (1) The revised law substitutes the term "payment bond beneficiary" for the source law term "claimant" for the reason stated in Revisor's Note (3) under Section 2253.021 of this chapter. (2) The revised law substitutes the terms "public work labor" and "public work material" for the source law terms "labor" and "material" for the reason stated in Revisor's Note (4) under Section 2253.021 of this chapter. V'o';cc.tl.ci·.vNe~t © 2015 Tllomson Reuters. No claim to original U.S. Government Works. 1 Appendix Item 11 § 2253.041. Notice Required for Claim for Payment for Labor... , TX GOVT § 2253.041 Notes of Decisions (80) V. T. C. A., Govennnent Code§ 2253.041, TX GOVT § 2253.041 Current through the end of the 2015 Regular Session of the 84th Legislature End ofDorument 1{5 20 I 5 Thomson Reuters. No claim to original U.S. Government Works. V\"":'.ii.,;•,vNext' © 20'15 Thomson Reuters. No claim to original U.S. Government Wmks. 2 § 2253.047. Additional Notice Required for Payment Bond ... , TX GOVT § 2253.047 Vernon's Texas Statutes and Codes Annotated Government Code (Refs & Annos) Title 10. General Government (Refs & Annas) Subtitle F. State and Local Contracts and Fund Management Chapter 2253. Public WorkPelformance and Payment Bonds (Refs &Annos) Subchapter C. Notice Requirements V.T.C.A., Government Code§ 2253.047 § 2253.047. Additional Notice Required for Payment Bond Beneficiary Without Direct Contractual Relationship With Prime Contractor Currentness (a) To recover in a suit under Section 2253.073 on a payment bond, a payment bond beneficiary who does not have a direct contractual relationship with the prime contractor for public work labor or material must mail notice as required by this section. (b) A payment bond beneficiary who contracts with a subcontractor for retainage must mail, on or before the 15th day of the second month after the date of the beginning of the delivery of public work material or the perfmmance of public work labor, written notice to the prime contractor that: (1) the contract provides for retainage; and (2) generally indicates the nature of the retainage. (c) The payment bond beneficiary must mail to the prime contractor written notice of a claim for any unpaid public work labor performed or public work material delivered. The notice must be mailed on or before the 15th day of the second month after each month in which the labor was performed or the material was delivered. A copy of the statement sent to a subcontractor is sufficient as notice under this subsection. (d) The payment bond beneficiary must mail to the prime contractor, on or before the 15th day of the second month after the receipt and acceptance of an order for specially fabricated material, written notice that the order has been received and accepted. (e) This section applies only to a payment bond beneficiary who is not an individual mechanic or laborer and who makes a claim for wages. Credits Added by Acts 1993, 73rd Leg., ch. 268, § I, eff. Sept. 1, 1993. Editors' Notes REVISOR'S NOTE '•,Vc";\[.';'.vNext © 20'15 Thomson Reuters. ~lo claim to original U.S. (3overnment Works. Appendix Item 12 § 2253.047. Additional Notice Required for Payment Bond ... , TX GOVT § 2253.047 2008 Main Volume (1) The revised law substitutes the term "payment bond beneficiary," for the source law term "claimant" for the reason stated in Revisor's Note (3) under Section 2253.021 of this chapter. (2) The revised law substitutes the term "retainage" for the source law phrase "agreements ... by which payments are not to be made in full therefor in the month next following each month in which the labor was performed or the materials were delivered" because Section 2253.001 of this chapter defines "retainage" to mean "the part of the payments under a public work contract that are not required to be paid within the month after the month in which the public work labor is performed or public work material is delivered under the contract." (3) The revised law substitutes the terms "public work labor," "public work material," and "public work labor or material" for the source law terms "labor" and "material" for the reason stated in Revisor's Note (4) under Section 2253.021 of this chapter. ( 4) The revised law substitutes the term "specially fabricated material" for the source law phrase ~~specially fabricated item or items as described in paragraph C(b )(2)"because the description in the referenced paragraph is codified in Section 2253.00 I (8) ofthis code as the definition of"specially fabricated material." Notes of Decisions (2) V. T. C. A., Government Code§ 2253.047, TX GOVT § 2253.047 Current through the end of the 2015 Regular Session of the 84th Legislature End of Document 10 2015 Thomson Reuters. No claim lo original U.S. Govermnenl Works. '1'/P·~;ila·.vNext © 2015 Thomson Reuters. No claim to original U.S. Government Works. 2 § 2253.048. Mailing Notice, TX GOVT § 2253.048 Vernon's Texas Statutes and Codes Annotated Government Code (Refs & Annas) Title 10. General Government (Refs &Annas) Subtitle F. State and Local Contracts and Fund Management Chapter 2253. Public Work Perfmmance and Payment Bonds (Refs &Annas) Subchapter C. Notice Requirements V.T.C.A., Government Code§ 2253.048 § 2253.048. Mailing Notice Effective: September 1, 2001 Currentness (a) A notice required by this subchapter to be mailed must be sent by certified or registered mail. (b) A notice required by this subchapter to be mailed to a prime contractor must be addressed to the prime contractor at the contractor's residence or last known business address. (c) A person satisfies the requirements of this subchapter relating to providing notice to the surety if the person mails the notice by certified or registered mail to the surety: (1) at the address stated on the bond or on an attachment to the bond; (2) at the address on file with the Texas Deparhnent oflnsurance; or (3) at any other address allowed by law. Credits Added by Acts 1993, 73rdLeg., ch. 268, § l, eff. Sept. 1, 1993. Amended by Acts2001, 77th Leg., ch. 380, § 4, eff. Sept. 1,2001. V. T. C. A., Government Code§ 2253.048, TX GOVT § 2253.048 Current through the end of the 2015 Regular Session ofthe 84th Legislature Eud of Document (["'l 20 IS Thomson Reuters_ No claim to original U.S_ Government Works. W?''li·?;wNext © 20'15 Thomson Reuters. ~lo claim to original U.S. Government Works. Appendix Item 13 92 1 2 3 4 5 6 7 8 9 10 11 DEFENDANT'S EXHIBIT 1 12 SUBCONTRACT AGREEMENT NO . CSUB116 / 13 14 15 16 17 18 19 20 21 22 23 24 25 (Back to index) Appendix Item 14 ! ..... I \ Central Texas Highway Constructors LLC 1914 Borchert Drive Locld1art1 Texas 78644 23 June 2010 Star Operations, Inc. Attention: Lana Huif 1622 Saratoga BoLJievard Corpus Christi, Texas 7_8417 Telephone: 361.852.2120 VIA OVERNIGHT MAH. Reference: Subcontract Agreement No. CSU0'116-IIIumlnation and Signal SH 130 Segments 5 and 6 Dear Ms. Huff: Find enclosed one (1) fully exe,iuted Subcontract Agreement (with DVDs) for the referenced Scope of Work. 1. This letter will serve as a Full Notice to Proceed and commences the Performance Period as defined In Article l3 of the Agreement. 2.. Promptly provide paylTlent and performance bonds compliant with Artlc;le 7 of the AgreemeAt. 3. Your repiesentatlve was provided the latest set of Issued for Construction (iFC) drawings oh 16 June 2010. A courtesy copy ofthat DVD Is enclosed for your reference and use. 4. Your principal points of contact for this Work are Gary Doty (V.P. Construction), Bobby Massingill (Segment 5. ·1 Manager), Javier Garcia (Segment 5.2 Manager), Scott Cromad~ (Segment 6.1 Manager), and Felix fVh:lfq\.les (Segment 6.2 IV!anager), 612-462· 7500. 5. Please contact Ms. Sonia Malllo, CFO, 512-462~7506, to discuss administrative Interface., e.g. Invoicing, sales tax, and so forth. 6. Please cont;;-1ct Ms. Evelyn Cu!onge, DBE Coordinator, 5'12-4£52-7517, to discuss any DBE-related Issues. 7. Please contact Mr. Estebt~n Trlgueros, Quality Manager, 612-462-.7504, to discuss quality control and quality assurance of the Worlnd employees, D&C Contractor, their subsidiaries and Affiliates and their officers, directors. partners, agents, and employees. Laws shall mean any taw, code, stEJtute, regulation, rule, ordinance, judgment, Injunction, or other court order, or other requirement of a governmental authority having jurisdiction over the Work, or the Project or the construction or operation thereof or party, and wh ich is valid and applicable thereto. Materials shall mean all materials (direct and Indirect), supplies, goods, and equiprnent, which are necessary for Seller to accomplish Its Scope of Worloncod or as:;i:;lod con61ruc!lon contrac!S rc respond 1o the lnl011!\31ion coiJocllon oontalnod In 29 C.F.R. §§ S.3, S.S(o). The Co~elond Ad (40 U.S.C. § 3145) aonl~:>clors ond subconid'"'g ogencios recalvf1g 1his iniortnliGon rovll~;> lhe inlormallon 10 determlnelhalemployees h""" reccll..,d logoly required~· and fringe bene rots. Pubfic Burden Statement We eslirllale tt\31 is \OIIItal5 0.00 Co111:rcte Pnving Curbing Muchine Opemtor............... s 14.00 0.00 C\'llcretc Paving finishing Machine Openltor............... $ 12.00 0.00 Concrete Rubber................ $ l0.83 0.00 Ct•au.,, Clnmshell. Bnckhoe, Deniclavcment.. ........... s i0.24 0.00 . Scraper Opel'l!tor·............... $ 9.93 0.00 Scrviccr.............~........ $ I 1.41 0.00 Sign rnstnlkr (PGM)........... !S 14.R5 0.00 Slip forn) MncJ1illl~ Operator.._. $ 15.17 0.00 Sprcndcr Box operator.......... $ 10.39 0.00 S!ntctural Steel Worker........ $ 13.41 0.00 Tractor operutor. Cruwler Type. $ 11.10 0.00 Traveling Mixer Operatm....... $ 10.04 0.00 Trenching machine operator, Heavy.......................... $14.22 0.00 Truck Drlw:r Tundem 1\..'Je Semi- Tmilcr............. w ........ !!i 10.95 0.00 Tmck driver, lowboy-Pioal...... $ 15.30 0.00 Tcuck driver, Single A~:fe, Hcnvy.......................... 5 ll.li8 0.00 Truck driver, Single Axle, Light......................... $ 9.98 0.00 Wagon Drill, Boring M8r.hine, Po~t Hoi.: Driilel' Opcrntor..... $ Jol.65 0.00 \Velder......................... !t 14.26 0.00 ------ ..-....--.....- ..........._............................ Wo1·k Zone Darricadc Se1vicer... $ I 1.15 0.00 ----· -·-~ ........ .... ~ IJnlistccl clnssifications needed for work not includerl within the scope of the dnssificatioqs listed mny be udded after award only n~ provided In the labor standards contract clnuses (29CFR 5.5 (a) (l) {ii)). ..-·.... '· Exceflll from Faca;ty C~ell, Calh pertaining to prevailing wages. For the purpose of applying such l aws, the Facility shalt be treated as a public worl( paid for In whole or In part with public funds (regardless of whether public funds are actually used to pay for the Facility). b) It Is Seller's sore rosponsibllity to determine the wage rates required to be paid. In the event rates of wages and benefits change while this Agreement Is in effect, Sailer shall bear the cost of such changes and shall have no Claim against D&C Contractor on account of such changes. Without limiting tha foregoing, no Claim will be allowed which Is 11 C0670272.PDF r I i i _j Agreement #CSUB122 SH130 Segments 5 and 6 Furnish and Install Electric Distribution Facilities based upon Seller's lack of knowledge or a misunderstanding of any such requirements or Seller's failure to include in the Base Case Financial Model or Base Case Financial Model Updates adequate increases In such wages over the duration of this Agreement and the Lease. c) Any issue between Seller or a subcontractor and any affected worker relating to any alleged violation of Section 2258.023 of the Texas Government Code that Is not resolved before the 15th day after the date TxDOT makes Its initial determination under Section 2258.052 of the Texas Government Code (as to whether good cause exists to believe that a violation occurred) shall be submitted to binding arbitration in accordance with the Texas General Arbitration Act, Chapter 171 of the Civil Practice and Remedies Code. d) Seller shall comply and cause Its subcontractors to comply with all Laws regarding notice and posting of Intent to pay prevailing wages, and any other notice or posting of prevailing wage requirements and prevailing wage rates. 9.7 HAZARDOUS SUBSTANCES. Seller shall immediately Notify D&C Contractor If Seller encounters pre-existing Hazardous Substances at the Site. The D&C Contractor has a separate contract with a Hazardous Materials Contractor to remedlate Hazardous Substances. The Seller shall not remedlate pre-existing Hazardous Substances under this Agreement. However, Seller is responsible for any of Its releases of Hazardous Substances. In accordance with the FCA, applicable Laws (including specifically Environmental Laws) and all Environmental Approvals, the Contractor shall take all reasonable steps to protect the environment on and off the planned Facility Right of Way on wnfch-·n ·p-eiforms·an·y oftneTi&CWorl&O Contractor and· Seller, as defined in paragr-aph ene ef this· Agr€emeAt. Person shall mean an Individual, partnership, corporation, limited liability company, company, business trust. joint stock company, trust, unincorporated association, joint venture, Government Authority or other entity of whatever nature. Performance Guarantees shall mean those guarantees stated In Section 7 or elsewhere in the Agreement. Protect shall mean the project described In paragraph A of the Recitals pf this Agreement, which D&C Contractor will perform for the Developer. Relief Event means any of the following events, to the extent they result in a material delay or interruption in performance of any obligation under the Agreement to the extent that TxDOT or Developer grant relief, and provided such events are beyond Seller's control and are not due to any act, omission, negligence, recklessness, willful misconduct, breach of contract or Law of any of the Seller, and further provided that such events (or the effects of such events) could not have been avoided by the exercise of caution, due diligence, or reasonable efforts by Seller: (a) Force Majeure Event; {b) Fire, explosion, flood, earthquake, hurricane, tornado, riot, national strike or act of terrorism; (c) Change in Law; (d) Discriminatory Action; (e) TxDOT failure to perform or obseNe any of Its material covenants or obligations under the Agreement or other FCA Documents, including failure to pay the Termination Compensation In accordance with the requirements, and within tile time period, set forth in Section E5 of Exhibit 22; (f) TxDOT Change; (g) TxDOT-Caused Delay; (h) Performance of works in the vicinity of the Facility Right of Way carried out by TxDOT or another Governmental Entity, excluding any Utility Adjustment Work by a Utility Owner, that disrupts Seller's onsite !' Work; 30 Agreement #CSUB122 SH130 Segments 5 and 6 Furnish and Install Electric Distribution facilities ATTACHMENT P FEDERAL REQUIREMENTS Exhibit Description No. of Pages Attachment 1 - Federal Provisions 2 Attachment 2- FHWA Form 1273 28 Attachment 3- Wage Determlna~on of the Secretary of Labor 1 Attachment 4- Equal Employment Opportunity 6 Attachment 5- Affirmative Action 5 Attachment 6 - Debarment and Suspension Certification 1 Attachment 7 - Lobbying Certification Attachment 8- Compliance with 23 U.S.C. §129(a)(3) Attachment 9 -Compliance with Buy America Requirements 2 C0670272.PDF Agreement #CSUB122 SH130 Segments 5 and 6 FUtnish and Install Electric Distribution FaciUtles ATTACHMENT 1 TO EXHIBIT 8 FEDERAL REQUIREMENTS FOR FEDERAL-AID CONSTRUCTION PROJECTS GENERAL,- The work herein proposed will be financed In whole or in part with Federal funds, and therefore all of the statutes, rules and regulations promulgated by the Federal Government and applicable to work financed in whole or in part with Federal funds will apply to such work. The "Required Contract Provisions, Federal-Aid Construction Contracts, Form FHWA 1273," are included In this Exhibit 8. Wf:\enever in said required contract provisions references are made to: (a) "SHA contracting officer", "SHA resident engineer", or "authorized representative of the SHA", such references shall be construed to mean TxDOT or its Authorized Representative; (b) "contractor", "prime contractor'', "bidder~ .or "prospective primary participant", such references shall be construed to mean the Design-Build Contractor or Its authorized representative: (c) "contract" or "prime contract", such references shall be construed to mean the Design-Build Contract; and (d) "subcontractor•, "supplier", "vendor•, "prospective lower tier partlolpant" or "lower tier subco11tractor", such references shall be construed to mean subco-ntractors, suppliers and vendors of the Design-Build Contractor, Including lower tier subcontractors. PERFORMANCE OF PREVIOUS CONTRACT.-In addition to the provisions In Section 11. "Nondiscrimination," and Section VII, "Subletting or Assigning the Contract," of the Form 1273 • required contract provisions, the Developer shall cause the contractor to comply with the following: The bldder shall execute the CERTIFICATION WITH REGARD TO THE PERFORMANCE OF PREVIOUS CONTRACTS OR SUBCONTRACTS SUBJECT TO THE; EQUAL OPPORTUNilY CLAUSE AND THE FILING OF REQUIRED REPORTS located In the proposal. No request for subletting or assigning any portion of the contract in excess of $10,000 will be considered under the provisions of Section VII of the required contract provisions unless such request Is accompanied by the CERTIFICATION referred to above, executed by the proposed subcontmctor. NON-COLLUSION PROVISION. -The provisions in this section are applicable to all contracts except contracts for Federal Aid Secondary Projects. Title 23, United States Code, Section 112, requires as a condition precedent to approval by the Federal Highway Administrator of the contract for lhis work that each bidder file a swam statement executed by, or on behalf of, the person, flrm, association, or corporation to whom such contract Is to be awarded, certifying that such person, firm, association. or corporation has not, either directly or . ··- ~ '. C0670272.PDF : Agreement #CSUB122 SH130 Segments 5 and 6 Fumlsh and Install Electric Distribution Facilities any subcontractor ·responsible thereof shall be liable to the affected employee for his/her unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory) for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer, mechanic, watchman, or guard employed in violation of the clause set forth in paragraph 7, In the sum -of $10 for each calendar day on which such employee was required or permitted to work in excess of the standard work week of 40 hours without payment of the overtime wages required by the clause set forth in paragraph 7. ~ 9. Withholding for Unpaid Wages and Liquidated Damages: The SHA shall upon its own action or upon written request of any authorized representative of the DOL withhold, or cause to be withheld, from any monies payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or. any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prim~ contractor, such sums as may be determined to be necessary to satisfy any liabilities of such.. contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph 8 above. V. STATEMENTS AND PAYROLLS (Applicable to all Federal-aid construction contracts exceeding $2,000 and to all related subcontracts, except for Projects located on roadways classified as local roads or rural collectors, which are exempt.) 1. Compliance with Copeland Regulations (29 CFR 3) The contractor shall comply with the Copeland Regulations of the Secretary of Labor which are herein incorporated by reference. 2. Payrolls and Payroll Records: a. Payrolls and basic records relating thereto shall be maintained by the contractor and each subcontractor during the course of the .work and preserved for a period of 3 years from the date of completion of the contract for all laborers, mechanics, apprentices, trainees, watchmen, helpers, and guards working at the site of the work. 135 C0670272.PDF ·• Agreement #CSUB122 SH130 Segments 5 and 6 Furnish and Install Electric Distribution Facilities b. The payroll records shall. contain the name, social security number, and address of each such employee; his or her correct classification;. hourly rates of wages paid (including rates of contributions. or costs anticipated for bona fide· fringe benefits or cash equivalent thereof the types described In Section 1(b)(2)(B) of the Davis Bacon Act); daily and weekly number of hours worked; deductions made; and actual wages. paid. In addition, for Appalachian contracts, the payroll records shall contain a notatron indicating whether the employee does, or does not, normally reside lA the labor area as defined in Attachment A, paragraph 1. Whenever the Secretary of Labor, pursuant to Section IV, paragraph 3b, has found that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in Section 1(b)(2)(B) of the Davis Bacon Act, the contractor and each subcontractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, that the plan or program has been communicated in writing· to the laborers or mechanics affected, and show the cost anticipated or the actual cost Incurred in providing benefits. Developers or subcontractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprentices and trainees, and ratios and wage rates prescribed in the applicable programs. c. Each contractor and subcontractor shalf furnish, each week in which any contract work Is performed, to the SHA resident engineer a --payroll - of ·wages patd ·each-·· of---its- employees (Including apprentices, trainees, and llelpers, described in Section IV, paragraphs 4 and 5, and watchmen and guards engaged on work during the preceding weekly payroll period). The payroll submitted shall set out accurately and completely all of the information required to be maintained under paragraph 2b of this Section V. This information may be submitted in any form desired. Optional Form WH-347 is avail'able for this purpose and may be purchased from the Superintendent of Documents (Federal stock number 029- 005-0014-1), U.S. Government Printing Office, Washington, D.C. 20402. The- prime contractor is responsible for the submission of copies of payrolls by all subcontractors. d. Each payroll submitted shall be a9companled by a "Statement of Compliance," signed by the contractor or subcontractor or his/her !· i r 3 C0670272.PDF Agreement #CSUB122 SH130 Segments 5 and 6 Furnish and Install Electric Distribution Facilities agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: i. that the payroll for the payroll period contains the information required to be maintained under paragraph 2b of this Section V and that such information is correct and complete; il. that such laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or Indirectly, and that no deductions have been made either directly or Indirectly from the full wages earned, other than permissible deduc1ions as set forth in the Regulations, 29 CFR 3; iii that each laborer or mechanic has been paid not Jess that the applicable wage rate and fringe benefits or cash equivalent for the classification of worked performed, as specified in the applicable wage determination Incorporated into the contract. e. The weeldy submission of a properly executed certification set forth on the reverse side of Optional Form WH·347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph 2d of this Section V. f. The falsification of any of the above certifications may subject the contractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 231. . . g. The contractor or subcontractor shall make the records required under paragraph 2b of this Section V available for inspection, copying, or transcription by authorized representatives of the SHA, the FHWA, or the DOL, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the SHA, the FHWA, the DOL, or all may, after written notice to the contractor, sponsor, applicant, or owner, take such actions as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. VJ. RECORD OF MATERIALS, SUPPLIES, AND LABOR 137 C0670272.PDF .. -~ ... ,---·. - --------·- .' Agreement #CSUB122 SH130 Sogments 5 and 6 Furnish and Install Electric Distribution Facilities 1. On all Federal·ald contracts on the National Highway System, except those which provide solely for the Installation of protectJve devices at railroad grade crossings, those which are constructed on a force account or direct labor basis, highway beautification contracts, and contracts for which the total final construction cost for roadway and bridge Is less than $1,000,000 (23 CFR 635) the contractor shall: a. Become familiar with the list of specific materials and supplies contained ln Form FHWA-47, "Statement of Materials and Labor Used by Developer of Highway Construction Involving Federal Funds," prior to the commencement of work under tl1ls contract. b. Maintain a record of the total cost of all materia-ls and supplies purchased for and Incorporated in the work, and also of the quantities of those specific materials and supplies fisted on Form FHWA-47, and In the units shown on Form FHWA-47. c. Furnish, upon the completion of the contract, to the SHA resident engineer on Form FHWA47 together with the data required in paragraph 1b relative to materials and supplies, a final labo•· summary of all contract work indicating the total hours worked and the total amount earned. 2. At the prime contractor's option, either a single report covering all contract work or separate reports for the contractor and for each subcontract shall be submitted. VII. SUBLETTING OR ASSIGNING THE CONTRACT 1. The contractor shall perform with Its own organization contract work amounting to not less than 30 percent (or a greater percentage if specified elsewhere In the contract) of the total original contract price, excluding any specialty items designated by the State. Specialty ftems may be performed by subcontract and the amount of any such specialty Items performed may be deducted from the total original contract price before computing the e~mount of work required to be performed by the contractor's own organization (23 CFR 635), a. "Its own organization" shalf be construed to· Include only workers employed and paid directly by the prime contractor and equipment owned or rented by the prime contractor, with or witbout operators. Such term does not include employees or equipment of a subcontractor, assignee, or agent of the prime contractor. I J. II C0670277..PDF ·. __ Agroament #CSUB122 SH130 Segments 5 and 6 Furnish and Install Eleclrio Distribution Facilities b. "Specialty Items" shall be construed to be limited to work that requires highly specialized know[edge, abilities, or equipment not ordinarily avalfable In the type of contracting organizations qualifl€d and expected to bid on the contract as a whole and in general are to be limited to minor components of the overall contract. c. The contract amount upon which the requirements set forth In paragraph 1 of Section VIlis computed includes the cost of material and manufactured products which are to be purchased or produced by the contractor under the contract provisions. d. The contractor shall furnish (a) a competent superintendent or supervisor who Is employed by the firm, has full authority to direct performance of the worltagoxda, Medina, Refugio, Wharton and Nllaon Counties in Texas , HEAVY CONSTHIJCTlON PROJf~CTS (excluding darn construction). !HGJllvJ\Y CONt;'l'RUCTIDN l'ROJJ::C'J'S (excluding tunnels, building structures in rein: aJ:ea p:~.-ojectu k rail -road consT..ruct.i.on; bascuJ.e , l:luspension & J>pandrel - an:h b r idges desiqned foJ: . conmu~.rcia l navigation , bridges i1wolving marine construction; and other major bridqes) . t•todificat ion Number Publication Date 0 02/09/2007 SUTX2005-023 09/08/2005 H!!:A'J'( CONS'I'RIJCTION i.>P,OJECTS HIGHI~A.Y COl~STRUC'i'lON PROJECTS Fringes Carpenter, ... . .. . . ........ . .. $ 11.70 Mechanic ., . . . . . . . . . . . . . . . . . . .. $ 12.18 A~~\ ,alc Ol~t~ibu~UL o ~~ldLUL •• , $ 12.57 Asphal1: paving machine ope-cator.';l 1 1 .60 Asphalt Rake 1: . . .. . •... , .. . ..... $ l. O, 63 Asphill t: Shoveler •.......... . ... $ 9. 23 Brom or: S1~eeper Operator ... . , . $ 9, 32 Bulldozt'!-J: operator .. . .. . , .... -~ 11. 69 Concca&e Finiuher, Paving . , . ... $ 11.64 Co ncrete J:i!li::~her, StruccUJ:es .. $ 10 . 23 Concrete Rubber: . . . . . , . . . . . , .. . . $ 9. 00 Crans , Clrunshell , Backhoe, DGrrick, Dragltne, Shovel Ope~ator .. ... ... . . . .. , . .. .. . . . . G 12 . 00 I!J.ag9er . . ........ . . . .... , , , . . .. S 8.60 rorm Bui l der/Setter., Structures$ J.O.Sl li'orm Settur, Pavin g & Curb .... . $ 9.48 1-'o>Jndat ion Dl:i ll Operator., · Tr.uck Mounted .................. $ 14.58 f'ront End l.oade:;: OperattJr ...•.. $ 10.62 Laborer, coL'llllon. , •.. . .•.... _..• $ 0.91 Laborer , Utility. , . ...... . ..... $ 9.21 Motor Grader Operator Pine Grade .. .....• . .. .. . . ... . . . . . .. - ~ 15 . 15 Hotor Grader Ope r ator RQUgh .. . . $ 12 , 95 Pavement 11arking t-1achioe Opexator .... . ..... . ..... . ... , .. $ 13 . 32 ··. Pipelayer . . •.. . , . ..... . , , . . .. . . $ 9.71 \_ Roller Op(~ rul:or, l'ueumatic, Page 98 of 135 Pagss Excerpt from raclllty Concession Agreement Agreement #CSUB140 SH-130 Segmen1s 5 and 6 Intelligent Transportation and Toll Collection Systems Self-Propelled ........ , ... . . . .. $ 8.90 Roller Operator I Steel vlheel, Flat l"lheel/Tamping . . .. . .•.. . ... $ 9.30 Roller Operator., S teel Hheel, Plant Mix Pavemen t .. , . . .. . ..... $ 10.59 Scra pet· Operator. . . . ......... . , $ 9.85 Servicer ........... . ..... . . . ... $ 11.18 Spreader Box Operato1.· ... . ... . .. $ 13.00 •rraveling ["1ixer Operator . .... . . $ 12.67 '.('ruck Driver Singl e .ll.xle Heavy.$ l0.07 Truck Driver Single Ax le, J,ight:;> 10.85 Truck driver, J.owboy-l!'loat .. . .. S 1 3 . '10 Truck Driver, Tandem AY.le , Semi-Trailer· ......... . . ..... . .. ~ 10.05 Work Zone Ba rricade Sex:vicer . . . $ 9.63 i4ELDERS -Receive rate prescribed for cl."a f t perfor.ming operation t o >Jhic h v1e lding i s inc].dental. Unlisted classifica t ion s needed for work not inc l uded wit hin t he sc,,pe of the c:lassiflcations l.tsted may be a dded after a1~ard only as provided i n the labor standards contract c lauses (29 CFR 5.5(al (1) (ii) J . In ;:he listing above , the "SU" des ignat i on means !:hat rates lis ted under l:he .identifieJ~ do not ref.lect collecti vely bargained wage and fringe bene fit: rates. 0;;-.her des ignations indicate unions 1·1hcse rates h ave b:!en determined to be. prevaili11g . WAGS DETERHINA'riON APPEALS PROC~:ss 1.1 Has t here been an initial decision in the matt er? This can be: a n existing published w~g ~ determination a sur:\fP.y underlyi ng a \iage determ.tnat..i.on a Nage and Hour Division l etter. aetting forth a position on a 1·1age determination matter * a confo rma nce (additional c lassification and r ate ) ruling On survey related ma'.:.ters , initial cont.act, including r equests for. summa rie:; of surveys, should be 1-1ith t.he h'age and Hou r RtO!g i onal Office for the a .r ea in \•;hich t he survey was conducted because those Regional Offices have xe.~ponsibil.i.t.y for the Davis-Bacon su1~vey p r ogram . If th(;l response f.rom t his initial contac t is not s atisfactory, then the pl.·ocess described in 2 .) o.nd 3 . ) s h OLtJ.d be f o l l owed. Page 99 ol 135 Pages E)(Cerpt irom Facilliy ConrJ:ssion Agreement --.... .... Agreeme nt #CSUa140 SH'I30 Segments 5 and 6 Intelligent Transportation and Toll Collection Systems l'lith regarcl to any other matter: not yet ripe for the formal process d;;,s•:ribed hsr.e, ini\.ial com:act should be with .:he 8ranch of Construction ~lage Dete:cminat).ons . i'~rite to: Br-anch of Construction Wage Detenn.i.nations Wage and Hour Div.i si.on u.s . Depa rtment of l.abor. 200 Consti~:.ution Avenue, N;W, i'iash1ngton, DC 20210 2.) If ~he answer t o the question in 1.) is yes, t hen an 1nterested party ( thos~ a f fee ted by thc. act.i.on) can requesT. review and reconsideration f.xom the ~la ge and ~l OllT.' .Z;.d;ninistratcc (See 29 CFR Par:t 1 . 8 and 29 CFR Pa:::t 7 ). ~lrite to: \\lag a and Hou:r 1\dm.i .nist.J:a t.o1: u.s . De9a.rtrnent of LabOI" 200 Constitution l\venue, N. vl. Y.iashington , DC 2 0210 'l'he req•.w~·.:. should be accomp::mied by a full statement of the intt:!rest:ed parr.y' s position a nd by any infonnaU.on (1~age paym_______uO:. .!~.L~!.!.·~c ~r%!1qsu..__ 0 - EiKJ1 1ilbOf'or o· m!chOO:c •~ted in lh& al>o'I'O ra:e:ront'!d J):))'l'b'l hoi btGn r•!'ic.J, uslmlkahtd on\~.,) pc.yroV, lln ilmOunl ~~ kss ltlan ti\s sun1 of lh: £f'lrl.ic:r.t>:: c!O llW~I.iy 610te: be sic hou't \'J•ge rCJic flus ll~ :.mount of the ronu.-ed lrir. o' t:snof1it ilS 5S!I1d n the cet\tr:ct et.car>' ts no!ed Jn s~clion 4(c) blkv.\'. -.~ ... (c) C::!~CEPTIO:..S E:.:CEPfiOH (Cn.AFT) :U ptrsons l!rnfllotc.d on snitl l"oi~c.J h:lvo b~~n pckllhe fu~ w~~lf.ly w.-pos eurne:d, th:~l no r~bl\lo-s heve blon ar v.!U ta m•d~ ~!lln:r c.lirec~ ~1i"rtctly lo or on brllall ot said - - - -- · lY~c;3fc"'- :1::1> tun (Conti:lc:C>f or SubcoulrtJtlor) wtel\fy w3!)4::o earnGj by :ny f)GISM r.nd lha' no d~tluttOOJ havo betf'l r.laUC tiHmr ch"cci"J 01 ~coctty rrom lha lull wr..gn eetned IJ.y any prrson. ~hCU" thon pClfml~s,ibto tlcdutllMs at ~li"C!cJ In Hcgoftlion$, Pelf ~J ~!7t·1~0?~~~~~[~~~~6cJJ:~,~~~~~rc,oL~l~ ~om~~:~~~~:~~~~:,;~· ;u. z:mer.detJ (48 s1~t ~46, 2 11£1/.J/Ul!i: . (2) ihal c:~"~ lla~ro:Js olh!tv1isc uodcl llli~ ~nrratl re:qvlrt:LI lo lH~ ~Wmi!tct.llor the ~bcve pericld tliQ "-...._,ufi':C'l ond conlplela: ihnl L'1.) rn~g• r.:.lols fc:rlil\ICIIC!U 01 rntthOJntu cont;:~:ntd lh'-ltll'l DIC: nolle"s thon U'd O?:llic:aiJia w.'itQ r;lijs cont~nall in nny \'r;)OII lli!l~rtnlr.~llo-1 incOI'p~tcHJ Into ll'le COOit11d: th:>l lho cl.l~s.ii•t&r.orn 'el f01th 1!\c.rcin for e:~ch llUO!.tt 01 rMc.lu:u!c conlortovb rcirru.c:IJ {>3~1011, poynw.nls of frinl).J bontrilf a~ l_llf~d 5n t:tl c.onttocl ha..,, IJl~n Ct tJ.\U b! JolDtJ~ lo ~p;lfon:ioto P'"''"ms lot U"lt bmilil oi suc;h O:Tt(llt-)"~:U. e:-cepl o~ mtetJ ln Uclit.n '-It:) ba'c1:1. DgTcc/Stnl' 028 EXHIBIT q S/P C1168698.PDF ,. .... / .' . .... (o) WHEf!c:!;....~!.:.!t~~c:.I.g....:~.l!'~ · ~O.·~Se:J:...,,;___ __ 0 - ~ llillarer cr mec1'1311lc 1is'tecr.iil.lli2·al10fsi~hi;!oc>):Pa ';!lmva por1od ale: dllli: te§'JS.!eiei' in ':i 156713 lil:e ~~e-,ti.U.':iilf pt~. r&g!s[W.led.SlaWs ~l!Mof L21!or, 6/"lr no.SUCII~~ eJ:Isls.ltrn ~· ~~ (e~d.w'..l{,Uta SUfea/J or.Ap;ite'ntlcasht/l=d Tla~"lg.·UrilCOd Sltlles'Pitpai",.rilentoor Labor. (~) t~Yw·..r.:P.E FRINGE l'li;N~ AAE I?Altl:To APF\iOilED'Pt:ANs', 'Fl.JNOS,·PR i>!lOOAAMS ·o I!>~ lo :h3. tmsldtp>~.'\'~~ .~es pO:Ito-eaelt ~or m~c i::le.d 1o the·a'Scl.•" re.'M!tlced p~oif, Pf!Y~!s of;Jr~c ~~ lliO.l(sfaC.ln l!1JI ~c! f>'8' to at~pro;>i"~ programs ~ lhe. bet'.&li! of such amj)!I:>)IU3.=ilir as llo!Ctf iri ~, .4(c) tictcwt. · r ' ) J •' ~·· '· 'Q:S;·Dei>aitmont:-o( J:.a:,or. empi~Sta:n'deTcl.!iJI·dmBtt.\Uon WiCT NO. P~Y.ROL!oNO. fORWEEK!ENOINCl c;.J '!"ROJEt;T:Al& (S} fl.}. (Sl} .(6} IS.>. W:O'Rl{ . ~M T w 11J. I~ Se 5n · ~JE!IU®l~ ~.!']· c~sslFiC'A"rto!li §g·· {~~'P(~.g T;·. :5 f.8 t9 1.~0. 11t: 1(1?-t~· .Niii.E:;-ADOP.E$~ lllOMO.UAL il:ieiflF{,IN~MEIER ·(lf!> 0.:00 .. a.oo- Me.Pi) i'l,j'g .g'.{;~S 1tt;9S .$ 11 11 1'f. 7: ..oo . .. ·J~E·P::M!:NDEZ :XXle~2 B iRUCK~C:R 6 g. 1'-1 *!:25. i!33.51l: .. 752.97 T~AXl.E 9 .. 2~11!1· 11,911, 34~ -zo.sa. ~E&J;-1lIDAU:c:IO s. OSORJO' XXX~-: '2 LAB.Pl:U::"R. : 0 16.00 0.00 ~.00 OOMMO~ rci: ' O,Qq 1¢.00 ~01> s 0 'PIIllR~ S'l.!rol:n Sta~a~ Wo~4r.lll>>ht,.onU\'t"'~~=~~dol:l~lllorlna~lh•~•~d,.;,d~""""'~{l!:lcOII~~flomocy =nctJ\O-~.; II\O:Io""'""twuo::yolllOClPOhl2l?OI!cc!!jmi~nw~wrrodbl#tlcm:.. .mrbl.n1JoU,.Aa.~IMW""""1!11Wl>""OMsl~,!O$'-U.S..Oer-aolmonr.a!Ln6or,~S3502,20~_.,..""~vo.N,W,W.<>'I'rGJion,O.C.2D~1~ ·;,.1 \ ! 'C...·. ' I; . jY!' Oa!e -- O;} ,~ i \ cJo hereby s1ae: - \ e;_ .('Q.~'-\ \_c,IIY\\;,~';'"\- (Name ol Signatory Part\') (Title) (ll) WHERE FRIN.GE BENEFITS .O.RE PAID IN CAS:~ 0 - Each laborer or mcchanic listed in ~ abo~ r-aferenQld peyroll has b~an paid, as indicated on the pa)'n:lll, an amount not less ihM the sum of the aj>pli ~rsons employed by (c) EXCEPTIONS ----------~--,.,,'- ,.. \, .... , "t"""' ,- \...._- .:>__ day of H!: nJ"-\~ , andenc!ingthe<>.RI:S: f..--, (2) That any payrolls othsiTicalions 521 forih lharein for each laborer o~ m::chanlc conform with the wOlloncod or as:;i:;lod con61ruc!lon contrac!S rc respond 1o the lnl011!\31ion coiJocllon oontalnod In 29 C.F.R. §§ S.3, S.S(o). The Co~elond Ad (40 U.S.C. § 3145) aonl~:>clors ond subconid'"'g ogencios recalvf1g 1his iniortnliGon rovll~;> lhe inlormallon 10 determlnelhalemployees h""" reccll..,d logoly required~· and fringe bene rots. Pubfic Burden Statement We eslirllale tt\31 is \OIIItal8, BRYAN, TDXAS 7'/802 Tl:iLEPHONB: {979) 260-9911 FAa>lM!LE:(979) 846-7083 Appendix Item 21 :MAY 1, 2012 PAGE2 cc: CRRR #7010 3090 0001 3525 5399 Star Operations, Inc. P.O. Box 4100 Corpus Christi TX 78469 CRRR #7010 3090 0001 3525 5405 Central Texas Highwa~ Constructors, LLC Attention: Mike Kiehnau 1914 Borchert Drive Lockhart, TX 78644 .......- 1- - -- .. .. .. - - - -- · ·-·· ·----~- "=~~-··-·-~-- ·-.• -...J 2. Artlcla Number 2.Aructi 2 · '1 7 01 0 3 0 9 D 0 0 01 3 52 5 53 8 2 PS~:~ :s~ ~~_Form 38~ ~,-~~~~roY20~0~4==.=.c.i:..~Oom~es~tl~o~Rs~tu'=rn~R~_ec~e~~~~~-:;:;-;~ .;;!,~~~'*""""'--102119 --s.o2.-M-.1540~ (rrunsfer fiom seiVICfl fabaO . ·' TE!-EPHONL!! (979) 260-9911 4444 CARTER CREEK PARKWAY, SUITE 208, BRYAN, TEXAS 77802 FACSIMJLE:(979) 846-7083 -·· . -- l ( .l GREAT AMERICAN INSUBANCE COMPANY OF NEW YORK Now York Administrative Office: 560 WALNUT STAE~T • CINOINNATI, OHIO 45202 • 513-SBD-5000 • FAX 613-723·2740 The number or persons nuthori7JJd by thle power of attorney Is not more thnn THREE No. 014670 POW!:R OF ATTORNEY I~ any and all bonds, underta/(fngs and contmcts of surelysfllp, or other wtlllen obligations In the nnt!Jre tllareot,·to prescribe tllfllr respective dulles nnd ths respoctlvellmlls of their authority; and to revoke any such appolntmonr at any time. . _ At:SO!.VE:O FURTI·IGR: l"hat 1/Je Company sua/and 1/le sfgnaturo of any of the aforosald ofllcers and any Secretary or Ass/slenl Secreta1y of lho Company may be offlxod by facsimile to any power of atrornoy or certlfloRto of aftharg/ven lor the exooul/on of any bond, undartaklng, contract of suratys/1/p, or oi/Jer written obllgalfon In tl1a natura t11areof, suoh signature cmd stlaf wllan so used baing hereby lldopl8d by the Company as tile original signature of suclt officer and the original sool ol tile Cornpany, lobe valid and binding upon tile comptm)' wllll the same force and effect as IIJough manually affixed. CERTIFICATION I, STEPHEN C. BERAHA, ABslstant Secretary or Great American Insurance Compony of New York, do horal>y oertlfy that the foragoh'g Power ol Allorno'y and the Resolutions of 1ho Boord of Directors of May 14, 2009 have not been ravokoclrmd are now In full foroe ond effect. Signed ancl sealed this 15thday or June , 2011 J . ..·'··..... , ., • ·.\_l-_.·;; r 0,1 ID5F [l/2010) ( Great American lnsurc'Ulce Compiltl)' of New York Great American AIJlance ln.surftru::e Company Great American Insurance CortlpiWy IMPORTANT NO'l'ICE: Th obtnhl lnfoLmndon or tna\:e 11 c:ompWnt: You rnoy contoot th~ 'Chxlll.Depllltillnut ofinsnrnnco lo obtnln i11formnrioo on compunies, coverugas, rigbu or complaints nt: 1-800-152-3439 Ydu mtty IVritb the TI!Xf.S .Dcparlluenl of lnrorancc nt: P.O. Box 149104 Au~tiu, TX 78714~9104 F~lll-512-475·1771 YcnJr notiee of chum ngo.lnst the nttachetl bond may be givou to lhc sm-cty compAny tlu1.t last111d · tho !loud by ~r:.odlng It Ul the foUowlorr oddru': Mnill.ng A\ldreu: GrnntAmodcun lou1.rnnca Compnny Chlm P.O. Box 2575 Clnchmntl, Ohio 45201 Orent Amnrlcan Iiuurance Corupany CI.AJm .580WeloutStre~t . 71hPlaor Cincl.nWiti, Ohlo 45201 Yon m~Y tJso contact tho OCtlllt Alnencll\ lru;umoce Compnny Clnlm offic~ by telephone ot: Tele~hone Numher; 1-51.3-369·.'!069 l'R.EMIDM Oll CUlM DlSPOTES: U you hnvc l\ dUpUte COI.lc:erning a prcri:Uum, }10U &boul!\ contn~t the nseot :fint.Jf you !JII.VO U d~putc conccrnlnn n ollilin, you :rhould cornnot the compno.y fur.t. H tbc: dlcpuru 1~ nol rnsolved, JDIIlD6.Y contscl tJm'Ib.xll.S Dcpo.rtment ofln~ce • .ATrACIImiS NOTICE 10 YOtm BOND: ibJs no!lee ia !or lufonnndou onl)' rwd doer. not become n ptlrl or condlpoo of the ottn.;bcd d!lcurnent. / \ Il\1PORTANT NOTICE TO OBTAIN INFOHM.A.'l"'ION OR MAKE A COMJ.>LAJNT: YOU MAY CON1'ACT THE TEXAS DE.PARTIY.I:ENT OF INSURANCE TO OBTAJNJNFORMATION ON COIY.LPANIES, COVERAGES, lUGRTS OR COM:PLAJNTS AT~ 1~800-252-3439 YOU MAY wruTE TEE TEXAS DEPARTMENT OF JNSlJRANCE: P. 0. BOX 149104 A1JSTIN, TEXAS 78714~9104 FAX#(51Z) 475-1771 PREMf01V.C OR CLAJM DISPUTES: SHOULD YOUHAVE A DISI'U'IE CONCERNJNG YOUR PREMIUM OR ABOUT A CL.AIM, YOU SHOULD CONTACT TIIE A.GENT OR COlYfPi}.:N"Y FIRST. 1F T'BE DISPUTE IS NOT RESOLVED, YOU MAY . CONTACT THE TEXAS DEPARTIV.OINT OF INSURANCE. t-iTTACH T'BIS NOTICE TO YOUR I~OLICY TBIS NOTICE IS FORINFORMA110N ON~YAND DOES NOT BECOME APART OR CONDT110N OF THE ATTACHED DOCUMENT. .. .. -~ , \ ·--1 Agreement #CSUB140 SH130 Segments 5 end 6 Intelligent Transportation and Toll Collection Systems Bond No. CA306945B ATTAGH.M.e.W.l SUBCONTRAC'f LABOR AND MATERIAL PAYMENT BONO KNOW ALL MEN BY Tlii:SE PRESENTS~ Thot Sl« Oporollau,rna. aSi principal, haretnaller callea Principal, and Gr«~1Mlltlconln~"4n~oampon~•IN~,Y~tiNoVJYoa corporation, as suroty, haiillnaflsf cntfad Surely, are held end firmly bound unto GENT~AL TEXAS HIGHWAY CONSll'\.W::;;]p ~~ h~Ccas Obfioom, hurah,ertar caJiod Obllgao, for thCJ use nod benefit of Claimants os herein below defined In lha amount of ~11\~ou~OO't J:f. Ooltars {$3.100.IXXl.oo , ror the payrr,ant whereof P.rlno!pal and Surety bind themselves, their hetts, oxocutors, J8mfrus?rators, sur.celfsors and assigns, oln y und saverally, firmly by these prosanls. WHEREAS, Principal has by \Willen agreement dated 1:_11'/ 18, ~01 1 entered Into a subcontract •hffh Obligee for s1113:1 §ownn\0 ~ ""' o"In aocorrlance with drawings and spaclficattiin~; proparf DtiY auoh &\Jit. 3. 1-lo suit or Dctlon shall be communced hmroundar by any Clefroent (a) nfler lho explraUon of 26 mMthe following lha date on which Ptinclpnl con~ad wotl; on e11ld S~rbcontract, It being und~rslootl. however, that If any llmllatlon embodied In thls bond Is prohibited by ~;~ny law contrulllno the oom:lructlon hereof, such llmllatlon shall.be deemod to be nmendecl so us to bO egualto tho IYilnlmum period of llmllallon permitted by such law, {b) olhE!r than In a state COI!rt of compe\Snl jurtsdlcUon In and for th0 county or othar political subdivision of lha ntate In which the pro)act, or l'lny part thc;Jreof, Is situated, or In tbe Unltad 6tataa Dlallir.t Court fllr th1:1 dlatrlot In which tho proJoct, or any part thereof, Is lllluntad, and. not ateewhare. . 4. The amount of thl~> bond shall ba reduced by nnd to lhe extent o1 .any peymanl or payments made I" good faith hacounder. S. The amount of this bond shall be lncrear.ed by the ampunt of any chango ordort~ Issued 1o \he Subeoniraol betwoen Prlnclpal ahd Obllooe, nollco to surety or 1110 lasuanoa of ouch chDnge ordors baing ht!roby willvocl, 6. At'iY alterntlona, addltlontl or chonges which may bG mud a In 11\a term a of lha Subcontraot or In the work to be patfarmed under It or tho glving by the OblfgGo of an~r conoont to at~slgn ur aublellha worl< or MY part lhareof, or tho ohllng 01 ony oxtenolon of time for I he porformenca of the Subcontract o; any !orb011ranoo on the pnrt of either the Obligea or the Principal to the other, llhBII not In