BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF HAWAII

In the Matter of

CJ PETERSON SERVICES, INC. DOCKET NO. 2017-0144

Notice of Failure to Comply With Hawaii Revised Statutes and Commission Regulations; Order to Show Cause Why Respondent Should Not Be Ordered to Pay a Civil Penalty Not to Exceed $5,000 Per Day.

ORDER NO. 3 4 6 1 0NOTICE OF VIOLATIONS, ORDER TO SHOW CAUSE, AND NOTICE OF HEARING

•-T3

crOCD

C/->~r

r^i

>CO

i 'i

rr-aiSf

sni

BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF HAWAII

In the Matter of

CJ PETERSON SERVICES, INC.

Notice of Failure to Comply With Hawaii Revised Statutes and Commission Regulations; Order to Show Cause Why Respondent Should Not Be Ordered to Pay a Civil Penalty Not to Exceed $5,000 Per Day.

Docket No. 2017-0144Order No.3 4 6 1 0

NOTICE OF VIOLATIONS, ORDER TO SHOW CAUSE, AND NOTICE OF HEARING

It is alleged that CJ PETERSON SERVICES, INC.

{"Respondent")/ violated Hawaii Revised Statutes ("HRS") § 269E-7,

by failing to notify the Hawaii One' Call Center of a proposed

excavation at least five (5) working days, but not more than

twenty-eight (28) calendar days, prior to commencing excavation,

and HRS § 269E-12(b), by excavating with power-operated or

power-driven equipment without first using appropriate hand tools.

I.

Background

Pursuant to HRS § 269-9, the Gas Company, LLC,

dba Hawaii Gas ("Hawaii Gas"), submitted an Accident Report^ to the

commission on July 21, 2016, regarding an accident that took

place during an excavation ("Excavation") on July 20, 2016,

at 2700 Waialae Avenue in Honolulu.^ According to the Accident

Report, on July 20, 2016, Kiewit Building Group, Inc. ("Kiewit")

conducted the Excavation, and in so doing, Kiewit damaged a portion

of Hawaii Gas' two-inch (2") plastic pipe.^ Hawaii Gas was unable

to verify whether Kiewit called the Hawaii One Call Center and

procured a One Call Ticket prior to conducting the excavation

activities at 2700 Waialae Avenue.**

The State Hawaii Public Utilities Commission

("commission") assigned an investigator from its

Compliance Division to investigate the Excavation, who found that

Respondent struck Hawaii Gas' service pipe with a small excavator,

which is a power-operated excavator, without first digging with

^The Accident Report ("Accident Report") is attached to this Order as Exhibit A.

2HRS § 269-9 requires that every public utility "report to the public utilities commission all accidents caused by or occurring in connection with its operations and service . . . ."

^Accident Report at 1.

^Accident Report at 1.

2017-0144

the appropriate harid tools. Respondent subsequently confirmed

that it performed the Excavation as Kiewit's subcontractor.^

The investigator also searched the One Call Center database for a

valid One Call ticket for Respondent for the date of the incident,

and did not locate one.

II.

Chapter 269E Violations

Respondent is alleged to have violated HRS § 269E-7,

which requires that excavators notify the One Call Center of a

proposed excavation at least five (5) working days, but not more

than twenty-eight (28) calendar days, prior to commencing

excavation. Upon searching the One Call Center database for a

valid One Call ticket for Respondent for the date of the

Excavation, the commission's Compliance Division could not locate

a valid One Call ticket.

Respondent is also alleged to have violated

HRS § 269E-12(b), which provides:

Before using any power-operated or power-driven excavating equipment, the excavator shall determine the exact location of subsurface installations in conflict with the excavation by first excavating down to the depth of the

^Letter from CJ Peterson to Drake Akiyoshi "RE: CJ Peterson Services, Inc. - Line Strike Incident, on July 20, 2016," filed on April 10, 2017, attached to this Order as Exhibit B.

2017-0144

excavation with the appropriate hand tools within the area of the approximate location of the subsurface installations . . .

According to the investigator, Respondent was excavating

with power equipment called a "small excavator," and not with

appropriate hand tools, when it struck Hawaii Gas' service pipe.

HRS § 269E-14 authorizes the commission, after notice

and hearing, to issue a civil penalty not to exceed $5,000 per day

per violation, and to require Respondent to participate,

at Respondent's expense, in an educational program run by the

One Call Center, unless Respondent is able to show cause why the

civil penalty should not be issued. Based on the allegations of

two (2) sepa^rate violations, one of HRS § 269E-7 and one of

HRS § 269E-12(b), the maximum civil penalty related to the

Excavation is $10,000.

Ill.

Orders

THE COMMISSION ORDERS:

1. Respondent shall appear at 335 Merchant Street,

First Floor, Queen Liliuokalani Conference Room,

King Kalakaua Building, Honolulu, Hawaii, 96813, at 1:00 p.m.,

on Thursday, July 13, 2017, to show cause why the Respondent should

6See HRS § 269E-12(b).

2017-0144

not be assessed a maximum civil penalty not to exceed $10,000 for

failure to comply with HRS §§ 269E-7, and HRS § 269E-12(b).

2. Respondent may be represented by counsel.

If Respondent does not retain counsel, Respondent may be

represented at the hearing as follows: (a) an individual may appear

on his or her own behalf; {b) a partner may represent a

partnership; and (c) an officer or authorized employee of a

corporation, trust, or association may represent the corporation,

trust, or association.

3. Pursuant to Hawaii Administrative Rules § 6-83-94,

if Respondent fails to appear at the scheduled hearing,

the commission may assume that the facts alleged in this Order

are true, and if the facts establish liability, the commission

(1) will issue a final decision and order; and (2) may impose the

2017-0144

maximum amount of penalties and assessments allowed

under HRS § 269E-14(b).

DONE at Honolulu, Hawaii JUN 1 3 2017

2017-0144.ljk

PUBLIC UTILITIES COMMISSION OF THE STATE OF HAWAII

Lorraine H. Akiba, Commissioner

'ssioner

APPROVED AS TO FORM:

Ike S. Wallerstein

2017-0144

6HAWAI'IGAS

PUC Accident Report

Report Submittal Date: July 21, 2016

THE FOLLOWING CONTENT IS BASED UPON A PRELIMINARY FACTUAL INVESTIGATION. ALL STATED DATES AND TIMES ARE APPROXIMATE. AND ALL STATED FACTS MAY BE SUBJECT TO CHANGE OR CLARIFICATION BASED UPON ADDITIONAL FINDINGS.

The Gas Company, LLC, Hawaii Gas (“HG”)

Incident Date: July 20, 2016 Time of Incident: HG notified around 11:35 AMLocation: 2700 Waialae Avenue

Brief description of incident:

On 07/20/16, Kiewit Building Group was excavating in the vicinity of 2700 Waialae Avenue and damaged a portion of HG 2” plastic pipe.

HG was notified about the incident at 11:35 AM and a HG first responder arrived on the scene at 11:46 AM. HG secured the leak at 12:15 PM.

Per a search of the One Call database, HG was unable to locate a One Call ticket for the subject address.

Preliminary probable cause:HG is still performing its factual investigation regarding the subject incident, and has not determined the preliminary probable cause at this point in time.

HG Reg Form 2016-01-1 EXHIBIT A

REiTiERSOJiSeuMcfij, fttc.

P.O. Bax enose • Walpatm, HI 86797 Pfiem; (608) 678-8927 • Fas (808) 678-6744

Lie«nse0 AC-221S3

State of Hawaii Public Utilities Commission 465 S. King Street ttl03 Honolulu, HI 96813

RE: G Peterson Services, inc. - Line Strike Incident on July 20,2016

April 10, 2017

Dear Drake Akiyoshi,

This is in response to an inquiry letter dated March 21, 2017 addressed to Mr. Carl J Peterson at 525 Kaieml Street, Kailua, HI 96734. In response to such letter of inquiry, we confirm that G Peterson Services, Inc. conducted excavation activities at 2700 Waialae Avenue on July 20.2016, as a subcontractor to Kiewit Building Group, Inc.

Please see enclosed as requested (2) copies of G Peterson Services, Inc.'s response as well as (2) each copies of subcontract with Kiewit Building Group, Inc.

Feel free to contact our office, (808) 678-9527, If there are any further questions.

Mahalo,

Tiara Companion Operations Admin.

EXHIBIT 6

KB6 Privatc-sKtorSubcontnct R«vUMsr2014

SUBCONTRACT AGREEMENT

DBE OthcrSoTaxpayer AcoMint Number

Co No. iobNo.

Subcontract No.

THIS SUSCONTRACr AGREEMENTfs dated (Effecti>^ Date) and ts between CJ Peterson Services Inc. (Subcontrector), and Kiewrt Building Group IrK., a Delaware Corporation (Contractor).

WHEREAS Contractor has entered into a contract dated March 2,2015 (Prime Contract) with the Hawaiian Humane Society (Owner), for the Hawaiian Humane Society-AdmissionsSt Veterinary Service Building; and

Subcontractor offered to perform a pcrtlon of the Prime Contract as described more fully below.

NOW THEREFORE, Contractor and Subcontractor agree as follows:

ARTIQE1 WORK

1.1 Subcontractor shall furnish all supervision, labor, tools, equipment, materials, supplies, services and engineering necessary to perform the work described Article 4—Scope of Work (Work). Subcor^tractcr shall oerform its subcontract obligations in accordance with the Subcontract Documents, all app icable labor agreements, all applicable laws and regulations and good construction practices.

ARTiQE 2 CONTRACT SUM

2.1 For the Work Subcontrarto^erformsasspedfie^r^hl^ubcontrac^ontractorshal^aySubcontractor the SJm of Dollars

(Contract Sum), adjusted as necessary by differences between estimated and actual quantities tor unit price Work items (If any) ar d subject to changes, additions and deductions, as hereinafter provided in the Subcontract Documents. Contractor sha II withhold^mof each progress payment as retainage until Final Payment

Contractor a id Subcontractor are signing this Subcontract Agreement as of the Effective Date stated in the introductory clause.

Kiewit Building Group inc. Contractor

CJ Peterson Services Inc Subcontractor

<7

A

Name: Sharon A. Thom Title: iaaiaftVice president

Name:Title:

Charrise OkumuraV.P. Of OperationB

KB6 Prhnte'sectorSubcontract 12 Mar 2014

ARTICLE 3GENERAL PROVISIONS

3.1 Subcontract Documents, (a) The Subcontract Documents memorialize the Subcontract between Contractor and Subcontractor forthls Project. The Subcontract Documents consist of the Subcontract Agreement (which includes Article 1—Work, Article 2—Contract Sum, Article 3—General Provisions, and Article 4—Scope of Work/Compensation), Contractor's Project Requirements and Procedures (PRP), Contractor's Qua! ty Control Plan (QCP), and the Prime Contract Documents. The Subcontract Documents further include all modifications to these documents.

(b) The Prime Cortract Documents include all documents that form the contract between Contractor and Owner, Including all modifications and amendments, 8y signing the Subcontract Agreement, Subcontractor represents and certifies that It has examined the Subcontract Documents, Including the Prime Contract Documents to the extent it deems necessary. Subcontractor shall be bound to Contractor by the provisions of the Prime Contract Documents to the extent those provisions apply to the Work. Subcontractor shall not do, or fall to do, anything that would (1) put Contractor in breach of its Prime Contract obligations, or (2) degrade Contractor's rights under the Prime Contract.

(c) The Subcontiect does not include any additional clauses or third>party limitations. The Subcontract does not include commercial terms in proposals, correspondence, other agreements, shipping/packaging materials, Subcontractor-generated extra work orders, or other documents not currently in the Subcontract Documents or subsequently incorporated into the Subcontract Documents by a written modification signed by Contractor's authorized representative.

(d) In the event oFan Irreconcilable conflict between the Prime Contract Documents and other Subcontract Documents, the Subcontract Documents shall take precedence.

3.2 Schedule/Time of Performance, (a) Subcontractor shall perform its Subcontract obligations according to the Contractor's schedule, as Contractor may revise throughout the Project, and as Subcontractor's Work becomes available. Time of Subcontractor's performance is of the essence; Subcontractor shall not delay, disrupter hinder the completion of the Project. Should Subcontractor deliver, but not install, materials. Subcontractor shall deliver ail such materials F.O.B. jobsite unless Contractor and Subcontractor mutually agree otherwise in writing.

(b) Subcontractor Is responsible for keeping itself informed about the job schedule and the progress of the Project If Contractor issues, in writing, any directive, order, notice, or schedule revision (1) that affects Subcontrector's timely performance of the Subcontract and (2) with which Subcontractor cannot comply using commerdally-reasonable means, then Subcontractor shall promptly give Contractor written notice of Subcontractor's inability to comply. Such notice is a pre-requisfte to Subcontractor's right to an equitable adjustment pursuant to Section 3.5.

(c) Subcontractor shall reimburse Contractor for a II costs, expenses, fees, disbursements and damages Contractor incurs or that Contractor Is required to pay to Owner, other subcontrartors or third parties because of Subccntractor's failure to perform the Work as the Subcontract requires.

3.3 Payment, (a) Subcontractor shall periodically submit all cost Information (including releases and waivers) as Contractor may require and in such manner as to facilitate Contractor's payment requests to Owner. With eacn request for payment, Subcontractor shall certify that (1) it is only requesting payment

KBG Prtvite-sector Sutxon tract 12 Mar 2024

that it is entitled to receive pursuant to the Subcontract, and (2) that it has paid, or will use Contractor's payment to pay, forail labor, material, equipment and supplies used to perform the Work. With each pay request, Subcontractor shall submit a partial release/waiver of payment claims in a form suitable to Contractor. Subcontractor's certification and release/waivers are a condition precedent to Contractor's obligation to submit Subcontractor's pay request to Owner or pay Subcontractorthe requested amount.

(b) Contractor shall pay Subcontractor for Work satisfactorily performed in compliance with the Subcontract Documents. Contrartor shall make payment no laterthan ten days after Contractor's receipt of payment for such Work from Owner. No payment shall operate as approval or acceptance of Subcontractor's Work or Contractor's waiver of any Subcontract obligation.

(c) Subcontractor shall not be entitled to payment (1) for defective Work or Work that does not otherwise comply with the Subcontract Documents, (2) of any amount necessary to protect Contractor or Owner from costs, claims, losses or damages resulting from Subcontractor's failure to comply with its Subcontract or legal obligations, or (3) where Contractor has evidence of a third-party claim or deficiency report and to the extent of such claim or deficiency. Contractor and/or Owner may setHDff, recoup, backcharge or otherwise withhold payment as necessary to protect themselves from such defects, claims or foilures.

(d) Should Contractor have reason to withhold payment beyond the retalnage permitted in Article 2, Contractor shall issue a written notice of the withholding to Subcontractor. Contractor's notice shall state: (1) the amount withheld, (2) the specific cause for the withholding and the applicable Subcontract provision(s), and (3) the remedial action Subcontractor must take in order to receive payment. Once Subcontractor certifies that it has completed the remedial action, Contractor will review Subcontractor's certification and. If Contractor determines that Subcontractor is entitled to payment. Contractor will release the withheld funds. If the remedial action requires Subcontractor to compensate Contractor or a third party that Contractor is obligated to pay. Contractor shall Invoice Subcontractor when Contractor's right to payment accrues. If Subcontractor fails to compensate Contractor by the date set out In such involce(s). Contractor shall have the immediate right to set-off or recoup the amount.

(e) Contractor reserves the right to make payment to by joint check(s) to Subcontractor and Subcontractor's workmen, material suppliers, subcontractors or other creditors. Subcontractor agrees and acknowledges that any such payment shall constitute payment to Subcontractor under this Subcontract.

(f) Should Subcontractor become aware of a duplicate payment orthat Contractor has otherwise overpaid Subcontractor, upon discovery Subcontractor shall remit the overpayment to Contractor along with a description of (1) the circumstances causing or contributing to the overpayment and (2) the affected schedule of values or line item.

(g) If this Subcontract contemplates payment for work performed on a unit price basis. Subcontractor shall Invoice Contractor for the actual units properly performed, unless the Prime Contract provides otherwise. If Contractor and Subcontractor cannot agree upon the actual quantity performed. Contractor shall have the right to measure the work in place and make a final settlement based upon such measurement.

3.4 Bonds, (a) Unless Contractor waives the bonding requirement, Subcontractor shall furnish Performance and Payment Bonds issued on Contractor's bond form(s) by a surety listed on the U.S. Department of Treasury's Listing of Approved Sureties (Department Circular 570). The penal sum of each

KB6 Private-sector SubccMitract 12 Mar 2014

bond shall equal the Subcontract amount stated in Article 2 of the Subcontract Agreement. Subcontractor shall pay the premium for any such bond unless otherwise agreed in writing. Unless Contractor has waived this bonding requirement. Subcontractor must furnish such bonds as a condition precedent to its right to receive payment for Work performed. Subcontractor's failure to meet tilts condition shall not excuse Subcontractor's nonperformance of its obligations under this Subcontract.

(b) If Subcontractor's surety becomes insolvent or ceases doing business, Subcontractor shall furnish replacement bonds that meet the requirements of Section 4.0. Contractor shall have no obligation to pay for Work until Subcontractor furnishes replacement bonds that comply with this Section. All cost associated with Subcontractor's procurement of replacement bonds shall be at Subcontractor's expense.

35 Prosecution of Work/Changes, (a) In addition to the Article 1 requirements. Subcontractor shall furnish everything necessary to perform the Work In a proper, efficient, and workmanlike manner. Subcontractor shall promptly and diligently perform the Work when the Work, or any part of It, becomes available.

(b) Without Invalidating this Subcontract, Contractor may modify Subcontractor's Work or the terms of the Subcontract Documents without notice to Subcontractor's surety, if any. Subcontractor may submit a request for equitable adjustment (REA) if a Contractor-authorized modification increases or decreases the Contract Sum. Subcontractor shall be solely responsible for preparing and developing Its REA. For any REA, Subcontractor must comply with the applicable Prime Contract provisions regarding change orders or equitable adjustments. In addition. Subcontractor shall demonstrate (a) that it has entitlement to the amount requested, (b) the underlying fects support Its REA, and (c) the supportir^ documentation for the amount it requested is accurate and complete. Contractor shall have no obligation to issue a Subcontract modification or submit Subcontractor's REA to Owner unless; Subcontractor's REAdemonstrates that Subcontractor has entitlement; the supporting facts and data are accurate and complete; and the amount requested accurately reflects the contract adjustment for which Subcontractor believes Contractor or Owner is liable. Should Subcontraaor request an equitable adjustment pursuant to this section. Subcontractor shall segregate any costs/charges for which Owner is responsible from any other costs/charges. Subcontractor's obligation to segregate Owner pass-through items is a condition precedent to Subcontractor's right to any equitable adjustment under this Subcontract.

(c) If Subcontractor intends to request an equitable adjustment for which Owner is responsible, Subcontractor shall give all notices and shall submit its REA, with all supporting data, within the time- period(s) that allow Contractor to request an equitable adjustment under the Prime Contract. Contractor may combine Subcontractor's REA{s) with other requests Contractor may submit to Owner. Subcontractor expressly acknowledges that it shall be entitled to receive only the amount Contractor receives from Owner on Subcontractor's behalf. Should Owner's payment not identify the amount paid on Subcontractor's REA, Contractor sha!i allocate a portion of Owner's payment to Subcontractor, and Subcontractor expressly agrees to be bound by such allocation. Contractor's payment of a commercially reasonable allocation shall be an accord and full satisfaction of Subcontractor's right to an equitable adjustment for the requested amount.

(d) If Subcontractor Intends to request an equitable adjustment for which Owner is not responsible, Subcontractor shall give all notices and shall submit its REA, with all supporting data, within the time- period{s) this Subcontract requires. If Subcontractor's REA complies with the submittal requirements in Section 5.1 and demonstrates that Subcontractor is entitled to the adjustment requested, the amount of

KBG Private-sector Subcontract 12 Mar 2014

the adjustment shall be the amount necessary to equitably compensate Subcontractor for the additional cost Subcontractor incurred (a) because of the modification and (b) after Subcontractor gave Contractor written notice of Subcontractor's intent to request an equitable adjustment.

(e) Subcontractor shall give Contractor notice and an opportunity to inspect surfaces, conditions or work that Subcontractor considers unsatisfactory and which affect Subcontractor's ability to perform Hs Subcontract obligations. Subcontractor's notice shall fully comply with the Prime Contraa requirements. Further, Subcontractor shall give Contractor (a) written notice upon discovery, and (b) the opportunity to inspect or Investigate the condition prior to disturbance. By failing to give notice/opportunity. Subcontractor accepts the condition as is and shall be solely responsible for any resulting cost, time impacts, damages, expenses, fees and disbursements.

(f) Subcontractor, in connection with all Work covered by this Subcontract, shall to the extent applicable comply with and be bound by any labor agreements executed by Contractor or on Contractor's behalf. Failure at any time to comply with any of the provisions of such agreements, at Contractor's option, wil be cause for immediate termination of this Subcontract for default. If, by reason of strikes, picketing or disputes of any nature between Subcontractor and any individual, group or organization, Subcontractor should be persistently, repeatedly, or for a period of five (5) consecutive days, unable to supply enough properly skilled workers or proper materials to exeicute the Work defined in this Subcontract, Contractor may terminate Subcontractor for default.

3.6 Insurance, (a) Prior to commencement of Work, Subcontractor shall procure, and at all times thereafter maintain with insurers acceptable to Contractor and having an A.M. Best's rating of A>Vlior better, the following minimum insurance:

(1) Workers' Compensation (''WC") coverage to statutory limits required where the work Is being performed and Employer's Liability ("EL") coverage of not less than $1,000,000 each accident. Where applicable, coverage must include US. Longshore and Harbor Workers' Compensation Act, OuterContinentalShelf Lands Act, Jones Act, and Maritime Employer's Liability coverage of not less than $1,000,000 each accident. If Subcontractor utilizes personnel that are not its own empbyees, including but not limited to personnel from a professional employer organization, an employee leasing company, ora similar service ("PEO"), Subcontractor shall provide a primary WC policy in which Subcontractor Is a named insured.

(2) Commercial General Liability {"CGL") of not less than $2,000,000 each occurrence/aggregate. CGL shall include coverage extensions for: (a) contractual liability, (b) products/completed operations, (c) X.C.U. hazards as applicable, (d) independent contractors.

(3) Automobile Liability ("AL") of not less than $2,000,000 each accident, covering "any auto," or covering all owned, rxin-owned and hired vehicles used in its operations.

(b) If the terms of the Prime Contract require higher limits or additional coverage. Contractor reserves the right to require Subcontractor to provide at Subcontractor's expense such higher limits, additional coverage, or both. Subcontractor's insurance shall be primary and non-contributory to any other insurance maintained by Contractor, Owner and other parties as required in the Prime Contract.

(c) Subcontractor shall cause its CGL, AL, and all excess/umbrelia liability insurers to name as additional insureds the Contractor, the Owner, and other parties as required in the Prime Contract to the maximum limits of iiabiiity coverage carried by Subcontractor. Subcontractor shall cause its WC policy to

K3G Prtvats-ssctor Subcontract 12 Mar 2014

contain a waiver of sjb'ogation in favor of Contractor, Owner and other parties as required in the Pnme Contract.

(d) Subcontractor shall provide Contractor with certificates of insurance establishing compliance with the above requirements prior to beginning any work under this Subcontract. Subcontractor shall provide Contractor 30 days' ecKance written notice in tie event of policy cancellation.

(e) Subcontractor shall cause its subcontractors to procure and maintain the same insurance as outlined above, if requested to do so. Subcontractor shell obtain certificates of insurance from its subcontractors and deliver them to Contractor.

(f) It is the practice of the Contractor to carry Builder's Risk Insurance applicable to the Prime Dmtract work. The Contractor wlH include the interest of the Subcontractor, as its interest may appear, under the Project Builder's Risk coverage. Subcontractor agrees it will assume responsibility to determine the extent to which the Builder's Risk insurance in force for this Project covers the interests of Subcontractor. To th; Extent covered, Subcont-actor shall be liable for any deductible amount applicable under the policy to any claim relating to Subcontractor's work. Subcontractor also agrees to submit immediately upon demand, a complete breakdown of this Subcontract price showing materials, labor, expendable tools, supplies or any other thing or article of value, the cost of which is included in the Contract Sum stated herein, all as may be required for the purpose of determining values under said coverage. Subcontra*:tor agrees to waive any and ail rights of subrogation that it may have as to t ie Contractor and any ether additional Insured under the applicable Builder's Risk policy to the extent of the coverage provided by the Builder's Risk policy. Subcontractor shall include a similar waiver of subrogation with respect to the applicable Builder's Risk policy in ail lower-tier subcontracts entered into by Subcontractor relating to Subcontractor's work.

(g) These insurance requirements shall support, but shall not limit Subcontractor's duties, obligations, and Habliities under any other provision of this Subcontract.

3.7 Indemnification, (a) To the extent permitted by (aw, Subcontractor shall defend, indemnify and hold Contractor harmless hx)m all actions, legal proceedings, claims, damages, losses, fees (includirg attorney fees), costs, expenses, disbursements, and liabilities (collectively "Claims") that result from allegations relating to the Work or which arise From the Work - regardless of the legal theory for recovery. Subcontractor's obligations under this clause extend to Work that Subcontractor's employees, vendors, lower-tier subcontractors and suppliers and others perform on its behalf. Among other Claims, these obligations extend to Claims alleging patent infringement or the infringement of other Intellectual property rights arising rrom Subcontractor's Work or tar^lble property used in Subcontractor's Work.

(b) The provisions of any worker's compensation act or similar statute shall not limit Subcontractor's obligations and, as for its obligations to the Contractor, Subcontractor expressly waives such protaction. Subcontractor shall cause Its vendors, lower-tier subcontractors and suppliers waive such protection with respect to actiors their employees may assert against Contractor. Subcontractor's obliga:ioi to defend, indemnify and hold the Contractor harmless shall not apply to the extent a Claim resumed front the Contractor's actrve negligence or Contractor's breach of its contractual obligations under this Subcontract. CONTRACTOR AND SUBCONTRACTOR ACKNOWLEDGE THAT THEY EXPRESSLY AND MUTUALLY NEGOTIATED THE WAIVER IN THIS ENUMERATED CLAUSE.

(c) To the extent permitted by law. Subcontractor shall defend. Indemnify and hold Contractor harmless from Claims resulting from allegations that Subcontractor (1) created, maintained or permitted an

KBG Private-sector Subrantract 12 Mar2024

unsafe place to work, or (2) failed to properly supervise the Work, Its employees, vendors or lower-tier subcontractors.

3.8 Use Prior to Completion. Contractor arid C*wner shall be entitled to use or occupy any portion of Subcontractor's Work without cost or charge whenever either so desires. Subcontractor acknowledges that it is performing the Work in conjunction with other on-site activity, and that Subcontractor will not have exclusive access to the site.

3.9 Warranties. Subcontractor warrants arKi guarantees that the Work shall be free from ail defects, shall be of the quality specified, shaii be fit and appropriate for the purpose intended by this Subcontract, shall conform to the Subcontract Documents, and will remain In conformance with the Subcontract Documents for the period specified by the Prime Contract Documents. Where applicable, Subcontractor shall obtain and furnish for the benefit of the Owner and Contractor, any available manufacturers' warranties covering such Work. Further, Subcontractor shall adopt and assume, as a direct responsibility to Contractor and Owner, any warranties or guarantees that would have otherwise been the responsibility of otters but which Suocontractor voided, waived, Impaired or negated through its acts or omissions. During ttie warranty period. Subcontractor shaii repair, replace, or correct at its own expense all defects and nonconformities that arise in the Work. Corrected Work shall carry an additionai warranty, beginning on the date on which Ovmbr accepts the corrected Work.

3.10 Termination, (a) Contractor may terminate this Subrantract upon written notice to Subcontractor (1) for Contractor's convenience, (2) If Subcontractor breaches a material term of the Subcontract, or (3) upon reasonable evidence that Subcontractor cannot complete the Work for the remaining Contract Sum or within the Contractor's schedule. Should a reason for termination exist, Contractor may as an alternative to termination supplement or take over ail or a portion the Work and complete the same using Subcontractor's tabor, materials and/or equipment at Subcontractor's expense. Contractor shall give Subcontractor 48-hour written rnitlce before takir^ over Work pursuant to this Section.

(b) Should Contractor terminate all or a portic^i of the Work for convenience, Subcontractor shall immediately stop work on the terminated portion and take all commerdaily reasonable measures to mitigate the cost of termination. Subcontractor shall prepare and submit to Contractor complete termination Inventory schedules no later than 90 days following termination. The termination inventory schedules must Identify specific costs and charges that Subcontractor claims because of the convenience termination. Subcontractor shall propose a termination settlement based on Its termination inventory schedules. Contractor will either accept Subcontractor's settlement proposal or propose a revised settlement. To the extent the convenience termination flowed from revisions Owr>er made to the Prime Contract, Subcontractor's termination settlement shall not exceed the amount Contractor recovers from Owner for Subcontractor's account.

3.11 Claims/Dispute Resolution, (a) Subcontractor shall promptly notify Contractor of any condition, event, or development upon which Subcontiector intends to base a claim for additionai performance time or an increase of the Comract Sum. Subcontractor acknowledges that its failure to give such notice will prejudice Contractor's ability to mitigate the condition or pursue those who may be responsible. Accordingly, Subcontractor'sfallure to give notice shall waive the claim and completely bar Subcontractor from pursuing additional time and/or compensation. Subcontractor's obligation to segregate Owner pass through costs/charges, as set forth In Section 3.5, applies equally to claims asserted under this Section.

,5? V m,

KBG PrH/ate-sectorSdxontract 12IVt3r2014

(b) For claims in which Subcontractor gave timely notice, Subcontractor shall provide the Contractor with all information Contractor and Owner request in order to evaluate the claim. Should a Prime Contract clause apply to a particular claim, Subcontractor shall prepare and submit Its claim in full compliance with the Prime Contract.

(c) The REA procedures and limitation on recovery in Section 3.5 shall apply to atl claims asserted under this Section. Subcontractor shall be solely responsible for preparing and developing its claim, in addition to complying with the applicable Prime Contract provisions regarding claims and disputes,Subcontractor shall demonstrate (1) that it has entitlement to amount requested, (2) the underlying facts support its claim, and (3) the supporting documentation forthe amount it requested is accurate and complete.

(d) Because Subcontractor may lack standing to pursue pass-through claims directiy, Contractor and Subcontractor will execute a separate Claim Prosecution and Liquidation ^reement, under which Contractor will authorize Subcontractor's legal counsel to pursue Subcontractor's claim In Contractor's name. However, under no circumstances will Subcontractor or Subcontractor's legal counsel have authority to file any claim, pleading, motion or documents that violates: (1) Rule ll{b) of the Federal Rules of Civil Procedure, (2) The Federal False Claims Act, 31 U.S.C. §§ 3729-3733, |3) the False Statements Act, IB U.S.C. § 1001, (4) the Truth in Negotiations Act, 10 U.S.C § 2306a, (5) applicable mail or wire fraud statutes, or (6) state laws or statutes concerning fraud, false statements, bad faith or the lack of transparency.

(e) Subcontractor shall pursue and fully exhaust the Prime Contract disputes procedures before pursuing any other action. Should any applicable statute of limitations force Subcontractor to file such alternative action prior to the completion of the Prime Contract disputes procedures, Subcontractor shall Immediately stay the alternative action.

(f) For claims In which Subcontractor gave timely notice and that do not fall under the Prime Contract, Contractor and Subcontractor shall use their best efforts to negotiate a resolution. Contractor and Subcontractor shall submit whatever disputes they cannot so resolve to mediation.

(g) Contractor and Subcontractor acknowledge and agree that no claim, dispute or controversy between them shall interfere with the orderly, timely progress of the Work. In all instances, Subcontractor shall proceed as Contractor directs and Subcontractor's failure to do so shall be a material breach of this Subcontract.

3.12 Regulatory Compliance, (a) Subcontractor shall comply with all applicable laws, regulations, rules, codes and ordinances, including those specifically referenced in this Section.

|b) Subcontractor shall take all appropriate safety precautions pertaining to its activities at the Project site. Subcontractor shall fully comply with the federal Occupational Safety and Health Act and all applicable laws, ordinances, rules, regulations and orders issued by a public authority, whether federal, state, local or otherwise. Subcontractor's on-site safety program shall be at least as stringent as Contractor's safety measures.

(c) Subcontractor shall pay all taxes, licenses, and fees of every nature thata governmental authority may impose or charge upon this Subcontract and upon the services, labor, material, or other things used in the performance of the Work.

K86 Piivat»*sector Subcontract 12 Mar2014

(d) Unless exempted, the Equal Opportunity clauses as set forth In 41CFR §60-1.4(a), 41 CFR §60- 250.5(a), 41 CFR §60-300.5{a) and 41 CFR §60-741.5(a), as well as the provisions of 41 CFR §60-300.5,41 CFR §61-250.10,41 CFR §61-300.10 and 29 CFR Part 471, are incorporated by reference as terms araJ conditions of this agreement and are binding on Subcontractor.

(e) To the extent required by law, Subcontractor shall comply with federal employment eligibility verification (E-Verify) requirements or state employment eligibility laws and regulations.

(f) Subcontractor shall comply with all applicable laws, regulations, rules and agency directives and executive orders pertaining to certified payroll reports, payroll affidavits, prevaiiir^ wages, benefits and contributions, anti-kick restricbons, fair labor practices and other employment requirements. Subcontractor is solely responsible for determining its status under these requirements and the proper classification of its craft labor. Subcontractor shall not invoice Contractor for Work for which Subcontractor has not properly submitted the required certified payroll information. Subcontractor acknowledges that Its obligation to submit such Information is a condition precedent to its right to received payment forthe corresponding Work.

(g) Subcontractor shall be solely responsible for payment of all contributions, taxes and insurance contributions of any description imposed by any authority pursuant to wages, salaries, or other compensation Subcontractor'pays or will pay to Its employees, offir^rs, managers, directors or others. Further Subcontractor shall be exclusively responsible for payment of all taxes, Including personal property, sales, use and excise taxes applicable to the materials, tools, supplies, equipment, plant or machinery Subcontractor used, purchased, rented or otherwise acquired to perform the Work.

(h) Subcontractor shall Include all Section 3.12 enumerated clauses In all lower-tier contracts for Work on this Project. Subcontractor shall require its lower-tier contractors and vendors to observe and comply with the requirements set forth In these enumerated clauses.

3.13 WAIVER OF TRIAL BY JURY. Subcontractor waives any right to a jury trial in any dispute between Contractor and Subcontractor.

3.14 Attorneys Fees. Should either Contractor or Subcontractor Initiate litigation against the other or the other's surety in connection with any matter arising under this Subcontract, the prevailing party shall be entitled to recover all costs, expenses and attorney fees in addition to any other relief granted by the court to the extent permitted by law.

3.1S Applicable Law/Severabllfty/Waiver. (a) To the extent applicable, the law governing the Prime Contract shall govern this Subcontract. Otherwise, the law of the State in which the Project Is located shall govern; the Federal and State courts in that location shall have jurisdiction over any disputes and controversies.

(b) The partial or complete invalidity of any provision In the Subcontract Documents shall not affect the validity or continuing force and effect of the remaining provisions.

(c) Contractor or Subcontractor's failure to insist, in any one or more instances, upon the performance of any of the terms, covenants or conditions of this Subcontract, or to exercise any right herein, shall not be construed as a waiver or relinquishment of such term, covenant, condition or right as respects further performance.

KBG Private-sector Subcontract 12 Mar 2014

3.16 Contractor's Equipment. Should Subcontractor rent or otherwise use of any of Contractor's equipment, scaffolding, or other appliances, Subcontractor agrees to accept such "as is with all faults" at Subcontractor's sole risk. Subcontractor shall be solely responsible for determining whether the equipment, scaffolding or appliance is appropriate for Subcontractor's use. Subcontractor shall defend, indemnify and hold Contractor harmless against all claims of every nature arising from such use.

3.17 Furnished Material. Subcontractor acknowledges that it has included in the Contract Sum the 0)St of handling, storing and installing any material that Contractor, Owner, or other suppliers or subcontractors furnish for Subcontractor's for use on the Project. Subcontractor shall be responsible for all such materials upon delivery to it, whether delivered F.O.B. point of origin or F.O.B. Job-site.However, Contractor shall reimburse Subcontractor for transportation charges that Subcontractor pays if Subcontractor takes delivery F.O.B. point of origin. Subcontractor shall pay all demurrage and storage charges which accrue after delivery. Subcontractor shall replace, at its own expense, any furni^ed materia! lost or damaged after delivery, from any cause whatsoever. Within 48 hours after delivery of furnished material. Subcontractor shall inspect the same and immediately report in writing to Contractor any shortages, damages or defects that are reasonably observable by proper inspection. Subcontractor's failure to inspect and report as specified shall be an unqualified acceptance of the material involved.

3.18 Restricted Information, (a) Subcontractor's performance of the Work may require Subcontractor to access classified, restricted, proprietary or confidential information. Except to the extent permitted to authorized personnel or upon Contractor's written approval. Subcontractor shall not disseminate, divulge, release or otherwise disclose the existence or content of any such information or data— including the existence and content of any derivative information/data Subcontractor develops or obtains during performance of the Work.

(b) Disclosure of classified information to any person or entity who is r>ot entitled to receive the information, or Subcontractor's failure to safeguard any classified information Subcontractor may obtain, may subject Subcontractor, Subcontractor's agent and employees to criminal iiabllity underTitie 18, Sections 793 and 798 of the United State Code. Subcontractor shall ensure that each person who accesses classified information in Subcontractor's possession holds the appropriate active security clearance. Subcontractor's failure to protect classified information as required by law and applicable regulations shall be a material breach and grounds for termination of this Subcontract.

(c) Subcontractor shall restrict access to Controlled Unclassified Information (CUI) (e.g.. Sensitive But Unciassified, Unclassified//For Official Use Only, Unclassified Controlled Nuclear information, etc.) as defined in Executive Order 13S56 and Department/Agency rules that implement the order. Subcontractor shall fully comply with all Government Directives and Instructions concerning access and handling of CUI. At a minimum, Subcontractor shall restrict access to CUI to U.S. citizens. A(! materials must be stored behind a closed, locked door or locked inside a filing cabinet in order to prevent unauthorized access. Unauthorized disclosure of this information may result in civil and/or criminal sanctions. Subcontractor is responsible for the safe handling of CUI; Subcontractor must return the information, including att copies, to Contractor once Subcontractor no longer has a legitimate business need for such information. Subcontractor's failure to protect CUI as required by law and applicable regulations shall be a material breach and grounds for termination of this Subcontract.

f

JCBG Private^SMtorSubcontnct 02 Mar 2014

(d) Subcoritractor shall use Owner or Contractor's proprietary and confidential information only for purposes of performing this Subcontract. Subcontractor shall take all commercially reasonable measures to protect such Information from unauthorized disclosure.

3.19 Asslgnment/lower>tler Subcontracts, (a) Subcontractor shall obtain Contractor's written consent prior to assigning any of the Work, in whole or in part or Subcontractor's right to payment for such work. Subcontractor may assign the proceeds of the Work (1) after providing adequate assurances to Contractor that it or its assignee will pay all laborers, suppliers and other creditors for the Work, (2) upon obtaining the consent of Subcontractor's surety and (3) obtaining the assignee's acknowledgment on forms provided by Contractor. In no event shall Contractor be liable to any assignee for any amount in excess of the net sum due Subcontractor under this Subcontract after first setting off, recouping or deducting any amount Subcontractor owes Contractor.

<b) Upon Contractor's request, Subcontraaor shall submit a list of proposed subcontractors and suppliers to Contractor for Contractor's review. Once Subcontractor submits the name of a lower-tier subcontractor or supplier. Subcontractor shall not delegate, assign, sublet, or further subcontract Its Work or Its contractual obligations to any other entity without Contractor's prior written consent.

(c) Subcontractor shall afford small business concerns, small socioeconomic business concerns, and disadvantaged business concerns the maximum practical opportunity to participate in performing any lower-tier subcontracts to the extent consistent with efficient contract performance. Further, Subcontractor shall establish procedures to ensure the timely payment of amounts due pursuant to the terms of their lower-tier subcontracts and the Prime Contract's payment clause.

3.20 Certifications and Representations, (a) Subcontractor represents and warrants that it has, to the extent it deems necessary, investigated and famiilariKd itself with (1) ail applicable laws, regulations, ordinances and contractual provisions, (2) the availability of personnel, tabor, material supplies, equipment, power and utilities, fuel, and other assets necessary for its performance of the Subcontract, and (3} the prevailing wage determinations and working conditions applicable to its Work. Subcontractor acknowledges that It Is not directly or indirectly entitled to additional cost, any time exteruion, damages, fees, expenses or disbursements attributable to Subcontractor's failure to sufficiently investigate and/or familiarize Itself with such laws, regulations, ordinances or contractual provisions; Contractor shall not be liable to Subcontractor for the same.

(b) Subcontractor represents and warrants that It will apply ail money It receives pursuant to this Subcontract first to the payment of labor, materials, supplies, services and equipment related to its performance of its Subcontract obligations. Subcontractor further represents and warrants that it will use such funds to pay all workmen, subcontractors, materiel and equipment suppliers, and any other creditor who worked on the Project or who may assert a claim against Owner, Contractor or Its surety, Contractor's bond or other security. Subcontractor agrees to make such payments before disbursing such money for any other purpose.

(c) Subcontractor represents and warrants that it has thoroughly familiarized itself with all the various sections, divisions and subdivisions of the Subcontract Documents that apply to Its Work or the work of Contractor or other subcontractors that Subcontractor's Work may affect. Subrontractor shall make no substitution, deviation, modiffcatton from the Subcontract Documents with respect to materials, equipment, labor, methods of construction, or manufacturiig (collectively a "Substitution") without Owner and Contractor's express written consent. Contractor will not consider a proposed Substitution unless Subcontractor makes full disclosure of the Substitution's effect on Subcontractor's Work and the

KBG f^Wste>sectar Subcon^ct 12 Mar 2014

work of Contractor and Contractor's other subcontractors. If Owner and Contractor approve a Substitution, Subcontractor shall be responsible for a!! cost increases it, Contractor or Contractor's other subcontractors incur because of Subcontractor's Substitution.

(d) Ail Subcontractor representations and certifications are material terms of this Subcontract, upon which Contractor has relied. Among other available remedies, Contractor may terminate this Subcontract ibr default should Subcontractor make, or be found to have made, any false, misleading or otherwise Inaccurate representation or certification.

3.21 Labor. To the extent applicable to the Work, Subcontractor shall comply with Contractor's labor agreements so that Subcontractor does nothing that causes Contractor to breach those agreements. Subcontractor's failure to comply with this obligation shaii be a material breach of this Subcontract Agreement, allowing Contractor, at its optbn, to terminate this Subcontract Agreement for default immediately upon notice, if, by reason of strikes, picketing or disputes of any nature between Subcontractor and any Individual, group or organization. Subcontractor should be persistently, repeatedly, or for a period of five calendar days, unable to supply enough properly skilled workers or proper materials to execute the Work defined in this Subcontract, Contractor may terminate Subcontractor for default.

3.22 Third Parties. Contractor and Subcontractor enter into this Subcontract for their sole benefit and enforcement. No other person or entity may claim a benefit fi^m this Subcontract, or seek to enforce the terms and conditions of this Subcontract, except by written assignment approved by both Contractor and Subcontractor.

3.23 Captions. The captions at the beginning of each Section are for convenience only and shall have no weight in construing the provisions of this Subcontract.

3.24 Additional Definitions, the Subcontract includes the following defined terms, among other referenced in the Subcontract C^cuments.

(End of Article 3—General Provisions)

mi

SWi

mm

Term j DefinitionClassifiedInformation

Information that the Government has categorized as sensitive and to which access Is restricted by law to persons holding formal security clearance

CUI Controlled Unclassified Information as defines In Executive Order 13556 and Department/Agency rules implementing that Order

EquitableAdjustment

In response to a change, the adjustment to the Contract Sum that will place Subcontractor in the same profit/loss situation that Subcontractor was in prior to the change

F.O.B. Jobsite F.O.B. Jobsite means that Subcontractor shall assume all shipping, transportation, delivery costs and risk of loss associated with delivering conforming goods, components, or construction material to the project site

PRP Contractor's Project Requirements and ProceduresQCP Contractor's Quality Control PlanSubstitution A substitution, deviation or modification from/of the Subcontract Documents

KBG Prtvate-sectof ^bcontrect 12 Mar2014

ARTiaE4SCOPE OF WORK/COMPENSATION

This Article further describes Subcontractor's Work referenced in Article 1 and compensation referenced In Article 2 of the Subcontract Agreement.

4.1 Scope of Work, (a) General Description—(1) Subcontractor shall furnish all supervision, labor, tools, equipment, materials, and supplies, including, but not limited to Spec Section 2060 - Aggreggates, Spec Section 2070 - Selective Demo, Spec Section2100 - Clearing & Grubbing, Spec Section 22CX) Excavation Trenclng and Backfill, Spec Section 2210 - Grading & Earthwork for Structure, Spec Section 2223 - Select Burrow for Subbase Course, Spec Section2270 - Soli Erosion Control, Spec Section 2315 - Excavation, Spec Section 2320 Backfill, Spec Section 2450 Concrete Walkways, Spec Section 2515 - Concrete Curbs, Spec Section 2600 - Drainage, Spec Section2713 - Water System, Spec Section2730 - Sanitary Sewarage System, Spec Section 2740 - Asphaltic Concrete Paving, Spec Section 16301 - Exterior Electrical Work, and as indicated in the contract documents titled Hawaiian Humane Society - Admissions and Veterinary Service Building prepared by Padfic Asia Design Group, inc. dated October 20, 2014 and In accordance with, but not by way of limitation, of the RFP Documents indusive of Amendments 1 - 9, noted as plans and spedfications ,and as further outlined below.

-'■'v

'Mi -'3

It is understood and agreed that the following documents, and any amendments or addenda thereto, comprise this subcontract and are fully a part of this Subcontract herein; l}Prlme Contractor's accepted proposal to the Hawaiian Humane Sodety; 2} Addendum 1-9, including the Genera! Conditions and Supplemental Condition; 3)latest drawings prepared by Pacific Asia Design Group, inc. dated October, 20 2014; 4) specifications; 5) and this subcontract agreement. In the event of a conflict among any provisbns of the above documents, the stricter provision shall prevail, as solely determined by the Prime Contractor.

(2) Complete all work in accordance with the above referenced documents and to the complete satisfaction of the Owner and Contractor, including the following terms:

included Items • The following items are included in the Subcontractor's Scope of Work:

1. General Excise Tax |2. Mobilization per Contractor's project schedule and phasing ;;3. Union Labor {for Laborers, Masons, Carpenters, and Operators)4. Compliance with the General Contractor's project schedule5. Furnish all required submittals in accordance with the specifications and project schedule,

including closeout documents such as warranties, certifications, samples, shop drawings and as> built drawings. All project submittals to match specifications requirements and be submitted within 2 weeks of contract execution.

6. Compliance with ai! reporting requirements for the project, including but not limited to Dally Reports and Safety Reports

7. Provide means of access to complete the work described herein including but not limited to lifts, scaffolds, ladders, access ramp to Dog Adoptions area, etc. Subcontractor to install and maintain OHSA suitable access from existing dog park area to Dog Adoptions 2 area and restore area to existing condition once ramp is no longer required for access. Ramp shall be utilized by all required trades.

8. Hoisting, unloading, material handling, and transportation of Subcontractor materials and

W

KB6 PrhntchsectorSub^tract 12 Mar 2014

equipment9. Just-in-time delivery of materials10. All survey and layout necessary to perform Subcontractor's scope of work, primary controls

provided by GC11. Portions of work to be left out as "Come Back" work for constructability purposes as coordinated

by Contractor12. Off-site parking for Subcontractor crews13. Daily cleanup of work area14. Mandatory participation in Subcontractor meetings. Coordination meetings, and Safety Meetings

by Foreman, Superintendent, and/or Project Manager.15. Advance coordination work with other trades16. Provide a competent Safety and QC personnel onsite to ensure full compliance with Kiewit

program and project requirements, including but not limited to the Craft Voice in Safety (CVIS) Program while the Subcontractor is on site, active and current job hazard analysis for ongoing activities, and Kiewit dig permits on hand while performing trenching work.

17. Compliance with the General Contractor's quality control program18. Labor, material and equipment escalation through scheduled project completion19. Protection of work performed by other trades from damage during ongoing construction activity20. For profit and overhead rates relating to Owner changes, refer to the Prime Contract21. For profit and overhead rates relating to General Contractor changes, 1Q% profit and S% overhead

rates shall apply, or as negotiated with the General Contractor22. Include all necessary prep, accessories, and materials required for Subcontractor scope of work23. Noise levels during site work and demolition must stay below the limits permissible under the

noise permit24. Pothoiing and/or toning as required. Coordinate work with Dig Alert and comply with Kiewit Dig

Permit procedures.25. Clear, grub, hauling, and disposal of all excess materials26. Erosion control including but not limited to silt fence, BMP's, and drain inlet protection, per

project phasir^ and schedule, including removal and demobilization27. Weekly maintenance & inspection of erosion control and BMP's28. Dust control for demo activities29. Dustcontrol for site work30. Traffic control as needed for Subcontractor scope of work, including but not limited to, work as

shown in sheets C701 & C702, including obtaining all associated permits and costs for Walalae Avenue, King Street, and Kehena Place

31. Compaction of backfill per plans and specifications32. Excavate, prep, and backfill for water, drainage, and sewer33. Furnish & Install Water System, including but not limited to pipes, connections, caps, drain Inlets,

catch basins, man holes (with frames and cover), concrete jackets, and other related structures in- place complete, including final connections, inspections, and testing

34. Furnish & install Drainage System, including but not limited to pipes, connections, caps, drain inlets, catch basins, man holes (with frames and cover), concrete jackets, and other related structures In-place complete, including final connections. Inspections, and testing

35. Furnish & Install Sewer System, including but not limited to pipes, connections, caps, drain inlets, catch basins, man holes (with frames and cover), concrete jackets, and other related structures in- place complete, Including final connections, inspections, and testing

36. Furnish and Install pipe bedding materials for water, drainage, and sewer systems37. Furnish and install base course, aggregates, and building slab cushions per the plans and

specifications

ammII

'r'

i ■■

1 ■

UG Prfvste'Seetor Subcontraa U Mar 2314

38. Excavation, prep, and backfil] for gas company. Coordinate with gas company for gas work39. Excavation, prep, and backfill required for plumbing at Building interior and exterior. Coordinate

with Plumbing Subcontractor40. Electrical Excavation, prep, and backfill, including but not limited to jacketing, tight post

excavation/prep/backfilt, saw cutting, and restoration of existing to remain pavement41. Scheduling and Coordination with Electrical subcontractor concerning electrical excavation, prep

and backfill42. Excavation, prep, and backfill for Elevator pit, coordinate with Plumbing Subcontractor43. Excavation, prep work, and backfill for new retaining wails44. Include drainage behind Retaining Walls as required45. Continuous 2'x2" layer of gravel and 4" perforated drain pipe as shown on detail 1/S 10246. Trenching and backfill for all removed utilities47. Shoring for trench work deeper than 3'-6". Sloping is acceptable if the space is available and with

>3C approval48. Sidewalk restoration during SMH tie-in per sheet C40349. Mass cut & fill50. Fine grading for landscape areas, new concrete pavement, AC Pavement, building pads, sidewalks,

curbs, and gutters51. Restoration of existing to remain, including but not limited to AC patching, trench work, and

concrete sidewalks52. Structural Excavation, prep, and backfill for all Concrete, including but not limited to slab on

grade, footings, curbs, pads, walkways, trash enclosure, and stairs53. Backflow preventers for all systems installed54. Sawcut existing AC Pavement and concrete walkways as required on the plans and specifications55. Demolition work per sheets AlOl and C103, including but not limited to existing AC Pavement,

underground utilities. Parts A & B at CRM Walls, Shed Structures, Light Posts & Bases, Portion of existing Dog Kennel, concrete walkways, gates, fences, and trees. Sawcutting as necessary for dean edges.

56. All materials from demolition and sawcutting will be hauled away and disposed by the Subcontractor

57. Site Eire Hydrant assembly including thrust block and 4" slab on grade58. Site Fire Hydrant Testing and costs associated with, including but not limited to water

containment59. 12"x4" trench drain per C50360. Clean out to grade assembly Including concrete block enclosure61. Drain inlets, steel grates, and assembly62. Prep work per plans and specifications for new AC Pavement at the proposed and existing parking

lot and Kehena Street63. New AC Pavement per plans and specifications at proposed and existing parking lot and Kehena

Street64. Protection of exposed utilities resulting from the Subcontractors scope of work

Subcontractor will be required to meet all requirements set forth In the RFP Proposal including Addendum 1 through Addendum 9which is included within the scope of this Subcontract Agreement with the following being the only exceptions:

(4) Excluded items • The following items are NOT included In the Subcontractor's Scope of Work:

m

K86 Ptlvite>sector Subcorxract 12 Mar 2014

1. Temporary Water2. Isterior demolition of Grooming Building3. Temporary barricades and fencing4. CMXJ5. Demo and abatement of hazardous materials6. Compaction testing by GC

(5) Bonding - The bonding requirements of Section 3.4 of the General provisions are Q are not[X] waived.

if Contractor has NOT waived the bond requirement Contractor shall reimburse subcontractor for the actual cost of the performance and payment bond premium up to a maximum of 2.5% of the total subcontract amount upon receipt of a paid invoice from Subcontractor's surety. Subcontractor shall Include the cost of the bond premium associated with each change order in the corresponding change order pricing and Subcontractor shall pay the any such premium without further compensation from Contractor.

(b) Safety-Subcontractor's Work Includes Subcontractor's compliance with the safety requrrements as set out in Contractor's Project Requirements and Procedures (PRP).

(c) Quality—Subcontractor's Work Includes Subcontractor's compliance with Contractor's QCP and the following quality requirements:

(1) All work done and materials furnished must meet or exceed the Prime Contract specification requirements. Subcontractor shail develop a pro-active quality control program that insures it fulfilled ail contract requirements as the requirements apply to the Subcontractor's Work. Any

> inspection by the Owner's representatives or the Contractor shall not relieve the Subcontractor of its quality controi/quality assurance responsibilities. Subcontractor shall makegood and Woiic not meeting the requirements of the contract specifications. Owner or Contractor may reject unsuftabte Work regardless of whether either previously inspected or paid for such Work.

(2) Subcontractor shall remedy, remove or replace any rejected work in an acceptable manner and without additional compensation. Subcontractor shall defend, indemnify and save harmless the Contractor from all loss and damage arising out of Its failure to strictly comply with the requirements of the quality control program.

(3) Contractor may require Subcontractor to prepare and submit for Contractor approval, detailed work plans for some or al! operations. Requirements for the work plan may include, but are not limited to, quality and safety risks, step-by-step procedures, hold or Inspection points, equipment list and/or materials needed, erection or sequencing drawings, environmental considerations, permit requirements, and construction or quality tolerances.

(4) Contractormay require Subcontractor to participate in pre-activlty meetings held prior to beginning certain portions of the Work. The purpose of these pre-activity meetings shall be to review the applicable work plans, applicable Prime Contract Documents, submittal status information, testing and inspection procedures, and coordination procedures.

(5) Contractor may perform audits and assessments of the Subcontractor's Work to verify that

l:Cj

m

KB6 ^riv9t»-sectorSubcentnct 12 Mir 2014

the Work conforms to Prime Contract and Subcontract requirements. Contractor and its representatives may perform such audits and assessments at Subcontractors facility, work site or other locations, as appropriate for the scope and nature of the Work.

(d) Environmental—Subcontractor shall fully comply with all applicable environmental requirements. Subcontractor shall comply with all environmental laws and regulations, paying particular attention to the following; (a) Clean Water Act, NPDES Permitting, Process Water Discharge Permitting including Hydrostatic Testing Discharge, Spill Prevention Control and Countermeasures (SPCC); (b) Clean Air Act and Air Quality Permitting; (c) Comprehensive Environmental Response Compensation and Liability Act and Superfund Procedures; (d) Emergency Planning and Community Right-to-Know Act and Tier II Reporting; (e) Endangered Species Act, Oil Pollution Act, Resource Conservation Recovery Act and Hazardous Waste Procedures; (f) and Toxic Substances Control Act and requirements for PCBs, Asbestos, Radon, and Lead-based Paint.

(e) Project Requirements and Procedures (PRP)—Contractor's PRP will contain administrative and operational requirements governing the efficient execution and management of the Work.

(1) Among other requirements, the PRP may specify instructions/procedures for the (a) delivery, storage and handling of materials; (b) preparation, submisston and review of shop or fabrication drawings, samples, tests and other data related to material, equipment and methods relating to Subcontractor's performance; (c) preparation of pay requests, sales tax reports, certificates of insurance, performance and payment bonds, bond and claim releases, certified payroll reports, affidavits and other documentation that evidences compliance with the Davis Bacon Act and employment practices; (d) jobsite safety, first aid, emergency medical treatment, accident and accident prevention reports; (e) job progress schedules and schedule revisions; (f) tentative, confirmed and/or revised start and delivery dates; (g) equipment usage practices; (h) backcharge and extra work procedures, use of site utilities and shared facilities; (i) site cleanup, trash and debris removal; (]} security, badging or other identification, site access, traffic control and employee parking; and (k) such other practices and procedures Contractor deems appropriate for the orderly progression of the Project.

(2) Contractor may not have all PRP procedures and schedules completed as of the effective date of this Subcontract. Contractor reserves the right to update or amend the PRP, without Invalidating the Subcontract, as project developments dictate. Subcontractor shall promptly acknowledge receipt of the PRP and any updates or amendments in the manner Contractor specifies. Subcontractor shall review the PRP and any updates/amendments upon receipt. Subcontractor shall notify Contractor within five working days after receipt of the PRP, update or amendment If Subcontractor has a specific objection to a procedure or requirement At a minimum, such noticed shall identify (a) the specific requirement to which Subcontractor objects, (b) the specific reasons why Subcontraaor objects, (c) a proposed solution that would negate or mitigate Subcontractor's objection, and (d) any relevant facts that Subcontractor believes Contractor should consider. Upon receipt of Subcontractor's notice. Contractor shall evaluate Subcontractor's objection and proposed mitigation. Contractor may (e) enter into further discussions with Subcontractor, (f) revise the PRP, or (g) confirm the PRP as issued. Should Contractor confirm the PRP as issued, Subcontractor may treat the confirmation as a directive under Section 5.0 of the Subcontract's General Provisions.

(3) Subcontractor shall be bound the PRP and all updates/amendments unless Subcontractor gives notice of an objection within the time and in the manner described above.

KB6 Privste-sectctf Subcontract 12 Mar 2014

4.2 Compensation, (a) Contract Sum-~if Contractor has awarded the Subcontract on a stipulated sum basis. Contractor shall pay the Work performed as set forth in Article 2 of the Subcontract Agreement. If Contractor has awarded the Subcontract on a unit price basis, Contractor shall pay for the units accepted at the prices set forth In N/A.

(b) Material Stored Offsite—Upon Subcontractor's request and at Contractoris sole discretion, Contractor may elect to pay for Work that Subcontractor performed or purchased and stored offeite. The following requirements apply if Contractor pays Subcontractor for Work before Subcontractor incorporated the Work into the Project or delivered it to the Project site.

(1) Subcontractor acknowledges that Contractor will incur iegal and administrative expense to secure Contractor's title and security interest in the Work stored offsite. Subcontractor shall promptly reimburse Contractor for all such expense.

(2) Should Owner require title to transfer to it prior to payment, Subcontractor shall transfer title In writing to Owner when Subcontractor requests payment for the Work performed or stored offsite. Othen/vise, Subcontractor acknowledges and agrees that title to the Work shall automatkally pass to Contractor upon payment

(3) To the extent Subcontractor retains possession of the Work for further development or storage after title passes to Owner or Contractor, Subcontractor shall hold such Work in trust as trustee for Owner or Contractor, and Subcontractor shall deliver the Work on demand as Contractor directs.

(4) Subcontractor shall segregate all Work held in trust for Owner or Contractor from Subcontractor's materials and inventory, and from the materials and Inventory of any other person or entity.

(5) Subcontractor shall conspicuously identify the Work as the property of Owner or Contractor by using such markings and/or placards as Contractor shall direct.

(6) Subcontractor shall not have any claim, right, title or interest in the Work held in trust for Owner or Contractor. Notwithstanding the fact that Subcontractor has pass title to the Work, Subcontractor hereby grants Contractor a first priority purchase money security interest in the Work, together with all its proceeds and products as an additional means to secure the Work. However, this security interest shall In no way Impair Owner or Contractor's title or right to possess the Work.

(7) Subcontractor authorizes Contractor to file such financing statements without Subcontractor's signature or forther aufoorization or consent and provide such notice to third parties as Contractor may deem reasonable or necessary to perfect Its purchase money security Interest In the Work and, if requested by Contractor, Subcontractor shall provide Contractor with an accurate and current Hen search listing, containing the names and addresses of all creditors claiming liens or security interests in Subcontractor's materials, at least ten business days prior to Contractor's payment to Subcontractor for any Work purchased and supplied hereunder.

{End of Article 4—Scope of Work/Compensation)(End of Subcontract Agreement)

oqiiifBNOQ mT«u0nen* (MM) UO-nM iooa)9e»M»e

STATE OF HAWAIIPUBLIC UTIUTtES COMUIS8ION

465 S. KING STREET. 1103 HONOLULU. HAWAII 96813

March 21,2017

RAKOAIX f. IWMt CMAin

toniuM£H.AiuaikCOUU;S$«N£A

rttOUASC.OORAKCOMMOSlONCn

«*MA* pwCMMsgW • 4n»i puCOM«Oa9M

Carl J. Peterson PresidentC,J. Peterson Sen/ices, Inc.525 Kaiemi Street,Kailua, Hawaii 96734

Re; CJ PETERSON SERVICES, INC. - Line Strike Incident on July 20, 2016

Dear Mr. Peterson:

Please: (1) respond to the enclosed information requests (“IRs") by April 15, 2017; and (2) submit two copies in total of C.J. Peterson Services, Inci's responses.

Thank you for your attention to this matter.

Sincerely.

Drake Akiyoshi Investigator

DSA:kmc

Enclosure

c: Consumer Advocate

H ^ ^ ^ . . rV

r Information Requests

ggneral inytnjctionsUnless oihenvise directed, all responses to these IRs that concern or require tabular or graphic representations of data should include the data in an electronic spreadsheet file compatible with MS Excel. All spreadsheet files provided in the responses to these IRs should be provided in live or cfynamic format with cell logic, references, calculations, and formulas intact, and all cells unhidden and unprotected.

PUC-CJ'PETERSON-IR-1

Reference: Investigation info a gas-line strike incident on July 20,2016, at 2700 Waiatae Avenue. Honolulu, HI 96826.

A. Please contirm that C.J. Peterson Inc. conducted excavation activities at 2700Waialae Avenue on July 20, 2016, as a subcontrartor to Kidwit 6uifdlng Group, tnc.

B. Provide a cop/ of the contract that shows C.J. Peterson Inc.'s agreement to conduct excavations activities as a subcontractor for Ktewit Building Group. Inc. at 2700 Waialae Avenue on July 20,2016.

/

CERTIFICATE OF SERVICE

The foregoing order was served on the date of filing by mail,

postage prepaid, and properly addressed to the following parties:

DEAN NISHINAEXECUTIVE DIRECTORDIVISION OF CONSUMER ADVOCACYDEPARTMENT OF COMMERCE AND CONSUMER AFFAIRSP.O. Box 541Honolulu, HI 96809

(CM #7016 0910 0001 9763 8046)

CARL J. PETERSON PRESIDENTC.J. PETERSON SERVICES, INC. 94-121 Leokane Street #A Waipahu, HI 96797

(CM #7016 0910 0001 9763 8992)