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S. Exceptions Exception 1: Regarding item 2.8 Performance and Payment Bond, section 95.11(3)(c) states the following, "(c) An action founded on the design, planning, or construction of an improvement to real property, with the time running from the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is latest; except that, when the action involves a latent defect, the time runs from the time the defect is discovered or should have been discovered with the exercise of due diligence. In any event, the action must be commenced within 10 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is latest." Both Nunez Construction and our bonding agent do not find acceptable the language within the contract. The surety is not statutory obligated to 95.11(3)(c), specifically, the 10 -year latent defect, unless it is written into the contract or performance bond. Underwriting a 10 -year obligation for a surety is a very onerous ask and something that is not considered in surety rates and indemnity package. We would ask to consider striking out this language from the contract. Exception 2: Nunez Construction is committed to respecting prices reflected on Bid. However, given current price escalations due to market conditions, "Where and when the delivery of material is delayed or quantities are limited, as a result of shortages, rationing or unavailability, Contractor shall not be liable or responsible for any delays or damages caused thereby. When this occurs, Contractor may propose substitute materials or suppliers or alternate means of acquiring said materials, and contractor and sub -contractor shall negotiate an equitable price and time adjustment to this agreement. Additionally, when the costs of any material exceed 3% more than documentable price originally quoted to Contractor, the Contractor shall notice Owner in writing of such change and the parties shall come to mutual agreement on a new price. Until such time as Contractor negotiates any applicable price and time adjustments, Contractor shall be relieved of further performance under this agreement. This provision shall control over all other terms and conditions of this agreement and contract documents." Nunez Construction, Inc. I Bid No. ITB -22-05-01 pg. 20