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015599 Distnct Agreement No. 4-1964-C performance surety bonds covering construction of PROJECT. The permits will be issued according to Articles 7 and 8 of Section II of this Agreement. 7. CITY shall provide a right of way certification to STATE to certify that legal and physical control of rights of way were acquired in accordance with applicable State and Federal laws and regulations. 8. CITY shall not award a contract to construct PROJECT until after an encroachment permit has been issued to CITY by STATE, nor shall CITY award a contract to construct PROJECT until after receipt of STATE's deposit required in Section II, Article 1 of this Agreement. 9. CITY's construction contractor and consultants shall maintain in force, until completion and acceptance of the PROJECT construction contract, a policy of Contractual Liability Insurance, including coverage of Bodily Injury Liability and Property Damage Liability in accordance with Section 7-1.12 of State Standard Specifications. Such policy shall contain an additional insured endorsement naming STATE, its officers, agents and employees as additional insured. Coverage shall be evidenced by a Certificate of Insurance in a form satisfactory to STATE which shall be delivered to STATE before the issuance of an encroachment permit to CITY's contractor and consultants. 10. After opening of bids for construction of PROJECT, STATE's estimate of cost will be revised based on actual bid prices. STATE's required deposit under Section II, Article 1 of this Agreement will be increased or decreased to match said revised estimate. If deposit increase or decrease is less than $1,000, no refund or demand for additional deposit will be made until final accounting. 11. After opening bids for construction of PROJECT, and if bids indicate a cost overrun of no more than twenty percent (20%) of the estimate will occur, CITY may award the contract. 12. If, upon opening of bids for PROJECT, it is found that a cost overrun exceeding twenty percent (20%) of the estimate will occur, CITY and STATE shall endeavor to agree upon an alternative course of action. If, after thirty (30) days, an alternative course of action is not agreed upon, this Agreement shall be deemed to be terminated by mutual consent. 13. In the construction of said work, CITY will furnish a representative to perform the functions of a Resident Engineer, and STATE may, at no cost to CITY, furnish a representative, if it so desires, to ensure conformance of work to STATE's standards. Said representatives of CITY and STATE will cooperate and consult, and all work pursuant to PROJECT shall be accomplished according to approved plans, specifications and applicable STATE standards. Satisfaction of these requirements shall be verified by the STATE representative. The STATE representative is authorized to enter CITY's property during construction for the purpose of monitoring and coordinating construction activities. 14. Changes to PROJECT plans and specifications shall be implemented by contract change orders reviewed and concurred with by the STATE representative. All changes affecting public safety or public convenience, all design and specification changes, and all major changes as defined in STATE's Construction Manual shall be approved by STATE in advance of performing the work Unless otherwise directed by the STATE representative, changes authorized as provided herein will not require an encroachment permit rider. All changes shall be shown on the As-Built plans referred to in Section I, Article 38 of this Agreement. 8 ... ......-......- . -""T""'" .