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<br />FXS:djk 03/30/99
<br />F: SharedIReu wood/Council! Agmt - 250
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<br />(i) In accordance with the provisions of Section 1727 of the California Labor Code, City,
<br />before making payment to Contractor of money due under a contract for public works,
<br />shall withhold and retain therefrom all amounts which have been forfeited pu rsuant to
<br />any stipulation in the Contract, and the terms of Chapter 1, Part 7, Division 2 of the
<br />California Labor Code (commencing with Section 1720). But no sum shall be
<br />withheld, retained or forfeited, except from the final payment, without a full
<br />investigation by either the Division of Labor Law Enforcement or by City.
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<br />5. It is hereby agreed by the parties to the Agreement that in case all work called for under
<br />the Agreement is not finished or completed on or before the time set forth in this
<br />Agreement, damage will be sustained by City, and that it is and will be impracticable and
<br />extremely difficult to ascertain and determine the actual damage which the City will
<br />sustain in event of and by reason of such delay; it is therefore agreed Contractor will pay
<br />to City the sum calculated at the rate of Two Hundred and No/100 dollars ($200.00) per
<br />day as liquidated damages for each and every calendar day's delay in finishing the work
<br />in excess of the number of days prescribed, and Contractor agrees to pay said liquidated
<br />damages as herein provided, and in case the same are not paid, agrees that City may
<br />deduct the amount thereof from any monies due or that may become due under this
<br />Agreement.
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<br />It is further agreed that in case the work called for under this Agreement is not completed
<br />in all of its parts and requirements within the number of calendar days specified, City
<br />shall have the right to increase the number of calendar days or not, as may seem best to
<br />serve the interest of City; and if it is decided to increase the said number of calendar
<br />days, City shall further have the right to charge to Contractor, and deduct from the final
<br />payment for the work, all or any part, as City may deem proper, of the actual cost of
<br />engineering, inspection, superintendence, and other overhead expenses of City which
<br />are directly chargeable to this Agreement, except that the cost of final surveys and the
<br />preparation of the final estimate shall not be included in such charges to be paid by
<br />Contractor.
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<br />6. Except as otherwise may be provided herein, Contractor hereby expressly guarantees for
<br />one (1) full year from the date of the final completion of the work under this Agreement
<br />and acceptance thereof by City's City Council, to repair or replace any part of the work
<br />performed hereunder which constitutes a defect resulting from the use of inferior or
<br />defective materials, equipment or workmanship. If, within said period, any repairs or
<br />replacements in connection with the work are, in the opinion of the City Engineer,
<br />rendered necessary as a result of the use of inferior or defective materials, equi pment or
<br />workmanship, Contractor agrees, upon receipt of notice from City, and without expense
<br />to City, to promptly repair or replace such material or workmanship and/or co rrect any
<br />and all defects therein. If Contractor, after such notice, fails to proceed promptly to
<br />comply with the terms of this guarantee, City may perform the work necessary to
<br />effectuate such correction and recover the cost thereof from Contractor or his sureties.
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<br />Any and all other special guarantees which may be applicable to definite parts of the
<br />work under this Agreement shall be considered as an additional guarantee and shall not
<br />reduce or limit the guarantee as provided by Contractor pursuant to this paragraph during
<br />the first year of the life of such guarantee.
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<br />7. Contractor hereby agrees to indemnify and save harmless City, its Council, officers,
<br />boards, commissions, agents and employees of and from any and all claims, suits or
<br />actions of every name, kind and description which may be brought against City, its
<br />Council, officers, boards, commissions, agents, or employees by reason of any injury to
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