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DES:djk 03/02/99 F: Shared/Redwood/Council/ Agmt-240 the payment of compensation to his employees and for that purpose obtain and keep in effect adequate Worker's Compensation insurance. If Contractor, in the sole discretion of City satisfies City of the responsibility and capacity under the applicable Workers' Compensation laws, if any, to act as self-insurer, he may so act, and in such case, the insurance required by this paragraph need not be provided. Contractor is advised of the provisions of Section 3700 of the California labor Code, which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and shall comply with such provisions before commencing the performance of the work of this Contract. Before the Agreement between City and Contractor is entered into, Contractor shall submit written evidence that it and any subcontractors have obtained for the period of the Contract full Workers' Compensation insurance coverage for all persons whom they employ or may employ in carrying out the work under this Contract. This insurance shall be in accordance with the requirements of the most current and applicable state Workers' Compensation insurance laws. In accordance with the provisions of Section 1861 of the California labor Code, the Contractor in signing this Agreement certifies to City as true the following statement: I am aware of the provisions of Section 3700 of the labor Code which requires every employer to be insured against liability for workers' compensation or to undertake self- insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract. (i) In accordance with the provisions of Section 1727 of the California labor Code, City, before making payment to Contractor of money due under a contract for public works, shall withhold and retain therefrom all amounts which have been forfeited pursuant to any stipulation in the Contract, and the terms of Chapter 1, Part 7, Division 2 of the California labor Code (commencing with Section 1720). But no sum shall be withheld, retained or forfeited, except from the final payment, without a full investigation by either the Division of labor law Enforcement or by City. 5. Except as otherwise may be provided herein, Contractor hereby expressly guarantees for one (1) full year from the date of the final completion of the work under this Agreement and acceptance thereof by City's City Council, to repair or replace any part of the work performed hereunder which constitutes a defect resulting from the use of inferior or defective materials, equipment or workmanship. If, within said period, any repairs or replacements in connection with the work are, in the opinion of the City Engineer, rendered necessary as a result of the use of inferior or defective materials, equipment or workmanship, Contractor 4 . """"""'-----------------"--------