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<br />Hundred and No/100 dollars ($500.00) per day as liquidated damages for each and every calendar
<br />day's delay in finishing the work in excess of the number of days prescribed, and Contractor
<br />agrees to pay said liquidated damages as herein provided, and in case the same are not paid,
<br />agrees that City may deduct the amount thereof from any monies due or that may become due
<br />under this Agreement.
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<br />It is further agreed that in case the work called for under this Agreement is not completed in all of
<br />its parts and requirements within the number of calendar days specified, City shall have the right
<br />to increase the number of calendar days or not, as may seem best to serve the interest of City;
<br />and if it is decided to increase the said number of calendar days, City shall further have the right to
<br />charge to Contractor, and deduct from the final payment for the work, all or any part, as City may
<br />deem proper, of the actual cost of engineering, inspection, superintendence, and other overhead
<br />expenses of City which are directly chargeable to this Agreement, except that the cost of final
<br />surveys and the preparation of the final estimate shall not be included in such charges to be paid
<br />by Contractor.
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<br />"
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<br />6. Except as otherwise may be provided herein, Contractor hereby expressly guarantees for one (1)
<br />full year from the date of the final completion of the work under this Agreement and acceptance
<br />thereof by City's City Council, to repair or replace any part of the work performed hereunder which
<br />constitutes a defect resulting from the use of inferior or defective materials, equipment or
<br />workmanship. If, within said period, any repairs or replacements in connection with the work are, in
<br />the opinion of the City Engineer, rendered necessary as a result of the use of inferior or defective
<br />materials, equipment or workmanship, Contractor agrees, upon receipt of notice from City, and
<br />without expense to City, to promptly repair or replace such material or workmanship and/or correct
<br />any and all defects therein. If Contractor, after such notice, fails to proceed promptly to comply
<br />with the terms of this guarantee, City may perform the work necessary to effectuate such
<br />correction and recover the cost thereof from Contractor or his sureties.
<br />
<br />Any and all other special guarantees which may be applicable to definite parts of the work under
<br />this Agreement shall be considered as an additional guarantee and shall not reduce or limit the
<br />guarantee as provided by Contractor pursuant to this paragraph during the first year of the life of
<br />such guarantee.
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<br />7. Contractor hereby agrees to indemnify and save harmless City, its Council, officers, boards,
<br />commissions, agents and employees of and from any and all claims, suits or actions of every
<br />name, kind and description which may be brought against City, its Council, officers, boards,
<br />commissions, agents, or employees by reason of any injury to or death of any person or damage
<br />suffered or sustained by any person or corporation, caused by, or alleged to have been caused by,
<br />any act or omission to act, negligent or otherwise, of Contractor, its officers, agents or employees
<br />in the performance of any work required of Contractor by this Agreement.
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<br />The duty of Contractor to indemnify and save harmless, as set forth herein, shall include a duty to
<br />defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing
<br />herein shall be construed to require Contractor to indemnify City, its Council, officers, boards,
<br />commissions, agents and employees against any responsibility or liability in contravention of
<br />Section 2782 of the California Civil Code.
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<br />8. Contractor, at its sole cost and expense, shall acquire and maintain in full force and effect
<br />throughout the term of this Agreement Workers' Compensation, employer's liability, commercial
<br />general liability, and owned, non-owned and hired automobile liability insurance coverage relating
<br />to Contractor's Work to be performed hereunder covering City's risks in form subject to the
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<br />Agmt-405
<br />DES:djk
<br />F:/SharedIRed wood/Council
<br />09/28/00
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