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<br />5. <br /> <br />I am aware of the provisions of Section 3700 of the Labor Code <br />which requires every employer to be insured against liability for <br />workers' compensation or to undertake self-insurance in <br />accordance with the provisions of that Code, and I will comply with <br />such provisions before commencing the performance of the work <br />of this Contract. <br /> <br />(d) In accordance with the provisions of Section 1727 of the California Labor <br />Code, City, before making payment to Contractor of money due under a contract <br />for public works, shall withhold and retain therefrom all amounts which have been <br />forfeited pursuant to any stipulation in the Contract, and the terms of Chapter 1, <br />Part 7, Division 2 of the California Labor Code (commencing with Section 1720). <br />But no sum shall be withheld, retained or forfeited, except from the final payment, <br />without a full investigation by either the Division of Labor Law Enforcement or by <br />City. <br /> <br />It is hereby agreed by the parties to the Agreement that in case all work called for <br />under the Agreement is not finished or completed on or before the time set forth <br />in this Agreement, damage will be sustained by City, and that it is and will be <br />impracticable and extremely difficult to ascertain and determine the actual <br />damage which the City will sustain in event of and by reason of such delay; it is <br />therefore agreed Contractor will pay to City the sum calculated at the rate of Five <br />Hundred and No/100 dollars ($500.00) per day as liquidated damages for each <br />and every calendar day's delay in finishing the work in excess of the number of <br />days prescribed, and Contractor agrees to pay said liquidated damages as <br />herein provided, and in case the same are not paid, agrees that City may deduct <br />the amount thereof from any monies due or that may become due under this <br />Agreement. <br /> <br />It is further agreed that in case the work called for under this Agreement is not <br />completed in all of its parts and requirements within the number of calendar days <br />specified, City shall have the right to increase the number of calendar days or <br />not, as may seem best to serve the interest of City; and if it is decided to increase <br />the said number of calendar days, City shall further have the right to charge to <br />Contractor, and deduct from the final payment for the work, all or any part, as <br />City may deem proper, of the actual cost of engineering, inspection, <br />superintendence, and other overhead expenses of City which are directly <br />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 <br />by Contractor. <br /> <br />Except as otherwise may be provided herein, Contractor hereby expressly <br />guarantees for one (1) full year from the date of the final completion of the work <br />under this Agreement and acceptance thereof by City's City Council, to repair or <br />replace any part of the work performed hereunder which constitutes a defect <br />resulting from the use of inferior or defective materials, equipment or <br />workmanship. If, within said period, any repairs or replacements in connection <br />with the work are, in the opinion of the Manager, Engineering and Construction, <br />rendered necessary as a result of the use of inferior or defective materials, <br />equipment or workmanship, Contractor agrees, upon receipt of notice from City, <br />and without expense to City, to promptly repair or replace such material or <br />workmanship and/or correct any and all defects therein. If Contractor, after such <br />notice, fails to proceed promptly to comply with the terms of this guarantee, City <br /> <br />6. <br /> <br />AGREEMENT <br /> <br />Page 4 of 7 <br />