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<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, Agency shall have the right to increase the number of calendar days or not, as
<br />may seem best to serve the interest of Agency; and if it is decided to increase the said
<br />number of calendar days, Agency shall further have the right to charge to Contractor,
<br />and deduct from the final payment for the work, all or any part, as Agency may deem
<br />proper, of the actual cost of engineering, inspection, superintendence, and other
<br />overhead expenses of Agency which are directly chargeable to this Agreement, except
<br />that the cost of final surveys and the preparation of the final estimate shall not be
<br />included in such charges to be paid by Contractor.
<br />
<br />6. Except as otherwise may be provided herein, Contractor hereby expressly guarantees
<br />for one (1) full year from the date of the final completion of the work under this
<br />Agreement and acceptance thereof by Agency's Agency Council, to repair or replace
<br />any part of the work performed hereunder which constitutes a defect resulting from the
<br />use of inferior or defective materials, equipment or workmanship. If, within said period,
<br />any repairs or replacements in connection with the work are, in the opinion of the
<br />Manager, Engineering and Construction, rendered necessary as a result of the use of
<br />inferior or defective materials, equipment or workmanship, Contractor agrees, upon
<br />receipt of notice from Agency, and without expense to Agency, to promptly repair or
<br />replace such material or workmanship and/or correct any and all defects therein. If
<br />Contractor, after such notice, fails to proceed promptly to comply with the terms of this
<br />guarantee, Agency may perform the work necessary to effectuate such correction and
<br />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
<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
<br />during the first year of the life of such guarantee.
<br />
<br />7. Contractor hereby agrees to indemnify and save harmless Agency, 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 Agency, its
<br />Council, officers, boards, commissions, agents, or employees by reason of any injury to
<br />or death of any person or damage suffered or sustained by any person or corporation,
<br />caused by, or alleged to have been caused by, any act or omission to act, negligent or
<br />otherwise, of Contractor, its officers, agents or employees in the performance of any
<br />work required of Contractor by this Agreement.
<br />
<br />The duty of Contractor to indemnify and save harmless, as set forth herein, shall include
<br />a duty to defend as set forth in Section 2778 of the California Civil Code; provided,
<br />however, that nothing herein shall be construed to require Contractor to indemnify
<br />Agency, its Council, officers, boards, commissions, agents and employees against any
<br />responsibility or liability in contravention of Section 2782 of the California Civil Code.
<br />
<br />8. Contractor, at its sole cost and expense, shall acquire and maintain in full force and
<br />effect throughout the term of this Agreement Workers' Compensation, employer's
<br />liability, commercial general liability, and owned, non-owned and hired automobile
<br />liability insurance coverage relating to Contractor's Work to be performed hereunder
<br />covering Agency's risks in form subject to the approval of the Agency Attorney. The
<br />minimum amounts of coverage corresponding to the aforesaid categories of insurance
<br />per insurable event shall be as follows:
<br />
<br />AGREEMENT
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