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<br />(i) In accordance with the provisions of Section 1727 of the Califomia 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 pursuant to any
<br />stipulation in the Contract, and the terms of Chapter 1, Part 7, Division 2 of the Califomia
<br />Labor Code (commencing with Section 1720). But no sum shall be withheld, retained or
<br />forfeited, except from the final payment, without a full investigation by either the Division of
<br />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 sustain
<br />in event of and by reason of such delay; it is therefore agreed Contractor will pay to City
<br />the sum calculated at the rate of Five Hundred and No/100 dollars ($500.00) per day as
<br />liquidated damages for each and every calendar day's delay in finishing the work in
<br />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 shall
<br />have the right to increase the number of calendar days or not, as may seem best to serve
<br />the interest of City; and if it is decided to increase the said number of calendar days, City
<br />shall further have the right to charge to Contractor, and deduct from the final payment for
<br />the work, all or any part, as City may deem proper, of the actual cost of engineering,
<br />inspection, superintendence, and other overhead expenses of City which are directly
<br />chargeable to this Agreement, except that the cost of final surveys and the preparation of
<br />the final estimate shall not be included in such charges to be paid by 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 and
<br />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 Manager, Engineering
<br />and Construction, 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,
<br />and without expense to City, to promptly repair or replace such material or workmanship
<br />and/or correct any and all defects therein. If Contractor, after such notice, fails to proceed
<br />promptly to comply with the terms of this guarantee, City may perform the work necessary
<br />to 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 work
<br />under this Agreement shall be considered as an additional guarantee and shall not reduce
<br />or limit the guarantee as provided by Contractor pursuant to this paragraph during the first
<br />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 or
<br />death of any person or damage suffered or sustained by any person or corporation,
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<br />ATTY/AG R/2007. 033
<br />062807
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