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<br />the work, all or any part, as City may deem proper, of the actual cost of
<br />engineering, inspection, superintendence, and other overhead expenses of
<br />City which are directly chargeable to this Agreement, except that the cost of
<br />final surveys and the preparation of the final estimate shall not be included in
<br />such charges to be paid by Contractor.
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<br />6. 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
<br />work under this Agreement and acceptance thereof by City's City Council, to
<br />repair or replace any part of the work performed hereunder which constitutes
<br />a defect resulting from the use of inferior or defective materials, equipment
<br />or workmanship. If, within said period, any repairs or replacements in
<br />connection with the work are, in the opinion of the Manager, Engineering and
<br />Construction', rendered necessary as a result of the use of inferior or
<br />defective materials, equipment or workmanship, Contractor agrees, upon
<br />receipt of notice from City, and without expense to City, to promptly repair or
<br />replace such material or workmanship and/or correct any and all defects
<br />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
<br />effectuate such correction and recover the cost thereof from Contractor or
<br />his sureties.
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<br />Any and all other special guarantees which may be applicable to definite
<br />parts of the work under this Agreement shall be considered as an additional
<br />guarantee and shall not reduce or limit the guarantee as provided by
<br />Contractor pursuant to this paragraph during the first year of the life of such
<br />guarantee.
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<br />7. Contractor hereby agrees to indemnify and save harmless City, its Council,
<br />officers, boards, commissions, agents and employees, of and from any and
<br />all claims, suits or actions of every name, kind and description which may be
<br />brought against City, its Council, officers, boards, commissions, agents, or
<br />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
<br />have been caused by, any act or omission to act, negligent or otherwise, of
<br />Contractor, its officers, agents or employees in the performance of any work
<br />required of Contractor by this Agreement.
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<br />The duty of Contractor to indemnify and save harmless, as set forth herein,
<br />shall include a duty to defend as set forth in Section 2778 of the California
<br />Civil Code; provided, however, that nothing herein shall be construed to
<br />require Contractor to indemnify City, its Council, officers, boards,
<br />commissions, agents and employees against any responsibility or liability in
<br />contravention of 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
<br />force and effect throughout the term of this Agreement Workers'
<br />Compensation, employer's liability, commercial general liability, and owned,
<br />non-owned and hired automobile liability insurance coverage relating to
<br />Contractor's Work to be performed hereunder covering City's risks in form
<br />subject to the approval of the City Attorney. The minimum amounts of
<br />coverage corresponding to the aforesaid categories of insurance per
<br />insurable event shall be as follows:
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