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<br />deduct 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 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.
<br />
<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.
<br />
<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.
<br />
<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,
<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 work
<br />required of Contractor by this Agreement.
<br />
<br />The duty of Contractor to indemnify and save harmless, as set forth herein, shall include a
<br />duty to defend as set forth in Section 2778 of the California Civil Code; provided, however,
<br />that nothing herein shall be construed to require Contractor to indemnify City, its Council,
<br />officers, boards, commissions, agents and employees against any responsibility or liability
<br />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 effect
<br />throughout the term of this Agreement Workers' Compensation, employer's liability,
<br />commercial general liability, and owned, non-owned and hired automobile liability
<br />insurance coverage relating to Contractor's Work to be performed hereunder covering
<br />City's risks in form subject to the approval of the City Attorney. The minimum amounts of
<br />coverage corresponding to the aforesaid categories of insurance per insurable event shall
<br />be as follows:
<br />
<br />AGREEMENT
<br />JEFFERSON AVENUE I CLINTON STREET CROSSWALK FLASHING BEACON SYSTEM
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