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Construction Services Agreement
<br />REV: 04-26-2021 PR
<br />00 5205 - 9
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<br />provided by Contractor and its Subcontractors of all tiers. If either prior to completion of the Work,
<br />or within one year after completion, any Work (completed or incomplete) is found to violate any of
<br />the foregoing warranties (Defective Work), Contractor shall promptly, without cost to City and in
<br />accordance with City’s written instructions, correct, remove and replace the Defective Work with
<br />conforming Work, and correct, remove and replace any damage to other Work or other property
<br />resulting therefrom. If Contractor fails to do so, Contractor shall pay all of the City’s resulting claims,
<br />costs, losses and damages. Where Contractor fails to correct Defective Work, or defects are
<br />discovered outside the correction period, City shall have all rights and remedies granted by law.
<br />2.05 Compliance with Laws; Conflict of Interests. Contractor agrees to comply with all applicable
<br />federal and state laws, regulations and policies, as amended, including those regarding
<br />discrimination, unfair labor practices, anti-kick-back, collusion, and the provisions of the Americans
<br />with Disability Act. Contractor, its officer, partners, associates, agents, and employees, shall
<br />not make, participate in making, or in any way attempt to use the position afforded them by the
<br />Contract Documents to influence any governmental decision in which he or she knows or has
<br />reason to know that he or she has a financial interest under applicable state, federal and local
<br />conflict of interest regulations. Contractor warrants that no person or agency has been employed
<br />or retained to solicit or obtain the Agreement upon an agreement or understanding for a contingent
<br />fee, except a bona fide employee or agency.
<br />2.06 Termination; Suspension. City may direct Contractor to terminate, suspend, delay, interrupt or
<br />accelerate Work, in whole or in part, for such periods of time as City may determine in its sole
<br />discretion. City will issue such directives in writing, and may do so, in whole or in part, for its
<br />convenience or due to Contractor’s fault. City will compensate Contractor for extra costs resulting
<br />from such directives only to the extent that City issues such directives for its convenience and not
<br />due to Contractor’s fault (but City shall not compensate Contractor for costs, profit or overhead
<br />anticipated to be earned or incurred on Work terminated for City’s convenience.) Contractor shall
<br />continue its Work throughout the course of any dispute, and Contractor’s failure to continue Work
<br />during a dispute shall be a material breach of the Contract Documents.
<br />2.07 Claims by Contractor.
<br />A. General. Contractor shall timely comply with all notices and requests for changes to the Contract
<br />Time or Contract Sum as a prerequisite to filing any claim governed by this Section. The failure to
<br />timely submit a notice of delay or notice of change, or to timely request a change to the Contract
<br />Sum or Contract Time, or to timely provide any other notice or request required herein shall
<br />constitute a waiver of the right to further pursue the claim under the Contract or at law.
<br />B. Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code
<br />prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and
<br />judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January
<br />1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and
<br />mediation to resolve disputes on construction claims. The intent of this Section is to implement
<br />Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall
<br />be construed to be consistent with said statutes.
<br />C. Claims. For purposes of this Section, “Claim” means a separate demand by the Contractor, after a
<br />change order duly requested has been denied by the City, for (A) a time extension, (B) payment of
<br />money or damages arising from Work done by or on behalf of the Contractor pursuant to the
<br />Contract, or (C) an amount the payment of which is disputed by the City. A “Claim” does not include
<br />any demand for payment for which the Contractor has failed to provide notice, request a change
<br />order, or otherwise failed to follow any procedures contained in the Contract Documents. Claims
<br />governed by this Section may not be filed unless and until the Contractor completes all procedures
<br />for giving notice of delay or change and for the requesting of a time extension or change order, and
<br />Contractor’s request for a change has been denied in whole or in part. Claims governed by this
<br />Article must be filed no later than fourteen (14) days after a request for change has been denied in
<br />whole or in part or after any other event giving rise to the Claim. The Claim shall be submitted in
<br />writing to the City and shall include on its first page the following in 16 point capital font: “THIS IS
<br />A CLAIM.” Furthermore, the claim shall include the documents necessary to substantiate the claim.
<br />Nothing herein is intended to extend the time limit or supersede notice requirements otherwise
<br />provided by contract for the filing of claims, including all requirements pertaining to compensation
<br />or payment for extra Work, disputed Work, and/or changed conditions. Failure to follow such
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