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<br />California Labor Code (commencing with Section 1720). But no sum shall be withheld,
<br />retained or forfeited, except from the final payment, without a full investigation by either
<br />the Division of 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
<br />under 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
<br />sustain in event of and by reason of such delay; it is therefore agreed Contractor will pay
<br />to City the sum calculated at the rate of Five Hundred and No/100 dollars ($500.00) per
<br />day as liquidated damages for each and every calendar day's delay in finishing the work
<br />in 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
<br />completed in all of its parts and requirements within the number of calendar days
<br />specified, City shall have the right to increase the number of calendar days or not, as
<br />may seem best to serve the interest of City; and if it is decided to increase the said
<br />number of calendar days, City shall further have the right to charge to Contractor, and
<br />deduct from the final payment for the work, all or any part, as City may deem proper, of
<br />the actual cost of engineering, inspection, superintendence, and other overhead
<br />expenses of 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 such
<br />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 work under
<br />this Agreement and acceptance thereof by City's City Council, to repair or replace any
<br />part of the work performed hereunder which constitutes a defect resulting from the use
<br />of inferior or defective materials, equipment or workmanship. If, within said period, any
<br />repairs or replacements in connection with the work are, in the opinion of the Manager,
<br />Engineering and Construction, rendered necessary as a result of the use of inferior or
<br />defective materials, equipment or workmanship, Contractor agrees, upon receipt of
<br />notice from City, and without expense to City, to promptly repair or replace such material
<br />or workmanship and/or correct any and all defects therein. If Contractor, after such
<br />notice, fails to proceed promptly to comply with the terms of this guarantee, City may
<br />perform the work necessary to effectuate such correction and recover the cost thereof
<br />from Contractor or his sureties.
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<br />Any and all other special guarantees which may be applicable to definite parts of
<br />the work under this Agreement shall be considered as an additional guarantee and shall
<br />not reduce or limit the guarantee as provided by Contractor pursuant to this paragraph
<br />during the first 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
<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
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