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Contractor agrees to pay said liquidated damages as herein provided, and in case the same are not
<br /> paid, agrees that City may deduct the amount thereof from any monies due or that may become
<br /> due under this Agreement.
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<br /> It is further agreed that in case the work called for under this Agreement is not completed in all of
<br /> its parts and requirements within the number of calendar days specified, City shall have the right
<br /> to increase the number of calendar days or not, as may seem best to serve the interest of City; and
<br /> if it is decided to increase the said number of calendar days, City shall further have the right to
<br /> charge to Contractor, and deduct from the final payment for the work, ail or any part, as City may
<br /> deem proper, of 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 final
<br /> surveys and the preparation of the final estimate shall not be included in such charges to be paid
<br /> by Contractor.
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<br />6. Except as otherwise may be provided herein, Contractor hereby expressly guarantees for one (1)
<br /> full year from the date of the final completion of the work under this Agreement and acceptance
<br /> thereof by City's City Council, to repair or replace any part of the work performed hereunder
<br /> which constitutes a defect resulting from the use of inferior or defective materials, equipment or
<br /> workmanship. If, within said period, any repairs or replacements in connection with the work
<br /> are, in the opinion of the City Engineer, rendered necessary as a result of the use of inferior or
<br /> defective materials, equipment or workmanship, Contractor agrees, upon receipt of notice from
<br /> City, 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 to
<br /> effectuate such correction and recover the cost thereof from Contractor or his sureties.
<br /> Any and all other special guarantees which may be applicable to definite parts of the work under
<br /> this Agreement shall be considered as an additional guarantee and shall not reduce or limit the
<br /> guarantee as provided by Contractor pursuant to this paragraph during the first year of the life of
<br /> such guarantee.
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<br />7. Contractor hereby agrees to indemnify and save harmless City, its Council, officers, boards,
<br /> commissions, agents and employees of and from any and ail claims, suits or actions of every
<br /> name, kind and description which may be brought against City, its Council, officers, boards,
<br /> commissions, agents, or 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 have been caused
<br /> by, any act or omission to act, negligent or otherwise, of Contractor, its officers, agents or
<br /> employees in the performance of any work required of Contractor by this Agreement.
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<br /> The duty of Contractor to indemnify and save harmless, as set forth herein, shall include a duty to
<br /> defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing
<br /> herein shall be construed to require Contractor to indemnify City, its Council, officers, boards,
<br /> commissions, agents and employees against any responsibility or liability in contravention of
<br /> 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 force and effect
<br /> throughout the term of this Agreement Workers' Compensation, employer's liability, commercial
<br /> general liability, and owned, non-owned and hired automobile liability insurance coverage
<br /> relating to Contractor's Work to be performed hereunder covering City's risks in form subject to
<br /> the approval of the City Attorney. The minimum amounts of coverage corresponding to the
<br /> aforesaid categories of insurance per insurable event shall be as follows:
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