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specified, City and District shall have the right to increase the number of calendar
<br /> days or not, as may seem best to serve the interest of City and District; and if it is
<br /> decided to increase the said number of calendar days, City and District shall
<br /> further have the right to charge to Contractor, and deduct from the final payment
<br /> for the work, all or any part, as City and Distdct may deem proper, of the actual
<br /> cost of engineering, inspection, superintendence, and other overhead expenses
<br /> of City and Distdct which are directly chargeable to this Agreement, except that
<br /> the cost of final surveys and the preparation of the final estimate shall not be
<br /> included in 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 work
<br /> under this Agreement and acceptance thereof by City's City Council and the
<br /> District's Board, to repair or replace any part of the work performed hereunder
<br /> which constitutes a defect resulting from the use of infedor or defective materials,
<br /> equipment or workmanship. If, within said period, any repairs or replacements in
<br /> connection with the work are, in the opinion of the City's and District's Architect,
<br /> rendered necessary as a result of the use of inferior or defective materials,
<br /> equipment or workmanship, Contractor agrees, upon receipt of notice from City,
<br /> and without expense to City and District, to promptly repair or replace such
<br /> material or workmanship and/or correct any and all defects therein. If Contractor,
<br /> after such notice, fails to proceed promptly to comply with the terms of this
<br /> guarantee, City and District may perform the work necessary to effectuate such
<br /> 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
<br /> the work under this Agreement shall be considered as an additional guarantee
<br /> and shall not reduce or limit the guarantee as provided by Contractor pursuant to
<br /> this paragraph during the first year of the life of such guarantee.
<br />
<br /> 7. Contractor hereby agrees to indemnify and save harmless City and District, its
<br /> Council, officers, boards, commissions, agents and employees of and from any
<br /> and all claims, suits or actions of every name, kind and description which may be
<br /> brought against City and District, its Council, officers, boards, commissions,
<br /> agents, or employees by reason of any injury to or death of any person or
<br /> damage suffered or sustained by any person or corporation, caused by, or
<br /> 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
<br /> any work required of Contractor by this Agreement.
<br />
<br /> The duty of Contractor to indemnify and save harmless, as set forth herein, shall
<br /> include a duty to defend as set forth in Section 2778 of the California Civil Code;
<br /> provided, however, that nothing herein shall be construed to require Contractor to
<br /> indemnify City and District its Council, officers, boards, commissions, agents and
<br /> employees against any responsibility or liability in contravention of Section 2782
<br /> of the California Civil Code.
<br />
<br /> 8. Contractor, at its sole cost and expense, shall acquire and maintain in full force
<br /> and effect throughout the term of this Agreement Workers' Compensation,
<br /> employer's liability, commercial general liability, and owned, non-owned and hired
<br />
<br />6/23197R :5
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