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any stipulation in the Contract, and the terms of Chapter 1, Part 7, Division 2 of the
<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.
<br /> 5. It is hereby agreed by the parties to the Agreement that in case all work called for under
<br /> 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 sustain
<br /> in event of and by reason of such delay; it is therefore agreed Contraclor will pay to City
<br /> the sum calculated at the rate of Five hundred and 00/100 Dollars ($500.00) per day as
<br /> liquidated damages for each and every calendar day's delay in finishing the work in
<br /> 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.
<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 /> 6. Except as otherwise may be provided herein, Contractor hereby expressly guarantees for
<br /> two (2) full years from the date of the final completion of the work under this Agreement
<br /> and 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 /> 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 /> 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 /> 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 /> ATTYIAGRI2011.131/WATER TANK EXTERIOR FINISH COATING PROJECT 00520-7
<br /> REV: 11/29/11
<br /> Page 4 of 7
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