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3. Standard of Performance. All of the work to be done shall be done to the approval of, City or its authorized representative, and the work shall be done in the best workmanlike manner, conforming strictly to the provisions of the specifications and plans made thereof. Work shall be done at times that are agreed to by City. 4. Compliance with California Labor Code Provisions. Contractor shall comply with the provisions set forth in that document entitled "Labor Code Provisions" which is attached hereto as Exhibit "B" and incorporated herein by reference. 5. Liquidated Damages. It is hereby agreed by the parties to the Agreement that in case all work called for under the Agreement is not finished or completed on or before the time set forth in this Agreement, damage will be sustained by City, and that it is and will be impracticable and extremely difficult to ascertain and determine the actual damage which the City will sustain in event of and by reason of such delay; it is therefore agreed Contractor will pay to City the sum calculated at the rate of Two Thousand Five hundred and 00/100 Dollars ($2,500.00) per day as liquidated damages for each and every calendar day's delay in finishing the work in excess of the number of days prescribed, and Contractor agrees to pay said liquidated damages as herein provided, and in case the same are not paid, agrees that City may deduct the amount thereof from any monies due or that may become due under this Agreement. It is further agreed that in case the work called for under this Agreement is not completed in all of its parts and requirements within the number of calendar days specified, City shall have the right to increase the number of calendar days or not, as may seem best to serve the interest of City; and if it is decided to increase the said number of calendar days, City shall further have the right to charge to Contractor, and deduct from the final payment for the work, all or any part, as City may deem proper, of the actual cost of engineering, inspection, superintendence, and other overhead expenses of City which are directly chargeable to this Agreement, except that the cost of final surveys and the preparation of the final estimate shall not be included in such charges to be paid by Contractor. 6. Warranty for Work. Except as otherwise may be provided herein, Contractor hereby expressly guarantees for one (1) full year from the date of the final completion of the work under this Agreement and acceptance thereof by City's City Council, to repair or replace any part of the work perFormed hereunder which constitutes a defect resulting from the use of inferior or defective materials, equipment or workmanship. If, within said period, any repairs or replacements in connection with the work are, in the opinion of the Public Works Department, rendered necessary as a result of the use of inferior or defective materials, equipment or workmanship, Contractor agrees, upon receipt of notice from City, and without expense to City, to promptly repair or replace such material or workmanship and/or correct any and all defects therein. If Contractor, after such notice, fails to proceed Page 2 of 19