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5. Time of Commencement and Compietion. Time is of the Essence of the Contract. The time in
<br />which Contractor shall commence, prosecute and complete the Work is described in the
<br />Specifications.
<br />6. Contract Sum. The Contract Sum is not to exceed $114,000.00. ' The Contract Sum consists of unit
<br />prices multiplied by estimated quantities, together with lump sum amounts for portions of the Work.
<br />Unit prices and lump sum amounts will be established by negotiation between the City and the
<br />Contractor. The actual sum payable to Contractor for the Work shafl be based on lump sum amounts
<br />and actual quantities, as modified by Change Orders and adjustments made in accordance with the
<br />Specifications. Payment will be made as provided in the Specifications.
<br />7. Statement of Compliance. Before any payment is made to Contractor, Contractor shall file with City
<br />a statement, under oath, that it has complied with all provisions of State law governing contractors on
<br />a public contract and that it has complied with the provisions of the Eugene Code governing fair
<br />employment practices. In addition, Contractor shall file with City a sworn statement by each of its
<br />subcontractors to the same effect.
<br />8. Indemnification. Contractor shall indemnify and hold City, and its officers, agents and employees,
<br />harmless from and against all claims, actions, liabilities, costs, including attorney fees and other costs
<br />of defense, arising out of or in any way related to the Work, Contractor's failure to strictly comply with
<br />any provision of the Contract, or any other actions or failure to act by Contractor and Contractor's
<br />employees, agents, officers, representatives and subcontractors. In the event any such action or
<br />claim is brought against City, Contractor shall, if City so elects and upon tender by City, defend the
<br />same at Contractor's sole cost and expense, promptly satisfy anyjudgment adverse to City or to City
<br />and Contractor, jointly, and reimburse City for any loss, cost, damage or expense, including attorney
<br />fees, suffered or incurred by City.
<br />- 9. Insurance. Contractor shall maintain in force for the duration of this contract the insurance coverages
<br />specified below. Each policy required by these provisions shall be written as a primary policy, not
<br />contributing with or in excess of any coverage which City may carry. A copy of each policy or a
<br />certificate satisfactory to City shall be delivered to City prior to commencement of the Work. Unless
<br />otherwise specified, each policy shall be written on an "occurrence" form with an admitted insurance
<br />carrier licensed to do business in the state of Oregon and shall contain an endorsement entitling City
<br />to not less than 30 days prior written notice of any material change, nonrenewal or cancellation. In the
<br />event the statutory limit of liability of a public body for claims arising out of a single accident or
<br />occurrence is increased above the combined single limit coverage requirements specified below, City
<br />shall have the right to require Contractor to increase the Contractor's coverages by the amount of the
<br />statutory limit increase for such claims and to increase the aggregate coverage by an amount that is
<br />twice as large as the statutory increase. The adequacy of all insurance required by these provisions
<br />shall be subject to approval by City's Risk Manager. Failure to maintain any insurance coverage
<br />required by this contract shall be cause for immediate termination of this contract by City.
<br />9.1. Commercial General Liability. Contractor shall maintain a broad form commercial.general
<br />liability insurance policy with coverage of not less than $1,000,000 combined single limit per
<br />occurrence, with an annual aggregate of not less than $2,000,000 million, for bodily injury,
<br />personal injury or property damage. Such policy shall contain a contractual liability endorsement
<br />to cover Contractor's indemnification obligations under the Contract and products/completed
<br />operations liability. The policy shall also contain an endorsement naming City as an additional
<br />insured, in a form satisfactory to City, and expressly providing that the interest of City shall not be
<br />affected by Contractor's breach of policy provisions. The policy shall be endorsed to state that
<br />the general aggregate limit of liability shall apply separately to the Contract.
<br />9.2. Automobile Liability. Contractor shall maintain an automobile liability insurance policy with
<br />coverage of not less than $1,000,000 combined single limit per occurrence, with an annual
<br />aggregate limit of not less than $1,000,000 million, for bodily injury, personal injury or property
<br />damage. The coverage shall include both hired and non-owned auto liability. The policy shall
<br />Public Improvement Contract for Use with Oregon Standard Specifications - Page 2
<br />(R~vised February 2004)
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