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(b) The City of Eugene shall not be liable, either directly or indirectly, in any dispute arising out of the substance or <br /> procedure of Contractor's drug testing program. Nothing in this drug testing provision shall be construed as requiring <br /> Contractor to violate any legal, including constitutional, rights or any employee, induding but not limited to, selection of <br /> which employees to test and the manner of such testing. The City shall not be liable for Contractor's negligence in <br /> establishing or implementing, failure to establish or implement a drug testing policy, or for any damage or injury caused by <br /> Contractor's employees acting under the influence of drugs while performing work covered by this contract. These are <br /> Contractor's sole responsibilities and nothing in this provision is intended to create any third party beneficiary rights <br /> against the City. <br /> <br /> 3. ORS 2790.510 Demolition contracts to require material salvage; lawn and landscape maintenance contracts to <br /> require composting or mulching. <br /> 3.1. If this public improvement contract includes demolition, the contractor shall salvage or recyde construction and demolition <br /> debris, if feasible and cost-effective. <br /> 3.2. If this public improvement contract includes services for lawn and landscape maintenance the contractor shall compost or <br /> mulch yard waste material at an approved site. <br /> <br /> 4. ORS 2790.515 Conditions concerning payment of claims by public officers, payment to persons furnishing labor or <br /> materials, and complaints. <br /> 4.1. If the Contractor fails, neglects or refuses to make prompt payment of any daim for labor or services famished to the <br /> contractor or a subcontractor by any person in connection with this contract as the daim becomes due, the City may pay <br /> such daim to the person famishing the labor or services and charge the amount of the payment against funds due or to <br /> become due the Contractor by reason of the contract. <br /> 4.2. If the Contractor or afirst-tier subcontractor fails, neglects or refuses to make payment to a person furnishing labor or <br /> materials in connection with the contract within 30 days after receipt of payment from the City or the Contractor, the <br /> Contractor or first-tier subcontractor shall owe the person the amount due plus interest charges commenting at the end of <br /> the 10-day period that payment is due under ORS 2790.580(4) and ending upon final payment, unless payment is subject <br /> to a good faith dispute as defined in ORS 2790.580. The rate of interest charged to the Contractor or first-tier <br /> subcontractor on the amount due shall equal three times the discount rate on 90-day commerdal paper in effect at the <br /> Federal Reserve Bank in the Federal Reserve district that indudes Oregon on the date that is 30 days after the date when <br /> payment was received from the contracting agency or from the Contractor, but the rate of interest may not exceed 30 <br /> percent. The amount of interest may not be waived. <br /> 4.3. If the Contractor or a subcontractor fails, neglects or refuses to make payment to a person famishing labor or materials in <br /> connection with the public improvement contract, the person may file a complaint with the Construction Contractors <br /> Board, unless payment is subject to a good faith dispute as defined in ORS 2790.580. <br /> 4.4. The payment of a daim in the manner authorized in this section does not relieve the Contractor or the contractor's surety <br /> from obligation with respect to any unpaid daims. <br /> 5. ORS 2790.830 Public Works Bond <br /> 5.1 A contractor or subcontractor, unless exempt under ORS 2790.800 to 2790.870, shall file with the Construction <br /> Contractors Board a public works bond with a corporate surety authorized to do business in this state in the amount of <br /> $30,000. The bond must provide that the contractor or subcontractor will pay daims ordered by the Bureau of Labor and <br /> Industries to workers performing labor under Public Works projects. Before permitting a subcontractor to start work on a <br /> Public Works project, the contractor shall verify the subcontractor has also filed a public works bond with the Construction <br /> Contractors Board. <br /> 5.2 Before starting work on a contract for a Public Works project, the contractor shall provide the City with a written statement <br /> certifying contractor and any subcontractor have filed a public works bond as required above. <br /> 6. ORS 279A.120 Nonresident Contractors. <br /> 6.1. As used in this section, "nonresident contractor" means a contractor that: (A) has not paid unemployment taxes or income <br /> taxes in the state of Oregon during the 12 calendar months immediately preceding submission of the bid for the contract, <br /> (B) does not have a business address in this state and (C) stated in the bid for the contract that it was not a "resident <br /> bidder" under ORS 279A.120. <br /> 6.2. If the Contractor is a nonresident contractor and the contract price exceeds $10,000, the Contractor shall promptly report <br /> to the Department of Revenue on forms to be provided by the Department of Revenue the total contract price, terms of <br /> payment, length of contract and such other information as the Department of Revenue may require before the Contractor <br /> may receive final payment on the public contract. The City may not award a Public Improvement contract or a Public <br /> Works Contract to a nonresident bidder that is an educational service district. The City shall satisfy itself that the <br /> requirement of this subsection has been complied with before the City issues a final payment on.a public contract. <br /> Standard Contract Provisions--Page 2 <br /> <br />