GJN3825 Pacific Environmental Contract

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exceed five percent of the payment. Contractor shall have the right to deposit bonds or securities in lieu of cash retainage, or to have cash retainage deposited in an interest bearing account, in accordance with ORS 279.420. Irrevocable letters of credit from a bank doing business in Oregon will be accepted in lieu of cash retainage. Final Payment. Not more than 30 days after final completion of the Work and City's final acceptance of the Work, which shall include the taking of final measurements of quantities, City shall make its final payment to Contractor. Retainage held by City shall be included in and paid to the Contractor as part of the final payment. If the final payment is made more than 30 days after final completion and final acceptance, City shall pay Contractor interest at the rate ofone-and-one- halfpercent per month on the final payment commencing 30 days after final completion of the Work by Contractor and final acceptance of the Work by City. To facilitate City's inspection, Contractor shall notify City in writing when Contractor considers the Work complete. 6. Statement of Compliance. Before any payment is made to Contractor, Contractor shall file with City a statement, under oath, that it has complied with all provisions of state law governing contractors on a public contract and that it has complied with the provisions of the Eugene Code governing fair employment practices. In addition, Contractor shall file with City a sworn statement by each of its subcontractors to the same effect. 7. Quality of Worlc/Warranty. Contractor warrants to City for a period of one year from acceptance of the Work by City that all materials and equipment furnished under this contract will be new, unless otherwise specified, and the Work will be of good quality, free from faults and defects and in conformance with City's specifications. Work not so conforming with these standards shall be considered defective. At its own expense, Contractor will make good and repair any defects arising from faulty workmanship or materials, if the defective work is discovered within the one-year warranty period and notice thereof is given to Contractor within 60 days after the expiration of the warranty period. If required by City, Contractor shall furnish satisfactory evidence as to the kind and quality of materials and equipment. 8. Indemnification. Contractor shall indemnify and hold City, and its officers, agents and employees, harmless from and against all claims, actions, liabilities, costs, including attorney fees and other costs of defense, arising out of or in any way related to the Work, Contractor's failure to strictly comply with any provision of this contract, or any other actions or failure to act by Contractor and Contractor's employees, agents, officers, representatives and subcontractors. In the event any such action or claim is brought against City, Contractor shall, if City so elects and upon tender by City, defend the same at Contractor's sole cost and expense, promptly satisfy any judgment adverse to City or to City and Contractor, jointly, and reimburse City for any loss, cost, damage or expense, including attorney fees, suffered or incurred by City. 9. Insurance. Contractor shall maintain in force for the duration of this contract the insurance coverages specified below. Each policy required by these provisions shall be written as a primary policy, not contributing with or in excess of any coverage which City may carry. A copy of each policy or a certificate satisfactory to City shall be delivered to City prior to commencement of the Work. Unless otherwise specified, each policy shall be written on an "occurrence" form with an admitted insurance carrier licensed to do business in the state of Oregon and shall contain an endorsement entitling City to not less than 30 days prior written notice of any material change, Public Improvement Contract (CAL)--Page 2 (Revised April 1998)