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9. Payment to Subcontractors. (ORS 279.445) <br />9.1 The Contractor shall include in each subcontract for property or services entered into by the <br />contractor and afirst-tier subcontractor, including a material supplier, for the purpose of performing <br />a construction contract: <br />9.1.1 A payment clause that obligates the contractor to pay the first-tier subcontractor for <br />satisfactory performance under its subcontract within 10 days of payment by the City out <br />of such amounts as are paid to the contractor by the City of Eugene under such contract; <br />and <br />9.1.2 An interest penalty dause that obligates the contractor, if payment is not made within 30 <br />/, days after receipt of payment from the City of Eugene, to pay to the first-tier subcontractor <br />an interest penalty on amounts due in the case of each payment not made in accordance <br />with the payment dause included in the subcontract pursuant to paragraph 9.1.1 of this <br />subsection. A contractor or first-tier subcontractor shall not be obligated to pay an interest <br />penalty if the only reason that the contractor orfirst-tier subcontractor did not make <br />payment when payment was due is that the contractor or first tier subcontractor did not <br />receive payment from the City of Eugene or contractor when payment was due. The <br />interest penalty shall be: <br />9.1.2.1 For the period beginning on the day after the required payment date and ending <br />on the date on which payment of the amount due is made; and <br />9.1.22 Computed at the rate speclfied in ORS 279.314(2). <br />9.2 The Contractor shall include in each of its subcontractors, for the purpose of performance of such <br />contract condition, a provision requiring the first-tier subcontractor to include a payment dause and <br />an interest penalty dause conforming to the standards set forth in subsections 9.1.1 and 9.1.2 and <br />requiring each of is subcontractors to include such clauses in their subcontracts with each k~wer- <br />tiersubcontractor orsupplier. <br />9.3 None of the provisions of this section 9 are intended to prevent the Contractor or any subcontractor <br />from including in its contracts the provisions described in ORS 279.445(6) and (7). <br />10. Drug Testing. (ORS 279.312(2)) <br />10.1 The Contractor shall demonstrate that an employee drug testing program is in place at the time <br />of submitting its bid, and that such program will be maintained throughout the contract period, <br />including any extensions. The failure of Contractor to have, or to maintain such a drug testing <br />program is grounds for rejection of a bid or immediate terminatlon of this contact. <br />10.2 The City of Eugene shall not be liable, either directly or indirectly, in any dispute arising out of <br />the substance or procedure of Contractor's drug testing program. Nothing in this drug testing <br />provision shall be construed as requiring Contractor to violate any legal, including constitutional, <br />rights or any employee, including but not limited to, selection of which employees to test and the <br />manner of such testing. The City shall not be liable for Contractor's negligence in establishing or <br />implementing, failure to establish or implement a drug testing policy, or for any damage or injury <br />caused by Contractor's employees acting under the influence of dn~gs while performing work <br />covered by this contract. These are Contractor's sole responsibilitles and nothing in this <br />provision is intended to create any third party beneficiary rights against the City. <br />11. Prevailing Wage Provisions. (ORS 279.348 - 279.380) <br />11.1 The hourly rate of wage to be paid by the Contractor and all subcontractors to workers under this <br />contract shall not be less than the prevailing rate of wage for an hour's work in the same trade or <br />occupation in the locality where the labor is performed as set forth in the speclfications for this <br />contract. Contractor will comply with the provisions of ORS 279.350 and ail applicable <br />provisions of ORS 279.348 to 279.380. <br />11.2 The Contractor or the Contractor's surety and every Subcontractor or the Subcontractor's surety <br />shall file certified statements with the City in writing using the form prescribed by the <br />Standard Contrail Provisions for Public Works -Page 4 <br />(Revised July 2001) <br />