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7.2.5. If upon an investigation conducted pursuant to rules adopted by the city manager <br /> in accordance with section 2.019 of the'Eugene Code, 1971 there is reasonable <br /> cause to believe that Contractor.or any subcontractors of Contractor have failed to <br /> comply with any of the terms of paragraphs 7.2.1 or 7.2.2, a determination thereof <br /> shall be made in accordance with the adopted rules. Such determination may <br /> result in the suspension, cancellation or termination of the Contract in whole or in <br /> part and/or the withholding of any funds due or to become due to Contractor, <br /> pending compliance by Contractor and/or its subcontractors, with the terms of <br /> paragraphs 7.2.1 and 7.2.2. <br /> 8. Indemnification. To the fullest extent permitted by law, Contractor shall indemnify, defend . <br /> (with counsel approved by City) and hold harmless City, its officers, agents and employees, <br /> the Architect/Engineer, Architect/Engineer's consultants, and their respective officers, <br /> directors, agents,. employees, partners, members, stockholders and affiliated companies from . <br /> and against all liabilities, damages, losses, claims, expenses (including reasonable attorney <br /> fees), demands and actions of any nature whatsoever, arising out of'or resulting from <br /> Contractor's performance or failure to perform under the Contract, as further specified in the <br /> General Conditions. <br /> 9. Insurance. Contractor shall maintain in force for the duration of the. Contract the insurance ' <br /> coverages specified within the General Conditions. Each policy required by these provisions <br /> shall be written as a primary policy, not contributing with or in excess of any coverage which <br /> City may carry. A copy of each policy or a certificate satisfactory to City shall be delivered to <br /> City prior to commencement of the Work. Unless otherwise specified, each policy shall be <br /> <br /> . written on an "occurrence" form with an admitted insurance-carrier licensed to do business in <br /> the state of Oregon and shall contain an endorsement entitling City, to not less than 30 days <br /> prior written notice of any material change, nonrenewal or cancellation. In the event the <br /> 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 <br /> below, City shall have the right to require Contractor to increase Contractor's coverages by <br /> the amount of the statutory limit increase for such claims and to increase the aggregate <br /> coverage by an amount that is twice as large as the statutory increase. The adequacy of all <br /> insurance required under the Contract shall be subject to approval by City's Risk Manager. <br /> Failure to maintain any insurance coverage required by the Contract shall be cause for <br /> immediate termination of the Contract by City. . <br /> 10. Performance and Payment Bonds. Prior to the commencement of the Work, Contractor <br /> shall provide good and sufficient performance and payment bonds approved by City and <br /> substantially in the form of the bonds included in the Solicitation Documents. <br /> 1.1. Termination and Suspension. City may terminate the Contract or suspend the Work at any <br /> time as provided in the Specifications. <br /> 12. Preference for Goods and Services. <br /> 12.1. Contractor shall use recyclable products to the maximum extent economically feasible _ <br /> in the performance of the Work. Recycled products include all materials, goods and <br /> supplies, not less than 50% of the total weight of which consists of secondary and post <br /> consumer waste with not less than 10% of its total weight consisting of post consumer <br /> waste, as well as any product that could have been disposed of as a solid waste, <br /> having completed its life cycle as a consumer item, but otherwise refurbished for reuse <br /> without substantial alteration of the product's form. <br /> 12.2. In performance of .the Work, Contractor shall prefer materials that have been <br /> manufactured or produced ~in the state of Oregon, if price, fitness, availability and quality <br /> are otherwise equal <br /> Public Improvement Contract for Use with Oregon Standard Specifications -Page 3 ' <br /> (Revised October 2008) <br /> <br />