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expressly providing that the interest of City shall not be affected by Contractor's breach of policy <br />provisions. <br />9.3. Workers' Compensation Insurance. All employers, including the Contractor and its <br />Subcontractors, if any, that employ subject workers who are performing Work or providing labor <br />or Materials under the Contract in the state of Oregon shall comply with ORS 656.017 and <br />provide the required Workers' Compensation coverage, unless such employers are exempt <br />under ORS 656.126. The Contractor shall ensure that each of its Subcontractors complies with <br />these requirements. Contractor shall provide City with such further assurances as City may <br />require from time to time that Contractor is in compliance with these Workers' Compensation <br />coverage requirements and the Workers' Compensation law. The Contractor shall ensure that <br />its insurance carrier files a guaranty contract with the Oregon Workers' Compensation Division <br />before performing any Work. <br />10. Performance and Payment Bonds Prior to the commencement of the Work, Contractor shall <br />provide good and sufficient performance and payment bonds approved by City, each in an amount <br />equal to the 100% of the Contract Sum, for the faithful performance of the Work in all respects and <br />indemnifying City for any claims or liens for labor, work, equipment or material provided by others in <br />the performance of the Work. The amount of the performance and payment bonds shall be increased <br />whenever the Contract Sum is increased for any reason. <br />11. Termination and Suspension. City may terminate this contract or suspend the Work at any time as <br />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 in the <br />performance of the contract work set forth in this Document. Recycled products include all <br />materials, goods and supplies, not less than 50 percent of the total weight of which consists of <br />secondary and post consumer waste with not less than 10 percent of its total weight consisting <br />of post consumer waste, as well as any product that could have been disposed of as a solid <br />waste, 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 manufactured or <br />produced in the state of Oregon, if price, fitness, availability and quality are otherwise equal. <br />13. Default and Willful Violation Without limiting the City's right to debar the Contractor for up to three <br />years, if the Contractor willfully violates any of the provisions of Sections 4.615 to 4.650 of the <br />Eugene Code, 1971, or any of the provisions of State law governing public contracts, or if Contractor <br />knowingly files false affidavits of compliance required under the Contract, Contractor shall waive for a <br />period of one year any right to bid upon any public improvement project let by City. If Contractor or <br />any of Contractor's Subcontractors violates any such provisions or files any such false affidavits of <br />compliance, or in the event Contractor otherwise fails to perform any of its obligations under this <br />contract, time and quality of performance being of the essence, City may, at its option, terminate this <br />contract upon written notice to Contractor In the event of a termination of this contract or a <br />subcontract under these provisions, Contractor or the Subcontractor, if applicable, shall forfeit all <br />rights under this contract or the subcontract, as the case may be. The City's claim for damages under <br />paragraph 14 and any other relief available to City resulting from the Contractor's breach shall survive <br />a termination of the Contract. <br />14. Liquidated Damages. In the event the Work is not completed within the contract time as specified in <br />the Contract Documents, Contractor will pay to City liquidated damages as specified in the <br />Specifications. The parties believe that due to the costs of bringing an action and the difficulty of <br />establishing the exact amount of damages City will incur, it would be inconvenient and infeasible for <br />City to bring an action for the actual damages it will incur because of Contractor's failure to complete <br />Public Improvement Contract for Use with FAA Specifications for Construction - Page 3 <br />(Revised February 2004) <br />