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result in the suspension, cancellation or termination of the Contract in whole or in part and/or the withholding of any funds due or to become due to Contractor, pending compliance by Contractor and/or its subcontractors, with the terms of paragraphs 7.2.1 and 7.2.2. 8. Indemnification. To the fullest extent permitted by law, Contractor shall indemnify, defend (with counsel approved by City) and hold harmless City, its officers, agents and employees, the Architect/Engineer, Architect/Engineer's consultants, and their respective officers, directors, agents, employees, partners, members, stockholders and affiliated companies from and against all liabilities, damages, losses, claims, expenses (including reasonable attorney fees), demands and actions of any nature whatsoever, arising out of or resulting from Contractor's performance or failure to perform under the Contract, as further specified in the General Conditions. 9. Insurance. Contractor shall maintain in force for the duration of the Contract the insurance coverages specified within the General Conditions. 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, nonrenewal or cancellation. In the event the statutory limit of liability of a public body for claims arising out of a single accident or occurrence is increased above the combined single limit coverage requirements specified below, City shall have the right to require Contractor to increase Contractor's coverages by the amount of the statutory limit increase for such claims and to increase the aggregate coverage by an amount that is twice as large as the statutory increase. The adequacy of all insurance required under the Contract shall be subject to approval by City's Risk Manager. Failure to maintain any insurance coverage required by the Contract shall be cause for immediate termination of the Contract by City. 10. Performance and Payment Bonds. Prior to the commencement of the Work, Contractor shall provide good and sufficient performance and payment bonds approved by City and substantially in the form of the bonds included in the Solicitation Documents. 11. Termination and Suspension. City may terminate the Contract or suspend the Work at any time as provided in the Specifications. 12. Preference for Goods and Services. 12.1. Contractor shall use recyclable products to the maximum extent economically feasible in the performance of the Work. Recycled products include all materials, goods and supplies, not less than 50% of the total weight of which consists of secondary and post consumer waste with not less than 10% of its total weight consisting of post consumer waste, as well as any product that could have been disposed of as a solid waste, having completed its life cycle as a consumer item, but otherwise refurbished for reuse without substantial alteration of the product's form. 12.2. In performance of the Work, Contractor shall prefer materials that have been manufactured or produced in the state of Oregon, if price, fitness, availability and quality are otherwise equal. 13. Nonresident Contractors. 13.1. If Contractor is a nonresident contractor and the Contract Amount exceeds $10,000, Contractor shall promptly report to the Department of Revenue on forms to be provided Public Improvement Contract for Use with Oregon Standard Specifications - Page 3 (Revised October 2008)