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1.3. 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 cause <br />to believe that the Contractor or any subcontractors of the Contractor have failed to <br />comply with any of the terms of paragraphs 1.1 or 1.2, a determination thereof shall be <br />made in accordance with the adopted rules. Such determination may result in the <br />suspension, cancellation or termination of the principal contract in whole or in part and/or <br />the withholding of any funds due or to become due to the Contractor, pending <br />compliance by the Contractor and/or its subcontractors, with the terms of paragraphs 1.1 <br />and 1.2. <br />2. ORS 279C.505 Conditions concerning payment, contributions, liens, withholding; <br />drug testing. <br />2.1. Prompt Payment. The contractor shall: <br />(a) Make payment promptly, as due, to all persons supplying to the contractor labor or <br />material for the performance of the work provided for in the contract. <br />(b) Pay all contributions or amounts due the Industrial Accident Fund from the contractor <br />or subcontractor incurred in the performance of the contract. <br />(c) Not permit any lien or claim to be filed or prosecuted against the city on account of <br />any labor or material furnished. <br />(d) Pay to the Department of Revenue all sums withheld from employees under ORS <br />316.167. <br />2.2. Drug Testing. <br />(a) The Contractor shall demonstrate that an employee drug testing program is in place <br />at the time of submitting its bid, and that such program will be maintained throughout the <br />contract period, including any extensions. The failure of Contractor to have, or to <br />maintain such a drug testing program is grounds for rejection of a bid or immediate <br />termination of this contact. <br />(b) The City of Eugene shall not be liable, either directly or indirectly, in any dispute <br />arising out of the substance or procedure of Contractor's drug testing program. Nothing <br />in this drug testing provision shall be construed as requiring Contractor to violate any <br />legal, including constitutional, rights or any employee, including but not limited to, <br />selection of which employees to test and the manner of such testing. The City shall not <br />be liable for Contractor's negligence in establishing or implementing, failure to establish <br />or implement a drug testing policy, or for any damage or injury caused by Contractor's <br />employees acting under the influence of drugs while performing work covered by this <br />contract. These are Contractor's sole responsibilities and nothing in this provision is <br />intended to create any third party beneficiary rights against the City. <br />3. ORS 279C.510 Demolition contracts to require material salvage; lawn and landscape <br />maintenance contracts to require composting or mulching. <br />3.1. If this public improvement contract includes demolition, the contractor shall <br />salvage or recycle construction and demolition debris, if feasible and cost - effective. <br />