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1.3 Quality of Work; Compliance With Laws and Codes. The construction <br />plans and specifications for the Improvements shall be prepared in accordance with all applicable <br />federal, state and local laws, ordinances, regulations, codes, standards, and other requirements. <br />The Improvements shall be completed in accordance with all approved maps, plans, <br />specifications, standard drawings, and special amendments thereto on file with City, as well as <br />all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other <br />requirements applicable at the time work is actually commenced. <br />1.4 Standard of Performance. Owner and its contractors, if any, shall perform <br />all work required to construct the Improvements under this Agreement in a skillful and <br />workmanlike manner, and consistent with the standards generally recognized as being employed <br />by professionals in the same discipline in the State of California. Owner represents and <br />maintains that it or its contractors shall be skilled in the professional calling necessary to perform <br />the work. Owner warrants that all of its employees and contractors shall have sufficient skill and <br />experience to perform the work assigned to them, and that they shall have all licenses, permits, <br />qualifications and approvals of whatever nature that are legally required to perform the work, <br />and that such licenses, permits, qualifications and approvals shall be maintained throughout the <br />term of this Agreement. <br />1.5 Fees and Charges. Owner shall, at its sole cost, expense, and liability, pay <br />all fees, charges, and taxes arising out of construction of the Improvements, including, but not <br />limited to, all plan check, design review, engineering, inspection, and other service fees, and any <br />impact or connection fees established by City ordinance, resolution, regulation, or policy; to <br />include reasonable legal fees incurred by the City. <br />1.6 City Inspection of Improvements. Owner shall, at its sole cost, expense, <br />and liability, and at all times during construction of the Improvements, maintain reasonable and <br />safe facilities and provide safe access for inspection by City of the Improvements and areas <br />where construction of the Improvements is occurring or will occur. <br />1.7 Extension of Deferment. The City may, either before or after the <br />expiration of time provided by Section 1, and in its sole and absolute discretion, provide Owner <br />with an additional six (6) month period for the construction of Improvements described as <br />Deferred Conditions in Exhibit C. By providing security for this agreement, Owner's surety <br />consents in advance to any extension of time as may be given by City to Owner, and waives any <br />and all right to notice of such an extension or extensions. The granting of an extension of time <br />by the by City shall constitute a waiver by the Owner and their surety of any defense of laches, <br />estoppel, statutes of limitations, and any other limitations of action in any action or proceedings <br />filed by City following the date on which the Deferred Conditions were to have been completed <br />hereunder. The City may grant no more than three (3) such six (6) month extensions. <br />2. Default; Notice; Remedies. <br />2.1 Notice. If Owner neglects, refuses, or fails to fulfill or timely complete <br />any obligation, term, or condition of this Agreement, or if City determines there is a violation of <br />any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, City <br />may at any time thereafter declare Owner to be in default or violation of this Agreement and <br />Deferred Improvement Agreement <br />Page 3 of 12 <br />ORANGE\C W ILKES\54393.2 <br />