2002 AGN MAR 26 I09 - Laserfiche WebLink

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3.2.1 CONTRACT RETENTIONS - From each approved progress estimate, ten percent (10%) will be deducted and retained by CITY, and the remainder will be paid to CONTRACTOR. All Contract retainage shall be released and paid to CONTRACTOR and subcontractors pursuant to California Public Contract Code Section 7107. 3.2.2 OTHER RETENTIONS. In addition to Contract retentions, CITY may deduct from each progress payment an amount necessary to protect CITY from loss because of: (1) liquidated damages which have accrued as of the date of the application for payment; (2) any sums expended by CITY in performing any of CONTRACTOR's obligations under the Contract which CONTRACTOR has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for the unpaid balance of the Total Contract Price or within the scheduled completion date; (6) unsatisfactory prosecution of the Work by CONTRACTOR; (7) unauthorized deviations from the Contract; (8) failure of CONTRACTOR to maintain or submit on a timely basis proper and sufficient documentation as required by the Contract or by CITY during the prosecution of the Work; (9) erroneous or false estimates by CONTRACTOR of the value of the Work performed; (10) any sums representing expenses, losses, or damages as determined by CITY, incurred by the CITY for which CONTRACTOR is liable under the Contract, and (11) any other sums which CITY is entitled to recover from CONTRACTOR under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by CITY to deduct any of these sums from a progress payment shall not constitute a waiver of CITY's right to such sums. 3.2.3 SUBSTITUTIONS FOR CONTRACT RETENTIONS - In accordance with California Public Contract Code Section 22300, CITY will permit the substitution of securities for any monies withheld by CITY to ensure performance under the Contract. At the request and expense of CONTRACTOR, securities equivalent to the amount withheld shall be deposited with CITY, or with a state or federally chartered bank in California as the escrow agent, and thereafter CITY shall then pay such monies to CONTRACTOR as they come due. Upon satisfactory completion of the Contract, the securities shall be returned to CONTRACTOR. For purposes of this Section and Section 22300 of the Public Contract Code, the term "satisfactory completion of the contract" shall mean the time CITY has issued written final acceptance of the Work and filed a Notice of Completion as required by law and provisions of this Contract. CONTRACTOR shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. The escrow agreement used for the purposes of this Section shall be in the form provided by CITY. 3.3 STANDARD OF PERFORMANCE - CONTRACTOR shall perform all Work under this Contract in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. CONTRACTOR represents and maintains that it is skilled in the professional calling necessary to perform the Work. CONTRACTOR warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them. Finally, CONTRACTOR further represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Work, and that such licenses and approvals shall be maintained throughout the term of this Contract. 3