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3.4 PERIOD OF PERFORMANCE - CONTRACTOR shall perform and complete all Work under this Contract within 120 Calendar Days, beginning fifteen (15) Calendar Days after the date on which the Notice to Proceed is issued by CITY to CONTRACTOR. Moreover, CONTRACTOR shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, including but not limited the Project Schedule located in the Specifications. CONTRACTOR agrees that if such Work is not completed within the aforementioned period and/or pursuant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, including but not limited to the Project Schedule located in the Specifications, it is understood, acknowledged and agreed that CITY will suffer damage. Pursuant to Government Code Section 53069.85, CONTRACTOR shall pay to the CITY as fixed and liquidated damages the sum of FIVE HUNDRED DOLLARS ($500) PER DAY as provided by the applicable provisions of the General Conditions, found in Part "B" of the Contract Appendix. 3.5 CITY'S BASIC OBLIGATION - CITY agrees to engage and does hereby engage CONTRACTOR as an independent CONTRACTOR to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contract, CITY shall pay to CONTRACTOR, as full consideration for the satisfactory performance by CONTRACTOR of the services and obligations required by this Contract, the above referenced compensation in accordance with compensation provisions set forth in the Contract. 3.6 CONTRACTOR'S LABOR CERTIFICATION - CONTRACTOR maintains that he is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Work. A certification form for this purpose is attached hereto as Exhibit "A" and incorporated herein by reference, and shall be executed simultaneously with this Contract. 3.7 HOURS OF WORK - CONTRACTOR is advised that eight (8) hours labor constitutes a legal day's work. Pursuant to Section 1813 of the California Labor Code, CONTRACTOR shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week, except when payment for overtime is made at not less than one and one-half (1-112) times the basic rate for that worker. 3.8 PAYROLL RECORDS - In accordance with the requirements of California Labor Code Section 1776, CONTRACTOR shall keep accurate payroll records which are either on forms provided by the Division of Labor Standards Enforcement or which contain the same information required by such forms. Responsibility for compliance with California Labor Code Section 1776 shall rest solely with CONTRACTOR, and CONTRACTOR shall make all such records available for inspection at all reasonable hours. 4