into the account by the OWNER. The principal will be held by the bank, available
only to the OWNER, until termination of the contract.
b. Until the work is 50% complete, as determined by the ENGINEER, retainage shall
be 10% of the monthly payments claimed. The computed amount of retainage will
be deposited in the escrow account established above.
After the work is 50% complete, and provided the CONTRACTOR has satisfied the
ENGINEER in quality and timeliness of the work, and provided further that there is
no specific cause for withholding additional retainage no further amount will be
withheld. The escrow account will remain at the same balance throughout the
remainder of the project,
2. Upon final completion and acceptance of the Work, OWNER shall hold 2% retainage
during the 1 (one) year warranty period and release it only after the project has been
accepted.
ARTICLE 12— PROTECTION OF PERSONS AND PROPERTY
1. The Contractor shall be responsible for initiating, maintaining and supervising all safety
precautions and programs, including all those required by law in connection with
performance of the Contract. The Contractor shall promptly remedy damage and loss to
property caused in whole or in part by the Contractor, or by anyone for whose acts the
Contractor may be liable.
ARTICLE 13 - CORRECTION OF WORK
|. The Contractor shall promptly correct Work rejected by the Owner as failing to conform to
the requirements of the Contract Documents, The Contractor shall bear the cost of
correcting such rejected work.
In addition to the Contractor’s other obligations including warranties under the Contract,
the Contractor shall, for a period of one year after Substantial Completion, correct work not
conforming to the requirements of the Contract Documents.
3. If the Contractor fails to correct nonconforming Work within a reasonable time, the Owner
may correct it and the Contractor shall reimburse the Owner for the cost of the correction.
ry
ARTICLE 14 — PROHIBITED INTERESTS
Contractor shall not allow any officer or employee of the City to have any indirect or direct interest
in this contract or the proceeds of this contract, Contractor warrants that no officer or employee of
the City has any direct or indirect interest, whether contractual, non-contractual, financial or
otherwise, in this contract or in the business of the Contractor. Contractor also warrants that it
presently has no interest and that it will not acquire any interest, direct or indirect, which would
conflict in any manner or degree with the performance of services required to be performed under
this contract. Contractor further warrants that no person having such an interest shall be employed
in the performance of this contract. If any such interest comes to the attention of Contractor at any
time, a full and complete disclosure of the interest shall be immediately made in writing to the
City. If City determines that a conflict exists and was not disclosed to the City, it may terminate
the contract at will or for cause.
AG-8
