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1987-1215_ZAGROS COMPANY_Contract.r- _ • "City C•' CONTRACT This contract is made and entered into by and between the CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as City and Zagros Company hereinafter referred to as CONTRACTOR. IT IS HEREBY AGREED BETWEEN THE PARTIES AS FOLLOWS: FIRST. CONTRACT DOCUMENTS. The contract documents shall be considered to include the Notice Inviting Bids, the Instructions to Bidders, the Proposal, the Bid Bond, the Non -Collusion Affidavit, the Designation of Sub -Contractors, the Contract which is prepared for execution by the City and the Contractor, Plans, Specifications and Special Provisions, the Standard Specifications for Public Works Construction, 1985 Edition, including all Supplements, Contract Bonds, Resolutions adopted by the City Council pertaining to the work, insurance policies and certificates, and any supplemental written agreements amending or extending the scope of the work originally contemplated that may be required to complete the work in a substantial and acceptable manner. SECOND. THE WORK. CONTRACTOR agrees to furnish all tools, labor, material, equipment, transportation, and supplies necessary to perform and complete in good and workmanlike manner the construction of Vereda Bikeway - Via Estenaga to Avenida Siega in strict conformity with the Plans, Specifications and all other contract documents, which documents are on file at the Office of the City Clerk, City Hall, 32400 Paseo Adelanto, San Juan Capistrano, California. THIRD. PAYMENT. City agrees to pay, and CONTRACTOR agrees to accept, the lump sum adjusted for variations of quantities, at the prices designated in bid proposal at the time and in the manner set forth in the Specifications. FOURTH. COMMENCEMENT AND COMPLETION OF THE WORK. CONTRACTOR agrees to begin and complete the work within the time specified in the Notice Inviting -14- Bids. It is agreed that it would be impracticable and extremely difficult to fix the actual amount of damages, and loss sustained by City, should CONTRACTOR fail to complete the work in the specified time; therefore, CONTRACTOR shall pay City, as liquidated damages, not in the nature of a penalty, one hundred dollars ($100) per calendar day for each day delayed; provided that extensions of time with waiver of liquidated damages, may be granted as provided in the Specifications. FIFTH. PERFORMANCE BOND AND LABOR AND MATERIAL BOND. CONTRACTOR agrees to furnish bonds guaranteeing the performance of this contract and guaranteeing payment of all labor and material used under this contract, as required by the laws of the State of California, on forms approved by City. The Performance Bond shall be for an amount of one hundred percent (100%) of the amount of this contract and shall be conditioned on full and complete performance of the contract, guaranteeing the work against faulty workmanship and materials for a period of one (1) year after completion and acceptance. The Labor and Material Bond shall be for an amount of one hundred percent (1009x) of the amount of this contract and shall be conditioned upon full payment of all Labor and Material entering into or incidental to the cork covered by this contract. CONTRACTOR agrees to furnish the bonds on the forms found within the Specifications. CONTRACTOR agrees to pay City such sum as the Court may judge as reasonable for the legal services of any attorney representing the City in any action brought to enforce or interpret the obligations of this agreement, and such sums shall be made a part of any judgment in such action against CONTRACTOR if such action is determined in favor of said City. The required Performance, Labor and Materials Bonds, and Bid Bond shall provide that the surety shall pay attorney's fees incurred by City in enforcing this agreement. SIXTH. GENERAL PREVAILING RATE OF PER DIEM WAGES. Pursuant to the Labor Code of the State of California, copies of the prevailing rate of per diem wages as determined by the Director of the State Department of Industrial Relations, are on file in the offices of the City Clerk, 32400 Paseo Adelanto, San Juan Capistrano, California, and are hereby incorporated and made a part hereof. CONTRACTOR agrees that he, or -15- any SUB -CONTRACTOR under him, shall pay not less than the foregoing specified prevailing rates of wages to all workmen employed in the execution of the contract. SEVENTH. INSURANCE. CONTRACTOR shall maintain at all times during this contract liability and property damage insurance naming the City and its elected and appointed officials as a named insured, which such policies shall be of an amount not less than One Million Dollars combined single limit. The insurance policies shall bear an endorsement or shall have an attached rider providing that in the event of expiration or proposed cancellation of such policies for any reason whatsoever, the City shall be notified by registered mail, return receipt requested, giving a sufficient time before the date thereof to comply with the applicable law or statute but in no event less than 30 days before expiration or cancellation is effective. CONTRACTOR shall provide to City the policy certificate establishing that the required level of insurance has been satisfied. CONTRACTOR shall indemnify and save harmless the City, its officers, agents, and employees from and against any and all claims, demands, loss or liability of any kind or nature which Lessor, its officers, agents and employees may sustain or incur or which may be imposed upon them or any of them for injury to or death of persons, damage to property as a result of, or arising out of, or in any manner connected with the performance of the obligations under this construction agreement. EIGHTH. COMPLIANCE WITH OTHER PROVISIONS OF LAW RELATIVE TO PUBLIC CONTRACTS. City is subject to the provisions of the Government Code and the Labor Code of the State of California. It is stipulated and agreed that all provisions of laµ' applicable to public contracts are a part of this contract to the same extent as though set forth herein and shall be complied with by CONTRACTOR. These include, but are not limited to, the stipulation that eight (S) hours labor constitute a legal day's work and CONTRACTOR shall, as a penalty to City, forfeit twenty-five dollars ($25) for each workman employed in the execution of the Contract by CONTRACTOR, or by any SUB- CONTRACTOR, for each calendar day during which such workman is required or -16-