Common use of Contracting for Public Improvements Clause in Contracts

Contracting for Public Improvements. In connection with all of the Public Improvements, Developer shall engage a contractor that is duly licensed in California and qualified to complete the work (the “Contractor”). The Contractor shall contract directly with Developer pursuant to an agreement to be entered into by Developer and Contractor (the “Construction Contract”), which shall: (i) be a guaranteed maximum price contract; (ii) require the Contractor or Developer to obtain and maintain bonds for one-hundred (100) percent of the cost of construction for performance and fifty (50) percent of payment for labor and materials (and include the City and Developer as dual obliges under the bonds), or provide a letter of credit or other security satisfactory to City, in accordance with the requirements of the City’s Subdivision Code; (iii) require the Contractor to obtain and maintain customary insurance, including workers compensation in statutory amounts, employer’s liability, general liability, builders all-risk; (iv) release the City from any and all claims relating to the construction, including but not limited to mechanics liens and stop notices; (vi) subject to the rights of any Mortgagee that forecloses on the property, include the City as a third party beneficiary, with all rights to rely on the work, receive the benefit of all warranties, and prospectively assume Developer’s obligations and enforce the terms and conditions of the Construction Contract as if City were an original party thereto; and (viii) require that the City be included as a third party beneficiary, with all rights to rely on the work product, receive the benefit of all warranties and covenants, and prospectively assume Contractor’s rights in the event of any termination of the Construction Contract, relative to all work performed by the Architect and the Engineer.

Contracting for Public Improvements. In connection with all of the Public Improvements, Developer shall engage a contractor that is duly licensed in California and qualified to complete the work (the “Contractor”). The Contractor shall contract directly with Developer pursuant to an agreement to be entered into by Developer and Contractor (the “Construction Contract”), which shall: (i) be a guaranteed maximum price contract; (ii) require the Contractor or Developer to obtain and maintain bonds for one-hundred (100) percent of the cost of construction for performance and fifty (50) percent of payment for labor and materials (and include the City and Developer as dual obliges under the bonds), or provide a letter of credit or other security satisfactory to City, in accordance with the requirements of the City’s Subdivision Code; (iii) require the Contractor to obtain and maintain customary insurance, including workers compensation in statutory amounts, employer’s liability, general liability, builders all-risk; (iv) release the City from any and all claims relating to the construction, including but not limited to mechanics liens and stop notices; (viv) subject to the rights of any Mortgagee that forecloses on the property, include the City as a third party beneficiary, with all rights to rely on the work, receive the benefit of all warranties, and prospectively assume Developer’s obligations and enforce the terms and conditions of the Construction Contract as if City were an original party thereto; and (viiivi) require that the City be included as a third party beneficiary, with all rights to rely on the work product, receive the benefit of all warranties and covenants, and prospectively assume Contractor’s rights in the event of any termination of the Construction Contract, relative to all work performed by the Architect Project’s architect and the Engineerengineer.

Contracting for Public Improvements. In connection with all construction of the Public Improvements, Developer shall engage a contractor that is duly licensed in California the State and qualified to complete the work (the “Contractor”). The Contractor shall contract directly with Developer pursuant to an agreement to be entered into by Developer and Contractor (the “Construction Contract”)Contractor, which shall: (i) be a guaranteed maximum price contract; (ii) require the Contractor or Developer contractor to obtain and maintain bonds and insurance for one-hundred (100) percent the benefit of the cost of construction for performance Developer and fifty (50) percent of payment for labor and materials (and include the City and Developer as dual obliges under the bonds), or provide a letter of credit or other security satisfactory to City, in accordance with the requirements of the City’s Subdivision Code; (iii) require the Contractor to obtain and maintain customary insurance, including workers compensation in statutory amounts, employer’s liability, general liability, and builders all-risk; (iv) release the City from any and all claims relating to the construction, including but not limited to mechanics liens and stop notices; (viv) subject to the rights of any Mortgagee that forecloses on the property, include the City as a third party beneficiary, beneficiary with all rights to rely on the work, receive the benefit of all warranties, and prospectively assume Developer’s obligations and enforce the terms and conditions of the Construction Contract as if the City were an original party thereto; and (viiivi) require that the City be included as a third party beneficiary, beneficiary with all rights to rely on the work product, receive the benefit of all warranties and covenants, and prospectively assume Contractor’s rights in the event of any termination of the Construction Contract, relative to all work performed by the Architect Project’s architect and the Engineer.engineer.‌