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(a) Purchase Orders for Work. During the Contract term, the City will issue one or more
<br />purchase orders, each of which will operate as notice to proceed only for the Work specified in the
<br />purchase order. The Contractor will not undertake any Work that is not specified in a purchase order. In
<br />addition to specifying the Work to be completed, the purchase order will state the amount to be paid for
<br />the Work specified in the purchase order, which will be based on the unit prices in Form 4.02 or as such
<br />unit prices may be adjusted elsewhere in the Contract Documents. Upon receipt of the purchase order,
<br />the Contractor will begin the Work.
<br />(b) Revised Purchase Orders. After issuance of a purchase order for Work, the City
<br />reserves the right at any time to issue one or more revised purchase orders, change the Work under that
<br />purchase order. Revised purchase orders may result in an increase or decrease in compensation paid to
<br />the Contractor. These changes will be shown in the revised purchase orders. Such changes shall not
<br />invalidate the Contract, and the Contractor agrees to perform the Work as changed by the revised
<br />purchase orders. The Contractor shall not proceed with a change to the Work without a revised work
<br />order or other written directive from the City's authorized representative.
<br />4. Compensation. The basis for payment will be the actual Work performed in accordance
<br />with the Contract Documents, and payments, whether partial or final, shall be made as specified therein.
<br />In no event shall the total amount paid Contractor exceed the amounts calculated in Form 4.02 for
<br />completed Work. The City may, in its sole discretion, withhold amounts from payments otherwise due as
<br />offsets or back charges for expenses, damages, or costs for which the Contractor is liable for not to
<br />exceed 10% of the total amount of the Contract. If the City chooses not to offset or deduct any such
<br />expenses, damages, or costs from one or more payments or return of retainage, the City does not waive
<br />its claim for such damages and hereby expressly reserves its right to assert a claim against the
<br />Contractor for such damages.
<br />5. Withholding. Five percent (5%) of amounts due Contractor shall be retained and withheld
<br />to ensure compliance with RCW Chap. 60.28.11. Retained amounts shall only be released as required by
<br />law if there are no claims against the retained funds. The City may, in its sole discretion, withhold any
<br />amounts sufficient to pay any claim against the Contractor of which the City may have knowledge and
<br />regardless of the informalities of notice of such claim arising out of the performance of this contract. The
<br />City may withhold the amount until either the Contractor secures a written release from the claimant,
<br />obtains a court decision that such claim is without merit, or satisfies any judgment in favor of the
<br />claimant on such claim. The City shall not be liable for interest during the period the funds are so held.
<br />6. Compliance with Employment and Wage Laws. Contractor agrees to comply with all
<br />state and federal laws relating to the employment of labor and wage rates to be paid.
<br />7. Indemnification. Except as otherwise provided in this section, the Contractor hereby
<br />agrees to save, hold harmless, defend, and indemnify the City, its officers, employees, and agents from
<br />any and all loss, claims, demands, suits, damage, or liability of any kind whatsoever, whether or not
<br />reduced to judgment or arbitration award, in connection with, or arising out of, this Contract, or
<br />resulting from Contractor's (or its subcontractor's or supplier's) performance of, or failure to perform, its
<br />express and implied obligations under the Contract. Contractor shall pay any judgment that may be
<br />obtained against the City, its officers, employees, agents, or third persons in such suit. The Contractor's
<br />obligations under this Section 8 shall not apply to loss, claims, demands, suits, damage, or liability
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