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8 <br /> Project (including the New City Work) in accordance with the Port's usual procurement <br /> processes and the Port's standard form construction contracts, except that: <br /> (a) The New City Work will be a separate bid schedule in the New <br /> Port Project bid package. The bid package will inform bidders that the bid award will be <br /> . determined based upon bidders' total bid amounts for the entire New Port Project, including the <br /> New City Work schedule. However, the bid package may also state that, if it is determined not <br /> to award the New City Work (see Section C.2 below), then the bid award will be determined <br /> based upon bidders' total bid amounts for the entire New Port Project,but not including the New <br /> City Work schedule. <br /> (b) The contract will state that the New City Work may be removed <br /> from the project by unilateral deductive change order, in which case (i) the contract value will <br /> decrease by the amount of the New City Work Schedule and (ii) the contractor's entitlement to <br /> compensation for the removal of the New City Work from the project will be strictly limited to <br /> reimbursement for costs already directly incurred by the contractor for New City Work, such as <br /> purchased by contractor prior to the date of the deductive change order. <br /> (c) The construction contract will contain a provision requiring the <br /> City be added as an additional insured on the contractor's required liability insurance policies. <br /> (d) The construction contract will contain a clause acceptable to the <br /> City that allows the Port to assign all contractor's and manufacturer's warranties from the Port to <br /> the City. <br /> 2. Bidding Off-Ramps. Upon opening of the bids for construction of the <br /> New Port Project,the Parties will meet and confer. <br /> • <br /> (a) City Off- Ramp. If the City determines, in the exercise of its sole <br /> discretion,to not proceed with the New City Work,then the City may terminate Section 2 of this <br /> Agreement by delivering a written termination notice to the Port no later than two (2) days after <br /> the opening of such bids and the City's receipt of the bid results, in which case the Port will <br /> remove the New City Work schedule from the Port's New Port Project. In the event of such <br /> termination, the City will pay 100% of the costs incurred under Section 2 of this Agreement up <br /> to the date of termination and any other reasonable costs associated with the removing the New <br /> City Work from the New Port Project (e.g., engineering redesign services to accommodate the <br /> change, etc.). <br /> (b)- • Port Off-Ramp. If the Port determines, in the exercise of its sole <br /> discretion,to not proceed with the New Port Project, then this Section 2 terminates. In the event <br /> of such termination, the Port will pay 100% of the costs incurred under Section 2 of this <br /> Agreement up to the date of termination. <br /> D. Construction. The Port shall complete all New City Work in accordance with the <br /> New City Work Approved Plans and Specifications. The Port will coordinate with the City so <br /> that the City takes a lead role in the oversight and inspection of New City Work The City may <br /> attend construction meetings. The Port without City approval may execute change orders to the <br /> 124 <br /> SOTT\03221\0061\00762427.x1 <br />