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(including the New City Work) in accordance with the Port's usual procurement processes and the <br /> Port's standard form construction contracts, except that: <br /> (a) The New City Work will be a separate bid schedule in the New Port <br /> Project bid package. The bid package will inform bidders that the bid award will be determined <br /> based upon bidders' total bid amounts for the entire New Port Project, including the New City <br /> Work schedule. However,the bid package may also state that, if it is determined not to award the <br /> New City Work (see Section C.2 below), then the bid award will be determined based upon <br /> bidders' total bid amounts for the entire New Port Project, but not including the New City Work <br /> 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 City <br /> 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 City <br /> that allows the Port to assign all contractor's and manufacturer's warranties from the Port to the <br /> City. <br /> 2. Bidding Off-Ramps. Upon opening of the bids for construction of the New <br /> Port Project,the Parties will meet and confer. <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 remove <br /> the New City Work schedule from the Port's New Port Project. In the event of such termination, <br /> the City will pay 100% of the costs incurred under Section 2 of this Agreement up to the date of <br /> termination and any other reasonable costs associated with the removing the New City Work from <br /> the New Port Project (e.g., engineering redesign services to accommodate the 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 Agreement <br /> 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 that <br /> the City takes a lead role in the oversight and inspection of New City Work The City may attend <br /> construction meetings. The Port without City approval may execute change orders to the New <br /> City Work that in total increase the cost of the New City Work by up to 10%above the amount of <br /> 2 <br /> SOM\03221\0081\00762427.v l <br />