McClure and Sons Inc. 3/1/2017 Change Order 1

alternate. Because the Port's marine terminals are a federally secured facility, the City will include Port-provided specifications in the contract bid document that will require the contractor to have Transportation Worker Identification Cards (TWIC)for all of its personnel that intend to work onsite and that will require compliance with all TWIC requirements and all federal security provisions. 2. Bidding Off-Ramp. Upon opening of the bids for construction of the PSO 6 Work, the Parties will meet and confer. If either Party determines, in the exercise of its reasonable discretion, that the construction of the PSO 6 Work is not economical, then such Party may terminate Section 1 of this Agreement by delivering a written termination notice to the other Party no later than five (5) days after the opening of such bids. In the event of such termination, the terminating Party will pay all costs incurred under Section 1 of this Agreement up to the date of termination. D. Construction. The City shall complete all PSO 6 Work in accordance with the PSO 6 Approved Plans and Specifications. The Port may, at the Port's sole cost, observe and inspect the PSO 6 Work to verify that the PSO 6 Work is being performed in accordance with the PSO 6 Approved Plans and Specifications. The City and the Port shall cooperate so that the Port's observation and inspection does not hinder, restrict or delay the PSO 6 Work. The Port may attend construction meetings. With respect to PSO 6 Work that is not Port Additional Work,the City without Port approval may execute change orders to the PSO 6 Work that in total increase the cost of the PSO 6 Work by up to 10%above the amount of the original PSO 6 Work construction contract. The City will not execute change orders above such 10%without the prior approval of the Port, which will not be unreasonably withheld. With respect to Port Additional Work, the City will not execute change orders of any amount without the prior written approval of the Port. E. Completion of PSO 6 Work. Upon completion of the PSO 6 Work other than Port Additional Work and its acceptance by the City in accordance with the City's usual acceptance processes, the PSO 6 Work other than Port Additional Work is the property of the City. With such acceptance, the City has responsibility for the maintenance and operation of the PSO 6 Work other than Port Additional Work. The costs of such maintenance and operation will be allocated between the Parties by mutual agreement. F. Special Provision Regarding Port Additional Work. The Port will coordinate with the City so that the Port takes a lead role in the oversight and inspection of Port Additional Work and so that the Port Additional Work does not delay other PSO 6 Work. If reasonably requested by the Port, the City will during construction add by change order additional Port Additional Work to the PSO 6 Work. Upon completion of all Port Additional Work,the Port will promptly notify the City that the Port Additional Work is ready for acceptance. Upon such notice, (1)the City will accept the Port Additional Work from the contractor, (2) the Port Additional Work is the property of the Port, and (3)the Port has responsibility for the maintenance and operation of the Port Additional Work. The City and Port will cooperate to execute any documents (such as bills of sale) necessary to document the Port's ownership interest in the Port Additional Work and will cooperate to transfer to the Port any contractor or manufacturer's warranties for the Port Additional Work. 3 50M\03221\0081100762427.V 1