Interwest Construction Inc 12/27/2018

I CITY OF EVERETT SPECIAL PROVISIONS 1-09.9(5) Back Charges to Contractor The Contractor shall pay the City on demand everything charged to it under the terms of this Contract. Such charges may be deducted by the City from money due or to become due to the Contractor under the Contract. The City may recover such charges from the Contractor or from its Surety. Contractor agrees to pay the costs of overtime or excessive inspection and 1 observation costs incurred by the City. Overtime inspection shall include inspection required during Saturdays, Sundays, City holidays and weekdays in excess of 40 hours per week or outside of normal working hours and inspections or observations that result in an inspector or observer working more than 40 hours in a week. Costs of such overtime or excessive inspection or observation include architecture, engineering, construction management services, inspection, general supervision and overhead expenses that are directly chargeable to the overtime or excessive work. Contractor 111 agrees that City will deduct such charges from payments due the Contractor. In the event the City issues a Change Order requiring the Contractor to work in excess of the established schedule of working hours, the City will not charge the Contractor for associated inspection costs. The Contractor shall be compensate the City for the actual costs of engineering, inspection, general supervision, right-of-way costs, permit fees, overhead expenses. and any other ascertainable direct costs to the City that are directly chargeable to the Work and that accrue during the period of such extension. The actual costs do not include charges for final inspection and preparation of the final payment by the City. 1-09.9(6) Retainage Pursuant to RCW Chap. 60.28, a sum of five percent of the monies earned by the Contractor will be retained from progress estimates. In addition to protecting the interests of those identified in RCW Chap. 60.28, such retainage will be used as a trust fund for the protection of the City. At the option of the Contractor, monies retained under the provisions of RCW 60.28 will be: 1. Retained in a fund by the City, or 2. Deposited by the City in an interest-bearing escrow account in a bank, mutual saving bank, or savings and loan association. Interest on monies so retained shall be paid to the Contractor in accordance with requirements of this section. Deposits are to be in the name of the City and may not be withdrawn without the City's written authorization. The City will issue a check representing the sum of the monies reserved, payable to the bank or trust company. Such check shall be converted into bonds and securities chosen by the Contractor as the interest accrues. The Contractor shall designate the option desired at the time the Contract is executed. If the Contractor in chooses option 2, deposit in escrow account, Contractor agrees to assume full responsibility to pay all costs that may accrue from escrow services, brokerage charges or both, and further agrees to assume all risks in connection with the investment of the retained percentages in securities. Retainage will be released when all of the following conditions are satisfied: 1. Sixty days have elapsed following the completion of all Work specified in the Contract; and 2. The Contractor fulfilled all of all obligations of the Contractor under the Contract, including, but not limited to, the Contractor's furnishing all documentation required by Contract and law; and Watermain Replacement"T" Division 1 —GENERAL REQUIREMENTS October 10, 2018 WO No—UP3684 SP—118 I