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character in the locality in which the Work is performed, and not less than the general prevailing rate of per diem wages for legal holiday and overtime work in said locality, which per diem wages shall not be less than the stipulated rates contained in a schedule thereof which has been ascertained and determined by the Director of the State Department of Industrial Relations and the City to be the general prevailing rate of per diem wages for each craft or type of workman or mechanic needed to execute this contract. 4.5.1 Siemens shall forfeit as a penalty to City, Fifty Dollars ($50.00) for each laborer, workman, or mechanic employed for each calendar day, or portion thereof, if such laborer, workman or mechanic is paid less than the said stipulated rates for any work done under this contract by him or her or by any subcontractor under him or her in violation of Articles I and 2 of Chapter I of Part 7 of Division II of the California Labor Code. The sums and amounts which shall be forfeited pursuant this Section and the terms of the Labor Code shall be withheld and retained from payments due to Siemens under said Agreement, pursuant to this Agreement and the terms of the Labor Code, but no sum shall be so withheld, retained or forfeited except from the final payment without a full investigation by either the State Department of Industrial Relations or by the City. The final amount of forfeiture shall be determined by the Labor Commissioner pursuant to Labor Code § 1775. 4.5.2 Siemens shall insert in every subcontract or other arrangement which Siemens may make for performance of Work or labor on Work provided far in Agreement a provision that the subcontractor shall pay persons performing labor or rendering service under the subcontract or other arrangement not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the Work is performed and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in the Labor Code. ~t.5.3 Payroll Records. Siemens must comply with Labor Code § 1776. Siemens shall also be responsible for compliance by all subcontractors. The penalties specified in Labor Code § 1776(g) for noncompliance with the provisions of said Section 1776 maybe deducted from any monies due or which may become due to Siemens. a.5.4 A copy of all payroll shall be submitted with each progress payment. Payrolls shall contain the full name, address, and social security number of each employee, his or her correct classification, rate of pay, daily and weekly number of hours worked, itemized deductions made, and actual wages paid. They shall also indicate apprentices and ratio of apprentices to journeymen. The employee's address and social security number need only appear on the first payroll on which his or her name appears. The payroll shall be accompanied by a "Statement of Compliance" signed by the employer or its agent indicating that the payrolls are correct and complete and that the wage rates contained therein are not less than those required by this Agreement. The "Statement of Compliance" shall be on forms furnished by the City or on any form with identical wording. Siemens shall be responsible for submission of copies of payrolls of all subcontractors. 4.5.5 Effect on Progress Payments. If by the 15th of the month, Siemens has not submitted satisfactory payrolls for all work performed during the monthly period ending on or before the 1st of that month, the City will retain an amount equal to ten percent WPCP Cogeneration 090808 -Page 9 of 60