Agmt 2016 Pacheco Brothers Gardening Inc

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Payment deductions for Contractor Non-Compliance (a) If in the judgment of the City, Contractor has failed to perform any of its duties or obligations of these specifications, the City, at its option, in addition to, or in lieu of, any other remedies set forth in these specifications, may withhold the entire monthly payment or deduct pro rata from Contractor's invoice for work not performed after providing Contractor with written notice (via email) identifying the duty(ies) or obligation(s) not performed and the time period Contractor may have to cure the duty(ies) or obligation(s). (b) If the deficiency(ies) identified by the City are of a type that is susceptible to being corrected by Contractor, the City shall provide the Contractor with forty- eight (48) hours to cure the deficiency(ies), unless in the sole opinion of the City, the deficiency(ies) causes an immediate danger to the health, safety, or general welfare of the City in which case the City may at its option use whatever means the City deems reasonable to correct the deficiency(ies). If the Contractor corrects the problem within the cure period specified, then the City shall pay Contractor the amount retained with the next payment due Contractor. Otherwise, the City shall retain the amount withheld. (c) The amount to be retained by the City shall be determined at the sole discretion of the City. Notwithstanding the foregoing, to the extent possible, the City will use the unit prices set forth in the Contractor's bid in determining the amount to be retained. (d) The right to withhold payment shall not be construed as a penalty but as an adjustment of payment to Contractor to recover City costs due to the failure of the Contractor to complete or comply with the provisions of these specifications. City has the right, but not the obligation, to use the funds retained to correct Contractor's deficiencies. The right of the City to withhold payment shall be in addition to any other remedies herein provided or available under applicable law, including the right to terminate the contract. (e) If in the opinion of the City there are repeated and/or frequent Contractor deficiencies, the contract may be terminated. Reduction in Scope -The City reserves the right to reduce the scope of work up to 50% of the total monthly bid. Should any reduction be necessary the contractor shall receive thirty (30) days' notice. The remaining areas of contractor responsibility shall be paid at the rate bid by the contractor for those items. Any reduction in excess of 50% of total monthly bid shall be made within sixty (60) days' notice. For reductions in excess of 50%, Contractor shall have the option to either accept the remaining items at their bid rate or to terminate the agreement. Notice of termination by Contractor under these circumstances shall be given to the city in writing at least forty-five (45) days before agreement termination. RFP 55025 CITYWIDE LANDSCAPE MAINTENANCE Page 59 of 70