GREENBRIAR HOMES - REIMBURSEMENT AGMT GRADING REALIGNED VINEYARD AVE.

B. Ten percent (10%) of the reimbursement due for work performed by the General Contractor shall be retained by the City as a retention. The City shall retain said ten percent of the reimbursement for thirty days after the Notice of Completion for the Improvements is recorded, after which time the retention, assuming there are no valid stop notices to prevent the City's releasing said funds, shall be released to the Construction Manager. 4. Ownership of the Improvements. City shall accept the Improvements when the work is complete or, in the City Engineer's reasonable judgment, substantially complete, shall own the Improvements after the City accepts the Improvements, and shall be responsible thereafter for any maintenance of the Improvements. 5. Inspection. City shall inspect all of the Improvements through an inspector employed by City at the cost and expense of the City. 6. Security. Construction Manager or the General Contractor shall provide, or cause to be provided, to the City improvement security as defined in Section 66499 of the Government Code of the State of California. Said improvement security as approved by the City Attorney shall consist of bonds by duly authorized corporate sureties as follows: One bond shall be in the amount of 100% of the total estimated cost of the Improvements, conditioned upon faithful performance of this Agreement, one bond in the amount of 100% of the total estimated cost of the Improvements shall secure payment for labor and materials, and one bond in the amount often percent (10%) of the estimated value of the Improvements for providing maintenance for a period of one year following acceptance by the City of the Improvements. In the event of any breach by the Construction Manager or the General Contractor, City may take over the work and prosecute the same to completion by any method the City deems advisable. 7. Defects. Construction Manager shall by contract require the General Contractor to warrant to the City that all materials and equipment furnished shall be new unless otherwise specified and that all work performed on the Improvements shall be performed in a good and workmanlike manner and in conformance with the plans and specifications. Within one year of the City's acceptance of the Improvements, City shall provide prompt written notice of all defects to the Construction Manager and to the General Contractor. The C:\Documents and Settings\pcostanzo\Local Settings\Temporary Internet Files\OLKI\Static copy of Greenbriaz (Vineyazd) - (WKH clean 8-9-02) Reimbursement Agreement (Word).doc