DOUGHERTY+DOUGHERTY ARCHITECTS, LLP 1C -2005

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scope of the Project, to fit within the Project Budget, or (ii) adjust the Project Budget to include the additional costs. Any time delay associated with the foregoing shall cause an equitable adjustment to the Completion Date. If the Program Manager determines that the conditions at the site are not at variance with those indicated in the Project Documents and that no change in the items of this Agreement is justified, the Program Manager shall so notify the City in writing, stating the reasons, and Program Manager shall notify all potentially affected Contractors of such determination and such reasons. Claims by the City or any affected Contractor in opposition to such determination must be made within 21 days after the Program Manager has given notice of its determination. If the City and any Contractor cannot mutually agree on the amount of an adjustment to the contract sum for an affected Construction Contract, the adjustment shall be determined in accordance with the guidelines set forth in Article 11 below. BONDS PROJECTS 1,2 & 3 7.1 General Requirement This Article sets forth the bonding requirements to be imposed upon the Project Contractors. Before allowing a Contractor to enter upon the Project Site and perform Project construction work, the Program Manager shall cause to be filed with the City four duplicates of each bond required under this Article. These bonds shall be in the amounts and for the purposes specified below. They shall be surety bonds issued by: either a California Admitted Surety or a current Treasury Listed Surety (Federal Register), and either a current A.M. Best A VIII rated Surety or an admitted surety insurer which complies with the provisions of the California Code of Civil Procedure Section 995.660. Should any surety or sureties upon said bonds or any of them become insufficient, Program Manager shall require renewal of said bond(s) with good and sufficient sureties within ten (10) days after receiving notice from the City that the surety or sureties are insufficient. The cost of bonds are included in the Project Budget. 7.2 Performance Bond Program Manager shall (i) require each Construction Manager to post a Performance Bond in favor of City on a form reasonably acceptable to the City Attorney and equal in amount to 100% of the direct construction costs of the Projects, as security for the faithful performance of its obligations under the Construction Management Agreement, and (ii) require each Contractor to deliver to the City an executed Performance Bond in favor of the City on a form reasonably acceptable to the City Attorney and equal in amount to 100% of the contract sum of such Contractor's Construction Contract, as security for the faithful performance by such Contractor of his obligations under his Construction Contract.