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District Agreement No. 530 <br />7. If upon review of the aforementioned bids, CITY, by written notice to STATE's <br />District 12 Office, elects to not proceed with PROJECT, thereby causing STATE to <br />reject all bids, CITY agrees to pay STATE for all of STATE's already incurred and all <br />unavoidable costs related to termination of PROJECT incurred by STATE, including <br />all legal costs and damages resulting from rejection of all PROJECT bids. <br />8. If, upon opening of bids for the contract to construct PROJECT, it is found that the <br />lowest responsible bid exceeds the Engineer's Estimate by more than ten percent <br />(10%), STATE and CITY shall consult upon a course of action. If, after fifteen (15) <br />days, a course of action is not agreed upon, this Agreement shall be deemed to be <br />terminated by mutual consent pursuant to Article 10 of this Section III. <br />9. If termination of this Agreement is by mutual consent, CITY will bear one hundred <br />percent (100%) of all PROJECT -related costs incurred by STATE pursuant to this <br />Agreement. <br />10. After award of the construction contract for PROJECT, should CITY, after a request <br />by STATE, not fulfill its funding commitments, STATE shall ensure that all operating <br />roadways are in a safe and satisfactory permanent operating condition and then shall <br />cease work on PROJECT. Costs incurred by STATE pursuant to this Agreement in <br />excess of payment made by CITY will be billed to CITY and are subject to payment <br />by CITY within thirty (30) days. <br />11. During the construction of PROJECT, CITY may, at no cost to STATE, furnish a <br />representative, if it so desires. STATE's Resident Engineer and CITY's representative <br />shall cooperate and consult with each other, but the decision of STATE's Resident <br />Engineer shall be final. CITY's assigned representative shall have no direct contact <br />with STATE's contractor, the public, other local agencies, etc., without prior consent <br />of STATE's Resident Engineer. While said representative and STATE's Engineer will <br />cooperate and consult with each other, the decisions of STATE's Resident Engineer <br />shall prevail as final, binding and conclusive in all matters concerning the PROJECT <br />construction contract. <br />12. If unknown existing public and/or private utility facilities are discovered during <br />PROJECT construction, or if there is a significant change required in any approved <br />utility relocation plan, the provisions of STATE's current Standard Specifications <br />Section 8-1.10 (Utilities and Non -Highways Facilities) shall apply. STATE will make <br />all necessary arrangements with the owners of such facilities for the protection, <br />relocation, or removal of the discovered utility facilities in accordance with STATE's <br />policy and procedure for those facilities located within the limits of work providing for <br />the improvement to the State highway and in accordance with [Local Agency's] policy <br />for those facilities located outside of the limits of work for the improvement to the <br />State highway. The cost of the protection, relocation, or removal shall be apportioned <br />between the owner of the utility facility and CITY in accordance with STATE's policy <br />and procedure. STATE shall require any utility owner performing relocation work in <br />the State highway right of way to obtain an encroachment permit from STATE prior to <br />the performance of said relocation work. The requirements of the most current <br />Revised June 27, 2005 edition 6 <br />