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<br />5.2 If the Program Manager or any Contractor is delayed at any time in the progress of the <br />Project by any act or neglect of the City, by any sepazate contractor or agent employed by the City <br />or by changes ordered in the Project, or by labor disputes, fire, act of waz, unusual delay in <br />transportation, adverse weather condition not reasonably anticipated, unavoidable casualties, or any <br />causes beyond the Program Manager's control, or a delay authorized by the City pending settlement <br />of a dispute ("Permissible Delay"), then the date for substantial completion shall be extended by <br />change order for the period caused by such Permissible Delay. In the event of a delay other than a <br />Permissible Delay, damage will be sustained by the City in amounts impracticable to quantify. It is <br />thus agreed that the City shall receive the sum of $650.00 per day as liquated damages for each and <br />every calendar day's delay in finishing the work following the Completion Date. If the delay is due <br />to the fault of Program Manager, then the cost responsibility for such delay shall be borne by <br />Program Manager. If the delay is caused by any Contractor, Program Manager shall have the <br />authority and responsibility to collect said sums from the delaying parties and pay them over to the <br />City. Program Manager shall be financially responsible for the failure of any Contractor to pay said <br />delay fees. If Program Manager fails to pay or collect such liquidation damages, the City may <br />deduct the amount thereof from any money due or that may become due Program Manager under <br />this Agreement. <br />ARTICLE 6 <br />PROJECT BUDGET <br />6.1 The Project Budget for the Project, subject to additions and deductions as provided herein, <br />is that sum submitted by Program Manager and agreed to by the City as set forth in Article 1. The <br />final cost of the Project may be less than the Project Budget. Program Manager is responsible for <br />assuring that the Project Budget is not exceeded and under no circumstances will the City be <br />obligated to expend an amount for the Project in excess of the Budget. In the event the cost of <br />Project, after accounting for all soft and hard costs (as such hazd costs are bid by Contractors), <br />exceeds the Project Budget, Program Manager shall either cause the Project or components thereof <br />be re-designed in a manner satisfactory to the City and within the Budget, or proceed with the <br />Project as approved and pay with its own funds for the costs in excess of the Project Budget. <br />6.2 The parties acknowledge that the Project Budget to be submitted by the Program Manager <br />and approved by the Designated City Representative shall include includes the fixed Construction <br />Phase Fee as set forth in Exhibit B (the "Construction Phase Fee"). <br />6.3 Pursuant to California Labor Code Section 1861, Program Manager gives the following <br />certifications: Program Manger is aware of the provisions of Section 3700 of the California Labor <br />Code which require every employer to be insured against liability for Worker's Compensation or to <br />undertake self-insurance in accordance with the provisions of that code, and Program Manager will <br />comply with such provisions (to the extent applicable) and cause the Construction Manger and all <br />Contractors to comply with such provisions before commencing the performance of their respective <br />Project work. <br />6 <br />