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9. BREACH OF AGREEMENT Contractor shall not be relieved of liability to City for damages sustained by City by virtue of any breach of Agreement by Contractor, and City may withhold any payment to Contractor for the purpose of set-off until such time as the exact amount of damages due City from Contractor is determined. In addition, City may pursue all remedies available for breach of this Agreement. The waiver by either party of any breach to this Agreement shall not constitute a waiver as to any succeeding breach. 10. COMPLIANCE WITH LAWS In the performance of this Agreement, Contractor shall abide by and conform to (and shall ensure that Contractor's subcontractors, if any, shall abide by and conform to) any and all applicable laws, statutes, safety rules, and practices of the United States, the State of California, the Charter and Ordinances of the City of Santa Ana, and any other local laws (Laws and Practices). Further, Contractor warrants that all work done under this Agreement shall be in strict compliance with such Laws and Practices, including, but not limited to, Cal/OSHA regulations. City or it Authorized Representative reserves the right to enter the work site to make reasonable inspections, to monitor compliance with such Laws and Practices, and with the terms of this Agreement. The Contractor shall at all times maintain proper facilities and provide safe access for inspection by City, its engineer or representatives, to all parts of the work and associated jobs. Where the specifications require work to be specially tested or approved, it shall not be tested without timely notice to City of its readiness for inspection and without approval thereof, or consent thereto by the City. City also reserves the following rights under this Agreement: a. If City Authorized Representative identifies a noncompliance situation, the Authorized Representative may inform Contractor of same and require that the situation be promptly rectified to the satisfaction of City's Authorized Representative. b. If City Authorized Representative identifies a Noncompliance situation, which in the opinion of the Authorized Representative, constitutes an immediate potential for bodily harm, danger of serious bodily harm or death, or significant property damage, the Authorized Representative may contact Contractor's Authorized Representative and recommend that work be stopped until the situation is rectified to the satisfaction of City's Authorized Representative. The election of City not to exercise its rights under sub-paragraphs a through b above shall impose no liability on City, nor shall it relieve Contractor of any of its duties or obligations under the terms of this Agreement. Additionally, the election of City to exercise its rights under subparagraph a through b above shall impose no liability on City, nor shall it relieve Contractor of any of its duties or obligations under the terms of this Agreement, provided that City acted in good faith in the exercise of such rights. 5 25E-22