168.26 GUARANTY OF MATERIALS AND WORKMANSHIP; FINAL PAYMENT.

   (a)    The contractor shall guarantee all materials and workmanship furnished and used in the improvement for such period as may be specified in the contract documents, after approval of the final estimate by the City Engineer or Public Works Director. During such time, the City shall, as specified in the contract documents, either:

      (1)   Retain an amount equal to not more than ten percent (10%) of the total contract price;

      (2)   Require a maintenance bond in the amount of one hundred percent (100%) of the contract price for a period of one year; or

      (3)   Require a maintenance bond in the amount of twenty-five percent (25%) of the contract price for a period of two years;

As a guaranty on the part of the contractor that the work will remain in good and sound condition during the period as may be specified in the contract.

   (b)    Upon the expiration of the guaranty period, provided that all the work is at that time in good order and that all obligations of the contractor are fulfilled, the City shall pay the contractor such part of the retained sum as may remain after the expense of any repairs or replacement has been paid therefrom, or shall release said maintenance bond. The acceptance by the contractor of such shall constitute a full release to the City and all its officers and agents, from all claims of, and liability to, the contractor for any reason whatsoever.

(Ord. 1996-119. Passed 6-17-96.)