At the expiration of the thirty calendar day test period provided for in Section 177.08, if no defect or failure referred to in Section 177.09 has appeared and the contractor has fully completed the work to be performed under the contract, the City shall conditionally accept the project and, subject to the provisions of the contract respecting the right of the City to withhold payments, an amount, which together with all previous payments shall equal a maximum of ninety-eight percent of the contract price, shall be paid to the contractor. The remaining balance of not more than three percent of the contract price shall be retained by the City for a period of 365 calendar days after such conditional acceptance of the project as a guarantee, additional to that provided for by the performance bond furnished for the faithful performance of the contract, against defects or failure in the operation or performance of the work, materials, apparatus or workmanship of the project or any part thereof or any guarantees required by the contract. In the event that the percentage of the contract price to be withheld as aforesaid shall amount to less than five hundred dollars ($500.00), the sum of five hundred dollars ($500.00) may be retained by the City in lieu of such percentage and the amount payable to the contractor upon such conditional acceptance shall be reduced accordingly.
The provisions of Sections 177.09 and 177.10 shall apply to any defect in the work, materials, apparatus or workmanship of the project or failure in the operation or performance of any part thereof or guarantees required hereunder determined by the City Engineer or the Director of Public Service to have occurred, developed or appeared prior to or during such period of 365 days.
(Ord. 33-1960. Passed 3-7-60.)
(Ord. 33-1960. Passed 3-7-60.)