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16. PROFESSIONAL LICENSES <br />Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, <br />waivers, and exemptions necessary for the provision of services hereunder and required by the laws and <br />regulations of the United Sates, the State of California, the City of Santa Ana and all other governmental <br />agencies. Contractor shall notify the City immediately and in writing of its inability to obtain or maintain <br />such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of <br />this Agreement. <br />17. RESPONSIBILITY FOR DAMAGES <br />The Contractor shall be responsible for all damages to persons and /or property that occur as a result of the <br />fault or negligence of said Contractor or its subcontractors, agents, employees, or other persons <br />acting on their behalf in connection with the performance of this Agreement. <br />18. FAILURE TO PERFORM SATISFACTORILY <br />a. Contractor acknowledges and agrees that if the Contractor fails to perform the work as specified <br />herein, the Director, 1) will pay only for the amount of service received as determined by the Director <br />with an appropriate downward adjustment in contract price, or 2) may have such required work done by <br />City forces or otherwise, and charge the cost thereof to the Contractor. <br />Such adjustments will be the estimated cost for performance by City forces plus City overhead and will <br />include overtime pay as required to complete work. <br />b. If Contractor performs the work in such a manner that the amount of payment withheld due to <br />substandard performance, nonperformance and /or forfeiture for non - completion per schedule totals five <br />percent (5 %) of the total contract price, the City shall notify the Contractor of such noncompliance. If the <br />Contractor continues to perform the work in such a manner that the amount of payment withheld due to <br />substandard performance, nonperfonnance and /or forfeiture for non - completion per schedule totals ten <br />percent (10 %) of the total contract price, this Agreement may be terminated at the City's option. In the <br />event of termination for unsatisfactory performance, the original Contractor shall reimburse the City for <br />damage accrued due to changing contractors. <br />19. SAFETY REQUIREMENTS <br />All work performed under this contract shall be performed in such a manner as to provide required <br />maximum safety to the public and where applicable, comply with all safety standards required by CAL - <br />OSHA. The Director reserves the right to issue restraint or cease and desist orders to the Contractor when <br />unsafe or harnful acts are observed or reported relative to the performance of the work under this <br />contract. <br />20. HAZARDOUS CONDITIONS <br />The Contractor shall maintain all work sites free of hazards to persons and /or property resulting from its <br />operations. Any hazardous condition noted by the Contractor, which is not a result of its operations, shall <br />be immediately reported to the Public Works Agency. <br />ril <br />