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e e e GC-37 GC-38 GC-39 GC-40 immediate actions to make repairs or replacements is necessary because of emergency conditions or to prevent further loss or damage, the OWNER may proceed without notice to the CONTRACTOR but at the expense of the CONTRACTOR. Should the OWNER claim by written communication before the guarantee period expires that certain defects exist and that these require repair or replacement, the guarantee period shall be automatically extended for as long as these defects exist. The CONTRACTOR hereby agrees that the OWNER will be the final authority on whether or not the defect is a defect covered by the gnarantee. COMPLIANCE WITH ENVIRONMENTAL PROTECTION. ENERGY CONSERVATION. AND HEALTH/SAFETY RULES AND REGULATIONS. The CONTRACTOR shall at all times comply with all environmental protection, energy conservation, occupational health and safety and all other similar rules and regulations of any City, County, State or United States Agency which may have jurisdiction. Failure to comply may be cause for suspension of WORK or termination of CONTRACT. . TAXES. Effective as of June 7, 1979, all sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration or repair of structures, highways, roads, streets and other public works owned and used by the OWNER are exempt from State and RTD sales and use taxes. However, such materials will be subject to sales and use taxes imposed by other local taxing authorities. Prior to issuance of "Notice to Proceed" and start of work, the CONTRACTOR shall deliver to the OWNER three copies of the completed and executed "Application for Exemption Certificate" with the approval of the Department of Revenue, State of Colorado, affrxed. These certificates will serve as an indication to the OWNER that the CONTRACTOR has acquired the necessary exemption. The CONTRACTOR also agrees to make the same requirements, as contained above, of the subcontractor or subcontractors on this project. LIQUIDATED DAMAGES. Time is of the essence in the CONTRACT. In the event the CONTRACTOR shall fail in the performance of the WORK or any part thereof specified and required to be performed within the time limit or limits set forth in the CONTRACT, after due allowance for any extension, or extensions of time made in accordance with provisions herein set forth, the CONTRACTOR shall be liable to the OWNER for liquidated damages, and not as a penalty, in the amount stipulated therefore in the CONTRACT form or in the other CONTRACT DOCUMENTS for each and every calendar day that the CONTRACTOR shall be in default of completion as established by said time limit or limits. The OWNER shall have the right to deduct said liquidated damages from any amount due, or that may' become due the CONTRACTOR, or to collect such liquidated damages from the CONTRACTOR or his surety. Liquidated damages in the amount stipulated do not include any sums of money to reimburse the OWNER for extra costs which it may become obligated to pay on other CONTRACTS which were delayed or extended because of the CONTRACTOR's failure to complete the WORK within the CONTRACT time. Should the OWNER incur additional costs because of delays or extensions to other CONTRACTORS resulting from the CONTRACTOR's failure of timely performance the OWNER will assess these extra costs against the CONTRACTOR, and these assessments will be in addition to the stipulated liquidated damages. PROTECTION OF ADJACENT PROPERTY. Due care shall be exercised by CONTRACTOR to avoid damage to existing improvements to facilities, adjacent property, landscaping, trees and shrubbery. Any damage to said property caused by carelessness or negligence by CONTRACTOR shall be repaired or replaced at his expense. III-27 (1723 - 10/93)