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defects. The Owner will give notice of observed defects with reasonable promptness. In the event that the Contractor should fail to make such repairs, adjustments, or other I,ork that may be made necessary b such defects, the Owner may do so and charge the Contractor the cost hereby incurred. The Performance Bond shall remain in full force and effect through the guarantee period. 313. LEGAL RELATIONS AND RESPONSIBILITIES 313.1 Observance of Law The Contractor shall give all notices and comply with all federal, state and local laws, ordinances and regulations in any manner a ffecting the conduct of the work, and all such orders and decrees as exist or may be enacted by bodies or tribunals having jurisdiction or authority over the Project. The Contractor shall indemnify, pay the cost of defense and hold harmless the Owner and Engineer against amu claim Ot' liability arising from or based on the violation of any such law, ordinance, regulation, order or decree ordered by himself or his employees. 313.2 Permits and Licenses All permits and licenses necessary for the prosecution of the Project shall be obtained and paid for by the Contractor" including all govern- mental charges and inspection fees. 313.3 Taxes and Exemptions The Owner shall provide a copy of its tax exempt status certificate to the Contractor. The Contractor shall inform all the material suppliers of the tax exempt status of the Owner. It shall be the responsibility of the Contractor to pay any remaining sales, consumer, use and other similar taxes required to be paid in accordance with the laws of the place of the Project or the place of purchase of materials. 314. PATENTED DEVICES, MATERIALS AND PROCESSES The Contractor shall pay all royalties and fees and obtain any necessary licenses to permit the authorized use in the Project of any device, material or process subject to patent or copyright r'2strictions. The Contractor shall save harmless and pay the costs to defend the Owner from any and all loss or expense incurred as a result of claims under patent or copyright laws, involving use of such devices, materials and processes by the Owner. This paragraph shall not apply in situations where the device, material or process has been expressly specified by the Owner. 315. LANDS AND RIGHTS OF WAY The Owner will provide all lands and rights-of-way necessary for completion of the Project. The Contractor may begin wOlek on those lands or rights-of-way acquired by the Owner in the event not all are required before 1,~ork is to begin. Should the Owner experience any delays in acquiring necessary lands GC - 17