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. . AGREEMENT THIS AGREEMENT is dated as of the 8th day of October in the year 1986 by and between the San Luis Valley Irrigation District (hereinafter called OWNER) and Tezak Construction Company, Inc. (hereinafter called CONTRACTOR). OWNER and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows: 1. WORK. CONTRACTOR shall complete all Work as directed by Harza Engineering Company (hereinafter called the ENGINEER) for construction of an earth cofferdam and concrete control structure at Rio Grande Reservoir. CONTRACTOR shall install 3 sluice gates to be furnished by the OWNER. The Work is generally as shown on the sketch attached to this Agreement. 2. ENGINEER. The Project has been designed by Harza Engineering Company which will assume all duties and responsibilities and will have the rights and authority of ENGINEER in the Contract Documents in connection with completion of the Work in accordance with the Contract Documents. 3. CONTRACT TIME. The Work shall be completed by October 29, 1986. Time is of the essence in completing the cofferdam. The CONTRACTOR shall mobilize at the site as soon as possible and execute the work to completion. 4. CONTRACT PRICE. OWNER shall pay CONTRACTOR for performance of the Work in accordance with the terms outlined in the CONTRACTOR's letter dated October 4, 1986 attached to the Agreement and made a part thereof as Exhibit A, except that item 5, Embankment shall be 1750 cubic yards at 9.50jcubic yard for a total of $16,625. It is understood that the final cost on items 1, 2, and 5 will be based upon the settlement price times the quantities actually used. 5. PAYMENT PROCEDURES. CONTRACTOR shall submit a single Application for Payment to the ENGINEER for review and approval upon completion of the Work. The Application for Payment will be processed by ENGINEER. Upon completion and acceptance of the Work OWNER -1-