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<br />cost and expense, to promptly repair or replace (including cost of <br />removal and installation), that item (or part or component thereof) which <br />proves defective or fails to comply with the Agreement within the warranty <br />period such that it complies with the Agreement. <br /> <br />12.2 Contractor warrants to the City that all materials and equipment furnished <br />under this Agreement will be new unless otherwise specified and will be of <br />good quality, free from faults and defects and in conformance with the <br />Agreement. All equipment and materials not conforming to these <br />requirements, including substitutions not properly approved and authorized, <br />may be considered defective. If required by City or its designee, Contractor <br />shall furnish satisfactory evidence as to the kind and quality of materials and <br />equipment. This warranty is not limited by any other provisions within this <br />Agreement. <br /> <br />12.3 Contractor shall provide to the City or its designee all manufacturers' <br />warranties. All warranties, expressed and/or implied, shall be given to the <br />City for all material and equipment covered by this Agreement. All material <br />and equipment furnished shall be fully guaranteed by the Contractor against <br />factory defects and workmanship. At no expense to the City, the <br />Contractor shall correct any and all apparent and latent defects that are <br />required under state or federal law. <br /> <br />13. CHANGE ORDERS <br /> <br />13.1 Changes in the quantity or character of Services or to the contract amount shall <br />be authorized only by change orders approved in advance and issued in <br />accordance with the provisions of this Agreement. <br /> <br />13.2 All changes to the Services or the construction schedule must be pre-approved <br />in writing by the City Manager or his designee in accordance with the value of <br />the change order or the calculated value of the time extension. All change orders <br />must be pre-approved in writing by the City Manager or his designee. <br /> <br />13.3 In the event satisfactory adjustment cannot be reached for any item requiring a <br />change in the contract amount, the City reserves the right at its sole option to <br />either terminate the Agreement as it applies to the items in question and make <br />such arrangements as may be deemed necessary to complete the disputed work; <br />or may submit the matter in dispute as set forth in the dispute resolution <br />procedures set forth in this agreement. <br /> <br />13.4 To adjust allowance amounts, Contractor shall base each Change Order <br />proposal on the difference between purchase amount and the allowance, <br />multiplied by final measurement of work-in-place. If applicable, Contractor <br />shall also include reasonable allowances for cutting losses, tolerances, mixing <br />wastes, normal product imperfections, and similar margins. Contractor also <br />agrees to the following conditions: <br /> <br />C1011-050 Castle USA Corp. Canopy for Heritage Park <br /> <br />Page 6 of 11 <br /> <br />'\ , .... <br />01..) <br />