BAY CITIES PAVING & GRADING, INC.

C. The elements of the proposal submitted to the City by the Contractor, which the City has accepted. 2. Compensation. The City shall pay the Contractor for work actually performed at the unit prices set out in the Contractor's proposal to the City as set forth in Exhibit A of this agreement and incorporated herein. The quantities of work stated therein are estimates only; actual quantities will be measured for payment in accordance with the specifications. 3. Method of Payment. A. Progress Payments. As of the twentieth day of each month, the Contractor may submit for review a request for progress payment, listing the amount and value of work actually performed during the preceding month, or part thereof. Upon the City Engineer's review and approval, including adjustments if any, City shall make a progress payment to the Contractor. B. 5% Retention. Five percent (5%) of the amount due shall be retained by the City as retention. The City shall retain five percent (5%) of the contract amount for thirty-five (35) days after the Notice of Completion for the work is recorded. The Contractor may elect to receive 100 percent of payments due under the contract documents from time to time, without retention from any portion of the payment by the City, by depositing securities of equivalent value with the City in accordance with the provisions of Section 22300 of the California Public Contract Code. Such securities, if deposited by the Contractor, shall be valued by the City, whose decision on valuation of the securities shall be final. Securities eligible for investment under this provision shall be limited to those listed in Section 16430 of the California Government Code. C. Time of Payment. Requests submitted promptly as of the 20th day of each month will be paid by the 10th day of the following month. DocuSign Envelope ID: 169C56C8-FC50-404C-8102-0C787893EFDCDocuSign Envelope ID: DDAAF214-B854-4FB5-A0C0-60E9200286FEDocuSign Envelope ID: E9C36B8D-E90F-4CE7-9DA5-BF39B42482B9