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relative to its requirements for clearances, operations and general safety regulations. The <br /> RAILROAD reserves the right to furnish the CITY or it's contractor(s), at their sole cost and <br /> expense, whatever protective services it considers necessary, including, but not limited to, <br /> flagger(s), inspector(s), and stand-by personnel the RAILROAD may deem desirable to <br /> promote safety and continuity of rail traffic during the progress of the work, for which said <br /> CITY or contractor(s) shall be required to prepay the RAILROAD. Prepayment will be based <br /> on the estimated time for needing protective services, and if that prepayment will be <br /> exhausted prior to the expiration of the need for protective services, additional prepayment <br /> funds will be needed to cover the new projected completion of the PROJECT. <br /> 4.4 Each party will, at the expense of the PROJECT, provide the necessary construction <br /> engineering and inspection for carrying out its work as set forth in Exhibits A and B. Any <br /> costs which may be incurred by the RAILROAD for inspecting the work performed by the <br /> CITY as said work may affect the properties and facilities of the RAILROAD, or the safety <br /> and continuity of train operations, shall be reimbursed to RAILROAD by CITY upon receipt <br /> of bill(s) therefore. <br /> 5. COST ESTIMATES AND REIMBURSEMENT <br /> 5.1 The cost estimate for force account work anticipated or required of RAILROAD for the <br /> PROJECT work, other than the actual for cost flagging or other protective services, is <br /> shown and incorporated herein or made part hereof as Exhibit C. In the event work is later <br /> required of RAILROAD, and the RAILROAD elects to engage a contractor to perform all or <br /> a substantial portion of any work required of RAILROAD by CITY, the RAILROAD shall <br /> furnish the CITY if requested by same the name of the contractor whose services will be <br /> used to perform the work. Such contracts will be in compliance with any applicable State <br /> statutes and implementing rules and regulations prohibiting discrimination in the solicitation <br /> or selection of contractors or subcontractors on the basis of race, color, national origin or <br /> sex. The CITY shall reimburse the RAILROAD for the total cost of such reimbursable <br /> contracted work. <br /> 5.2 During progress of the work, the RAILROAD will be reimbursed by the CITY within 30 days <br /> following receipt of bills, submitted not more than once per month, on the basis of the <br /> completion of work performed, including materials furnished to the job site. Payments shall <br /> be made on this basis until work has advanced to completion, after which the <br /> - 5 - <br />