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being constructed, other than benefits that are shared by all <br />members of the community; <br />(e) The performance of the general contractor and the payment of <br />labor for the project must be secured by performance and <br />payment bonds or other cash -equivalent security that is <br />acceptable to the purchasing agent to protect the city against <br />defective performance and claims for payment, unless the city's <br />obligation to make a payment is conditioned upon final completion <br />of the public improvement and proof of, or security for payment <br />that is acceptable to the purchasing agent; and, <br />(f) The contract for construction of the project must be amended, as <br />necessary, to require the general contractor to maintain adequate <br />workers compensation and liability insurance and to protect and <br />provide indemnification to the city for all claims for payment, injury <br />or property damage arising from or related to the construction of <br />the project. <br />(3) Hybrid Contracts. The following classes of contracts include elements <br />of construction of public improvements as well as personal services and <br />may be awarded as described below and subject to rules adopted by <br />the purchasing agent. <br />(a) Design/build contracts. Contracts for the construction of public <br />improvements using a design/build construction method shall be <br />awarded under a request for proposals. The determination to <br />construct a project using a design/build construction method must <br />be approved by the city manager or the city manager's designee, <br />upon application of the solicitation agent, in which the solicitation <br />agent submits facts that support a finding that the construction of <br />the improvement under the proposed method is likely to result in <br />cost savings, higher quality, reduced errors, or other benefits to <br />the city. <br />(b) Energy savings performance contracts. Unless the contract <br />qualifies for award under another classification in this section <br />2.1430, contractors for energy savings performance contracts <br />shall be selected under a request for proposals. <br />(c) Construction Manager/General Contractor (CM/GC) contracts. <br />Contracts for the construction of public improvements using a <br />Construction Manager/General Contractor Construction Method <br />shall be awarded pursuant to ORS 279C.337 and Attorney <br />General Model Rules adopted thereunder. <br />(4) Special Procurement Class Exemptions. Subject to regulation under <br />rules adopted by the purchasing agent, the following classes of <br />contracts may be awarded in any manner which the solicitation agent <br />deems appropriate to the city's needs, including by direct appointment <br />or purchase. <br />(a) Advertising. Contracts for the placing of notice or advertisements <br />in any medium. <br />Ordinance - Page 5 of 8 <br />