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65642 <br /> <br />easements, construction permits and/or other permits and <br />sanctions. <br /> <br />ARTICLE II - BASIS OF PAYMENT BY THE STATE <br /> <br />Section A. Construction Costs <br /> <br />The State shall pay to the City, as the State's share of the <br />costs of the contract construction, the costs of the "STATE COST <br />PARTICIPATION CONSTRUCTION" described below. <br /> <br />Payment by the State shall be based on the final quantities of <br />State cost participation construction work items performed <br />multiplied by the appropriate unit prices contained in the <br />construction contract and/or, conscruction..contract "Change <br />Orders" or "Supplemental Agreements" approved by the State's <br />District Engineer. <br /> <br />A SCHEDULE "I", which lists all of the anticipated State cost <br />participation construction and construction engineering items <br />covered under this agreement, is attached hereto and made a part <br />hereof by reference. <br /> <br />It is hereby understood and agreed that any and all liquidated <br />damages assessed the City's contractor in connection with the <br />construction contract shall result in a credit shared by the City <br />and the State in the same proportion as their total contract <br /> <br />-7- <br /> <br /> <br />