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j <br /> (2) The cost of labor will be the sum of the acutal wages <br /> paid including any employer payments to or on behalf <br /> of the worker for health and welfare , pension , <br /> vacation , and similar purposes , and a labor <br /> surcharge . The labor surcharge will include all <br /> applicable taxes , worker ' s compensation insurance <br /> premiums , public liability and property damage <br /> insurance premiums, and other legally required costs <br /> directly related to labor . <br /> The actual cost of supervision shall include only supervision <br /> employed full time supervising the extra work, when authorized <br /> in writing by the Engineer . <br /> Equipment rental rates for the use of equipment shall be the <br /> actual cost to the Contractor , but in any case , equipment <br /> rental rates shall not exceed current local rates as <br /> promulgated by the latest State of California Department of ' <br /> Transportaton, CALTRANS, for the area involved. <br /> Individual pieces of equipment or small tools having a <br /> replacement value of $500 or less shall be considered as <br /> expendable and no payment therefor shall be made. <br /> The reasonable cost of moving equipment onto and off the job <br /> site shall be included, but equipment rental shall not be paid <br /> when the equipment is inoperative due to beakdowns. <br /> When equipment is used on the extra work for less than five <br /> days, hourly rates shall be used and less than 30 minutes of <br /> operation shall be considered to be one-half hour of operation. ' <br /> When equipment is used on the extra work for more than five <br /> days, daily rates shall be used and less than four hours of <br /> operation shall be considered to be one-half day of operation. <br /> Costs of professional services or advice shall be allowable , <br /> only if authorized in writing by the Engineer . <br /> Other costs shall be allowable only if authorized in writing ' <br /> by the Engineer. <br /> G8. 04 Retention of Imperfect Work. If any portion of the work done <br /> or materials furnished under the contract shall prove defective <br /> or not in accordance with the specifications and contract <br /> drawings, and if the imperfection in the same shall not be of <br /> sufficient magnitude or importance to make the work dangerous <br /> or undesirable, or if the removal of such work is impracticable <br /> or will create conditions which are dangerous or undesirable , <br /> the Engineer shall have the right and authority to retain the <br /> work instead of requiring it to be removed and reconstructed , <br /> but he shall make such deductions therefor in the payment due <br /> or to become due the Contractor as may be just and reasonable. <br /> G-40 <br />