Which costs must be included in the indemnity provided by the contractor?

The inclusion of reasonable fees of attorneys, consultants, experts, and related costs in the indemnity provided by the contractor is essential for several reasons. Indemnity is designed to protect one party from losses or damages that may arise during the execution of a contract. In this context, if a legal dispute occurs or if there are claims against the City related to the contractor's work, the costs incurred for legal assistance, expert analysis, or consultations are directly associated with defending against such claims.

By encompassing these costs in the indemnity clause, the contractor acknowledges their responsibility to cover any expenses that may arise from legal actions tied to their project, thus ensuring that the City is not left to bear these costs alone. This not only protects the City but also aligns with standard contractual practices where indemnitors (like the contractor) are expected to cover the necessary and reasonable defense costs related to claims arising from their actions or omissions.

In contrast, the other options either pertain to expenditures related to the City's operations or personal liabilities that do not typically fall under the contractor's responsibilities in the context of an indemnity clause.