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including final payment, will impose responsibility D. Reduction in Payment on Engineer: L Owner may refuse to make payment of the full a. to supervise, direct, or control the Work, or amount recommended by Engineer because : b. for the means, methods, techniques, a. claims have been made against Owner on sequences, or procedures of construction, or the account of Contractor's performance or fumish- safety precautions and programs incident thereto, ing of the Work ; or b. Liens have been filed in connection with the c. for Contractor's failure to comply with Laws Work, except where Contractor has delivered a and Regulations applicable to Contractor' s specific bond satisfactory to Owner to secure the performance of the Work, or . satisfaction and discharge of such Liens; d. to make any examination to ascertain how or c. there are other items entitling Owner to a for what purposes Contractor has used the set-off against the amount recommended; or moneys paid on account of the Contract Price, or d. Owner has actual knowledge of the occur- e. to determine that title to any of the Work, rence of any of the events enumerated in materials, or equipment has passed to Owner free Paragraphs 14.02 .B.5 .a through 14.02 . B.5 .c or and clear of any Liens. Paragraph 15 .02.A. 5 . Engineer may refuse to recommend the whole or 2. If Owner refuses to make payment of the full any part of any payment if, in Engineer's opinion, it amount recommended by Engineer, Owner will give would be incorrect to make the representations to Contractor immediate written notice (with a copy to Owner stated in Paragraph 14.02 .B.2. Engineer may Engineer) stating the reasons for such action and also refuse to recommend any such payment or, promptly pay Contractor any amount remaining after because of subsequently discovered evidence or the deduction of the amount so withheld. Owner shall results of subsequent inspections or tests, revise or promptly pay Contractor the amount so withheld, or revoke any such payment recommendation any adjustment thereto agreed to by Owner and previously made, to such extent as may be necessary Contractor, when Contractor corrects to Owner's in Engineer' s opinion to protect Owner from loss satisfaction the reasons for such action. because: 3 . If it is subsequently determined that Owner's a, the Work is defective, or completed Work has refusal of payment was not justified, the amount been damaged, requiring correction or replace- wrongfully withheld shall be treated as an amount ment; due as determined by Paragraph 14.02 .C. 1 . b. the Contract Price has been reduced by 14.03 Contractor 's Warranty of Title Change Orders; A . Contractor warrants and guarantees that title to all c. Owner has been required to correct defective Work, materials, and equipment covered by any Work or complete Work in accordance with Application for Payment, whether incorporated in the Paragraph 13 .09; or Project or not, will pass to Owner no later than the time of payment free and clear of all Liens. d. Engineer has actual knowledge of the occurrence of any of the events enumerated in 14.04 Substantial Completion Paragraph 15 .02 . A . A . When Contractor considers the entire Work ready for C. Payment Becomes Due its intended use Contractor shall notify Owner and Engineer in writing that the entire Work is substantially 1 . Ten days after presentation of the Application for complete (except for items specifically listed by Payment to Owner with Engineer's recommendation, Contractor as incomplete) and request that Engineer issue the amount recommended will (subject to the a certificate of Substantial Completion. provisions of Paragraph 14.02. D) become due, and when due will be paid by Owner to Contractor. B . Promptly after Contractor's notification, , Owner, Contractor, and Engineer shall make an inspection of the Work to determine the status of completion . If Engineer does not consider the Work substantially complete, Engineer will notify Contractor in writing giving the reasons therefor. EJCDC C-700 Standard General Conditions of the Construction Contract. Copyright D 2002 National Society of Professional Engineers for EJCDC. All rights reserved. 00700 - 37