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13 .09 OWNER May Correct Defective Work ARTICLE 14 - PAYMENTS TO CONTRACTOR AND COMPLETION A. If CONTRACTOR fails within a reasonable time after written notice from ENGINEER to correct defective Work or to remove and replace rejected Work as required 14 .01 Schedule of Values by ENGINEER in accordance with paragraph 13 .06.A, or if CONTRACTOR fails to perform the Work in accordance A. The schedule of values established as provided in with the Contract Documents, or if CONTRACTOR fails to paragraph 2 . 07 .A will serve as the basis for progress comply with any other provision of the Contract payments and will be incorporated into a form of Applica- Documents, OWNER may, after seven days written notice tion for Payment acceptable to ENGINEER. Progress to CONTRACTOR, correct and remedy any such payments on account of Unit Price Work will be based on deficiency. the number of units completed. B . In exercising the rights and remedies under this 14 .02 Progress Payments paragraph, OWNER shall proceed expeditiously. In connection with such corrective and remedial action, A. Applications for Payments OWNER may exclude CONTRACTOR from all or part of the Site, take possession of all or part of the Work and 1 . At least 20 days before the date estab- suspend CONTRACTOR' s services related thereto, take fished for each progress payment (but not more often possession of CONTRACTOR's tools, appliances, con- than once a month), CONTRACTOR shall submit to struction equipment and machinery at the Site, and incorpo- ENGINEER for review an Application for Payment rate in the Work allk materials and equipment stored at the filled out and signed by CONTRACTOR covering Site or for which OWNER has paid CONTRACTOR but the Work completed as of the date of the which are stored elsewhere . CONTRACTOR shall allow Application and accompanied by such supporting OWNER, OWNER' s representatives, agents and employ- documentation as is required by the Contract Docu- ees, OWNER' s other contractors, and ENGINEER and ments. If payment is requested on the basis of ENGINEER' s Consultants access to the Site to enable materials and equipment not incorporated in the OWNER to exercise the rights and remedies under this Work but delivered and suitably stored at the Site or paragraph, at another location agreed to in writing, the Applica- tion for Payment shall also be accompanied by a bill C. All Claims, costs, losses, and damages (including of sale, invoice, or other documentation warranting but not limited to all fees and charges of engineers, that OWNER has received the materials and equip- architects, attorneys, and other professionals and all court or ment free and clear of all Liens and evidence that the arbitration or other dispute resolution costs) incurred or materials and equipment are covered by appropriate sustained by OWNER in exercising the rights and remedies property insurance or other arrangements to protect under this paragraph 13 .09 will be charged against CON- OWNER' s interest therein, all of which must be TRACTOR, and a Change Order will be issued incorpo- satisfactory to OWNER. rating the necessary revisions in the Contract Documents with respect to the Work; and OWNER shall be entitled to 2 . Beginning with the second Application an appropriate decrease in the Contract Price. If the parties for Payment, each Application shall include an are unable to agree as to the amount of the adjustment, affidavit of CONTRACTOR stating that all previous OWNER may make a Claim therefor as provided in progress payments received on account of the Work paragraph 10.05 . Such claims, costs, losses and damages have been applied on account to discharge will include but not be limited to all costs of repair, or CONTRACTOR' s legitimate obligations associated replacement of work of others destroyed or damaged by with prior Applications for Payment. correction, removal, or replacement of CONTRACTOR' s defective Work. 3 . The amount of retainage with respect to progress payments will be as stipulated in the D. CONTRACTOR shall not be allowed an extension Agreement. of the Contract Times (or Milestones) because of any delay in the performance of the Work attributable to the exercise B . Review of Applications by OWNER of OWNER' s rights and remedies under this paragraph 13 .09 . 1 . ENGINEER will, within 10 days after receipt of each Application for Payment, either Rev . 03 / 2006 Egret Marsh 00700 - 39