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ENGINEER as to reasonableness) and the diminished Documents with respect to the Work; and OWNER value of the Work to the extent not otherwise paid by shall be entitled to an appropriate decrease in the CONTRACTOR pursuant to this sentence. If any Contract Price. If the parties are unable to agree as to such acceptance occurs prior to ENGINEER's recom- the amount of the adjustment, OWNER may make a mendation of final payment, a Change Order will be Claim therefor as provided in paragraph 10.05. Such issued incorporating the necessary revisions in the claims , costs, losses and damages will include but not Contract Documents with respect to the Work, and be limited to all costs of repair, or replacement of work OWNER shall be entitled to an appropriate decrease of others destroyed or damaged by correction , in the Contract Price, reflecting the diminished value of removal , or replacement of CONTRACTOR's Work so accepted . If the parties are unable to agree defective Work. as to the amount thereof, OWNER may make a Claim therefor as provided in paragraph 10.05 . If the D . CONTRACTOR shall not be allowed an acceptance occurs after such recommendation , an extension of the Contract Times (or Milestones) appropriate amount will be paid by CONTRACTOR to because of any delay in the performance of the Work OWNER. attributable to the exercise by OWNER of OWNER's rights and remedies under this paragraph 13 .09 . 13 .09 OWNER May Correct Defective Work A. If CONTRACTOR fails within a reasonable ARTICLE 14 - PAYMENTS TO CONTRACTOR AND time after written notice from ENGINEER to correct COMPLETION defective Work or to remove and replace rejected Work as required by ENGINEER in accordance with paragraph 13.06 .A, or if CONTRACTOR fails to 14 .01 Schedule of Values perform the Work in accordance with the Contract Documents , or if CONTRACTOR fails to comply with A. The schedule of values established as provid- any other provision of the Contract Documents, ed in paragraph 2 .07 .A will serve as the basis for OWNER may, after seven days written notice to progress payments and will be incorporated into a CONTRACTOR, correct and remedy any such form of Application for Payment acceptable to ENGI- deficiency. NEER. Progress payments on account of Unit Price Work will be based on the number of units completed . B . In exercising the rights and remedies under this paragraph , OWNER shall proceed expeditiously. 14 .02 Progress Payments In connection with such corrective and remedial action , OWNER may exclude CONTRACTOR from all A. Applications for Payments or part of the Site, take possession of all or part of the Work and suspend CONTRACTOR's services related 1 . At least 20 days before the date thereto, take possession of CONTRACTOR's tools, established for each progress payment (but not appliances, construction equipment and machinery at more often than once a month ), the Site, and incorporate in the Work all materials and CONTRACTOR shall submit to ENGINEER for equipment stored at the Site or for which OWNER has review an Application for Payment filled out and paid CONTRACTOR but which are stored elsewhere. signed by CONTRACTOR covering the Work CONTRACTOR shall allow OWNER, OWNER's completed as of the date of the Application and representatives, agents and employees, OWNER's accompanied by such supporting other contractors, and ENGINEER and ENGINEER's documentation as is required by the Contract Consultants access to the Site to enable OWNER to Documents . If payment is requested on the exercise the rights and remedies under this basis of materials and equipment not paragraph . incorporated in the Work but delivered and suitably stored at the Site or at another location C . All Claims , costs, losses , and damages agreed to in writing , the Application for Payment (including but not limited to all fees and charges of shall also be accompanied by a bill of sale, engineers , architects, attorneys, and other invoice, or other documentation warranting that professionals and all court or arbitration or other OWNER has received the materials and equip- dispute resolution costs) incurred or sustained by ment free and clear of all Liens and evidence OWNER in exercising the rights and remedies under that the materials and equipment are covered this paragraph 13 .09 will be charged against CON- by appropriate property insurance or other TRACTOR, and a Change Order will be issued arrangements to protect OWNER's interest incorporating the necessary revisions in the Contract 00700 - General Conditions REV 0447.doc 00700 - 38 F:\Public Works\ENGINEERING DIVISION PROJECTS\1131 •IR Blvd Resurfacing 41st St to 53rd St-SEE PROJ 0927\Admlm\Contract Documents\00700 - General Conditions REV 04- 07.doc _ 1