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in the Contract Price , reflecting the diminished value of Work so accepted . If the parties are unable to agree D . CONTRACTOR shall not be allowed an as to the amount thereof, OWNER may make a Claim extension of the Contract Times (or Milestones ) therefor as provided in paragraph 10 . 05 . If the because of any delay in the performance of the Work acceptance occurs after such recommendation , an attributable to the exercise by OWNER of OWNER's appropriate amount will be paid by CONTRACTOR to rights and remedies under this paragraph 13 . 09 . OWNER , 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 14 . 01 Schedule of Values Work as required by ENGINEER in accordance with paragraph 13 . 06 . A, or if CONTRACTOR fails to A . The schedule of values established as provid- perform the Work in accordance with the Contract ed in paragraph 2 . 07 .A will serve as the basis for Documents , or if CONTRACTOR fails to comply with progress payments and will be incorporated into a any other provision of the Contract Documents , form of Application for Payment acceptable to ENGI - OWNER may, after seven days written notice to NEER . Progress payments on account of Unit Price CONTRACTOR, correct and remedy any such Work will be based on the number of units completed . deficiency. 14 . 02 Progress Payments B . In exercising the rights and remedies under this paragraph , OWNER shall proceed expeditiously. A . Applications for Payments In connection with such corrective and remedial action , OWNER may exclude CONTRACTOR from all 1 . At least 20 days before the date or part of the Site , take possession of all or part of the established for each progress payment (but not Work and suspend CONTRACTOR' s services related more often than once a month ) , thereto , take possession of CONTRACTOR's tools , CONTRACTOR shall submit to ENGINEER for appliances , construction equipment and machinery at review an Application for Payment filled out and the Site , and incorporate in the Work all materials and signed by CONTRACTOR covering the Work equipment stored at the Site or for which OWNER has completed as of the date of the Application and paid CONTRACTOR but which are stored elsewhere . accompanied by such supporting CONTRACTOR shall allow OWNER , OWNER's documentation as is required by the Contract representatives , agents and employees , OWNER's Documents . If payment is requested on the other contractors , and ENGINEER and ENGINEER's basis of materials and equipment not Consultants access to the Site to enable OWNER to incorporated in the Work but delivered and exercise the rights and remedies under this suitably stored at the Site or at another location paragraph . agreed to in writing , the Application for Payment shall also be accompanied by a bill of sale , C . All Claims , costs , losses , and damages invoice , or other documentation warranting that ( including but not limited to all fees and charges of OWNER has received the materials and equip- engineers , architects , attorneys , and other ment free and clear of all Liens and evidence professionals and all court or arbitration or other that the materials and equipment are covered dispute resolution costs ) incurred or sustained by by appropriate property insurance or other OWNER in exercising the rights and remedies under arrangements to protect OWNER's interest this paragraph 13 . 09 will be charged against CON - therein , all of which must be satisfactory to TRACTOR , and a Change Order will be issued OWNER , incorporating the necessary revisions in the Contract Documents with respect to the Work ; and OWNER 2 . Beginning with the second shall be entitled to an appropriate decrease in the Application for Payment , each Application shall Contract Price . If the parties are unable to agree as to include an affidavit of CONTRACTOR stating the amount of the adjustment , OWNER may make a that all previous progress payments received Claim therefor as provided in paragraph 10 . 05 . Such on account of the Work have been applied on claims , costs , losses and damages will include but not account to discharge CONTRACTOR's be limited to all costs of repair , or replacement of work legitimate obligations associated with prior of others destroyed or damaged by correction , Applications for Payment . removal , or replacement of CONTRACTOR's defective Work . 00700 - General Conditions REV 04-07 . doc 00700 - 37 F :\Public Works\ENGINEERING DIVISION PROJECTS\0391 -27th Ave at 5th St SW\Admim\Contract Documents\00700 - General Conditions REV 04 -07 .doc