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a. the Work is defective, or completed Work has been damaged, requiring correction or replacement; b. the Contract Price has been reduced by Written Amendment or Change Orders; c. OWNER has been required to correct defective Work or complete Work in accor- dance with paragraph 13.09; or theGGrarrenoe of any of the events eRumeF ated RR paFagFaph 16.02.A. C. Payment Becomes Due D. Reduction in Payment 1. OWNER may refuse to make payment of the full amount recommended by ENGINEER because: a. claims have been made against OWNER on account of CONTRACTOR's performance or furnishing of the Work; b. Liens have been filed in connection with the Work, except where CONTRACTOR has delivered a specific Bond satisfactory to OWNER to secure the satisfaction and discharge of such Liens; c. there are other items entitling OWN- ER to a set-off against the amount recommended; or d. OWNER has actual knowledge of the occurrence of any of the events enumerated in paragraphs 14.02.B.5.a through 14.02.B.5.c or paragraph 15.02.A. 2. If OWNER refuses to make payment of the full amount recommended by ENGINEER, OWNER must give CONTRACTOR immediate written notice (with a copy to ENGINEER) stating the reasons for such action and promptly pay CONTRACTOR any amount remaining after deduction of the amount so withheld. OWNER shall promptly pay CONTRACTOR the amount so withheld, or any adjustment thereto agreed to by OWNER and CONTRACTOR, when CONTRACTOR corrects to OWNER's satisfaction the reasons for such action. 3. If it is subsequently determined that OWNER's refusal of payment was not justified, the amount wrongfully withheld shall be treated as an amount due as determined by paragraph 14.02. C.1. 14.03 CONTRACTOR's Warranty of Title A. CONTRACTOR warrants and guarantees that title to all Work, materials, and equipment covered by any Application for Payment, whether incorporated in the Project or not, will pass to OWNER no later than the time of payment free and clear of all Liens. 14.04 Substantial Completion A. When CONTRACTOR considers the entire Work ready for its intended use CONTRACTOR shall notify OWNER and ENGINEER in writing that the entire Work is substantially complete (except for items specifically listed by CONTRACTOR as incomplete) and request that ENGINEER issue a certificate of Substantial Completion. Promptly thereafter, 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 therefore. If ENGINEER eensiders the VNerk substantially GOFFIplete, ENGINEER will -PFepa.e-and delayer t9 OWNER a + + +' r+'F + f C h + +' 1 Gempletion whiGh shall fix the date of Substantial befeFe fiRal payment. OWNER shall have seven days Fnake wFitten objection to ENGINEER as te any of the GeFfifirate 9F attaGhed list. if, afteF �can...... ng 6uGh ebjeetlens, ENGINEER eeeelade� vao, i that the VVeFk is net substantially eemplete- ENGINEER will within 14 .d„ys afF submissionof-+h , we in writing, stating the-Feasens theFefer. if, a#ef sensideratien of OWNER's ebjeetieRs, ENGINEER esnsiders the —Werk sdbstantia',Iy--ser;ete ENGINEER will within -said 14 days exeGlUte and tentative list of items te be Gempleted OF GGFFeGted) Fef]eo+inn G ,nh ehen s F the to + +'ve .+'F 4 .. ENGINEER believes rjustified -v,ccGmnaacTocrv,rvr DIV 0 -4 -Conditions of Contract.doc 00700-40 (:\Public Works\ENGINEERING DIVISION PROJECTS\1801A IRC Courthouse Parking Garage Rehabilitalionll-Admin\Bids\Bid Documents\Bid Dcuments\DIV 0 4 Conditions of Contract.doc - -