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A. If, instead of requiring correction or removal and
<br /> replacement of defective Work, OWNER (and, prior to D. CONTRACTOR shall not be allowed an extension of
<br /> ENGINEER's recommendation of final payment, ENGINEER) the Contract Times (or Milestones ) because of any delay in the
<br /> prefers to accept it, OWNER may do so. CONTRACTOR shall performance of the Work attributable to the
<br /> exercise by
<br /> pay all Claims, costs, losses, and damages (including but not OWNER of OWNER's rights and remedies under this
<br /> limited to all fees and charges of engineers , architects , paragraph 13.09.
<br /> attorneys, and other professionals and all court or arbitration or
<br /> other dispute resolution costs ) attributable to OWNER's
<br /> evaluation of and determination to accept such defective Work ARTICLE 14 - PAYMENTS TO CONTRACTOR AND
<br /> (such costs to be approved by ENGINEER as to COMPLETION
<br /> reasonableness) and the diminished value of the Work to the
<br /> extent not otherwise paid by CONTRACTOR pursuant to this
<br /> sentence. If any such acceptance occurs prior to ENGINEER's 14. 01 Schedule of Values
<br /> recommendation of final payment, a Change Order will be
<br /> issued incorporating the necessary revisions in the Contract A. The schedule of values established as provided
<br /> in
<br /> Documents with respect to the Work, and OWNER shall be paragraph 2.07.A will serve as the basis for progress payments
<br /> entitled to an appropriate decrease in the Contract Price, and will be incorporated into a form of Application
<br /> for Payment
<br /> reflecting the diminished value of Work so accepted. If the acceptable to ENGINEER. Progress payments on account of
<br /> parties are unable to agree as to the amount thereof, OWNER Unit Price Work will be based on the
<br /> number of units
<br /> may make a Claim therefore as provided in paragraph 10. 05. If completed.
<br /> the acceptance occurs after such recommendation, an
<br /> appropriate amount will be paid by CONTRACTOR to OWNER. 14.02 Progress Payments
<br /> 13. 09 OWNER May Correct Defective Work A. Applications for Payments
<br /> rA. If CONTRACTOR fails within a reasonable time after 1 .At least 20 days before the date established for
<br /> written notice from ENGINEER to correct defective Work or to each progress payment (but not more often than once a
<br /> remove and replace rejected Work as required by ENGINEER month ), CONTRACTOR shall submit to ENGINEER for
<br /> in accordance with paragraph 13.06.A, or if CONTRACTOR review an Application for Payment filled out and signed
<br /> fails to perform the Work in accordance with the Contract by CONTRACTOR covering the Work completed as
<br />of
<br /> Documents , or if CONTRACTOR fails to comply with any other the date of the Application and accompanied by such
<br /> provision of the Contract Documents, OWNER may, after seven supporting documentation as is required by the Contract
<br /> ' days written notice to CONTRACTOR, correct and remedy any Documents . If payment is requested on the basis of
<br /> such deficiency. materials and equipment not incorporated in the Work
<br /> but delivered and suitably stored at the Site or at
<br /> B . In exercising the rights and remedies under this another location agreed to in writing , the Application
<br /> for
<br /> paragraph, OWNER shall proceed expeditiously. In connection Payment shall also be accompanied by a bill of sale,
<br /> with such corrective and remedial action, OWNER may exclude invoice, or other documentation warranting that
<br /> CONTRACTOR from all or part of the Site, take possession of OWNER has received the materials and equipment free
<br /> all or part of the Work and suspend CONTRACTOR's services and clear of all Liens and evidence that the materials
<br /> related thereto, take possession of CONTRACTOR's tools, and equipment are covered by appropriate
<br />property
<br /> appliances , construction equipment and machinery at the Site, insurance or other arrangements to protect OWNER's
<br /> and incorporate in the Work all materials and equipment stored interest therein, all of which must be satisfactory
<br /> to
<br /> at the Site or for which OWNER has paid CONTRACTOR but OWNER.
<br /> which are stored elsewhere. CONTRACTOR shall allow
<br /> OWNER, OWNER's representatives, agents and employees, 2. Beginning with the second Application for
<br /> OWNER's other contractors, and ENGINEER and ENGINEER's Payment, each Application shall include an affidavit of
<br /> Consultants access to the Site to enable OWNER to exercise CONTRACTOR stating that all previous progress
<br /> the rights and remedies under this paragraph. payments received on account of the Work have been
<br /> applied on account to discharge CONTRACTOR's
<br /> C. All Claims, costs, losses, and damages (including but legitimate obligations associated with prior Applications
<br /> not limited to all fees and charges of engineers , architects, for Payment.
<br /> '
<br /> attorneys, and other professionals and all court or arbitration or
<br /> other dispute resolution costs ) incurred or sustained by 3. The amount of retainage with respect to pro-
<br /> OWNER in exercising the rights and remedies under this gress payments will be as stipulated in the Agreement.
<br /> paragraph 13.09 will be charged against CONTRACTOR, and a
<br /> Change Order will be issued incorporating the necessary B . Review of Applications
<br /> revisions in the Contract Documents with respect to the Work;
<br /> and OWNER shall be entitled to an appropriate decrease in the 1 . ENGINEER will, within 10 days after receipt of
<br /> Contract Price. If the parties are unable to agree as to the each Application for Payment, either indicate in writing
<br /> a
<br /> amount of the adjustment, OWNER may make a Claim recommendation of payment and present the
<br /> therefore as provided in paragraph 10.05. Such claims , costs , Application to OWNER or return the Application
<br /> to
<br /> losses and damages will include but not be limited to all costs of CONTRACTOR indicating in writing ENGINEER's
<br /> repair, or replacement of work of others destroyed or damaged reasons for refusing to recommend payment. In the
<br /> by correction , removal , or replacement of CONTRACTOR's latter case, CONTRACTOR may make the necessary
<br /> defective Work. corrections and resubmit the Application.
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