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OWNER shall promptly pay CONTRACTOR the
<br />amount so withheld, or any adjustment thereto agreed to
<br />by OWNER and CONTRACTOR, when CONTRAC-
<br />TOR corrects to OWNER's satisfaction the reasons for
<br />such action.
<br />3. If it is subsequently determined that OWNER's
<br />refusal of payment was not justified, the amount
<br />wrongfully withheld shall be treated as an amount due as
<br />determined by paragraph 14.02.C.1.
<br />14.03 CONTRACTOR 's Warranty of 7-ale
<br />A. CONTRACTOR warrants and guarantees that title
<br />to all Work, materials, and equipment covered by any
<br />Application for. Payment,, whether incorporated in the Project
<br />or not, will pass to OWNER no later than the time of
<br />payment free and clear of all Liens.
<br />14.04 Substantial Completion
<br />A. When CONTRACTOR considers the entire Work
<br />ready for its intended use CONTRACTOR shall notify
<br />OWNER and ENGINEER in writing that the entire Work is
<br />substantially complete (except for items specifically listed by
<br />CONTRACTOR as incomplete) and request that ENGINEER
<br />issue a certificate of Substantial Completion. Promptly
<br />thereafter, OWNER, CONTRACTOR, and ENGINEER
<br />shall make an inspection of the Work to determine the status
<br />of completion. If ENGINEER does not consider the Work
<br />substantially complete, ENGINEER will notify
<br />CONTRACTOR in writing giving the reasons therefor. If
<br />ENGINEER considers the Work substantially complete,
<br />ENGINEER will prepare and deliver to OWNER a tentative
<br />certificate of Substantial Completion which shall fix the date
<br />of Substantial Completion. There shall be attached to the
<br />certificate a tentative .list of -items to be completed or
<br />corrected before final - payment.- OWNER shall have seven
<br />.days after receipt of -the tentative certificate during which to
<br />make written objection to ENGINEER as to any provisions
<br />of the certificate or attached list. If, after considering such
<br />objections, ENGINEER concludes that the Work is not
<br />substantially complete, ENGINEER will within 14 days after
<br />submission of the tentative certificate to OWNER notify
<br />CONTRACTOR in writing, stating the reasons therefor. If,
<br />after consideration of OWNER's objections, .ENGINEER
<br />considers the Work substantially complete, ENGINEER will
<br />within said 14 days execute and deliver to OWNER and
<br />CONTRACTOR a definitive certificate of Substantial
<br />Completion (with a revised tentative list of items to be-
<br />completed or corrected) reflecting such changes from the
<br />tentative certificate as ENGINEER believes justified after
<br />consideration of any objections from OWNER. At the time
<br />of delivery of the tentative certificate of Substantial Comple-
<br />tion ENGINEER will deliver to OWNER and CONTRAC-
<br />TOR a written recommendation as to division of responsibili-
<br />00700 - 38
<br />revise or revoke any such payment recommendation
<br />previously made, to such extent as may be necessary in
<br />ENGINEER's opinion to protect OWNER from loss
<br />because:
<br />'
<br />a. the Work is defective, or completed Work
<br />has been damaged, requiring correction or replace-
<br />ment;
<br />b. the Contract Price has been reduced by
<br />Written Amendment or Change Orders-,
<br />'
<br />c. OWNER has been required to correct
<br />defective Work or complete Work in accordance
<br />with paragraph 13.09; or
<br />d. ENGINEER has actual knowledge of.-the
<br />occurrence of any of the events enumerated in para-
<br />graph 15.02.A.
<br />C. Payment Becomes Due
<br />'
<br />1. Ten days after presentation of the Application
<br />for Payment to OWNER with ENGINEER's recom-
<br />mendation, the amount recommended will (subject to the
<br />provisions of paragraph 14.02.D) become due, and when
<br />due will be paid by OWNER to CONTRACTOR.
<br />D. Reduction in Payment
<br />1. OWNER may refuse to make payment of the
<br />full amount recommended by ENGINEER because:
<br />a. claims have been made against OWNER on
<br />account of CONTRACTOR's performance or fur -
<br />nishing of the Work;
<br />b. Liens have been filed in connection with-the-
<br />Work, except where CONTRACTOR has delivered
<br />a specific Bond satisfactory to OWNER to secure
<br />the satisfaction and discharge of such Liens;
<br />c. there are other items entitling OWNER to
<br />a set -off against the amount recommended; or
<br />'
<br />d. OWNER has actual knowledge of the occur -
<br />rence of any of the events enumerated in paragraphs
<br />14.02.B.5.a through 14.02.B.5.c or paragraph
<br />'15.02.A.
<br />2. If OWNER refuses to make payment of the full
<br />amount recommended by ENGINEER, OWNER must
<br />'
<br />give CONTRACTOR immediate written notice (with a
<br />copy to ENGINEER) stating the reasons for such action
<br />and promptly pay CONTRACTOR any amount
<br />remaining aftc deduction of the amount so withheld.
<br />OWNER shall promptly pay CONTRACTOR the
<br />amount so withheld, or any adjustment thereto agreed to
<br />by OWNER and CONTRACTOR, when CONTRAC-
<br />TOR corrects to OWNER's satisfaction the reasons for
<br />such action.
<br />3. If it is subsequently determined that OWNER's
<br />refusal of payment was not justified, the amount
<br />wrongfully withheld shall be treated as an amount due as
<br />determined by paragraph 14.02.C.1.
<br />14.03 CONTRACTOR 's Warranty of 7-ale
<br />A. CONTRACTOR warrants and guarantees that title
<br />to all Work, materials, and equipment covered by any
<br />Application for. Payment,, whether incorporated in the Project
<br />or not, will pass to OWNER no later than the time of
<br />payment free and clear of all Liens.
<br />14.04 Substantial Completion
<br />A. When CONTRACTOR considers the entire Work
<br />ready for its intended use CONTRACTOR shall notify
<br />OWNER and ENGINEER in writing that the entire Work is
<br />substantially complete (except for items specifically listed by
<br />CONTRACTOR as incomplete) and request that ENGINEER
<br />issue a certificate of Substantial Completion. Promptly
<br />thereafter, OWNER, CONTRACTOR, and ENGINEER
<br />shall make an inspection of the Work to determine the status
<br />of completion. If ENGINEER does not consider the Work
<br />substantially complete, ENGINEER will notify
<br />CONTRACTOR in writing giving the reasons therefor. If
<br />ENGINEER considers the Work substantially complete,
<br />ENGINEER will prepare and deliver to OWNER a tentative
<br />certificate of Substantial Completion which shall fix the date
<br />of Substantial Completion. There shall be attached to the
<br />certificate a tentative .list of -items to be completed or
<br />corrected before final - payment.- OWNER shall have seven
<br />.days after receipt of -the tentative certificate during which to
<br />make written objection to ENGINEER as to any provisions
<br />of the certificate or attached list. If, after considering such
<br />objections, ENGINEER concludes that the Work is not
<br />substantially complete, ENGINEER will within 14 days after
<br />submission of the tentative certificate to OWNER notify
<br />CONTRACTOR in writing, stating the reasons therefor. If,
<br />after consideration of OWNER's objections, .ENGINEER
<br />considers the Work substantially complete, ENGINEER will
<br />within said 14 days execute and deliver to OWNER and
<br />CONTRACTOR a definitive certificate of Substantial
<br />Completion (with a revised tentative list of items to be-
<br />completed or corrected) reflecting such changes from the
<br />tentative certificate as ENGINEER believes justified after
<br />consideration of any objections from OWNER. At the time
<br />of delivery of the tentative certificate of Substantial Comple-
<br />tion ENGINEER will deliver to OWNER and CONTRAC-
<br />TOR a written recommendation as to division of responsibili-
<br />00700 - 38
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