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7.5 Decisions to Withhold Approval 7.5.1 The City's Representative may decide not to certify payment and may withhold approval in whole or in part, to the extent reasonably necessary to protect the City. If the City's Representative is unable to approve payment in the amount of the Application, the City's Representative will notify the Contractor. If the Contractor and City's Representative cannot agree on a revised amount, the City's Representative will promptly issue approval for payment for the amount for which the City's Representative is able to determine is due Contractor. The City's Representative may also decide not to approve payment or, because of subsequently discovered evidence or subsequent observations, may nullify the whole or a part of approval for payment previously issued, to such extent as may be necessary in the City's Representative opinion to protect the City from loss because of: · Defective Work not remedied or damage to completed Work; · Failure to supply sufficient skilled workers or suitable materials; Third party claims filed or reasonable evidence indicating probable filing of such claims; . Failure of the Contractor to make payments properly to Subcontractors or for labor, materials or equipment; · Reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum; · Damage to the City or another contractor; · Reasonable evidence that the Work will not be completed within the Contract Time or an unsatisfactory rate of progress made by Contractor; Contractor's failure to comply with applicable Rules, regulations, Statutes, Ordinances, standards; . Contractor's or Subcontractor's failure to comply with contract Prevailing Wage requirements; or · Contractor's failure to carry out the Work in strict accordance with the Contract Documents. · Incomplete payment application. 7.5.2 When the above reasons for withholding approval are removed, approval will be made for amounts previously withheld. 7.6 Failure of Payment 7.6.1 If the City is entitled to reimbursement or payment from the Contractor under or pursuant to the Contract Documents, such payment by Contractor shall be made promptly upon demand by the City. Notwithstanding anything contained in the Contract Documents to the contrary, if the Contractor fails to promptly make any payment due the City, or the City incurs any costs and expenses to cure any default of the Contractor or to correct defective Work, the City shall have an absolute right to offset such amount against the Contract Sum and may, in the City's sole discretion, elect either to: (1) deduct an amount equal to that to which the City is entitled from any payment then or thereafter due the Contractor from the City, or (2) issue a written notice to the Contractor reducing the Contract Sum by an amount equal to that to which the City is entitled. 7.7 Substantial Completion 7.7.1 Substantial Completion is the stage in the progress of the Work as defined in the Contract Documents. 7.7.2 At the date of Substantial Completion, the Contractor may apply for, and if approved by City's Representative subject to the provisions herein, shall increase total payments to 26