8.
10,
11.
12.
An Application for Payment, a progress payment, or partial or entire use or occupancy of the
project by the OWNER shall not constitute acceptance of Work not in accordance with the
requirements of the Contract Documents.
Substantial completion is the stage in the progress of the Work when the Work or designated
portion thereof is sufficiently complete in accordance with the Contract Documents so the OWNER
can occupy or utilize the Work for its intended use.
When the Work or designated portion thereof is substantially complete, the CONTRACTOR and
OWNER shall establish responsibilities for completion and shall fix the time within which the
CONTRACTOR shall finish all items on the list accompanying the Certificate. Warranties required
by the Contract Documents shall commence on the date of Substantial Completion of the Work or
designated portion thereof unless otherwise provided in the Certificate of Substantial Completion.
Upon receipt of a final Application for Payment, the OWNER will inspect the Work. When he
finds the Work acceptable and the Contract fully performed, the OWNER will promptly issue a
final Certificate for Payment.
Acceptance of final payment by the CONTRACTOR, a SUBCONTRACTOR or material supplier
shall constitute a waiver of claims by that payee except those previously made in writing and
identified by that payee as unsettled at the time of final Application for Payment.
ARTICLE 11—- RETAINAGE
1. The OWNER will retain a portion of the progress payment, each month, in accordance with the
following procedures:
2.
a. The OWNER will establish an escrow account in the bank of the OWNER’S choosing.
The account will be established such that interest on the principal will be paid to the
CONTRACTOR. The principal will be the accumulated retainage paid into the account by
the OWNER. The principal will be held by the bank, available only to the OWNER, until
termination of the contract. i;
b. Until the work is:50% complete, as determined by the ENGINEER, retainage shall be
10% of the monthly payments claimed. The computed amount of retainage will be
deposited in the escrow account established above.
c. After the work is 50% complete,:and provided the CONTRACTOR has satisfied the
ENGINEER in quality and timeliness of the work, and provided further that there is no
specific cause for withholding additional retainage no further amount will be withheld. The
escrow account will remain at the same balance throughout the remainder of the project.
Upon final completion and acceptance of the Work, OWNER shall hold 2% retainage during the 1
(one) year warranty period and release it only after the project has been accepted.
ARTICLE 12— PROTECTION OF PERSONS AND PROPERTY
1.
The CONTRACTOR shall be responsible for initiating, maintaining and supervising all safety
precautions and programs, including all those required by law in connection with performance of
the Contract. The CONTRACTOR shall promptly remedy damage and loss to property caused in
whole or in part by the CONTRACTOR, or by anyone for whose acts the CONTRACTOR may be
liable.
ARTICLE 13 ~ CORRECTION OCF WORK
1.
The CONTRACTOR shall promptly correct Work rejected by the OWNER as failing to conform to
the requirements of the Contract Documents. The CONTRACTOR shall bear the cost of correcting
such rejected work
In addition to the CONTRACTOR’s other obligations including warranties under the Contract, the
CONTRACTOR shall, for a period of one year after Substantial Completion, correct work not
conforming to the requirements of the Contract Documents.
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