OWNER to exercise this right for the benefit of CONTRACTOR, any Subcontractor, any Supplier, any other individual
or entity, or any surety for, or employee or agent of any of them.
13.06 Correction or Removal of Defective Work
A.CONTRACTOR shall correct all defective Work, whether or not fabricated, installed, or completed, or, if the Work
has been rejected by ENGINEER, remove it from the Project and replace it with Work that is not defective.
CONTRACTOR shall pay all Claims, costs, losses, damages (including but not limited to all fees and charges of
engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs)
arising out of or relating to such correction or removal (including but not limited to all costs of repair or replacement of
work of others).
13.07 Correction Period
A. If within one year after the date of Substantial Completion or such longer period of time as may be prescribed by
Laws or Regulations or by the terms of any applicable special guarantee required by the Contract documents or by any
specific provision of the Contract Documents, any Work is found to be defective, or if the repair of any damages to the
land or areas made available for CONTRACTOR's use by OWNER or permitted by Laws and Regulations as
contemplated in paragraph 6.11.A is found to be defective, CONTRACTOR shall promptly, without cost to OWNER and
in accordance with OWNER's written instructions: (i) repair such defective land or areas, or (ii) correct such defective
Work or, if the defective Work has been rejected by OWNER, remove it from the Project and replace it with Work that
is not defective, and (iii) satisfactorily correct or repair or remove and replace any damage to other Work, to the work of
others or other land or areas resulting there from. If CONTRACTOR does not promptly comply with the terms of such
instructions, or in an emergency where delay would cause serious risk of loss or damage, OWNER may have the
defective Work corrected or repaired or may have the rejected Work removed and replaced, and all Claims, costs,
losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other
professionals and all court or arbitration or other dispute resolution costs) arising out of or relating to such correction or
repair or such removal and replacement (including but not limited to all costs of repair or replacement work of others)
will be paid by CONTRACTOR.
B. In special circumstances where a particular item of equipment is placed in continuous service before Substantial
Completion of all the Work, the correction period for that item may start to run from an earlier date if so provided in the
Specifications or by Written Amendment.
C. Where defective Work (and damage to other Work resulting there from) has been corrected or removed and
replaced under this paragraph 13.07, the correction period hereunder with respect to such Work will be extended for an
additional period of one year after such correction or removal and replacement has been satisfactorily completed.
D. CONTRACTOR's obligations under this paragraph 13.07 are in addition to any other obligation or warranty. The
provisions of this paragraph 13.07 shall not be construed as a substitute for or a waiver of the provisions of any
applicable statute of limitation or repose.
13.08 Acceptance of Defective Work
A. If, instead of requiring correction or removal and replacement of defective Work, OWNER (and, prior to
ENGINEER's recommendation of final payment, ENGINEER) prefers to accept it, OWNER may do so, CONTRACTOR
shall pay all Claims, costs, losses, and damages (including but not limited to all fees and charges of engineers,
architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) attributable to
OWNER's evaluation of and determination to accept such defective Work (such costs to be approved by ENGINEER
as to reasonableness) and the diminished value of the Work to the extent not otherwise paid by CONTRACTOR
pursuant to this sentence. If any such acceptance occurs prior to ENGINEER's recommendation of final payment, a
Change Order will be issued incorporating the necessary revisions in the Contract Price, reflecting the diminished value
of Work so accepted. If the parties are unable to agree as to the amount thereof, OWNER may make a Claim
therefore as provided in paragraph 10.05. If the acceptance occurs after such recommendation, an appropriate amount
will be paid by CONTRACTOR to OWNER.
GC - 43 of 53
