a. The Work is defective, or completed Work has been damaged, requiring correction or replacement;
b. The Contract Price has been reduced by Written Amendment or Change Orders;
c. OWNER has been required to correct defective Work or complete Work in accordance with paragraph
13.09; or
d. ENGINEER has actual knowledge of the occurrence of any of the events enumerated in paragraph 15.02.A.
Cc. Payment Becomes Due
1. Not more than 30 days after presentation of the application for payment to OWNER with ENGINEER’s
recommendation, the amount recommended will become due, and when due will be paid by OWNER to
CONTRACTOR.
D. Reduction in Payment.
1. OWNER may refuse to make payment of the full amount recommended by ENGINEER because:
a. Claims have been made against OWNER on account of CONTRACTOR's performance or furnishing of the
Work;
b. Liens have been filed in connection with the Work, except where CONTRACTOR has delivered a specific
Bond satisfactory to OWNER to secure the satisfaction and discharge of such Liens;
c. There are other items entitling OWNER to a set-off against the amount recommended; or
d. OWNER has actual knowledge of the occurrence of any of the events enumerated in paragraphs
14.02.B.5.a through 14.02.B.5.c or paragraph 15.02.A.
2. If OWNER refuses to make payment of the full amount recommended by ENGINEER, OWNER must give
CONTRACTOR immediate written notice (with a copy to ENGINEER) stating the reasons for such action and
promptly pay CONTRACTOR any amount remaining after deduction of the amount so withheld. OWNER shall
promptly pay CONTRACTOR the amount so withheld, or any adjustment thereto agreed to by OWNER and
CONTRACTOR, when CONTRACTOR corrects to OWNER's satisfaction the reasons for such action.
3. If it is subsequently determined that OWNER's refusal of payment was not justified, the amount wrongfully
withheld shall be treated as an amount due as determined __ by paragraph 14.02.C.1.
14.03 CONTRACTOR'S Warranty of Title
A. CONTRACTOR warrants and guarantees that title to all Work, materials, and equipment covered by any Application
for Payment, whether incorporated in the Project or not, will pass to OWNER no later than the time of payment free and
clear of all Liens.
14.04 Substantial Completion
A. When CONTRACTOR considers the entire Work ready for its intended use CONTRACTOR shall notify OWNER
and ENGINEER in writing that the entire Work is substantially complete (except for items specifically listed by
CONTRACTOR as incomplete) and request that ENGINEER issue a certificate of Substantial Completion. Promptly
thereafter, OWNER, CONTRACTOR, and ENGINEER shall make an inspection of the Work to determine the status of
completion. If ENGINEER does not consider the Work substantially complete, ENGINEER will notify CONTRACTOR in
writing giving the reasons therefore. If ENGINEER considers the Work substantially complete, ENGINEER will prepare
and deliver to OWNER a tentative certificate of Substantial Completion which shall fix the date of Substantial
Completion. There shall be attached to the certificate a tentative list of items to be completed or corrected before final
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