the Contract Price, or to determine that title to any of the Work, materials, or equipment has passed to
OWNER free and clear of any Liens.
5. ENGINEER may refuse to recommend the whole or any part of any payment if, in ENGINEER's opinion,
it would be incorrect to make the representations to OWNER referred to in paragraph 14.02.B.2.
ENGINEER may also refuse to recommend any such payment or, because of subsequently discovered
evidence or the results of subsequent inspections or tests, revise or revoke any such payment
recommendation previously made, to such extent as may be necessary in ENGINEER's opinion to protect
OWNER from loss because:
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.
C. 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.
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