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.
13.09 OWNER May Correct Defective Work
A. If CONTRACTOR fails within a reasonable time after written notice from ENGINEER to correct defective Work or
to remove and replace rejected Work as required by ENGINEER in accordance with paragraph 13.06.A, or if
CONTRACTOR fails to perform the Work in accordance with the Contract Documents, or if CONTRACTOR fails to
comply with any other provision of the Contract Documents, OWNER may, after seven days written notice to
CONTRACTOR, correct and remedy any such deficiency.
B. In exercising the rights and remedies under this paragraph, OWNER shall proceed expeditiously. In connection
with such corrective and remedial action, OWNER may exclude CONTRACTOR from ail or part of the Site, take
possession of ail or part of the Work and suspend CONTRACTOR's services related thereto, take possession of
CONTRACTOR's tools, appliances, construction equipment and machinery at the Site, and incorporate in the Work all
materials and equipment stored at the Site or for which OWNER has paid CONTRACTOR but which are stored
elsewhere. CONTRACTOR shall allow OWNER, OWNER's representatives, agents and employees, OWNER's other
contractors, and ENGINEER and ENGINEER's Consultants access to the Site to enable OWNER to exercise the rights
and remedies under this paragraph.
C. 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) incurred or sustained by
OWNER in exercising the rights and remedies under this paragraph 13.09 will be charged against CONTRACTOR,
and a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the
Work; and OWNER shall be entitled to an appropriate decrease in the Contract Price. If the parties are unable to agree
as to the amount of the adjustment, OWNER may make a Claim therefore as provided in paragraph 10.05. Such
claims, costs, losses and damages will include but not be limited to all costs of repair, or replacement of work of others
destroyed or damaged by correction, removal, or replacement of CONTRACTOR's defective Work.
D. CONTRACTOR shall not be allowed an extension of the Contract Times (or Milestones) because of any delay in
the performance of the Work attributable to the exercise by OWNER of OWNER's rights and remedies under this
paragraph 13.09,
ARTICLE 14 - PAYMENTS TO CONTRACTOR AND COMPLETION
14.01 Schedule of Values
A. The schedule of values established as provided in paragraph 2.01.A will serve as the basis for progress payments
and will be incorporated into a form of Application for Payment acceptable to ENGINEER. Progress payments on
account of Unit Price Work will be based on the number of units completed.
GC - 45 of 53
