10. 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.
11. 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.
12. Acceptance of final payment by the CONTRACTOR, a subcontractor or 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 12— RETAINAGE
1. The OWNER will retain a portion of the progress payment, each month, in accordance with
the following procedures:
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.
b. Until the work is 50% complete, as determined by the OWNER, 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
OWNER 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.
2. 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 13 — 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 14 — CORRECTION OF 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
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