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c. Withhold payment informing the Contractor and the Engineer of his reasons for <br /> withholding payment. <br /> D. Reduction in Payment: <br /> 1. Owner may refuse to make payment of the full amount recommended by Engineer <br /> because: <br /> a. claims have been made against Owner on account of Contractor's performance or <br /> furnishing of the Work; <br /> b. Liens have been filed in connection with the Work, except where Contractor has <br /> delivered a specific bond satisfactory to Owner to secure the satisfaction and discharge of <br /> such Liens; <br /> c. there are other items entitling Owner to a set-off against the amount recommended; or <br /> d. Owner has actual knowledge of the occurrence of any of the events enumerated in <br /> Paragraphs 14.02.B.5.a through 14.02.B.5.c or Paragraph 15.02.A. <br /> e. Failure of the Contractor to make payments due to Subcontractors, material sup-pliers, or <br /> employees. <br /> f. Damage to another Contractor or any allegations of damage caused to another Contractor <br /> g. The Owner reasonably believes that the Contractor cannot complete the Work within the <br /> Contract Price. <br /> 2. If Owner refuses to make payment of the full amount recommended by Engineer, Owner <br /> will give Contractor immediate written notice (with a copy to Engineer) stating the <br /> reasons for such action and promptly pay Contractor any amount remaining after <br /> deduction of the amount so withheld. Owner shall promptly pay Contractor the amount so <br /> withheld, or any adjustment thereto agreed to by Owner and Contractor, when Contractor <br /> remedies the reasons for such action. <br /> 3. Upon a subsequent determination that Owner's refusal of payment was not justified, the <br /> amount wrongfully withheld shall be treated as an amount due as determined by <br /> Paragraph 14.02.C.1 and subject to interest as provided in the Agreement. <br /> E. Other Payment to Contractor Provisions <br /> 1. Credit for Uncorrected Work: Should the Owner direct the Contractor to leave uncorrected <br /> Work that has been damaged or that was not performed in accordance with the Contract <br /> Documents, an equitable deduction from the Contract Amount shall be made to compensate <br /> the Owner for the Uncorrected Work. <br /> 2. Payment for Removal of Rejected Work and Materials: The removal of Work and materials <br /> rejected in accordance with paragraph 13.06.A of the Modified General Conditions and the <br /> re-execution of acceptable work by the Contractor shall be at the expense of the Contractor, <br /> and he shall pay the cost of replacing the Work of other contractors destroyed or damaged by <br /> EJCDC C-700 Modified Standard General Conditions of the Construction Contract <br /> Copyright 0 2007 National Society of Professional Engineers for EJCDC. All rights reserved. <br /> Page 72 of 81 <br />