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<br /> and maintained by the Contractor to protect him from 18.2 The Contract Sum and the Contract Time may be
<br /> claims under workers' or workmen's compensation acts changed only by Change Order.
<br /> and other employee benefit acts, claims for damages be- 18.3 The cost or credit to the Owner from a change in
<br /> cause of bodily injury, including death, and from claims the Work shall be determined by mutual agreement.
<br /> for damages, other than to the Work itself, to property
<br /> which may arise out of or result from the Contractor's
<br /> operations under this Contract, whether such operations ARTICLE 19
<br /> be by himself or by any Subcontractor or anyone.directly CORRECTION OF WORK
<br /> or indirectly employed by any of them. This insurance 19.1 The Contractor shall promptly correct any Work
<br /> shall be written for not less than any limits of liability rejected by the Architect as defective or as failing to con-
<br /> specified in the Contract Documents, or required by law, form to the Contract Documents whether observed before
<br /> whichever is the greater and shall include contractual or after Substantial Completion and whether or not fabri-
<br /> liability insurance applicable to the Contractor's obliga- cated, installed or completed, and shall correct any Work
<br /> tions under Paragraph 16.11. Certificates of such incur- found to be defective or nonconforming within a period
<br /> ante shall be filed with the Owner prior to the com- of one year from the Date of Substantial Completion of
<br /> mencement of the Work. the Contract or within such longer period of time as may
<br /> 17.2 The Owner shall be responsible for purchasing and be prescribed by law or by the terms of any applicable
<br /> maintaining his own liability insurance and, at his option, special warranty required by the Contract Documents.The
<br /> may maintain such insurance as will protect him against provisions of this Article 19 apply to Work done by Sub-
<br /> claims which may arise from operations under the Con- contractors as well as to Work done by direct employees
<br /> tract. of the Contractor.
<br /> 17.3 Unless otherwise provided, the Owner shall pur-
<br /> chase and maintain property insurance upon the entire ARTICLE 20
<br /> Work at the site to the full insurable value thereof. This TERMINATION OF THE CONTRACT
<br /> insurance shall include the interests of the Owner, the
<br /> Contractor, Subcontractors and Sub-subcontractors in the 20.1 If the Architect fails to issue a Certificate for Pay-
<br /> Work and shall insure against the perils of fire and ex- ment for a period of thirty days through no fault of the
<br /> tended coverage and shall include "all risk" insurance for Contractor,or if the Owner fails to make payment thereon
<br /> physical loss or damage including, without duplication of for a period of thirty days, the Contractor may, upon
<br /> coverage, theft, vandalism, and malicious mischief. seven additional days' written notice to the Owner and
<br /> 17.4 Any loss insured under Paragraph 17.3 is to be ad- the Architect, terminate the Contract and recover from
<br /> justed with the Owner and made payable to the Owner the Owner payment for all Work executed and for any
<br /> s, as their interests may appear, proven loss sustained upon any materials, equipment,
<br /> as trustee for the insured
<br /> subject to the requirements of any mortgagee clause. tools,and construction equipment and machinery, includ-
<br /> 77.5 The Owner shall file a copy of all policies with the
<br /> ing reasonable profit and damages applicable to the
<br /> Contractor before an exposure to loss may occur.
<br /> Project.
<br /> 17.6 The Owner and Con tractor waive all rights against 20.2 If the Contractor defaults or persistently fails or
<br /> neglects to carry out the Work in accordance with the
<br /> each other for damages caused by fire or other perils to
<br /> the extent covered by insurance obtained pursuant to Contract Documents or fails to perform any provision of
<br /> this Article c any other property insurance applicable to the Contract, the Owner, after seven days' written notice
<br /> the Work,except such rights as they may have to the pro- to the Contractor and without prejudice to any other
<br /> remedy he may have, may make good such deficiencies
<br /> seeds of such insurance held by the Owner as trustee_
<br /> and may deduct the cost thereof including compensation
<br /> The Contractor shall require similar waivers in favor of the
<br /> Owner and the Contractor by Subcontractors and Sub- the the Architect's additional then n or thereafter made necessary the
<br /> subcontractors. thereby, from the payment then. or thereafter due the
<br /> Contractor or,at his option, and upon certification by the
<br /> Architect that sufficient cause exists to justify such action,
<br /> ARTICLE 18 may terminate the Contract and take possession of the
<br /> CHANGES IN THE WORK site and of all materials, equipment, tools, and construc-
<br /> tion equipment and machinery thereon owned by the
<br /> 18.7 The Owner, without invalidating the Contract, may Contractor and may finish the Work by whatever method
<br /> order Changes in the Work consisting of additions, dele- he may deem expedient,and if the unpaid balance of the
<br /> tions, or modifications, the Contract Sum and the Con- Contract Sum exceeds the expense of finishing the Work,
<br /> tract Time being adjusted accordingly. All such changes such excess shall be paid to the Contractor, but if such
<br /> in the Work shall be authc rized by written Change Order expense exceeds such unpaid balance, the Contractor
<br /> signed by the Owner and he Architect. shall pay the difference to the Owner.
<br /> 7 A107-1978 am DOCUMENT A107 • ABBREVIATED OWNER-CONTRACTOR AGREEMENT • EIGHTH EDITION • APRIL 1978 • AIA,
<br /> © 1978 • THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006
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