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18 <br /> of Ethical Conduct as adopted by the Associated General Contractors of America,Inc.,with respect <br /> to CMAR-Subcontractor relationships, and that payments to Subcontractors shall be made in <br /> accordance with the provisions of G.S. 143-134.1 providing for interest on final payments due to <br /> prime Subcontractors and sub-subcontractors. <br /> 12.2. Within seven(7)days after the CMAR receives each periodic or final payment and its bank makes <br /> the funds available after deposit, the CMAR shall pay each Subcontractor based on Work <br /> completed or service provided under the Contract. Should any periodic or final payment to a <br /> Subcontractor be delayed by more than seven days after receipt of periodic or final payment by the <br /> CMAR,the CMAR shall pay the Subcontractor interest,beginning on the eighth day, at the rate of <br /> one percent(1%)per month or fraction thereof on such unpaid balance as may be due,provided the <br /> Subcontractor has conformed to the specified billing procedures and insurance requirements. <br /> 12.3. The retainage withheld from payments made by the CMAR to the Subcontractor shall not exceed <br /> the retainage reflected in the CMAR payment applications and payments made by the Owner to the <br /> CMAR. Any retainage on payments made by the CMAR to the Subcontractor that exceeds the <br /> corresponding retainage on payments made by the Owner to the CMAR shall be subject to interest <br /> to be paid by the CMAR to the Subcontractor at the rate of one percent(1%)per month or fraction <br /> thereof. <br /> 12.4. Nothing in this section shall prevent the CMAR at the time of application and certification to the <br /> Owner from withholding application and certification to the Owner for payment to a Subcontractor <br /> for unsatisfactory job progress; defective construction not remedied; disputed Work; third-party <br /> claims filed or reasonable evidence that claim will be filed; failure of Subcontractor to make timely <br /> payments for labor, equipment and materials; damage to CMAR or another Subcontractor; <br /> reasonable evidence that the contract cannot be completed for the unpaid balance of the contract <br /> sum;or a reasonable amount for retainage not to exceed the initial percentage retained by Owner. <br /> 13.SEPARATE CONTRACTS <br /> 13.1. Without invalidating the relationships with the CMAR, the Owner reserves the right to let other <br /> contracts in connection with the Project, the Work under which shall proceed simultaneously with <br /> the execution of the CMAR's Work. Separate contracts may include materials or equipment that <br /> the Owner elects to provide itself. The Owner may also enter into separate contracts with testing <br /> firms or other technical support firms to assist the Owner in connection with the Project. The <br /> CMAR shall afford other separate Subcontractors reasonable opportunity for the execution of their <br /> Work and for the introduction and storage of their materials, and the CMAR shall take all <br /> reasonable action to coordinate its Work with theirs. If the Work performed by the separate <br /> Subcontractor is defective or so performed as to prevent the CMAR from carrying out its Work <br /> according to the plans and specifications,the CMAR shall immediately notify the Project Designer <br /> and the Owner upon discovering such conditions. <br /> 14.WARRANTY AND GUARANTEE <br /> 14.1. The CMAR unconditionally warrants and guarantees all materials and workmanship against patent <br /> defects arising from faulty materials,faulty workmanship or negligence for a period of twelve(12) <br /> months following the date of the earlier of substantial completion of the Work or beneficial <br /> occupancy and shall replace such defective materials or workmanship without cost to the Owner. <br /> 14.2. In addition to the foregoing general warranty, the Owner may require extended warranties for <br /> specified building components, including without limitation mechanical and electrical equipment, <br /> elevators and escalators, security equipment,roof, curtain wall, doors and waterproofing. Extended <br /> warranties shall be specified in the Construction Documents or specific written instructions from <br /> the Owner. All such extended warranties shall be provided by a Subcontractor or manufacturer to <br /> Owner. If the warranty is provided by a Subcontractor or manufacturer, the warranty shall <br /> explicitly state that it is for the benefit of and may be enforced by the Owner. Such warranties shall <br /> Page 15 of 52 <br /> Revised 12/24,4/25 <br />