Common use of DEFICIENT WORK Clause in Contracts

DEFICIENT WORK. 15.1 Any or all of the following, at Allegheny’s option, shall be deemed deficient Work hereunder: (i) any Work performed or equipment and/or materials furnished by Contractor or Subcontractors that does not conform with requirements as set forth in this Agreement, or (ii) Contractor has at any time failed to remedy any imperfections in the Work, or (iii) Contractor has failed to supply a sufficient number of properly skilled workmen or satisfactory equipment and/or materials, or (iv) Contractor, or any Subcontractor or Vendor, fails upon request to demonstrate financial ability to complete the Work in accordance with the terms of this Agreement, or (v) Contractor has failed to execute the Work with promptness and diligence satisfactory to Allegheny, or (vi) Contractor has failed to comply with any of the provisions of this Agreement. Upon receipt of notice from Allegheny that any such deficiency exists, Contractor shall promptly undertake and proceed with due diligence to remedy such deficiency to meet the requirements of the Job Specification or to the satisfaction of Allegheny. 15.2 For Contractor’s remediation pursuant to the foregoing Sub-Article, Allegheny shall pay Contractor in accordance with Exhibit A, costs incurred by Contractor in correcting deficiencies in the Work, except for: (i) amounts recoverable from Subcontractors, Vendors or others; and (ii) costs incurred as a result of Contractor’s failure to substantially meet or exceed the standards prevailing in the industry pertaining to such Work. 15.3 If Contractor does not within ten (10) days after receipt of such notice undertake and proceed with due diligence to remedy such deficiencies, Allegheny may declare Contractor in material breach of this Agreement, and by written notice setting forth the effective date of removal, may remove Contractor from all or any part of the Work and use or dispose of all materials, supplies, tools and equipment in connection therewith. Allegheny may then complete all or any part of the Work from which Contractor has been removed. 15.4 In the event that Allegheny does remove Contractor and take possession as aforesaid, then notwithstanding Article 11, Contractor shall only be entitled to payment for the part of the Work performed by it and acceptable to Allegheny under the terms and conditions of this Agreement up to the effective date of such removal, reduced by: (i) costs recoverable under Subcontractors’ or Vendors’ guarantees; (ii) costs recoverable under insurance policies; and (iii) Allegheny’s retainage out of moneys owing to Contractor of an amount sufficient to indemnify Allegheny against extra costs incurred by Allegheny to remedy deficiencies. The rights and remedies of Allegheny provided by this Article are in addition to any other rights and remedies provided by Law or this Agreement.

Appears in 2 contracts

Sources: Epc Agreement (Allegheny Energy, Inc), Epc Agreement (Allegheny Energy, Inc)

DEFICIENT WORK. 15.1 Any or all of the following, at Allegheny’s option, shall be deemed deficient during performance of Work hereunder: (i) any Work performed or equipment and/or materials furnished by Contractor or Subcontractors that does not conform with requirements as set forth in this Agreement, or (ii) Contractor has at any time failed to remedy any imperfections defects in the Work, or (iii) Contractor has failed to supply a sufficient number of properly skilled workmen or satisfactory construction equipment and/or materials, provided they are available, or (iv) Contractor, or any Subcontractor or Vendor, fails upon request to demonstrate financial ability to complete the Work in accordance with the terms of this Agreement, or (v) Contractor has failed to execute the Work with promptness and diligence satisfactory to Alleghenydiligence, or (vi) Contractor has failed to comply with any of the material provisions of this Agreement. Upon receipt of written notice from Allegheny that any such deficiency to the satisfaction of Allegheny exists, Contractor shall promptly immediately undertake and proceed with due diligence to remedy such deficiency to meet the requirements of the Job Specification or to the satisfaction of Allegheny. 15.2 For Contractor’s remediation pursuant to the foregoing Sub-Article, Allegheny shall pay Contractor in accordance with Exhibit AA and Exhibit B, costs incurred by Contractor in correcting deficiencies in the Work, except for: (i) for amounts recoverable from Subcontractors, Vendors or others; and (ii) costs incurred as a result of Contractor’s failure to substantially meet or exceed the standards prevailing in the industry pertaining to such Work. 15.3 If Contractor does not within ten (10) days after immediately, upon receipt of such notice notice, undertake and proceed with due diligence to remedy such deficiencies, Allegheny may declare Contractor in material breach of this Agreement, and by written notice setting forth the effective date of removal, may remove Contractor from all or any part of the Work and use or dispose of all materials, supplies, tools and equipment in connection therewith. Allegheny may then complete all or any part of the Work from which Contractor has been removed. 15.4 In the event that Allegheny does remove Contractor and take possession as aforesaid, then notwithstanding Article 11, Contractor shall only be entitled to payment for the part of the Work performed by it and acceptable to Allegheny under the terms and conditions of this Agreement up to the effective date of such removal, reduced by: (i) costs recoverable under Subcontractors’ or Vendors’ guarantees; (ii) any costs recoverable by Contractor under insurance policies; and (iii) Allegheny’s retainage out of moneys owing to Contractor of an amount sufficient to indemnify Allegheny against extra costs incurred by Allegheny to remedy deficiencies. The rights and remedies of Allegheny provided by this Article are in addition to any other rights and remedies provided by Law or this Agreement. 15.5 Failure of Contractor to meet the Mechanical Completion Dates or other schedule or completion dates does not constitute a material breach of this Agreement, if Contractor’s Work is not otherwise deficient under this Article.

Appears in 1 contract

Sources: Epc Agreement (Allegheny Energy, Inc)