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D. Reduction in Payment: <br />1. Owner may refuse to make payment of the full amount recommended by Engineer 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 />2. If Owner refuses to make payment of the full amount recommended by Engineer, Owner will <br />give Contractor immediate written notice (with a copy to Engineer) stating the reasons for <br />such action and promptly pay Contractor any amount remaining after deduction of the <br />amount so withheld. Owner shall promptly pay Contractor the amount so withheld, or any <br />adjustment thereto agreed to by Owner and Contractor, when Contractor remedies the reasons <br />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 Paragraph <br />14.02.C.1 and subject to interest as provided in the Agreement. <br />14.03 Contractor's Warranty of Title <br />A. Contractor warrants and guarantees that title to all Work, materials, and equipment covered by <br />any Application for Payment, whether incorporated in the Project or not, will pass to Owner no <br />later than the time of payment free and clear of all Liens. <br />14.04 Substantial Completion <br />A. When Contractor considers the entire Work ready for its intended use Contractor shall notify <br />Owner and Engineer in writing that the entire Work is substantially complete (except for items <br />specifically listed by Contractor as incomplete) and request that Engineer issue a certificate of <br />Substantial Completion. <br />B. Promptly after Contractor's notification, Owner, Contractor, and Engineer shall make an <br />inspection of the Work to determine the status of completion. If Engineer does not consider the <br />Work substantially complete, Engineer will notify Contractor in writing giving the reasons <br />therefor. <br />C. If Engineer considers the Work substantially complete, Engineer will deliver to Owner a tentative <br />certificate of Substantial Completion which shall fix the date of Substantial Completion. There <br />shall be attached to the certificate a tentative list of items to be completed or corrected before <br />EJCDC C-700 Standard General Conditions of the Construction Contract <br />Copyright © 2007 National Society of Professional Engineers for EJCDC. All rights reserved. <br />Page 55 of 62 <br />