Common use of Acceptance of Defective Work Clause in Contracts

Acceptance of Defective Work. If, instead of requiring correction or removal and re-execution of defective Work, Owner (and, prior to Architect’s recommendation of final payment) prefers to accept such defective Work, Owner may do so. Demolition Contractor shall pay all Claims, costs, losses, and damages (including but not limited to all fees and charges of Architect, Architect’s Consultants, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) attributable to Owner's evaluation of and determination to accept such defective Work (such costs to be approved by Architect as to reasonableness) and the diminished value of the Demolition Work and/or the Site to the extent not otherwise paid by Demolition Contractor pursuant to this sentence. If any such acceptance occurs prior to Architect's recommendation of final payment, a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Demolition Work, and Owner shall be entitled to an appropriate decrease in the Contract Price, reflecting the diminished value of Work so accepted. If the acceptance occurs after such recommendation, an appropriate amount will be paid by Demolition Contractor to Owner.