Common use of Failure to Remedy Defects Clause in Contracts

Failure to Remedy Defects. (a) If Contractor fails to remedy any defect and directly resulting damage as soon as reasonably practicable, Owner may give written notice to Contractor requiring Contractor to remedy the defect or damage within a specified reasonable time. (b) If Contractor fails to remedy the defect and directly resulting damage by this notified date, the failure shall constitute a fundamental breach of Contractor's obligations under this EPC Contract and Owner may: (i) carry out the work itself or by others and the Contractor shall pay to the Owner the costs reasonably incurred by the Owner in remedying the defect or damage, or (ii) if the defect and directly resulting damage deprives the Owner of substantially the whole benefit of the Works or any major part of the Works, exercise the Owner's rights under ARTICLE 21 (Termination). (c) In connection with the warranty provisions set forth in this ARTICLE 11 (Warranties), the parties shall comply with the provisions of SCHEDULE F (Warranty Procedures).