Common use of Removal by Owner Clause in Contracts

Removal by Owner. If the CONTRACTOR does not proceed with the correction of defective or nonconforming Work or with the removal of defective or nonconforming materials within a reasonable time fixed by written notice from the Owner’s Representative, the OWNER may remove it and may store the materials or equipment at the expense of the CONTRACTOR. If the CONTRACTOR does not pay the cost of such removal and storage within ten (10) days thereafter, the OWNER may upon ten (10) additional days written notice sell such materials at auction or at private sale and shall account for the net proceeds thereof, after deducting all the cost of removal and correction that should have been borne by the CONTRACTOR, including compensation for any additional inspection or testing services made necessary thereby. If such proceeds of sale do not cover all costs which the CONTRACTOR should have borne, the difference shall be charged to the CONTRACTOR and an appropriate Change Order shall be issued. If the payments then or thereafter due the CONTRACTOR are not sufficient to cover such amount, the CONTRACTOR shall pay the difference to the OWNER immediately upon demand.

Appears in 2 contracts

Sources: General Construction Agreement, General Construction Agreement