TranSystems Corporation - LGM Construction

Section 18.03. Assignment of Warranties.
Contractor assigns to FedEx all assignable
warranties of manufacturers and suppliers (other than Contractor) of Materials and Services used
in the performance of the Work. At FedEx's request, Contractor shall assist in enforcing FedEx's
rights arising under those warranties.
Section 18.04. General Warranties.
(a) In addition to any special guaranties or warranties
that the Contract Documents require, Contractor warrants to FedEx that all Materials furnished in
the performance of the Work will be new unless otherwise specified and that any Work
(including any design work that Contractor or any Subcontractor performs) will be of good
quality, free from faults and defects and in conformance with the Contract Documents. All Work
not conforming to these standards will be defective.
(b) If, within the period that expires one year after the Substantial Completion Date (or
within such longer period of time as may be prescribed by law or by the terms of any applicable
special guarantee or warranty that the Contract Documents require), FedEx finds any of the Work
to be defective, Contractor shall provide at its expense all labor and material necessary to correct
it promptly after receipt of a written notice from FedEx. This Section 18.04(b) does not establish
a limitations period with respect to Contractor’s obligations under this Agreement. The
foregoing one-year time period relates only to Contractor’s specific obligation to correct the
Work and has no relationship to the time within which FedEx may enforce Contractor’s
contractual obligations under this Agreement, nor to the time within which FedEx must
commence proceedings to establish Contractor’s liability with respect to any of its contractual
obligations arising under the terms of this Agreement.
(c) If Contractor fails or refuses to correct defective Work in accordance with the
requirements of this Section 18.04, FedEx may correct it and hold Contractor liable for all
expenses and damages FedEx incurs as a result.
(d) In addition to the foregoing warranty, a fresh warranty period of one year will apply,
under the same terms and conditions as the original warranty, to any work, materials or design
supplied in the correction of defective Work undertaken in accordance with the terms of this
Section 18.04. That fresh warranty period will commence on the date FedEx accepts
Contractor's original warranty work.
Section 18.05. Millennium Compliance.
Contractor warrants to FedEx that the advent of
any date or year will not adversely affect the performance of any system, equipment or equipment
component that Contractor incorporates as part of the Work.
ARTICLE 19
FEDEX'S RIGHT TO DO WORK
Section 19.01. FedEx's Right to Do Work. If Contractor neglects to prosecute the Work
properly or fails to do anything required by the Contract Documents and FedEx does not receive
satisfactory assurance of due performance from Contractor within seven business days after the
date on which FedEx makes written demand for such assurance, FedEx may make good any
46