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3-91 | EPC Template
the Project shall not be subject to any chattel mortgage, conditional sales contract, or
security agreement under which an interest or lien is retained; provided, however, that
such equipment and materials may be subject to the security interest of the vendor, to
secure the payment of the purchase price of the affected equipment and materials, so long
as such security interest is terminable upon payment in full and Contractor causes good
title to such equipment and materials, free and clear of such security interest to be
conveyed to Owner on or before the date of Final Payment. Contractor shall, as a
condition precedent to payment, provide lien waivers to Owner before final payment is
required to be made by Owner.
4.13 Compliance with Authorization Requirements. Contractor will familiarize itself with
and comply with any applicable requirements of all Government Authorizations for the
Facility, including without limitation, requirements pertaining to environmental
protection, noise abatement, erosion, traffic control, and parking.
4.14 Patents .Contractor shall, at its sole expense, pay or use reasonable efforts to ensure
that its Subcontractors and Suppliers pay all royalties, license fees or other costs incident
to their use in the performance of the Work of any invention, design, process, product, or
device that is the subject of patent rights or copyrights held by others.
4.15 Inspections; Defective Work. Contractor shall communicate regularly with PM/CM
regarding PM/CM’s inspection of completed portions of the Work for conformity with
the Specifications and for freedom from defects. Contractor shall accompany PM/CM on
such inspections as necessary under the circumstances. In the event that PM/CM notifies
Contractor of defective work that: (a) has the potential to have a material impact on the
Cost of the Work or the Project Schedule; or(b) indicates a systemic problem (i.e., a
persistent, widespread and/or material problem for the Project) with any piece of
equipment, any portion of the Work, or the performance of any Major Equipment
Supplier or Subcontractor, Contractor shall within 3 Business Days notify and provide
relevant information to the Owner. Such information shall include the nature and extent
of the problem, the cost and delay associated with the defective Work (if known), and the
steps that Contractor and PM/CM are taking to remedy the defective performance,
including any remedies that they are pursuing under the applicable contract.
4.16 Contractor Responsibility to Owner. Contractor covenants that in carrying out its
duties on behalf of Owner under this Agreement, Contractor will at all times proceed in
accordance with Good Utility Practice, will protect the interests of Owner in any dealings
with Contractor’s affiliates .
4.17 Facility Start Up and Acceptance Testing. Contractor shall be responsible for
coordinating all tasks and responsibilities associated with Acceptance Testing and
Facility Start Up.
4.17.1 Testing Methodology. The testing methodology for Acceptance Testing is
set forth in Article 11 and in Schedule III.
4.17.2 Acceptance Standards; Consequences of Under-Performance. The
Acceptance Tests for the Work and the consequences for the Work falling short of the