TXI » Topics » ARTICLE 5. SUBSTANTIAL COMPLETION AND MECHANICAL COMPLETION

This excerpt taken from the TXI 10-Q filed Sep 27, 2007.

ARTICLE 5. SUBSTANTIAL COMPLETION AND MECHANICAL COMPLETION

5.1 Certificate of Substantial Completion. Once all of the requirements for Substantial Completion have been satisfied, CONTRACTOR shall so certify to OWNER by submitting a Certificate of Substantial Completion to OWNER, a copy of which is attached hereto as Exhibit L-1. Within seven (7) Days following receipt of such Certificate of Substantial Completion, OWNER shall notify CONTRACTOR by execution of this Certificate whether OWNER concurs that CONTRACTOR has met the requirements for Substantial Completion. Such certification shall not be deemed to waive any rights of OWNER against CONTRACTOR under this Contract. Concurrent with such certification of acceptance, which shall be evidenced by execution of the Certificate of Substantial Completion by OWNER, Substantial Completion will have occurred and OWNER shall assume care, custody, and control of and shall thereafter assume sole responsibility for risk of loss for that portion of the Work. If OWNER determines that CONTRACTOR has not met Substantial Completion, then OWNER shall deliver a written notice to CONTRACTOR describing in reasonable detail the deficiencies noted and corrective action recommended. Substantial Completion shall not be deemed to have occurred, and CONTRACTOR shall be required to perform the remaining requirements for Substantial Completion and submit a revised Certificate of Substantial Completion. Any dispute regarding such certification shall be resolved in accordance with the procedure set forth in Article 8. If, following the initial or any subsequent Certificate of Substantial Completion, OWNER has not delivered to CONTRACTOR an acceptance or rejection of such certificate as required herein, Substantial Completion will be deemed to have occurred and the date of CONTRACTOR’S most recent Certificate of Substantial Completion shall be deemed the date that Substantial Completion was actually achieved.

 

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5.2 Certificate of Mechanical Completion. Once CONTRACTOR has performed all of the requirements for Mechanical Completion, CONTRACTOR shall so certify to OWNER by submitting a Certificate of Mechanical Completion to OWNER, a copy of which is attached hereto as Exhibit L-2. Within seven (7) Days following receipt of such Certificate of Mechanical Completion, OWNER shall notify CONTRACTOR by execution of this Certificate whether OWNER concurs that CONTRACTOR has met the requirements for Mechanical Completion. Such certification shall not be deemed to waive any rights of OWNER against CONTRACTOR under this Contract. Concurrent with such certification of acceptance, which shall be evidenced by execution of the Certificate of Mechanical Completion by OWNER, Mechanical Completion will have occurred and OWNER shall assume care, custody, and control of and shall thereafter assume sole responsibility for risk of loss for the Work. If OWNER determines that CONTRACTOR has not met Mechanical Completion, then OWNER shall deliver a written notice to CONTRACTOR describing in reasonable detail the deficiencies noted and correction action recommended. Mechanical Completion shall not be deemed to have occurred and CONTRACTOR shall be required to perform the remaining requirements for Mechanical Completion and submit a revised Certificate of Mechanical Completion. Any dispute regarding such certification shall be resolved in accordance with the procedure set forth in Article 8. If, following the initial or any re-issuance of the Certificate of Mechanical Completion, OWNER has not delivered to CONTRACTOR an acceptance or rejection of such certification within seven (7) Days as required herein, Mechanical Completion will be deemed to have occurred and the date of CONTRACTOR’S most recent Certificate of Mechanical Completion shall be deemed the date that Mechanical Completion was actually achieved.

OWNER shall execute the Certificate of Mechanical Completion, provided that each of the following conditions has been fulfilled:

 

  (a) Said Work has been completed in all respects in accordance with the Contract Documents;

 

  (b) CONTRACTOR has performed all its obligations under this Contract (except warranty and other obligations which, by their terms, are not then due); and

 

  (c) CONTRACTOR has submitted reasonable evidence in the form of a final release and waiver of lien from itself and its subcontractors to OWNER that CONTRACTOR and its subcontractors have paid all payrolls, material bills, and other indebtedness connected with said Work.
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