Common use of Agreement to Accept Nonconforming Work Clause in Contracts

Agreement to Accept Nonconforming Work. 5.3.2.1 If TxDOT agrees to accept Nonconforming Work without requiring it to be fully corrected, TxDOT shall be entitled to reimbursement of a portion of the Maintenance Price in an amount equal to the greatest of (a) the amount deemed appropriate by TxDOT to provide compensation for known impacts to all affected Persons (including TxDOT) such as future maintenance and other costs relating to the Nonconforming Work, (b) the amount of the Maintenance Price allocated to such Maintenance Services, or (c) 100% of DB Contractor’s cost savings associated with its failure to perform the Maintenance Services in accordance with the requirements of the CMC Documents. Such reimbursement shall be payable to TxDOT within 10 days after DB Contractor’s receipt of an invoice therefor. Alternatively, TxDOT may deduct the amount of such costs and expenses from any sums owed by TxDOT to DB Contractor pursuant to this Capital Maintenance Contract.

Appears in 6 contracts

Samples: Capital Maintenance Agreement, Capital Maintenance Agreement, Capital Maintenance Agreement

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