Common use of CORRECTION OF PERFORMANCE DEFECTS OR DEFICIENCIES Clause in Contracts

CORRECTION OF PERFORMANCE DEFECTS OR DEFICIENCIES. 15.4.1 At any time prior to LNG Production System Substantial Completion of an LNG Production System or Facility Substantial Completion, as applicable, Contractor shall advise Owner in writing of any (a) Defects or Deficiencies in or (b) defects or deficiencies in the Owner Furnished Equipment and Materials forming part of, such LNG Production System or the Facility, as applicable, that were discovered at any time or that occurred during the Performance Tests for such LNG Production System or the Facility. Contractor shall promptly commence and complete corrective measures to remedy such Defects or Deficiencies; provided, however, that, without prejudice to Contractor’s express obligations related to the Owner Furnished Equipment and Materials as set forth in the definition of “Work” such as integration and installation of Owner Furnished Equipment and Materials, Contractor has no obligation to correct defects or deficiencies in the Owner Furnished Equipment and Materials forming part of such LNG Production System or the Facility. All portions of the Work that contain Defects or Deficiencies not so corrected shall be repaired or removed from the Job Site if necessary. If Contractor fails to initiate correction of Work having such Defects or Deficiencies within seven (7) Days after discovery of such Defects or Deficiencies, Owner may correct such Work, and Owner’s costs associated with uncovering, recovering, correcting and removing Work that contains Defects or Deficiencies, as well as modifying, removing, disassembling, uncovering, rebuilding, re-engineering, replacing or covering or otherwise handling all other Work affected by such Defects or Deficiencies, shall be included in the calculation of Total Costs. If Contractor does not, within ten (10) Days of Notice from Owner, remove or repair Work (or initiate removal thereof) which has Defects or Deficiencies, Owner may, in its discretion, remove, repair, store, sell or dispose of such Work, and Owner’s costs associated with such activities shall be included in the calculation of Total Costs. Contractor shall promptly provide Notice to Owner in writing that such corrective measures have been completed and shall specify in such Notice the date on which the LNG Production System or the Facility will be ready for the Performance Tests to be rerun. Contractor’s obligation to correct Defects or Deficiencies includes uncovering, recovering, correcting and removing Work that contains Defects or Deficiencies, as well as modifying, removing, disassembling, uncovering, rebuilding, re-engineering, replacing or covering or otherwise handling all other Work affected by such Defects or Deficiencies or the correction thereof. 15.4.2 In preparation for the effort to remedy such Defects or Deficiencies discovered after LNG Production System Substantial Completion of an LNG Production System or Facility Substantial Completion, as applicable, Owner shall provide personnel and Contractor shall supervise and direct such personnel in the disconnection of the Work from all piping and the cleaning, freeing of liquids, solids, explosives and combustibles, toxic and asphyxiant gases and otherwise making safe for performance of the repair work. Contractor shall promptly provide Notice to Owner in writing that such corrective measures have been completed and shall specify in such Notice the date on which the LNG Production System or the Facility will be ready for the Performance Tests to be rerun. If Contractor fails to initiate correction of Work having such Defects or Deficiencies within seven (7) Days after discovery of such Defects or Deficiencies, Owner may correct such Work, and Owner’s costs associated with such activities shall be included in the calculation of Total Costs. If Contractor does not, within ten (10) Days of Notice from Owner, repair or remove Work (or initiate removal thereof) which has Defects or Deficiencies, Owner may, in its discretion, remove, repair, store, sell or dispose of such Work, and Owner’s costs associated with such activities shall be included in the calculation of Total Costs.

CORRECTION OF PERFORMANCE DEFECTS OR DEFICIENCIES. 15.4.1 At any time prior to LNG Production System Substantial Completion of an LNG Production System or Facility Substantial Completion, as applicable, Contractor shall advise Owner in writing of any (a) Defects or Deficiencies in or (b) defects or deficiencies in the Owner Furnished Equipment and Materials forming part of, such LNG Production System or the Facility, as applicable, that were discovered at any time or that occurred during the Performance Tests for such LNG Production System or the Facility. Contractor shall promptly commence and complete corrective measures to remedy such Defects or Deficiencies; provided, however, that, without prejudice to Contractor’s express obligations related to the Owner Furnished Equipment and Materials as set forth in the definition of “Work” such as integration and installation of Owner Furnished Equipment and Materials, Contractor has no obligation to correct defects or deficiencies in the Owner Furnished Equipment and Materials forming part of such LNG Production System or the Facility. All portions of the Work that contain Defects or Deficiencies not so corrected shall be repaired or removed from the Job Site if necessary. If Contractor fails to initiate correction of Work having such Defects or Deficiencies within seven (7) Days after discovery of such Defects or Deficiencies, Owner may correct such Work, and Owner’s costs associated with uncovering, recovering, correcting and removing Work that contains Defects or Deficiencies, as well as modifying, removing, disassembling, uncovering, rebuilding, re-engineering, replacing or covering or otherwise handling all other Work affected by such Defects or Deficiencies, shall be included in the calculation of Total Costs. If Contractor does not, within ten (10) Days of Notice from Owner, remove or repair Work (or initiate removal thereof) which has Defects or Deficiencies, Owner may, in its discretion, remove, repair, store, sell or dispose of such Work, and Owner’s costs associated with such activities shall be included in the calculation of Total Costs. Contractor shall promptly provide Notice to Owner in writing that such corrective measures have been completed and shall specify in such Notice the date on which the LNG Production System or the Facility will be ready for the Performance Tests to be rerun. Contractor’s obligation to correct Defects or Deficiencies includes uncovering, recovering, correcting and removing Work that contains Defects or Deficiencies, as well as modifying, removing, disassembling, uncovering, rebuilding, re-engineering, replacing or covering or otherwise handling all other Work affected by such Defects or Deficiencies or the correction thereof. 15.4.2 In preparation for the effort to remedy such Defects or Deficiencies discovered after LNG Production System Substantial Completion of an LNG Production System or Facility Substantial Completion, as applicable, Owner shall provide personnel and Contractor shall supervise and direct such personnel in the disconnection of the Work from all piping and the cleaning, freeing of liquids, solids, explosives and combustibles, toxic and asphyxiant gases and otherwise making safe for performance of the repair work. Contractor shall promptly provide Notice to Owner in writing that such corrective measures have been completed and shall specify in such Notice the date on which the LNG Production System or the Facility will be ready for the Performance Tests to be rerun. If Contractor fails to initiate correction of Work having such Defects or Deficiencies within seven (7) Days after discovery of such Defects or Deficiencies, Owner may correct such Work, and Owner’s costs associated with such activities shall be included in the calculation of Total Costs. If Contractor does not, within ten (10) Days of Notice from Owner, repair or remove Work (or initiate removal thereof) which has Defects or Deficiencies, Owner may, in its discretion, remove, repair, store, sell or dispose of such Work, and Owner’s costs associated with such activities shall be included in the calculation of Total Costs.