Common use of Defects Correction Clause in Contracts

Defects Correction. 2.03.1 Contractor shall perform final inspections on all Goods prior to delivery. City has the right to inspect the Goods to the extent practicable, at any time and place. If, as a result of City’s acceptance inspection, City determines that any Goods do not conform to Agreement requirements, City may, at Contractor’s cost and at no increase in contract amount and at City’s sole option and discretion: 1) require Contractor promptly to correct the defects to the non-conforming goods where practicable; or 2) reject the non-conforming goods and require Contractor to complete the order by delivering conforming goods. 2.03.2 When the defects for any Goods cannot be corrected practicably, City may at its sole option and discretion: 1) by contract or otherwise, correct the defects and charge the Contractor any costs incurred by City directly related to the cost of correcting the defects; or 2) reduce the Agreement price to reflect the reduced value of the Goods. 2.03.3 If the Contractor fails to correct performance or take necessary action to ensure future performance, in conformity with contract requirements, or when the defects for any Goods cannot be corrected practicably, City may: 1) require Contractor to take necessary action to ensure that future performance conforms to Agreement requirements; and/or 2) terminate the Agreement for default.