Errors and Defects Escalation Procedures. If District notifies Contractor of any material failure in performance of Services or material failure of a System Deliverable to operate as warranted, Contractor, at its own expense, shall promptly analyze the description of the circumstances relating to such material failure. The initial determination of priority, as described below, shall be made solely by District in its reasonable discretion by reference to the priority levels described in this Section 20.1. Contractor’s obligations under this Section 20.1 are in addition to Contractor’s remediation obligations for Deliverables that are rejected under the terms of Section 7.2 or Section 7.3, and Contractor’s obligations under this Section 20.1 may arise at any time, including before District provides written notice of acceptance of any Deliverable or Final Deliverable. Contractor shall respond to notice from the District under this Section as follows:
(a) Priority 1.
