Potential Nonconformity Reports Clause Samples

Potential Nonconformity Reports. 9.3.1 If, at any time, the City becomes aware of a Nonconformity, the City may issue a Potential Nonconformity Report by inputting the Potential Nonconformity Report into the Nonconformity Tracking System or other process as agreed to between the City and Project Co, without prejudice to any of the City’s other rights and remedies. 9.3.2 Project Co shall provide notice to the City within 2 Business Days after the City enters a Potential Nonconformity Report into the Nonconformity Tracking System whether Project Co either: (a) accepts the Potential Nonconformity Report as a Nonconformity Report; or (b) rejects the Potential Nonconformity Report as a Nonconformity Report. 9.3.3 If Project Co rejects the Potential Nonconformity Report, then Project Co shall provide the reason(s) for rejection at the same time as providing the rejection notice to the City. 9.3.4 If Project Co fails to provide notice to the City pursuant to Section 9.3.2 of this Schedule 9 [Quality Management] or fails to provide reasons with its notice, then the Potential Nonconformity Report shall be deemed to be a Nonconformity Report and shall be included in the Nonconformity Tracking System as an Nonconformity Report. 9.3.5 If the City accepts Project Co’s reasons for rejecting a Potential Nonconformity Report, or if the City fails to provide notice to Project Co that the City does not accept Project Co’s reasons for rejecting a Potential Nonconformity Report within 5 Business Days of receiving Project Co’s reasons for rejection, then the Potential Nonconformity Report shall be assigned the status ‘closed’. 9.3.6 If the City does not accept Project Co’s reasons for rejecting a Potential Nonconformity Report, then the City may request Project Co to provide such further information to substantiate Project Co’s rejection of the Potential Nonconformity Report and Project Co shall provide such information within 2 Business Days of such request, or the City may require the Potential Nonconformity Report be entered as an Nonconformity Report on the Nonconformity Tracking System, or both. If Project Co continues to disagree with the Potential Nonconformity Report becoming a Nonconformity Report Project Co may refer the matter to the Dispute Resolution Procedure.