Common use of PROJECT GUARANTEE Clause in Contracts

PROJECT GUARANTEE. (For construction contracts in the Canal area). 1. The guarantee period to correct any defects that might exist shall be for one (1) additional year, after completion of the project, if it pertains to equipment and materials that were supplied, and to respond to redhibitory defects, such as labor, material, or defective equipment, or any other deficiency or defect on the object of the contract. The guarantee period to cover any defects in the construction or reconstruction of the project or real estate property shall be three (3) years. 2. The Contractor shall correct, within the terms of the guarantee, all defects or deficiencies discovered within the guarantee period. The Contracting Officer shall notify the Contractor, in writing, immediately after the discovery of the defect or deficiency. 3. The Contractor shall begin corrective work within thirty (30) calendar days after notification of the defect or deficiency by the Authority and shall proceed diligently with such work until its completion. Such corrective work shall include the re-delivery of equipment and/or materials and, in no case, shall the corrective work last more than three (3) months after the notification date. The Contracting Officer may, however, postpone the start of the corrective work until such time the defective materials or equipment can be removed from service without harm to the Authority but, under no circumstance, shall the corrective work be postponed for more than three (3) months from the date of discovery of the defects or deficiencies requiring correction. 4. Replacement parts and repairs shall be subject to the Contracting Officer’s approval. The Contractor shall bear the costs of all corrective work, which should include the disassembly, transportation, re-assembly, and re-testing required, as well as the repair or replacement of defective materials and/or equipment and any disassembly or re-assembly of adjacent materials and/or equipment, as long as the Authority, at its own cost, performs the disassembly or re-assembly of adjacent materials and/or equipment, not supplied by the Contractor, wherever necessary to provide access to the defective materials and/or equipment. 5. Should the Contractor not perform the corrective work in the manner and within the specified time, the Authority may have such work performed at the Contractor’s expense, and the Contractor shall acknowledge and pay for such costs when demanded of him and his sureties shall be responsible for such payment. 6. The provisions of this clause are in addition to any guarantee or insurance condition established by the manufacturer. The guarantee or insurance conditions established by the manufacturer, covering a period longer than the guarantee period herein specified, shall not be modified or annulled due to any requirement of this clause.