11.2 FAILURE TO REMEDY DEFECTS
If the Contractor fails to remedy any defect or damage to the works within a
reasonable time, then the Engineer or Employer may by notice set a date by
10
This expression, used in clause 11.1, means a fair and reasonable allowance must be
made for any use or operation of the plant or facility by the Employer by expiry of the DNP.
which the defect or damage is to be remedied. If the Contractor persists in fail-
ing to remedy the defect or damage, then the Employer has a number of options:
●
he can carry out the work himself or pay others to do it, claiming the cost
of this from the Contractor; or
●
he can reduce the contract price appropriately; or
●
if the defect or damage is so extensive as to deprive the Employer of
substantially the whole benefit of the works or any major part of it, then
terminate the contract either as whole or in respect of the relevant part.
In this latter event, the Employer may recover (without prejudice to any
rights he might have) all sums paid to the Contractor in respect of the works
or the affected part plus financing cost and dismantling and related costs.