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ARTICLE 18 - CORRECTION OF WORK: <br />Contractor shall promptly correct any work rejected by Owner as defective or as <br />failing to conforin to the Contract Documents whether observed before or after <br />Substantial Completion and whether or not fabricated, installed or completed, and <br />shall correct any work found to be defective or nonconforining within a period of one <br />year from the Date of Substantial Completion of the Contract or within such longer <br />period of time as may be prescribed by law or by the terms of any applicable special. <br />warranty required by the Contract Documents. The provisions of this Article 18 apply <br />to work done by subcontractors as well as to work done by direct employees of the: <br />Contractor. <br />ARTICLE 19 - TERMINATION OF THE CONTRACT: <br />19.1 If Owner fails to make payment for a period of forty-five days without contractual <br />cause provided in writing, Contractor may, upon seven additional days' written notice <br />to Owner, terminate the Contract and recover from Owner payment for all work <br />executed and for any proven loss sustained upon any materials, equipment, tools, and <br />construction equipment and machinery, including reasonable profit and damages <br />applicable to the Project. <br />19.2 If Contractor defaults or persistently fails or neglects to carry out the work, in <br />accordance with the Contract Documents or falls to perforin any provision of the <br />Contract, Owner, after three days' written notice to the Contractor and without <br />prejudice to any other remedy he may have, may make good such deficiencies and may <br />deduct the cost thereof made necessary thereby, frorn the payment then or thereafter <br />due the Contractor or, at his option, may terminate the Contract and take possession of <br />the site and of all materials,, equipment, tools, and construction equipment and <br />machinery thereon owned by the Contractor and may finish the work by whatever <br />method he may deem expedient, and if the unpaid balance of the Contract Sum <br />exceeds the expense of finishing the work, such excess shall be paid to the Contractor, <br />but if such expense exceeds unpaid balance, the Contractor shall pay the difference to <br />Owner. <br />19.3 This agreement will be governed and construed in accordance with the laws of the <br />State of Texas; the venue for any legal cause of action under this contract shall be the <br />County of Lamar, Texas. <br />19.4 This agreement shall inure to the benefit of and be binding on the parties and their <br />respective heirs, executors, administrators, and permitted successors and assigns. <br />CONTRACT' - 10 <br />