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The OWNER may withhold payment of some or all of any progress or final payment that would <br />otherwise be due if the OWNER determines, in its discretion, that the Work has not been <br />performed in accordance with the Contract Documents. The OWNER may use these funds to <br />pay replacement or substitute contractors to complete unfinished or defective Work. <br />The OWNER may withhold payment of some or all of any progress or final payment that would <br />otherwise be due if the OWNER determines, in its discretion, that it is necessary and proper to <br />provide an additional source of funds to pay claims for which the OWNER is entitled to <br />indemnification from CONTRACTOR under the Contract Documents. <br />Amounts withheld under this section shall be in addition to any retainage. <br />J. Acceptance of the Work <br />When the Work is completed, the CONTRACTOR shall request that the OWNER perform a final <br />inspection. The OWNER shall inspect the Work. If the OWNER determines that the Work has <br />been completed in accordance with the Contract Documents, it shall issue a written notice of <br />acceptance of the Work. If the OWNER determines that the Work has not been completed in <br />accordance with the Contract Documents, then it shall provide the CONTRACTOR with a verbal <br />or written list of items to be completed before another final inspection shall be scheduled. <br />It is specifically provided that Work shall be deemed accepted on the date specified in the <br />OWNER's written notice of acceptance of the Work. The Work shall not be deemed to be <br />accepted based on "substantial completion" of the Work, use or occupancy of the Work, or for <br />any reason other than the OWNER's written Notice of Acceptance. Further, the issuance of a <br />certificate of occupancy for all or any part of the Work shall not constitute a Notice of <br />Acceptance for that Work. <br />In its discretion, the OWNER may issue a Notice of Acceptance covering only a portion of the <br />Work. In this event, the notice shall state specifically what portion of the Work is accepted. <br />K. Final Payment <br />After all Work required under the Contract Documents has been completed, inspected, and <br />accepted, the City shall calculate the final payment amount promptly after necessary <br />measurements and computations are made. The final payment amount shall be calculated to: <br />1. include the estimate of the value of Work properly completed since the date of the most <br />recent previous progress payment; <br />2. correct prior progress payments; and <br />3. include retainage or other amounts previously withheld that are to be returned to <br />CONTRACTOR, if any. <br />Final payment to the CONTRACTOR shall not be due until the CONTRACTOR provides original <br />full releases of liens from the CONTRACTOR and its subcontractors, or other evidence <br />10 <br />