Common use of Application of Retainage Clause in Contracts

Application of Retainage. In the event the Owner determines that any of the Contract Work is damaged or defective and requires repair, replacement, rebuilding or restoration upon the expiration of the applicable warranty period, the Owner will Notify the Contractor of the same within ten (10) days of the expiration of the applicable warranty period and the Contractor shall promptly take such action as directed in the Notice to remedy the damaged or defective Contract Work described in the Notice. If the Contractor fails to repair, replace, rebuild or restore such defective or damaged Contract Work promptly after receiving such Notice, the Owner shall have the right to have such work done by others in the same manner as provided for the completion of a contract under Article 7 hereof and to deduct the cost thereof from any Retainage retained pursuant to this Article 11. The balance, if any, shall be returned to the Contractor without interest. If the amount so deposited is insufficient to cover the cost of such work, the Contractor shall be liable to pay such deficiency to the Owner on demand. The Owner’s certificate setting forth the fair and reasonable cost of repairing, replacing, rebuilding or restoring any damaged or defective Contract Work when performed by anyone other than the Contractor shall be binding and conclusive upon the Contractor.

Application of Retainage. In the event the Owner determines that any of the Contract Work is damaged or defective and requires repair, replacement, rebuilding or restoration upon the expiration of the applicable warranty period, the Owner will Notify the Contractor of the same within ten (10) days of the expiration of the applicable warranty period and the Contractor shall promptly take such action as directed in the Notice to remedy the damaged or defective Contract Work described in the Notice. If the Contractor fails to repair, replace, rebuild or restore such defective or damaged Contract Work promptly after receiving such Notice, the Owner shall have the right to have such work done by others in the same manner as provided for the completion of a contract under Article 7 hereof and to deduct the cost thereof from any Retainage retained pursuant to this Article 11. The balance, if any, shall be returned to the Contractor without interest. If the amount so deposited is insufficient to cover the cost of such work, the Contractor shall be liable to pay such deficiency to the Owner on demand. The Owner’s certificate setting forth the fair and reasonable cost of repairing, replacing, rebuilding rebuilding, or restoring any damaged or defective Contract Work when performed by anyone other than the Contractor shall be binding and conclusive upon the Contractor.