Common use of Approval of Applications for Payment Clause in Contracts

Approval of Applications for Payment. Based upon Applications for Payment submitted by the Trade Contractor and as approved by the Authority, the Authority shall make payment to the Trade Contractor. The period covered by each Application for Payment shall be one (1) calendar month ending on the last day of the month, or as otherwise agreed to between the Authority and Trade Contractor in writing. Provided that a Trade Contractor Application for Payment is approved for full or partial payment, the Authority shall make payment of the approved amount to the Trade 11.6.1 Determine the portion of the Trade Contract Amount properly allocable to completed Trade Contractor Work as determined by the Authority. 11.6.2 Add that portion of the Trade Contract Amount properly allocable to materials and equipment delivered and suitably stored at the Project Site for subsequent incorporation in the Trade Contractor Work, or, if approved in advance by the Authority, suitably stored off the Project Site at a location agreed upon in writing. 11.6.3 Subtract retainage of five percent (5%). The Authority may in its sole discretion approve any deviation from this requirement. 11.6.4 Subtract the aggregate of previous payments made by the Authority. 11.6.5 Subtract amounts, if any, for which the Authority has reasonably withheld or denied a Trade Contractor Application for Payment as provided in the Trade Contract Documents. 11.6.6 The Authority shall pay interest of one and one-half percent (1.5%) per month (or any part of a month) to the Trade Contractor on an undisputed amount not paid to the Trade Contractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the Authority shall pay the actual interest penalty due to the Trade Contractor in accordance with Minnesota Statutes.