Common use of Approval of Progress Payments Clause in Contracts

Approval of Progress Payments. Upon receipt of an application for progress payment, the application shall be reviewed by RMWD as soon as practicable after receipt for the purpose of determining that the payment application is a proper payment application. Any payment application determined not to be a proper payment application suitable for payment shall be returned to the Contractor as soon as practicable, but not later than seven (7) calendar days, after receipt. An application returned pursuant to this paragraph shall be accompanied by a document setting forth in writing the reasons why the payment application is not proper. RMWD shall make any progress payment within 30 days after receipt of an undisputed and properly submitted payment request from the Contractor. The number of days available to RMWD to make a payment without incurring interest equivalent to the legal rate set forth in subdivision (a) of Section 685.010 of the Code of Civil Procedure shall be reduced by the number of days by which RMWD exceeds the seven (7) calendar day return requirement set forth in this paragraph.