Common use of Compensation of Construction Manager’s Subcontractors and Suppliers Clause in Contracts

Compensation of Construction Manager’s Subcontractors and Suppliers. Upon receipt of payment from the Owner, the Construction Manager shall pay each of its subcontractors and suppliers out of the amount received by the Construction Manager on account of such subcontractor’s or supplier’s portion of the Work, the amount to which each entity is entitled, reflecting percentages actually retained from payments to the Construction Manager on account of such entity’s portion of the Work. The Owner shall have no obligation to pay, and shall not be responsible for payments to, the Construction Manager’s subcontractors or suppliers. However, the Owner reserves the right, but has no duty, to make payment jointly to the Construction Manager and to any of its subcontractors or suppliers in the event that the Owner becomes aware that the Construction Manager fails to pay or unreasonably withholds payment from one or more of those entities. Such joint check procedure, if employed by the Owner, shall create no rights in favor of any person or entity beyond the right of the named payees to payment of the check and shall not be deemed to commit the Owner to repeat the procedure in the future.

Compensation of Construction Manager’s Subcontractors and Suppliers. Upon receipt of payment from the Owner, the Construction Manager CM shall pay each of its subcontractors and suppliers out of the amount received by the Construction Manager CM on account of such subcontractor’s or supplier’s portion of the Work, the amount to which each entity is entitled, reflecting percentages actually retained from payments to the Construction Manager CM on account of such entity’s portion of the Work. The Owner shall have no obligation to pay, and shall not be responsible for payments to, the Construction ManagerCM’s subcontractors or suppliers. However, the Owner reserves the right, but has no duty, to make payment jointly to the Construction Manager CM and to any of its subcontractors or suppliers in the event that the Owner becomes aware that the Construction Manager CM fails to pay or unreasonably withholds payment from one (1) or more of those entities. Such joint check procedure, if employed by the Owner, shall create no rights in favor of any person or entity beyond the right of the named payees to payment of the check and shall not be deemed to commit the Owner to repeat the procedure in the future.