Construction Completion Holdback Sample Clauses
A Construction Completion Holdback clause requires that a portion of payment for construction work is withheld until the project is fully completed and meets all contractual requirements. Typically, a specified percentage of the contract price is retained by the owner or client until final inspection, approval, or the expiration of a lien period, ensuring that all work is finished to satisfaction and that subcontractors and suppliers are paid. This clause serves to protect the owner from incomplete or defective work and helps ensure that all parties fulfill their obligations before final payment is released.
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Construction Completion Holdback. If upon Traffic Availability the Contractor has not achieved Construction Completion, the Contractor shall within 30 days thereafter prepare and deliver to the Province a comprehensive workplan and schedule acceptable to the Province, acting reasonably, designed to achieve Construction Completion within a reasonable time thereafter. Following delivery and acceptance of such workplan and schedule, the Contractor shall keep the Province fully advised of all activity and progress in carrying out the workplan. If the Contractor fails to deliver an acceptable workplan and schedule within such 30 day period or, having delivered it, fails in any material respect to diligently carry out the workplan in accordance with the schedule, then the Province may hold back from any Payment an amount of up to twice the cost, estimated by the Province acting reasonably, of achieving Construction Completion. The holdback shall be proportionately released to the Contractor, without interest, as the remaining work is done (but not more frequently than monthly). When Construction Completion is achieved, the Province shall release the remaining balance of the holdback to the Contractor, without interest. If Construction Completion is not achieved within one year after Traffic Availability, the Province may by notice to the Contractor elect to do the remaining work required to achieve Construction Completion and in that event may retain the remaining balance of the holdback as liquidated damages.
Construction Completion Holdback. If upon Traffic Availability, the Contractor has not achieved Construction Completion, the Contractor shall within 30 days thereafter prepare and deliver to the Province a comprehensive workplan and schedule acceptable to the Province, acting reasonably, designed to achieve Construction Completion within a reasonable time thereafter. Following delivery and acceptance of such workplan and schedule, the Contractor shall keep the Province fully advised of all activity and progress in carrying out the workplan. As security for the Contractor’s obligation to deliver a workplan and schedule within such 30 day period and to diligently carry out the workplan in accordance with the schedule, the Province may hold back an amount of three times the cost, estimated by the Province acting reasonably, of achieving Construction Completion. The Contractor and the Province have agreed in advance that the cost for completing the As-Built Construction Reports as defined in Schedule 14 (Technical Requirements) is Two Hundred Thousand Dollars ($200,000.00), and so the applicable hold back shall be Six Hundred Thousand Dollars ($600,000.00). When Construction Completion is achieved, the Province shall release the remaining balance of the holdback to the Contractor in accordance with Section 9.2 (Final Release of Holdback), without interest. If Construction Completion is not achieved within one year after Traffic Availability, the Province may, by notice to the Contractor, elect to do the remaining work required to achieve Construction Completion and in that event may retain the remaining balance of the holdback as liquidated damages.