Common use of CONTRACT INVOICING Clause in Contracts

CONTRACT INVOICING. When a School Bus is delivered the Authorized User shall process the invoice immediately for the full amount of the NYS Contract Price if, in its opinion, the School Bus is in compliance with the School Bus specifications in the Contract (see Section 3 Specifications), and the Purchase Order. However, if poor workmanship and/or minor deviations exist, the Authorized User may withhold up to 20% of the NYS Contract Price upon delivery and delay payment of the balance until the Contractor has made all necessary corrections. The Authorized User may withhold the full amount of the NYS Contract Price if, in its opinion, the School Bus contains major deviations from the School Bus specifications in the Contract (see Section 3 Specifications), and the Purchase Order. However, Contractor must be notified, in writing, of reasons for delay of payment.