Contract Sum and Progress Payments Clause Samples

Contract Sum and Progress Payments. § 3.1.1 Each Work Order shall include a Contract Sum. The Owner shall pay the Contractor the Contract Sum in current funds in accordance with each individual Contract. Where the Contract Sum is based on the Cost of the Work under Section 3.3 or 3.4 of the Work Order, the Cost of the Work is defined in Exhibit A, Determination of the Cost of the Work. § 3.1.2 Applications for Payment will be submitted individually for each Contract. Travel and per diem charges shall not exceed the limits as set forth in Montana Code Annotated. § 3.1.3 Based upon Applications for Payment for individual Contracts submitted to the Architect by the Contractor, and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents. § 3.1.4 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as set forth in the Work Order. § 3.1.5 Provided that an Application for Payment is received by the Architect not later than the 25th day of the month, the Owner shall make payment of the certified amount to the Contractor not later than the 20th day of the next month. If an Application for Payment is received by the Architect after the date fixed above, payment shall be made by the Owner not later than twenty- five (25) days after the Architect receives the Application for Payment. § 3.1.6 For each progress payment made prior to Substantial Completion of the Work, the Owner may withhold retainage from the payment otherwise due as follows: 5% retainage shall be withheld. Upon Substantial Completion of the entire Work of each Work Order, all retainage shall be released except 150% of the value of punch list Work, incomplete Work, and defective Work shall be withheld. § 3.1.7 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located.