Common use of Decisions to Withhold Certification Clause in Contracts

Decisions to Withhold Certification. District shall notify Contractor in writing if any amounts are not due, and the reasons for withholding certification in whole or in part. If Contractor and District cannot agree on a revised amount, District shall promptly issue a Certificate for Payment for the amount for which District determines that Contractor is entitled to payment. District may withhold Certificate for Payment or nullify the whole or part of a Certificate for Payment previously issued, to such extent as may be reasonably necessary to protect District from loss for which Contractor is responsible, including loss resulting from acts and omissions because of defective Work not remedied, third party claims filed or reasonable evidence indicating probable filing of such claim unless security acceptable to District is provided by Contractor, failure of Contractor to make payments properly to subcontractors or for labor, materials, or equipment, reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum, damage to District or another contractor, reasonable evidence that the Work will not be completed within the Contract Time, and that the unpaid balance would not be adequate to cover actual or liquidated damages for the anticipated delay, persistent failure to carry out the Work in accordance with the Contract Documents, or failure to maintain Record Documents. Contractor shall not receive any interest on any retainage or amounts withheld due to the failure of Contractor to perform in accordance with the Contract Documents. District may apply any withheld amount to pay outstanding claims or obligations on behalf of Contractor, without prior judicial determination of the claim or obligation. If any payment is made by District, that amount is deemed a payment made under this Contract by District to Contractor. District shall promptly issue a Certificate for Payment for amounts previously withheld when the reasons for withholding certification are removed.