Common use of Delay of Payment Due to Contractor’s Failure Clause in Contracts

Delay of Payment Due to Contractor’s Failure. If the City in good faith determines that the Contractor has failed to perform or deliver any service or product as required by the Contract, the Contractor shall not be entitled to any compensation under the Contract until such service or product is performed or delivered. In this event, the City may withhold that portion of the Contractor’s compensation which represents payment for services or products that were not performed or delivered. To the extent that the Contractor’s failure to perform or deliver in a timely manner causes the City to incur costs, the City may deduct the amount of such incurred costs from any amounts payable to Contractor. The City’s authority to deduct such incurred costs shall not in any way affect the City’s authority to terminate the Contract.