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

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

Delay of Payment Due to Contractor’s Failure. If the State Entity in good faith determines that the Contractor has failed to perform or deliver Software, Licenses and/or Services any service or equipment or failed to maintain or repair the equipment as required by the Contract, the Contractor shall not be entitled to any compensation under the Contract until such Software service is performed or Licenses are delivered and Services are performedsuch equipment is delivered, maintained or repaired. In this event, the State Entity may withhold that portion of the Contractor’s compensation which represents payment for Software, Licenses and/or Services that were services not performed or equipment not delivered or performedproperly maintained and repaired. To the extent that the Contractor’s failure to perform provide services or deliver equipment in a timely manner causes the State Entity to incur costs, the State Entity may deduct the amount of such incurred costs from any amounts payable to Contractor. The State Entity’s authority to deduct such incurred costs shall not in any way affect the State Entity’s authority to terminate the Contract.