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

Delay of Payment Due to Contractor’s Failure. If the User Agencies in good faith determine that the Contractor has failed to perform or deliver any service or product as required by the Statewide Contract, the Contractor shall not be entitled to any compensation under the Statewide Contract until such service or product is performed or delivered. In this event, the User Agencies 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 User Agencies to incur costs, the User Agencies may deduct the amount of such incurred costs from any amounts payable to Contractor. The User Agencies’ authority to deduct such incurred costs shall not in any way affect the Agency’s sole authority to terminate the Statewide Contract.