Common use of Direct Payment to Subcontractors By City Clause in Contracts

Direct Payment to Subcontractors By City. The CPO may notify the Contractor that payments to the Contractor will be suspended if the CPO has determined that the Contractor has failed to pay any Subcontractor, employee, or xxxxxxx, for work performed. If Contractor has not cured a failure to pay a Subcontractor, employee or xxxxxxx within 10 days after receipt of such notice, the CPO may request the Comptroller to apply any money due, or that may become due, to Contractor under the Contract to the payment of such Subcontractors, workmen, and employees and the effect will be the same, for purposes of payment to Contractor of the Contract Price, as if the City had paid Contractor directly. Further, if such action is otherwise in the City’s best interests, the CPO may (but is not obligated to) request that the Comptroller make direct payments to Subcontractors for monies earned on contracts and the effect will be the same, for purposes of payment to Contractor of the Contract Price, as if the City had paid Contractor directly. The City’s election to exercise or not to exercise its rights under this paragraph shall not in any way affect the liability of the Contractor or its sureties to the City or to any such Subcontractor, xxxxxxx, or employee upon any bond given in connection with such Contract.

Direct Payment to Subcontractors By City. The CPO may notify the Contractor Consultant that payments to the Contractor Consultant will be suspended if the CPO has determined that the Contractor Consultant has failed to pay any Subcontractor, employee, or xxxxxxx, for work performed. If Contractor Consultant has not cured a failure to pay a Subcontractor, employee or xxxxxxx within 10 days after receipt of such notice, the CPO may request the Comptroller to apply any money due, or that may become due, to Contractor Consultant under the Contract to the payment of such Subcontractors, workmen, and employees and the effect will be the same, for purposes of payment to Contractor Consultant of the Contract Price, as if the City had paid Contractor Consultant directly. Further, if such action is otherwise in the City’s best interests, the CPO may (but is not obligated to) request that the Comptroller make direct payments to Subcontractors for monies earned on contracts and the effect will be the same, for purposes of payment to Contractor Consultant of the Contract Price, as if the City had paid Contractor Consultant directly. The City’s election to exercise or not to exercise its rights under this paragraph shall not in any way affect the liability of the Contractor Consultant or its sureties to the City or to any such Subcontractor, xxxxxxx, or employee upon any bond given in connection with such Contract.