Disbursement Dispute Procedures Clause Samples
The Disbursement Dispute Procedures clause outlines the steps parties must follow when there is a disagreement regarding the release or allocation of funds under a contract. Typically, this clause specifies how disputes should be raised, the documentation required, and the timeline for resolution, such as involving a neutral third party or escrow agent to hold funds until the issue is settled. Its core function is to provide a clear, orderly process for resolving payment disputes, thereby minimizing delays and reducing the risk of litigation.
Disbursement Dispute Procedures. If the Owner’s Representative determines, pursuant to subsection (B) of this Section, that the Design-Build Work required for any payment has not progressed as indicated by the Design-Builder, or otherwise disputes any Requisition, the Owner’s Representative shall provide prompt written notice to the Design- Builder and the Owner as to the Owner’s Representative’s reasons, in reasonable detail, for such determination or the basis for such dispute. After receiving such determination notice, the Design-Builder may make the necessary corrections and resubmit a certified Requisition to the Owner’s Representative, or the Owner’s Representative may agree on a revised amount, Requisition or estimate, as applicable, in which case the Design-Builder shall promptly notify the Owner of such agreement. If the Design-Builder is unable to reach agreement with the Owner’s Representative as to the progress of the Design-Build Work, the Design-Builder may exercise its right to contest the Owner’s Representative’s determination in accordance with either the dispute resolution procedures set forth in Section 8.12 (Non-Binding Dispute Resolution Procedures). Any proceedings undertaken to resolve a dispute arising under this subsection shall immediately terminate if (1) the Design-Builder demonstrates to the Owner’s Representative that the Design- Build Work has proceeded as indicated in the certified Requisition giving rise to the dispute or that any disputed certified Requisition is correct, and (2) the Owner’s Representative concurs with such demonstration. The Design-Builder shall not be entitled to payment of the amount so requisitioned and disputed except upon resolution of the dispute in accordance with this subsection; provided, however, that the Owner shall pay all requisitioned amounts which are not in dispute in accordance with subsection (B) of this Section. In the event that upon resolution of any such dispute, it is determined that the Design-Builder was properly entitled to the disputed amount as of a date earlier than the date on which payment is actually made, the Design-Builder shall be entitled to receive, promptly following such resolution, such disputed amount plus interest on such disputed amount for the period of dispute calculated in accordance with Section 11.7 (Interest on Overdue Obligations).
Disbursement Dispute Procedures. If the Project Manager determines, pursuant to subsection (B) (Construction Disbursement Procedure) of this Section, that the work required for any payment has not progressed as indicated by the DBOM Contractor, or otherwise disputes any Requisition, the Project Manager shall provide prompt written notice to the DBOM Contractor and the BWS as to the Project Manager’s reasons, in reasonable detail, for such determination or the basis for such dispute. After receiving such determination notice, the DBOM Contractor may make the necessary corrections and resubmit a certified Requisition to the Project Manager, or the Project Manager may agree on a revised amount, Requisition or estimate, as applicable, in which case the DBOM Contractor shall promptly notify the BWS of such agreement. If the DBOM Contractor is unable to reach agreement with the Project Manager as to the progress of work, the DBOM Contractor may exercise its right to contest the Project Manager’s determination in accordance with the dispute resolution procedures set forth in Section 16.3 (Authority to Resolve Contract and Breach of Contract Controversies). Any proceedings undertaken to resolve a dispute arising under this subsection shall immediately terminate if (1) the DBOM Contractor demonstrates to the Project Manager that the work has proceeded as indicated in the certified Requisition giving rise to the dispute or that any disputed certified Requisition is correct, and (2) the Project Manager concurs with such demonstration. The DBOM Contractor shall not be entitled to payment of the amount so requisitioned and disputed except upon resolution of the dispute in accordance with this subsection. In the event that upon resolution of any such dispute, it is determined that the DBOM Contractor was properly entitled to the disputed amount as of a date earlier than the date on which payment is actually made, the DBOM Contractor shall be entitled to receive, promptly following such resolution, such disputed amount plus interest on such disputed amount for the period of dispute calculated at the Overdue Rate.
Disbursement Dispute Procedures. If the Contract Administrator and Owner’s Representative determine, pursuant to subsection 9.4.3 of this Section, that the work required for any payment has not progressed as indicated by the Company or otherwise disputes any Progress Payment Request, the Contract Administrator and Owner’s Representative shall provide within five (5) days written notice to the Company and the Village as to the Contract Administrator's and Owner’s Representative’s reasons, in reasonable detail, for such determination or the basis for such dispute. After receiving such determination notice, the Company may make the necessary corrections and resubmit a certified Progress Payment Request to the Contract Administrator and Owner’s Representative, or the Contract Administrator and Owner’s Representative may agree on a revised amount, Progress Payment Request or estimate, as applicable, in which case the Company shall promptly notify the Village of such agreement. If the Company is unable to reach agreement with the Contract Administrator and Owner’s Representative as to the progress of work or other dispute, the Company may exercise its right to contest the Contract Administrator's and Owner’s Representative’s determination in accordance with the dispute resolution procedures set forth in Article XIV. Any proceedings undertaken to resolve a dispute arising under this subsection shall immediately terminate if: (i) the Company demonstrates to the Contract Administrator and the Owner’s Representative that the work has proceeded to the percentage completion or milestone indicated in the certified Progress Payment Request giving rise to the dispute or that any disputed certified Progress Payment Request is correct, and (ii) the Contract Administrator and Owner’s Representative concur with such demonstration. The Company shall not be entitled to payment of the amount so requested and disputed except upon resolution of the dispute in accordance with this subsection.
Disbursement Dispute Procedures. If the SRWA Construction Manager or SRWA Engineer determine, pursuant to subsection (D), that the Design-Build Work required for any payment has not progressed as indicated by the Company, or otherwise disputes any Requisition, the SRWA Construction Manager or SRWA Engineer shall provide prompt written notice to the Company as to the SRWA Construction Manager’s or SRWA Engineer’s reasons, in reasonable detail, for such determination or the basis for such dispute. After receiving such notice, the Company may make the necessary corrections or changes and resubmit a certified Requisition to the SRWA Construction Manager or SRWA Engineer, as applicable, or SRWA and Company otherwise may agree on a revised Requisition amount to be paid. If the Company is unable to reach agreement with the SRWA Construction Manager or SRWA Engineer, as applicable, as to the progress of the Design- Build Work, the Company may exercise its right to contest the SRWA Construction Manager’s or SRWA Engineer’s, as applicable, determination in accordance with Section 7.10 (Dispute Resolution Procedures) and Appendix 14 (Resolution of Company Claims). In the event that upon resolution of any such dispute, it is determined that the Company was properly entitled to the disputed amount as of a date earlier than the date on which payment is actually made, the Company shall be entitled to receive, promptly following such resolution, such disputed amount plus interest on such disputed amount for the period of dispute calculated at the rate set forth in California Code of Civil Procedure Section 685.010.