Common use of FAILURE OF PAYMENT Clause in Contracts

FAILURE OF PAYMENT. 9.7.1 If the Architect does not issue a Certificate for Payment, through no fault of the Contractor, within three (3) business days after receipt of the Contractor's Application for Payment, or if the Owner does not pay the Contractor within twenty-five (25) days after receipt, except as provided in Paragraph 9.4.3 the amount certified by the Architect then the Contractor may, upon seven (7) additional days' written notice to the Owner and Architect, stop the Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor's reasonable costs of shut-down, delay and start-up, which shall be accomplished as provided in Article 7. 9.7.2 If the Owner is entitled to reimbursement or payment from the Contractor under or pursuant to the Contract Documents, such payment shall be made promptly upon demand by the Owner. Notwithstanding anything contained in the Contract Documents to the contrary, if the Contractor fails to promptly make any payment due the Owner, or the Owner incurs any costs and expenses to cure any default of the Contractor or to correct defective Work, the Owner shall have an absolute right to offset such amount against the Contract Sum and may, in the Owner's sole discretion, elect either to: (1) deduct an amount equal to that which the Owner is entitled from any payment then or thereafter due the Contractor from the Owner, or (2) issue a written notice to the Contractor reducing the contract Sum by an amount equal to that which the Owner is entitled.