Common use of Good Faith Dispute Regarding Application for Payment Clause in Contracts

Good Faith Dispute Regarding Application for Payment. If a good faith dispute exists as to the Owner’s obligation to pay all or a portion of the amount requested in the Application for Payment and such application is rejected in whole or in part, Architect and Owner shall indicate the reasons for its rejection, and the remedial actions to be taken by Contractor in order to receive payment. When the above reasons for disapproving or nullifying an application for payment are removed, payment will be promptly made for the amount previously withheld. If Architect and Owner and Contractor cannot agree on a revised amount then, within fifteen (15) business days after its initial rejection in part of such application, Owner shall pay directly to Contractor the certified amount for those items not rejected by Owner for which application for payment is made, less amounts previously paid by Owner and required retention. Those items rejected by Owner shall be paid by the Owner to the extent determined appropriate (1) when the reasons for the rejection have been removed, or (2) when the reasons for the rejection have been resolved through the alternative dispute resolution process as provided herein.

Good Faith Dispute Regarding Application for Payment. If a good faith dispute exists as to the Owner’s obligation to pay all or a portion of the amount requested in the Application for Payment and such application is rejected in whole or in part, Architect and Owner shall indicate the reasons for its rejection, and the remedial actions to be taken by Contractor in order to receive payment. When the above reasons for disapproving or nullifying an application for payment are removed, payment will be promptly made for the amount previously withheld. If Architect and Owner and Contractor cannot agree on a revised amount then, within fifteen (15) business days after its initial rejection in part of such application, Owner shall pay directly to Contractor the certified amount for those items not rejected by Owner for which application for payment is made, less amounts previously paid by Owner and required retention. Those items rejected by Owner shall be paid by the Owner to the extent determined appropriate appropriate (1) when the reasons for the rejection have been removed, or (2) when the reasons for the rejection have been resolved through the alternative dispute resolution process as provided herein.