Common use of Grounds for Withholding Payment Clause in Contracts

Grounds for Withholding Payment. Notwithstanding anything to the contrary in this Section, the Designer may withhold a certificate for payment from the CM and the Owner may withhold payment from the CM, in whole or in part, to the extent reasonably necessary to protect the Owner. If the Designer is unable to certify payment in the amount of the application, the Designer will notify the CM and the Owner in writing. If the CM and Designer cannot agree on a revised payment amount, the Designer will promptly issue a certificate for payment for the amount for which the Designer is able to make such representations to the Owner. The Designer may also withhold a certificate for payment, in whole or in part, to such extent as may be necessary in the Designer’s opinion to protect the Owner from loss for which the CM or the Contractor(s) is responsible, including loss resulting from acts and omissions, because of: 10.5.1. Defective Work not remedied after notice in accordance with this Agreement; 10.5.2. Third-party claims filed or reasonable evidence indicating probable filing of such claims unless security acceptable to the Owner is provided by the CM; 10.5.3. Failure of the CM or Contractor(s) to make payments properly to subcontractors or sub- subcontractors or for labor, materials or equipment; 10.5.4. Reasonable evidence that the Work cannot be completed for the unpaid balance of the GMP; 10.5.5. Damage to the Owner or another Contractor; 10.5.6. Reasonable evidence that the Work will not be completed within the contract time, and that the unpaid balance of the GMP would not be adequate to cover actual or liquidated damages for the anticipated delay; 10.5.7. Failure to carry out the Work in accordance with the Contract Documents; 10.5.8. Failure to provide sales tax documentation as required by the Owner; 10.5.9. Failure or refusal of the CM or Contractors to submit the required information on minority business enterprises; 10.5.10. Any other reason deemed necessary by the Designer to protect the Owner unless arbitrary and unreasonable; or 10.5.11. Subsequently discovered evidence that Work previously approved was not performed in accordance with the Contract Documents. 10.5.12. When the above reasons for withholding certification are removed, certification will be made for amounts previously withheld.

Appears in 2 contracts

Samples: Architect Contract, Construction Management Agreement

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Grounds for Withholding Payment. Notwithstanding anything to the contrary in this Section, the Designer may withhold a certificate for payment from the CM and the Owner may withhold payment from the CMCM for any School Project, in whole or in part, to the extent reasonably necessary to protect the Owner. If the Designer is unable to certify payment in the amount of the application, the Designer will notify the CM and the Owner in writing. If the CM and Designer cannot agree on a revised payment amount, the Designer will promptly issue a certificate for payment for the amount for which the Designer is able to make such representations to the Owner. The Designer may also withhold a certificate for payment, in whole or in part, to such extent as may be necessary in the Designer’s opinion to protect the Owner from loss for which the CM or the Contractor(s) is responsible, including loss resulting from acts and omissions, because of: 10.5.1. Defective Work not remedied after notice in accordance with this Agreement; 10.5.2. Third-party claims filed or reasonable evidence indicating probable filing of such claims unless security acceptable to the Owner is provided by the CM; 10.5.3. Failure of the CM or Contractor(s) to make payments properly to subcontractors or sub- sub-subcontractors or for labor, materials or equipment; 10.5.4. Reasonable evidence that the Work cannot be completed for the unpaid balance of the GMP; 10.5.5. Damage to the Owner or another Contractor; 10.5.6. Reasonable evidence that the Work will not be completed within the contract time, and that the unpaid balance of the GMP would not be adequate to cover actual or liquidated damages for the anticipated delay; 10.5.7. Failure to carry out the Work in accordance with the Contract Documents; 10.5.8. Failure to provide sales tax documentation as required by the Owner; 10.5.9. Failure or refusal of the CM or Contractors to submit the required information on minority business enterprises; 10.5.10. Any other reason deemed necessary by the Designer to protect the Owner unless arbitrary and unreasonable; or; 10.5.11. Subsequently discovered evidence that Work previously approved was not performed in accordance with the Contract Documents.; or 10.5.12. When the above reasons for withholding certification are removed, certification will be made for amounts previously withheld.

Appears in 1 contract

Samples: Architect Contract

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Grounds for Withholding Payment. Notwithstanding anything to the contrary in this Section, the Designer may withhold a certificate for payment from the CM and the Owner may withhold payment from the CM, in whole or in part, to the extent reasonably necessary to protect the Owner. If the Designer is unable to certify payment in the amount of the application, the Designer will notify the CM and the Owner in writing. If the CM and Designer cannot agree on a revised payment amount, the Designer will promptly issue a certificate for payment for the amount for which the Designer is able to make such representations to the Owner. The Designer may also withhold a certificate for payment, in whole or in part, to such extent as may be necessary in the Designer’s opinion to protect the Owner from loss for which the CM or the Contractor(s) is responsible, including loss resulting from acts and omissions, because of: 10.5.19.5.1. Defective Work not remedied after notice in accordance with this Agreement; 10.5.29.5.2. Third-party claims filed or reasonable evidence indicating probable filing of such claims unless security acceptable to the Owner is provided by the CM; 10.5.39.5.3. Failure of the CM or Contractor(s) to make payments properly to subcontractors or sub- sub-subcontractors or for labor, materials or equipment; 10.5.49.5.4. Reasonable evidence that the Work cannot be completed for the unpaid balance of the GMP; 10.5.59.5.5. Damage to the Owner or another Contractor; 10.5.69.5.6. Reasonable evidence that the Work will not be completed within the contract time, and that the unpaid balance of the GMP would not be adequate to cover actual or liquidated damages for the anticipated delay; 10.5.79.5.7. Failure to carry out the Work in accordance with the Contract Documents; 10.5.89.5.8. Failure to provide sales tax documentation as required by the Owner; 10.5.99.5.9. Failure or refusal of the CM or Contractors to submit the required information on minority business enterprises; 10.5.109.5.10. Any other reason deemed necessary by the Designer to protect the Owner unless arbitrary and unreasonable; or 10.5.119.5.11. Subsequently discovered evidence that Work previously approved was not performed in accordance with the Contract Documents. 10.5.129.5.12. When the above reasons for withholding certification are removed, certification will be made for amounts previously withheld.

Appears in 1 contract

Samples: Construction Management Agreement

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