Common use of Grounds for Withholding Payment Clause in Contracts

Grounds for Withholding Payment. Contractor may withhold or, on account or subsequently discovered evidence, nullify the whole or part of any payment to the extent necessary to protect Contractor from loss, including costs and actual attorneys’ fees, on account of (1) defective work not remedied; (2) claims filed or reasonable evidence indicating probable filing of claim; (3) failure of Subcontractor to make payments properly to its subcontractor or for material, labor or fringe benefits; (4) a reasonable doubt that this Agreement can be completed for the balance then unpaid; (5) damage to the Project or to another subcontractor; (6) penalties assessed against Contractor or Subcontractor for failure of Subcontractor to comply with state, federal or local laws and regulations; or (7) any other ground for withholding payment allowed by state or federal law, or as otherwise provided in this Agreement. When the above matters are rectified, such amounts as then due and owing shall be paid or credited to Subcontractor. Such withholdings may be made by Contractor whether or not said sums are in any way related to this Agreement or Project. Contractor may apply such deducted funds to any account, related or unrelated to this Agreement or Project, wherein the obligations of the Subcontractor have not been discharged as determined by the Contractor, and wherein the Contractor’s interest is directly or indirectly involved. In the event Subcontractor is in default of, or breaches or fails to comply with any provision, covenant or requirement of this Agreement; or in the event that any person or entity asserts, or indicates that he will assert, any lien, claim, demand, or charge against the Project or land or improvements or funds related to the Project, or against the Owner, the Contractor or any surety, arising from Subcontractor’s performance of this Agreement, the Contractor may withhold out of any payments due or to become due to the Subcontractor such amounts as the Contractor, in its discretion, may deem sufficient to completely protect and indemnify the Contractor and the Owner from any and all loss, damage and/or expense therefrom, including attorney’s fees and litigation costs, until the condition requiring such measures has been remedied by Subcontractor to the satisfaction of Contractor. If the offending condition is not remedied by Subcontractor within a reasonable period of time, Contractor may, at its option, proceed to make application of the withheld funds in whatever manner Contractor may, in its discretion, determine as being in the best interest of itself and/or the Owner.

Grounds for Withholding Payment. Contractor may withhold or, on account or subsequently discovered evidence, nullify the whole or part of any payment to the extent necessary to protect Contractor from loss, including costs and actual attorneys’ fees, on account of (1) defective work not remedied; (2) claims filed or reasonable evidence indicating probable filing of claim; (3) failure of Subcontractor to make payments properly to its subcontractor or for material, labor or fringe benefits; (4) a reasonable doubt that this Agreement can be completed for the balance then unpaid; (5) damage to the Project or to another subcontractor; (6) penalties assessed against Contractor or Subcontractor for failure of Subcontractor to comply with state, federal or local laws and regulations; or (7) any other ground for withholding payment allowed by state or federal law, or as otherwise provided in this Agreement. When the above matters are rectified, such amounts as then due and owing shall be paid or credited to Subcontractor. Such withholdings may be made by Contractor whether or not said sums are in any way related to this Agreement or Project. Contractor may apply such deducted funds to any account, related or unrelated to this Agreement or Project, wherein the obligations of the Subcontractor have not been discharged as determined by the Contractor, and wherein the Contractor’s interest is are directly or indirectly involved. In the event Subcontractor is in default of, or breaches or fails to comply with any provision, covenant or requirement of this Agreement; or in the event that any person or entity asserts, or indicates that he will assert, any lien, claim, demand, or charge against the Project or land or improvements or funds related to the Project, or against the Owner, the Contractor or any surety, arising from Subcontractor’s performance of this Agreement, the Contractor may withhold out of any payments due or to become due to the Subcontractor such amounts as the Contractor, in its discretion, may deem sufficient to completely protect and indemnify the Contractor and the Owner from any and all loss, damage and/or expense therefrom, including attorney’s fees and litigation costs, until the condition requiring such measures has been remedied by Subcontractor to the satisfaction of Contractor. If the offending condition is not remedied by Subcontractor within a reasonable period of time, Contractor may, at its option, proceed to make application of the withheld funds in whatever manner Contractor may, in its discretion, determine as being in the best interest of itself and/or the Owner.

Grounds for Withholding Payment. Contractor XYZ may withhold payment under this Agreement or, on account or of subsequently discovered evidence, nullify the whole or part of any payment to the extent previous payment, whenever XYZ deems it necessary in order to protect Contractor itself from loss, including without limitation costs and actual attorneys’ ' fees, on account of (1due to: a) defective work Work not remedied; (2b) claims filed or reasonable evidence indicating a probable filing of claima claim by any third party or any employee, independent contractor, sub-subcontractor, or supplier who performed work on behalf of Subcontractor against the Work or Project; (3c) failure of Subcontractor to make proper payments properly to its subcontractor sub-subcontractors, suppliers, or for material, labor other persons employed in connection with the Work or fringe benefitsany employee benefit program or trust; (4d) a reasonable doubt by XYZ that this Agreement the Work can be completed by Subcontractor in accordance with this Agreement for the balance then unpaid; (5e) damage to the Project caused by Subcontractor or its own sub-subcontractors, suppliers or agents to another subcontractorsubcontractor or supplier; (6f) penalties assessed against Contractor XYZ or Subcontractor for failure of Subcontractor to comply with federal, state, federal or local laws and regulations; g) grounds under which Owner may elect to withhold payment under the Prime Contract; h) Subcontractor's failure, or XYZ's reasonable anticipation that Subcontractor will fail, to comply with any provision under this Agreement, including clean-up; i) Subcontractor's failure to timely submit any report (7including complete Subcontractors' Daily Reports), submittal, or lien release required pursuant to this Agreement, and/or j) any other ground for withholding payment allowed by federal, state or federal law, local law or as otherwise provided in this Agreement. When the above matters are rectifiedIn any of those events, such any amounts as then due and owing to Subcontractor shall be paid or credited to Subcontractor. Such withholdings may be made by Contractor whether or not said sums are in any way related to this Agreement or Project. Contractor may apply such deducted funds to any account, related or unrelated to this Agreement or Project, wherein the obligations of the Subcontractor have not been discharged as determined by the Contractor, and wherein the Contractor’s interest is directly or indirectly involved. In it upon the event Subcontractor is in default of, or breaches or fails being rectified to comply with any provision, covenant or requirement of this Agreement; or in the event that any person or entity asserts, or indicates that he will assert, any lien, claim, demand, or charge against the Project or land or improvements or funds related to the Project, or against the Owner, the Contractor or any surety, arising from Subcontractor’s performance of this Agreement, the Contractor may withhold out of any payments due or to become due to the Subcontractor such amounts as the Contractor, in its discretion, may deem sufficient to completely protect and indemnify the Contractor and the Owner from any and all loss, damage and/or expense therefrom, including attorney’s fees and litigation costs, until the condition requiring such measures has been remedied by Subcontractor to the satisfaction of Contractor. If the offending condition is not remedied by Subcontractor within a reasonable period of time, Contractor may, at its option, proceed to make application of the withheld funds in whatever manner Contractor may, in its discretion, determine as being in the best interest of itself and/or the OwnerXYZ's full satisfaction.