Common use of Holdbacks Clause in Contracts

Holdbacks. If the Contractor fails to deliver a workplan and schedule in accordance with Section 8.3 or, having delivered it, fails in any material respect to diligently carry out the workplan in accordance with the schedule, then the Province may hold back (without duplication) from any amounts thereafter becoming payable to the Contractor under this Agreement an aggregate amount (the “Holdback”) that the Province, acting reasonably and following consultation with the Contractor and having regard to the amounts of the O&M Payments remaining to be made during the remainder of the Term, considers sufficient to achieve the Handback Requirements at the end of the Term in the event that the Contractor were to fail to do so. Notwithstanding the foregoing, the Province may not in any event hold back under this Section: (a) any amount prior to the last four years of the Term; or (b) any part of the Capital Payment prior to the last three years of the Term. The Holdback shall be released to the Contractor, without interest, as the work is done by the Contractor (but not more frequently than monthly). If the Handback Requirements are not achieved by the expiry of the Term (or, if the Term expires other than during the Construction Season, within 90 days after the next Construction Season begins), the Province may release the Contractor from its obligation to achieve the Handback Requirements and in that event may retain the remaining balance of the Holdback as liquidated damages.

Appears in 5 contracts

Samples: Design, Build, Finance and Operate Agreement, Design, Build, Finance and Operate Agreement, Dbfo Agreement

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Holdbacks. If the Contractor fails to deliver a workplan and schedule in accordance with Section 8.3 or, having delivered it, fails in any material respect to diligently carry out the workplan in accordance with the schedule, then the Province may hold back (without duplication) from any amounts thereafter becoming payable to the Contractor under this Agreement an aggregate amount (the “Holdback”) that the Province, acting reasonably and following consultation with the Contractor and having regard to the amounts of the O&M M&R Payments remaining to be made during the remainder of the Term, considers sufficient to achieve the Handback Requirements at the end of the Term in the event that the Contractor were to fail to do so. Notwithstanding the foregoing, the Province may not in any event hold back under this Section: (a) any amount prior to the last four years of the Term; or (b) any part of the Capital Payment prior to the last three years of the Term. The Holdback shall be released to the Contractor, without interest, as the work is done by the Contractor (but not more frequently than monthly). If the Handback Requirements are not achieved by the expiry of the Term (or, if the Term expires other than during the Construction Season, within 90 days after the next Construction Season begins)Term, the Province may release the Contractor from its obligation to achieve the Handback Requirements and in that event may retain the remaining balance of the Holdback as liquidated damages.

Appears in 2 contracts

Samples: Design, Build, Finance and Maintain Agreement, Design, Build, Finance and Maintain Agreement

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Holdbacks. If the Contractor fails to deliver a workplan and schedule in accordance with Section 8.3 or, having delivered it, fails in any material respect to diligently carry out the workplan in accordance with the schedule, then the Province may hold back (without duplication) from any amounts thereafter becoming payable to the Contractor under this Agreement an aggregate amount (the “Holdback”) that the Province, acting reasonably and following consultation with the Contractor and having regard to the amounts of the O&M Payments remaining to be made during the remainder of the Term, considers sufficient to achieve the Handback Requirements at the end of the Term in the event that the Contractor were to fail to do so. Notwithstanding the foregoing, the Province may not in any event hold back under this Section: (a) any amount prior to the last four years of the Term; or (b) any part of the Capital Payment prior to the last three two years of the Term. The Holdback shall be released to the Contractor, without interest, as the work is done by the Contractor (but not more frequently than monthly)Contractor. If the Handback Requirements are not achieved by the expiry of the Term (or, if the Term expires other than during the Construction Season, within 90 days after the next Construction Season begins), the Province may release the Contractor from its obligation to achieve the Handback Requirements and in that event may retain the remaining balance of the Holdback as liquidated damages.

Appears in 1 contract

Samples: Design, Build, Finance and Operate Agreement

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