Common use of Monies Withheld Clause in Contracts

Monies Withheld. When City has reasonable grounds for believing that: A. Engineer will be unable to perform this contract fully and satisfactorily within the time fixed for performance; or B. A claim exists or will exist against Engineer or City arising out of the negligence of the Engineer or the Engineer’s breach of any provision of this contract; then City may withhold payment of any amount otherwise due and payable to Engineer under this contract. Any amount so withheld may be retained by City for that period of time as it may deem advisable to protect City against any loss and may, after written notice to Engineer, be applied in satisfaction of any claim described herein. This provision is intended solely for the benefit of City, and no other person or entity shall have any right or claim against City by reason of City’s failure or refusal to withhold monies. No interest shall be payable by City on any amounts withheld under this provision. This provision is not intended to limit or in any way prejudice any other right of City.

Monies Withheld. When City has reasonable grounds for believing that: A. Engineer will be unable to perform this contract fully and satisfactorily within the time fixed for performance; or B. A claim exists or will exist against Engineer or City arising out of the negligence of the Engineer or the Engineer’s breach of any provision of this contract; then City may withhold payment of any amount otherwise due and payable to Engineer under this contract. Any amount so withheld may be retained by City for that period of time as it may deem advisable to protect City against any loss and may, after written notice to Engineer, be applied in satisfaction of any claim described herein. This provision is intended solely for the benefit of City, and no other person or entity shall have any right or claim against City by reason of City’s failure or refusal to withhold monies. No interest shall be payable by City on any amounts withheld under this provision. This provision is not intended to limit or in any way prejudice prejudiadce any other right of City.

Monies Withheld. When City has the Commissioner shall have reasonable grounds for believing that: A. Engineer : (1) the Contractor will be unable to perform this contract Contract fully and satisfactorily within the time fixed for performance; or B. A or (2) a meritorious claim exists or will exist against Engineer the Contractor or the City arising out of the negligence of the Engineer Contractor or the EngineerContractor’s breach of any provision of this contract; then City the Commissioner or the Comptroller may withhold payment of any amount otherwise due and payable to Engineer under this contractthe Contractor hereunder. Any amount so withheld may be retained by the City for that such period of time as it may deem advisable to protect the City against any loss and may, after written notice to Engineerthe Contractor, be applied in satisfaction of any claim described hereinherein described. This provision is intended solely for the benefit of the City, and no other person or entity shall have any right against the Commissioner or claim against the City by reason of City’s the Commissioner's failure or refusal to withhold monies. No interest shall be payable by the City on any amounts withheld under this provision. This provision is not intended to limit or in any way prejudice any other right of the City.