Common use of Owner’s Right to Withhold Payment Clause in Contracts

Owner’s Right to Withhold Payment. When it reasonably believes (i) that Substantial Completion will be inexcusably delayed; or (ii) that the DB will fail to achieve Final Completion by the date of Final Completion, the Owner shall be entitled, but not required, to withhold from any amounts otherwise due the DB the daily amount specified for liquidated damages in this Article for each calendar day of the unexcused delay. 17.5.1 If and when the DB overcomes the delay in timely achieving Substantial Completion or Final Completion, or any part thereof, for which the Owner has withheld payment, the Owner shall promptly release to the DB those funds withheld, but no longer applicable, as liquidated damages. 17.5.2 Delay caused by labor disputes, picketing, employee boycotts, or the like which directly or indirectly involves employees of the DB or its subcontractors and suppliers is not the responsibility of the Owner and will result in time extensions only if agreed to in writing by the Owner at the time such events arise.

Owner’s Right to Withhold Payment. When it reasonably believes (i) that Substantial Completion will be inexcusably delayed; or (ii) that the DB CM will fail to achieve Final Completion by the date of Final Completion, the Owner shall be entitled, but not required, to withhold from any amounts otherwise due the DB CM the daily amount specified for liquidated damages in this Article for each calendar day of the unexcused delay. 17.5.1 If and when the DB CM overcomes the delay in timely achieving Substantial Completion or Final Completion, or any part thereof, for which the Owner has withheld payment, the Owner shall promptly release to the DB CM those funds withheld, but no longer applicable, as liquidated damages. 17.5.2 Delay caused by labor disputes, picketing, employee boycotts, or the like which directly or indirectly involves employees of the DB CM or its subcontractors and suppliers is not the responsibility of the Owner and will result in time extensions only if agreed to in writing by the Owner at the time such events arise.