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 General Contractor 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 General Contractor 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 General Contractor 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the Owner has withheld payment, the Owner shall promptly release to the General Contractor those funds withheld, but no longer applicable, as liquidated damages. 17.5.2 Delay caused by labor disputes, picketing, employee boycotts, or the like which directly or indirectly involves employees of the General Contractor 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.