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

Owner’s Right to Withhold Payment. Any provision hereof to the contrary notwithstanding, Owner shall, to the extent reasonably required to protect Owner, be entitled to withhold any payment (whether a progress payment or final payment) if any one or more of the following conditions exists: (a) Contractor is in breach or default under this Agreement; (b) Any part of such payment is attributable to Work that was not performed strictly in accordance with this Agreement; provided, however, such payment shall be made as to the part thereof attributable to Work that was performed strictly in accordance with this Agreement; or (c) Owner determines that the portion of the Contract Sum then remaining unpaid will not be sufficient to complete the Work in accordance with this Agreement, in which case no additional payments will be due Contractor hereunder unless and until Contractor, at Contractor’s sole cost, performs a sufficient portion of the remaining Work so that such portion of the Contract Sum then remaining unpaid is determined by Owner to be sufficient to complete the then remaining Work. Nothing contained herein shall require the Owner to pay the Contractor any amount in excess of the Construction Cost Limitation.