Common use of Payment and Completion Clause in Contracts

Payment and Completion. The Contract Sum shall include all items and services necessary for the proper execution and completion of the Work. Based on Contractor’s Application for Payment, Owner shall pay to Contractor as follows: net (30) days after invoice. Invoices shall be submitted monthly for completed in-place quantities – per attached schedule of values. Owner will hold a ten percent (10%) retainage on all invoices until fifty percent (50%) completion, five percent (5%) retainage on all invoices up to and including the date of substantial completion and will a hold two percent (2%) retainage until one (1) year after final completion of the Project (determined by the completion of all punch-list items). The Contract Sum stated in the Agreement, including authorized adjustments, is the total amount payable in accordance with the values stated in the Agreement. Such application shall be supported by such data substantiating the Contractor’s right to payment as Owner may reasonably require and reflecting retainage, as provided herein. Contractor shall guarantee all materials and workmanship to be free from any defects for a period of one year from final acceptance by the Owner. Contractor warrants that title to all Work covered by an Application for Payment will pass to Owner no later than the time of payment. Contractor further warrants that upon submittal of an Application for Payment, all Work for which the Application for Payment is made shall, to the best of the Contractor’s knowledge, information and belief, be free and clear of liens, claims, security interests or other encumbrances adverse to Owner’s interests. No later than upon receipt of payment from Owner, Contractor shall promptly pay each Subcontractor and material supplier on account of such entities’ portion of the Work. Owner shall have no responsibility for payment of money to any Subcontractor or material supplier. Any payment or progress payment, or partial or entire use or occupancy of the project by Owner shall not constitute acceptance of the Work not in accordance with the requirements of the Contract Documents. Substantial completion is that stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that Owner can occupy or utilize the Work for its intended use. When the Work or designated portion thereof is substantially complete, Owner shall issue a Certificate of Substantial Completion and Contractor and Owner shall establish responsibilities for completion and shall fix the time within which Contractor shall furnish all items listed for final completion (the “punch list”). Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion. In addition to Contractor’s other obligations, including warranties, under the Agreement, the Contractor shall, for a period of one year after Substantial Completion, correct Work not conforming to the requirements of the Contract Documents. If Contractor fails to correct nonconforming Work within a reasonable time, Owner may correct it and Contractor shall reimburse Owner for the cost of the correction. Tests, inspections and approvals of portions of the Work required by the Contract Documents or by-laws, ordinances, rules, regulations or orders of public authorities having jurisdiction shall be made at an appropriate time, as may be required. If additional testing is required, Contractor shall perform these tests and forward results to Owner as soon as practical.

Payment and Completion. The Contract Sum shall include all items and services necessary for the proper execution and completion of the Work. Based on Contractor’s Application for Payment, Owner shall pay to Contractor as follows: net (30) days 30 after invoice. Invoices shall be submitted monthly for completed in-place quantities – quantities, per attached schedule of Exhibit A values. Owner will hold a ten percent (10%) retainage on all invoices until fifty percent (50%) completion, a five percent (5%) retainage on all invoices up to and including the date of substantial completion and will hold a hold two percent (2%) retainage until one (1) year after final completion of the Project Work (determined by the completion of all punch-list items). The Contract Sum stated in the Agreement, including authorized adjustments, is the total amount payable in accordance with the values stated in the Agreement. Such application shall be supported by such data substantiating the Contractor’s right to payment as Owner may reasonably require and reflecting retainage, as provided herein. Contractor shall guarantee all materials and workmanship to be free from any defects for a period of one year from final acceptance by the Owner. Contractor warrants that title to all Work covered by an Application for Payment will pass to Owner no later than the time of payment. Contractor further warrants that upon submittal of an Application for Payment, all Work for which the Application for Payment is made shall, to the best of the Contractor’s knowledge, information and belief, be free and clear of liens, claims, security interests or other encumbrances adverse to Owner’s interests. No later than upon receipt of payment from Owner, Contractor shall promptly pay each Subcontractor and material supplier on account of such entities’ portion of the Work. Owner shall have no responsibility for payment of money to any Subcontractor or material supplier. Any payment or progress payment, or partial or entire use or occupancy of the project by Owner shall not constitute acceptance of the Work not in accordance with the requirements of the Contract Documents. Substantial completion is that stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that Owner can occupy or utilize the Work for its intended use. When the Work or designated portion thereof is substantially complete, Owner shall issue a Certificate of Substantial Completion and Contractor and Owner shall establish responsibilities for completion and shall fix the time within which Contractor shall furnish all items listed for final completion (the “punch list”). Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion. In addition to Contractor’s other obligations, including warranties, under the Agreement, the Contractor shall, for a period of one year after Substantial Completion, correct Work not conforming to the requirements of the Contract Documents. If Contractor fails to correct nonconforming Work within a reasonable time, Owner may correct it and Contractor shall reimburse Owner for the cost of the correction. Tests, inspections and approvals of portions of the Work required by the Contract Documents or by-laws, ordinances, rules, regulations or orders of public authorities having jurisdiction shall be made at an appropriate time, as may be required. If additional testing is required, Contractor shall perform these tests and forward results to Owner as soon as practical.

Payment and Completion. The Contract Sum shall include all items and services necessary for the proper execution and completion of the Work. Based on Contractor’s Application for Payment, Owner shall pay to Contractor as follows: net (30) days after invoice. Invoices shall be submitted monthly for completed in-place quantities – per attached schedule of values. Owner will hold a ten percent (10%) retainage on all invoices until fifty percent (50%) completion, five percent (5%) retainage on all invoices up to and including the date of substantial completion and will a hold two percent (2%) retainage until one (1) year after final completion of the Project (determined by the completion of all punch-list items). The Contract Sum stated in the Agreement, including authorized adjustments, is the total amount payable by the Owner to the Contractor for performance of the Work under the Contract Documents. Applications for Payment At least ten days before the date established for each progress payment, the Contractor shall submit to the A/E an itemized Application for Payment for Work completed in accordance with the values stated in the Agreement. Such application Application shall be supported by such data substantiating the Contractor’s 's right to payment as the Owner or A/E may reasonably require and reflecting retainage, as provided hereinrequire. Contractor Payments shall guarantee all be made on account of materials and workmanship to be free from any defects equipment delivered and suitably stored at the site for a period of one year from final acceptance subsequent incorporation in the Work. If approved in advance by the Owner, payment may similarly be made for materials and equipment stored, and protected from damage, off the site at a location agreed upon in writing. The Contractor warrants that title to all Work covered by an Application for Payment will pass to the Owner no later than the time of payment. The Contractor further warrants that upon submittal of an Application for Payment, all Work for which the Application Certificates for Payment is made have been previously issued and payments received from the Owner shall, to the best of the Contractor’s 's knowledge, information information, and belief, be free and clear of liens, claims, security interests or other encumbrances adverse to the Owner’s 's interests. No later than Certificates for Payment The A/E will, within seven days after receipt of the Contractor's Application for Payment, either issue to the Owner a Certificate for Payment, with a copy to the Contractor, for such amount as the A/E determines is properly due, or notify the Contractor and Owner in writing of the A/E's reasons for withholding certification in whole or in part. Progress Payments After the A/E has issued a Certificate for Payment, the Owner shall make payment in the manner provided in the Contract Documents. The Contractor shall promptly pay each subcontractor and supplier, upon receipt of payment from the Owner, Contractor shall promptly pay each Subcontractor and material supplier on account of such entities’ portion an amount determined in accordance with the terms of the Workapplicable subcontracts and purchase orders. Neither the Owner nor the A/E shall have no responsibility for payment of money payments to any Subcontractor a subcontractor or material supplier. Any payment or A Certificate for Payment, a progress payment, or partial or entire use or occupancy of the project Project by the Owner shall not constitute acceptance of the Work not in accordance with the requirements of the Contract Documents. Substantial completion Completion Substantial Completion is that the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended use. When the Work or designated portion thereof is substantially complete, Owner the A/E will make an inspect ion to determine whether the Work is substantially complete. When the A/E determines that the Work is substantially complete the A/E shall issue prepare a Certificate of Substantial Completion and Contractor and Owner that shall establish the date of Substantial Completion, shall establish the responsibilities for completion of the Owner and Contractor, and shall fix the time within which the Contractor shall furnish finish all items listed for final completion (on the “punch list”)list accompanying the Certificate. Warranties required by the Contract Documents shall commence on the date of Substantial Completion the Owner’s acceptance of the Work or designated portion thereof unless otherwise provided stated in the Certificate of Substantial Completion. In addition to Contractor’s other obligations, including warranties, under the Agreement, the Contractor shall, for a period of one year after Substantial Completion, correct Work not conforming to the requirements of the Contract Documents. If Contractor fails to correct nonconforming Work within a reasonable time, Owner may correct it and Contractor shall reimburse Owner for the cost of the correction. Tests, inspections and approvals of portions of the Work required by the Contract Documents or by-laws, ordinances, rules, regulations or orders of public authorities having jurisdiction shall be made at an appropriate time, as may be required. If additional testing is required, Contractor shall perform these tests and forward results to Owner as soon as practical.