Common use of Payment for Stored Material Clause in Contracts

Payment for Stored Material. The Owner may at its discretion pay the Contractor the cost of the material that is to be used in the performance of the Work provided the material complies with the requirements of the Contract and the following conditions are satisfied: i. The Contractor stores the material in a manner acceptable to the Owner at the Work site or other site that is acceptable to the Owner. ii. The Contractor furnishes evidence of the quantity and quality of the stored material that is acceptable to the Owner. iii. The Contractor furnishes legal title (free of liens or encumbrances of any kind) for the stored material that is acceptable to the Owner. iv. The Contractor furnishes evidence the stored material is insured against loss, damage or disappearance thereof prior to use in the Work that is acceptable to the Owner. The transfer of title to, or the payment for, the stored material by the Owner shall in no way relieve the Contractor of responsibility for placing the material in accordance with the requirements of the Contract. If payment is being sought for material not specifically purchased for the Work, but taken from the Contractor’s stock, then in lieu of an invoice, the Contractor shall submit to the Owner a statement and accompanying affidavit certifying that the material was taken from the Contractor’s stock and that the claimed material and transportation costs represent the actual costs to the Contractor. The progress xxxx requesting payment for the stored material shall not exceed the Contract price for such material or the price for the Contract item comprising the material used by the Contractor.

Payment for Stored Material. The Owner may at its discretion pay the Contractor the cost of the material that is to be used in the performance of the Work provided the material complies with the requirements of the Contract and the following conditions are satisfied: i. The Contractor stores the material in a manner acceptable to the Owner at the Work site or other site that is acceptable to the Owner. ii. The Contractor furnishes evidence of the quantity and quality of the stored material that is acceptable to the Owner. iii. The Contractor furnishes legal title (free of liens or encumbrances of any kind) for the stored material that is acceptable to the Owner. iv. The Contractor furnishes evidence the stored material is insured against loss, damage or disappearance thereof prior to use in the Work that is acceptable to the Owner. The transfer of title to, or the payment for, the stored material by the Owner shall in no way relieve the Contractor of responsibility for placing the material in accordance with the requirements of the Contract. If payment is being sought for material not specifically purchased for the Work, but taken from the Contractor’s stock, then in lieu of an invoice, the Contractor shall submit to the Owner a statement and accompanying affidavit certifying that the material was taken from the Contractor’s stock and that the claimed material and transportation costs represent the actual costs to the Contractor. The progress xxxx bill requesting payment for the stored material shall not exceed the Contract price for such material or the price for the Contract item comprising the material used by the Contractor.