Common use of Payment Retention Clause in Contracts

Payment Retention. The District shall retain five percent (5%) of each progress payment as it falls due to ensure performance of all work covered by this Agreement. All undisputed retention amounts withheld from the CONSULTANT’s progress payments will be paid to the CONSULTANT, in compliance with Civil Code Section 3320, less any with holds as permitted by law or this Agreement, as set forth in 7.2. below.