Common use of PAYMENT WITHHELD Clause in Contracts

PAYMENT WITHHELD. Contractor may withhold all or part of any payment, or nullify the whole or any part of any payment, to the extent necessary to protect Contractor from loss, damages, costs or liabilities caused by: (a) defective work not remedied; (b) claims filed or reasonable evidence indicating probable filing of claims against Subcontractor, Contractor, Contractor’s surety or Owner relating to Subcontractor’s work under this Agreement; (c) Subcontractor’s failure to make payments properly to its subcontractors, materialmen, suppliers, vendors or employees for work, material, labor, or fringe benefits; (d) a reasonable doubt that this Agreement can be completed for the balance then unpaid; (e) damage to another subcontractor; (f) Subcontractor’s failure to complete the Agreement in accordance with the Contract Documents; (g) unsatisfactory performance of the work by Subcontractor; (h) liens, stop payment notices or claims filed or submitted by Subcontractor’s materialmen, suppliers, vendors or subcontractors, or any other person or entity who may have a right of action against Contractor or its surety under any law in connection with Subcontractor’s work; (i) Subcontractor’s failure to provide documents to Contractor which Subcontractor is required to provide pursuant to this Agreement; (j) any failure or alleged failure by Subcontractor to comply with any of the requirements or terms of this Agreement; or (k) any other ground for withholding payment provided in this Agreement or by applicable law. When the grounds are removed, such amounts as are then due and owing shall be paid or credited to Subcontractor.