Common use of PAYMENT WITHHELD Clause in Contracts

PAYMENT WITHHELD. The OWNER may withhold all or part of any payment otherwise due the Contractor if any one of the following conditions exist: a. Defective work or failure to execute the Work in strict accordance with the Contract Documents. b. Unauthorized deviations from the Contract Documents. c. Damage to another contractor. d. Work not fully completed or corrected after Substantial or Final Completion. e. Reasonable doubt that the Work will be completed within the Contract Time; and that the unpaid balance would not be adequate to cover actual or liquidated damages for the anticipated delay. f. Failure to keep current as-built records at the Site as specified. g. Unpaid amounts owed to the OWNER for fees and charges for services or permits, assessments for damage to OWNER property, or use of OWNER facilities and services. h. Failure to comply with the minimum wage rate requirements as specified. i. Failure to comply with the requirements of Specifications regarding Project Schedule. j. Errors due to any cause that may be discovered in any previous progress payment. k. Written request from contractor's surety to withhold payment(s). When the above reasons for withholding payment are resolved, payment will be made for amounts previously withheld. All Work covered by progress payments shall, at the time of the payment, become the sole property of the OWNER, but this shall not be construed as relieving the Contractor from the sole responsibility for Work upon which payments have been made or the restoration of any damaged Work, or waiving the right of the OWNER to require the fulfillment of all the terms of this Contract. Following receipt of proper certified pay requests (as may be adjusted by the Engineer or OWNER), the OWNER shall make monthly progress payments as the Work proceeds and as approved by the OWNER. A proper pay request will be submitted on the DFW Pay Request form and have all appropriate blanks filled in and all documents or information substantiating the Contractor’s right to payment required by the OWNER attached. The Contractor shall sign the Contractor’s Certification as outlined on the form. If the OWNER deems a pay request to be improper or defective, the OWNER will return the pay request to the Contractor for correction(s) and resubmission. In the event portions of the pay request are withheld in accordance with this Section, the balance of the eligible charges will be processed for payment.