Common use of Payment Withholding Clause in Contracts

Payment Withholding. The CONTRACTOR agrees that the reporting and record keeping requirements specified in this contract are a material element of performance and that if, in the opinion of the STATE, the CONTRACTOR's record keeping practices and/or reporting to the STATE are not conducted in a timely and satisfactory manner, the STATE may withhold part or all payments under this or any other contract until such deficiencies have been remedied. In the event of the payment(s) being withheld, the STATE agrees to notify the CONTRACTOR in writing prior to denial of payment of the reasons for the denial and of the actions that the CONTRACTOR will need to take to bring about the release of withheld payments.

Payment Withholding. The CONTRACTOR agrees understands that the reporting and record keeping requirements specified in this contract are a material element of performance and that if, in the sole opinion of the STATE, the CONTRACTOR's 'S record keeping practices and/or or reporting to the STATE are not conducted in a timely and satisfactory manner, the STATE may withhold part or all of the payments under this or any other contract until such time as, in the sole opinion of the STATE, such deficiencies have been remedied. In the event of the payment(s) being withheld, the STATE agrees to will immediately notify the CONTRACTOR in writing prior to denial of payment of the reasons for the denial and of the actions that the CONTRACTOR will need to must take to bring about the release of withheld payments.