Common use of Payments to Sub-Contractors Clause in Contracts

Payments to Sub-Contractors. The Construction Manager shall within 10 days after receipt of payment from the Owner, pay all the amount due Sub-Contractors less the retainage of ten percent (10%) described in paragraph 11.2 of this Agreement until the project is substantially complete, and based on Construction Managers evaluation of the Sub-Contractors acceptable performance, the Owner may approve a reduction in retainage from 10% to 5% thereafter. If there should remain items to be completed, the Construction Manager and Architect-Engineer shall list those items required for completion and the Construction Manager shall require the retainage of a sum equal to 150% of the estimated cost of completing any unfinished items, provided that said unfinished items are listed separately and the estimated cost of completing any unfinished items likewise listed separately. Thereafter, the Construction Manager shall pay to the Sub-Contractors, monthly, the amount retained for each incomplete item after each of said items is completed. Before issuance of final payment without any retainage, the Sub-Contractor shall submit satisfactory evidence that all payrolls, material bills and other indebtedness connected with the Project have been paid or otherwise satisfied, warranty information is complete, as-built markups have been submitted and instruction for the Owners operating and maintenance personnel is complete. Final payment may be made to certain select Sub-Contractors whose work is satisfactorily completed prior to the total completion of the Project but only upon approval of the Owner.

Payments to Sub-Contractors. The Construction Manager shall within 10 days after receipt of payment from the Owner, pay all the amount due Sub-Contractors less the retainage of ten percent (10%) described in paragraph 11.2 of this Agreement until the project is substantially complete, and based on Construction Managers evaluation of the Sub-Contractors acceptable performance, the Owner may approve a reduction in retainage from 10% to 5% thereafter. If there should remain items to be completed, the Construction Manager and Architect-Engineer shall list those items required for completion and the Construction Manager shall require the retainage of a sum equal to 150200% of the estimated cost of completing any unfinished items, provided that said unfinished items are listed separately and the estimated cost of completing any unfinished items likewise listed separately. Thereafter, the Construction Manager shall pay to the Sub-Contractors, monthly, the amount retained for each incomplete item after each of said items is completed. Before issuance of final payment without any retainage, the Sub-Contractor shall submit satisfactory evidence that all payrolls, material bills and other indebtedness connected with the Project have been paid or otherwise satisfied, warranty information is complete, as-built markups have been submitted and instruction for the Owners operating and maintenance personnel is complete. Final payment may be made to certain select Sub-Contractors whose work is satisfactorily completed prior to the total completion of the Project but only upon approval of the Owner.