Common use of Payments Withheld Clause in Contracts

Payments Withheld. The Owner or Program Manager may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request or certificate to such extent as may be necessary to protect the Owner from loss on account of: Defective work not remedied Claims filed or reasonable evidence indicating probable filing of claims. Failure of the Contractor to make payments properly to subcontractor or for materials or labor. A reasonable doubt that the contract can be completed for the balance then unpaid. Damage to another contractor or to some third party. Failure to maintain a rate of progress in accordance with the construction progress schedule. Failure to supply enough skilled workmen or proper materials. When the above grounds are removed, payment shall be made for amounts withheld because of them. With regard to cases (b) and (c) above, the Owner may agree to payment upon receipt of a satisfactory Bond to Discharge Claim in the amount of double the claim (see Section 5, Contract Forms). At the option of the Owner, adherence to the construction progress schedule shall be a condition precedent to the right of the CM/GC to demand payment. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may be expedient.

Payments Withheld. The Owner or Program Manager or Owner may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request application for payment or certificate to such extent as may be necessary to protect the Owner from loss on account of: Defective work not remedied Claims filed or reasonable evidence indicating probable filing of claims. Failure of the Contractor to make payments properly to subcontractor or for materials or labor. A reasonable doubt that the contract can be completed for the balance then unpaid. Damage to another contractor or to some third party. Failure to maintain a rate of progress in accordance with the construction progress schedule. Failure to supply enough skilled workmen or proper materials. When the above grounds are removed, payment shall be made for amounts withheld because of them. With regard to cases (b) and (c) above, the Owner may agree to payment upon receipt of a satisfactory Bond to Discharge Claim in the amount of double the claim (see Section 56, Contract Forms). At the option of the Owner, Owner adherence to the construction progress schedule shall be a condition precedent to the right of the CM/GC to demand paymentpayment of an application for payment or certificate. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may be expedient.. Retainage

Payments Withheld. The Owner or Program Manager or Owner may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request application for payment or certificate to such extent as may be necessary to protect the Owner from loss on account of: Defective work not remedied Claims filed or reasonable evidence indicating probable filing of claims. Failure of the Contractor to make payments properly to subcontractor or for materials or labor. A reasonable doubt that the contract can be completed for the balance then unpaid. Damage to another contractor or to some third party. Failure to maintain a rate of progress in accordance with the construction progress schedule. Failure to supply enough skilled workmen or proper materials. When the above grounds are removed, payment shall be made for amounts withheld because of them. With regard to cases (b) and (c) above, the Owner may agree to payment upon receipt of a satisfactory Bond to Discharge Claim in the amount of double the claim (see Section 56, Contract Forms). At the option of the Owner, Owner adherence to the construction progress schedule shall be a condition precedent to the right of the CM/GC to demand paymentpayment of an application for payment or certificate. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may be expedient.