Common use of Price Reduction to Cover Loss Clause in Contracts

Price Reduction to Cover Loss. Owner may reduce any Application for Payment, prior to payment to the extent necessary to protect Owner from loss on account of actions of Contractor including, but not limited to, the following: 10.3.3.1 Defective or incomplete Work not remedied; 10.3.3.2 Damage to Work of a separate Contractor; 10.3.3.3 Failure to maintain scheduled progress or reasonable evidence that the Work will not be completed within the Contract Time; 10.3.3.4 Persistent failure to carry out the Work in accordance with the Contract Documents; 10.3.3.5 Reasonable evidence that the Work cannot be completed for the unpaid portion of the Contract Sum; 10.3.3.6 Assessment of fines for violations of prevailing wage rate law; or 10.3.3.7 Failure to include the appropriate amount of retainage for that periodic progress payment. 10.3.4.1 Transfer of title to Owner does not relieve Contractor and its Subcontractors of the sole responsibility for the care and protection of materials and Work upon which payments have been made until final acceptance, or the restoration of any damaged Work, or waive the right of Owner to require the fulfillment of all the terms of the Contract.