Common use of Progress Payments and Retainage Clause in Contracts

Progress Payments and Retainage. ACPS will make monthly progress or partial payments to the Contractor upon written application by the Contractor, on the basis of an estimate, provided by the Contractor and approved by ACPS, of all work performed during the preceding calendar month to the satisfaction of ACPS. However, in making any progress payment, five percent (5%) of the amount of the estimate upon which the progress payment is based will be retained by ACPS until Final Completion and acceptance of all Work covered by the Agreement. All material and work covered by partial payments made by ACPS will become the property solely of ACPS at the time the partial payment is made, but this provision will not be construed as relieving the Contractor from the sole responsibility, care and custody for all materials and work upon which payments have been made, or the restoration of any damaged work, nor shall this provision be construed as a waiver of ACPS's right to require the fulfillment of all of the terms of the Agreement. When calculating payment for materials on-site, ACPS shall not pay for materials which are not scheduled for incorporation into the Work within thirty (30) days from the date of application for payment.