Progress Payments During Construction Clause Samples
Progress Payments During Construction. Until the value of the Work completed, including stored materials, is at least fifty percent (50%) of the Guaranteed Maximum Price, the Owner will retain ten percent (10%) of the value of all Work satisfactorily completed, including stored materials. When the value of the satisfactorily completed Work totals at least fifty percent (50%) of the Guaranteed Maximum Price, the Owner will discontinue retaining additional amounts provided the Work is progressing satisfactorily and there is no specific cause for retaining a larger sum; provided, however, that the total amount retained will be at least five percent (5%) of the Guaranteed Maximum Price, as adjusted by any approved price-based Change Orders authorized to be issued under the terms and conditions of this Agreement, until the payment due at Substantial Completion. The Owner may elect to reinstate retention of ten percent (10%) of the total value of the Work completed if at any time the Design-Builder fails to make satisfactory progress or if there is other specific cause as determined solely by the Owner.
Progress Payments During Construction. During the course of construction of the Tenant Improvements, each progress payment due to Tenant's contractor or to any subcontractor or material supplier shall be paid by Landlord and Tenant as follows:
(i) Landlord shall pay a fraction of each progress or other payment, which fraction shall have as its numerator the Maximum TI Allowance and shall have as its denominator Tenant's estimate of the total TI Costs to complete construction of the Tenant Improvements (it being understood and agreed, however, that in no event shall Landlord be required to contribute more than the Maximum TI Allowance toward the costs of designing and constructing the Tenant Improvements); and
(ii) Tenant shall pay the balance of each progress or other payment. If Tenant's construction contract does not otherwise provide for a retention of at least ten percent (10%) then Landlord's portion of each progress payment shall be reduced by ten percent (10%) and such ten percent (10%) retention shall be paid by Landlord to Tenant thirty-five (35) days after the timely filing of a Notice of Completion or, if no Notice of Completion is filed, then ninety-five (95) days after substantial completion of the Tenant Improvements, in each case assuming such period shall expire without the filing of any lien claims. If lien claims are filed, such retention shall be paid within ten (10) days after presentation to Landlord of appropriate recorded lien releases, surety bonds or other evidence satisfactory to Landlord that such lien has been removed or released from record title.