Common use of Pursuant to Civil Clause in Contracts

Pursuant to Civil. Code Section 9358, upon receipt of a stop notice, DISTRICT shall withhold from payment to CONTRACTOR sufficient funds due, or to become due, to pay the claim stated in the stop notice and provide for DISTRICT’s reasonable costs of litigation. One hundred twenty-five percent (125%) of the amount of the claim stated in the stop notice shall be a reasonable amount to withhold. In addition to the remedies authorized by law, CONTRACTOR shall reimburse DISTRICT for administrative expenses incurred in processing Notices to Withhold, Stop Notices, or similar legal documents arising out of a failure of CONTRACTOR to pay for labor or materials. Said obligation shall be provided for in CONTRACTOR’s payment bond. DISTRICT shall have the right to deduct any such expenses from amounts due or to become due to CONTRACTOR under this AGREEMENT.