Common use of Retainage and Withholding Clause in Contracts

Retainage and Withholding. OWNER shall withhold as retainage from each payment due and payable to CONTRACTOR hereunder (other than from the payment due and payable with respect to achievement of Final Acceptance) [***] of the amount of such payment until [***] of the contract value is achieved (billed) and thereafter, [***] of the amount of such payment (the “Retainage”). In addition, OWNER may withhold from payments due and payable to CONTRACTOR (a) in an amount and to the extent as may be reasonably necessary to protect OWNER from loss because of third party claims filed against an OWNER Indemnitee and covered by CONTRACTOR’s indemnification obligations under this Agreement; (b) in an amount equal to payments previously made to CONTRACTOR which were not yet properly due and payable pursuant to this Section 7.3; and (c) any other sums which OWNER is entitled to recover from CONTRACTOR under the terms of this Agreement or pursuant to applicable Law. Upon attainment of Substantial Completion, the accumulated Retainage, after reduction for exercise of OWNER’s setoff and withholding rights in accordance with the provisions of this Agreement (including the Punch List Holdback Amount), shall be released to CONTRACTOR in conjunction with the next payment made to CONTRACTOR in accordance with Section 7.1.

Retainage and Withholding. OWNER shall withhold as retainage from each payment due and payable to CONTRACTOR hereunder (other than from the payment due and payable with respect to achievement of Final Acceptance) [***] of the amount of such payment until [***] of the contract value is achieved ten percent (billed10%) and thereafter, [***] of the amount of such payment (the “Retainage”). In addition, OWNER may withhold from payments due and payable to CONTRACTOR (a) in an amount and to the extent as may be reasonably necessary to protect OWNER from loss because of third party claims filed against an OWNER Indemnitee and covered by CONTRACTOR’s indemnification obligations under this Agreement; (b) in an amount equal to payments previously made to CONTRACTOR which were not yet properly due and payable pursuant to this Section 7.3; and (c) any other sums which OWNER is entitled to recover from CONTRACTOR under the terms of this Agreement or pursuant to applicable Law. Upon attainment of Substantial Completion, the accumulated Retainage, after reduction for exercise of OWNER’s setoff and withholding rights in accordance with the provisions of this Agreement (including the Punch List Holdback Amount), shall be released to CONTRACTOR in conjunction with the next payment made to CONTRACTOR in accordance with Section 7.1.