Common use of Retainage of Security for Warrantied Materials and Equipment and Labor Clause in Contracts

Retainage of Security for Warrantied Materials and Equipment and Labor. As security for the Contractor’s faithful performance of its obligations under this Article 11, the Owner may deduct any payment due the Contractor upon Substantial Completion and/or upon Final Completion an amount equal to one (1%) percent of the Maximum Contract Price, or such other amount as may be fixed in the Plans and Specifications or other Contract Documents.