Common use of Right to Withhold Payments Clause in Contracts

Right to Withhold Payments. District shall have the right to withhold from payments due Contractor such sums as necessary, in District’s sole opinion, to protect District against any loss, damage or claim which may result from Contractor's performance or failure to perform under this agreement or the failure of Contractor to make proper payment to any suppliers or subcontractors. If a liquidated damages provision is contained in the Scope of Work and if Contractor has violated that provision, District shall have the right to withhold from payments due Contractor such sums as are required to satisfy District’s claims under that provision.