Common use of Right to Withhold Payments Clause in Contracts

Right to Withhold Payments. (a) In addition to all other rights and remedies of District hereunder and by virtue of the law, District may withhold up to one hundred fifty percent (150%) of claimed or bona fide disputed amounts from any Tenant Improvement Payment (any progress payment, final payment, retention funds, or Lease Payments) to such extent as may reasonably be necessary to protect District from loss on account of: (1) Failure of Contractor to comply with the Contract Documents, including but not limited to incomplete or defective Work not remedied, irrespective of when any such Work is found to be defective; (2) Claims or liens filed including, but not limited to claims under sections 1775, 1776, or 1777.7 of the Labor Code, or as recodified in the future; (3) Failure of Contractor to make payments for labor, materials, equipment, or other facilities, or to Subcontractors and/or suppliers, where such failure results in the delivery of a stop notice to District; (4) Unsatisfactory prosecution of the Work by Contractor, and/or failure of Contractor to complete the Work by the Date of Completion to the extent of any associated liquidated damages sums that are due and owing; or (5) Damage directly caused by Contractor to District, Work or property. (6) Claims against Contractor or any Subcontractors for labor/materials furnished in and about the performance of Work on the Project, for which a Stop Notice or other appropriate documentation has been received by District. (7) Failure of Contractor to make proper payments to Subcontractors for material or labor. (8) Failure to complete the Project in accordance with the Project Documents, if there exists reasonable doubt that the Project can be completed on the agreed upon schedule for the contract balance then unpaid. (9) Damage to another contractor as may be applicable to the terms of this Agreement. (10) Site clean-up. (b) Whenever District shall, in accordance herewith, withhold any monies otherwise due to Contractor, written notice of the amount withheld and the reasons therefore will be given to Contractor. After Contractor has corrected the enumerated deficiencies, District will promptly pay to Contractor the amount so withheld. When monies are withheld to protect District against claims or liens of mechanics, material men, Subcontractors, etc., District may at its discretion permit Contractor to deliver a surety bond in terms and amount satisfactory to District, indemnifying District against any loss or expense, and upon acceptance thereof by District, District shall release to Contractor monies so withheld.

Right to Withhold Payments. (a) In addition to all other rights and remedies of District hereunder and by virtue of the law, District may withhold up to one hundred fifty percent (150%) of claimed or bona fide disputed amounts from any Tenant Improvement Payment (any progress payment, final payment, retention funds, funds or Lease Payments) to such extent as may reasonably be necessary to protect District from loss on account of: (1) Failure of Contractor to comply with the Contract Documents, including but not limited to incomplete or defective Work work not remedied, irrespective of when any such Work is found to be defective; (2) Claims or liens filed including, but not limited to claims under sections 1775, 1776, or 1777.7 of the Labor Code, or as recodified in the future; (3) Failure of Contractor to make payments for labor, materials, equipment, or other facilities, or to Subcontractors and/or suppliers, where such failure results in the delivery of a stop notice to District; (4) Unsatisfactory prosecution of the Work by Contractor, and/or failure of Contractor to complete the Work by the Date of Completion to the extent of any associated liquidated damages sums that are due and owing; or (5) Damage directly caused by Contractor to District, Work or property. (6) Claims against Contractor or any Subcontractors for labor/materials furnished in and about the performance of Work on the Project, for which a Stop Notice or other appropriate documentation has been received by District. (7) Failure of Contractor to make proper payments to Subcontractors for material or labor. (8) Failure to complete the Project in accordance with the Project Documents, if there exists reasonable doubt that the Project can be completed on the agreed upon schedule for the contract balance then unpaid. (9) Damage to another contractor as may be applicable to the terms of this Agreement. (10) Site clean-up. (b) Whenever District shall, in accordance herewith, withhold any monies otherwise due to Contractor, written notice of the amount withheld and the reasons therefore will be given to Contractor. After Contractor has corrected the enumerated deficiencies, District will promptly pay to Contractor the amount so withheld. When monies are withheld to protect District against claims or liens of mechanics, material men, Subcontractors, etc., District may at its discretion permit Contractor to deliver a surety bond in terms and amount satisfactory to District, indemnifying District against any loss or expense, and upon acceptance thereof by District, District shall release to Contractor monies so withheld.