Common use of Withholding for Maintenance Security Clause in Contracts

Withholding for Maintenance Security. TxDOT shall retain from the Final Payment (and, if it reasonably appears that the Final Payment will be insufficient for such purposes, from progress payments) the amount of $500,000 as security for the provision of the bonds required under Section 7.1 of the CMA. DB Contractor shall have the option, at any time, to deliver an irrevocable letter of credit in the amount of $500,000 in lieu of the retained sums in a form and on terms acceptable to TxDOT in its sole discretion. TxDOT shall release the $500,000 or the letter of credit, as applicable, to DB Contractor upon (a) the provision of the bonds required under Section 7.1 of the CMA within 60 days after TxDOT’s issuance of Maintenance NTP1 or (b) the election of TxDOT not to issue Maintenance NTP1 within 365 days after Final Acceptance. DB Contractor shall forfeit, as liquidated damages and not as a penalty, such sums (or, if a letter of credit is provided in lieu of retained amounts, TxDOT shall have the right to draw on the letter of credit) in the event that TxDOT does not receive the bonds required under Section 7.1 of the CMA by the deadline set forth therein.

Withholding for Maintenance Security. TxDOT shall retain from the Final Payment (andPayment, and if it reasonably appears that the Final Payment there will be insufficient for such purposesfunds at Final Payment, from progress payments) the amount of , $500,000 10 million as security for the provision of the bonds required under Section 7.1 of the CMACOMA. DB Contractor shall have the option, option at any time, time to deliver an irrevocable letter of credit in the amount of $500,000 10 million in lieu of the retained sums in a form and on terms acceptable to TxDOT in its sole discretion. TxDOT shall release the $500,000 10 million or the letter of credit, as applicable, to DB Contractor upon the earlier of (a) the provision of the bonds required under Section 7.1 of the CMA COMA within 60 days after TxDOT’s issuance of Maintenance NTP1 NTP1, or (b) the election of TxDOT not to issue Maintenance NTP1 within 365 days after Final AcceptanceAcceptance if TxDOT has not issued Maintenance NTP1. DB Contractor shall forfeit, forfeit as liquidated damages and not as a penaltypenalty such sums, such sums (or, or if a letter of credit is provided in lieu of retained amounts, TxDOT shall have the right to draw on the letter of credit) credit in the event that TxDOT does not receive the bonds required under Section 7.1 of the CMA COMA by the deadline set forth therein.

Withholding for Maintenance Security. TxDOT shall retain from the Final Payment (andPayment, and if it reasonably appears that the Final Payment there will be insufficient for such purposesfunds at Final Payment, from progress payments) the amount of , $500,000 10 million as security for the provision of the bonds required under Section 7.1 of the CMACapital Maintenance Agreement. DB Contractor shall have the option, option at any time, time to deliver an irrevocable letter of credit in the amount of $500,000 10 million in lieu of the retained sums in a form and on terms acceptable to TxDOT in its sole discretion. TxDOT shall release the retained $500,000 10 million or the letter of credit, as applicable, to DB Contractor upon (a) the provision of the bonds or other security as required under Section 7.1 of the CMA Capital Maintenance Agreement within 60 days after TxDOT’s issuance of Maintenance NTP1 or (b) the election of TxDOT not to issue Maintenance NTP1 within 365 days after Final Acceptance. DB Contractor shall forfeit, forfeit as liquidated damages and not as a penaltypenalty such sums, such sums (or, or if a letter of credit is provided in lieu of retained amounts, TxDOT shall have the right to draw on the letter of credit) , in the event that TxDOT does not receive the bonds or other security as required under Section 7.1 of the CMA by the deadline set forth therein.