Common use of Withholding of Funds Clause in Contracts

Withholding of Funds. Payments may be withheld because of: (1) defective Work not remedied; (2) failure of Contractor to make proper payments to subcontractors, workers, or suppliers; (3) persistent failure to carry out Work in accordance with this Agreement or these general conditions, or (4) legal claims. Final payment will be due only upon release of any and all liens arising out of the Agreement or submission of receipts or other evidence of payment covering all subcontractors or suppliers who could file such a lien. The Contractor agrees to indemnify the Borrower and Lender against such liens and will refund all monies including costs and reasonable attorney’s fees paid by the Borrower and/or Lender in discharging the liens. A ten (10) percent “Holdback” reserve is required by the Lender to assure the Work has been properly completed and there are no liens on the Property.

Withholding of Funds. Payments may be withheld because of: of (1) defective Work work not remedied; (2) failure of Contractor contractor to make proper payments to subcontractors, workers, or suppliers; (3) persistent failure to carry out Work work in accordance with this Agreement or these general conditions, or (4) legal claims. Final payment will be due only upon release of any and all liens arising out of the Agreement contract or submission of receipts or other evidence of payment covering all subcontractors or suppliers who could file such a lien. The Contractor contractor agrees to indemnify the Borrower and Lender Owner against such liens and will refund all monies including costs and reasonable attorney’s fees paid by the Borrower and/or Lender owner in discharging the liens. A ten (10) 10 percent “Holdback” reserve is holdback may be required by the Lender lender to assure the Work work has been properly completed and there are no liens on the Propertyproperty.

Withholding of Funds. Payments may be withheld because of: (1) defective Work not remedied; (2) failure of Contractor to make proper payments to subcontractors, workers, or suppliers; (3) persistent failure to carry out Work in accordance with this Agreement or these general conditions, or (4) legal claims. Final payment will be due only upon release of any and all liens arising out of the Agreement or submission of receipts or other evidence of payment covering all subcontractors or suppliers who could file such a lien. The Contractor agrees to indemnify the Borrower and Lender against such liens and will refund all monies including costs and reasonable attorney’s fees paid by the Borrower and/or Lender in discharging the liens. A ten (10) percent “Holdback” reserve is required by the Lender to assure the Work has been properly completed and there are no liens on the Property.