Common use of Withholds Clause in Contracts

Withholds. RCDSCC may withhold (in excess of retention) payments to the extent necessary to protect RCDSCC from loss on account of defective work not remedied; claims filed or reasonable evidence indicating probable filing of claims; failure of the Contractor or subcontractors to make payments properly for material, equipment, or labor; damage to another Contractor or other property; the filing of liens or stop notices; delays in progress toward completion of the work, with the stipulated amount of liquidated damages being withheld for each day of delay for which no extension is granted. When the grounds for withholding the funds are removed or corrected by Contractor, payment shall be released to Contractor.