Common use of Xxxxx of Payment Due to Contractor’s Failure Clause in Contracts

Xxxxx of Payment Due to Contractor’s Failure. If the Department in good faith determines that the Contractor has failed to perform or deliver any commodities as required by the Contract, the Contractor shall not be entitled to any compensation under the Contract until such commodities is delivered, and accepted. In this event, the Department may withhold that portion of the Contractor’s compensation, which represents payment for commodities that were not delivered. To the extent that the Contractor’s failure to perform or deliver in a timely manner causes the Department to incur costs, the Department may deduct the amount of such incurred costs from any amounts payable to Contractor. The Department’s authority to deduct such incurred costs shall not in any way affect the Department’s authority to terminate the Contract.

Xxxxx of Payment Due to Contractor’s Failure. If the Department in good faith determines that the Contractor has failed to perform or deliver any commodities service as required by the Contract, the Contractor shall not be entitled to any compensation under the Contract until such commodities service is performed, delivered, and accepted. In this event, the Department may withhold that portion of the Contractor’s compensation, which represents payment for commodities services, or products that were not performed or delivered. To the extent that the Contractor’s failure to perform or deliver in a timely manner causes the Department to incur costs, the Department may deduct the amount of such incurred costs from any amounts payable to Contractor. The Department’s authority to deduct such incurred costs shall not in any way affect the Department’s authority to terminate the Contract.