Common use of Additional Withholding Clause in Contracts

Additional Withholding. 18.6.1 In addition to retainage the Owner may withhold from payments otherwise due the Contractor any amount that the Owner reasonably believes necessary to protect the Owner’s or the State’s interest, including but not limited to: (a) Claims filed or reasonable evidence indicating probable filing of claims related to or in connection with the Project. (b) Failure of the Contractor to perform any material contract requirement including failure to make payments as required by this Agreement to Trade Contractors for material or labor. (c) Reasonable doubt that the Work can be completed for the balance of the funds then unpaid. (d) Reasonable doubt that the Work can be completed within the balance of the Contract Time then remaining. (e) Damage to another contractor. (f) The cost of completing unfinished or defective work. 21.6.2 Owner may withhold estimated actual damages it reasonably believes is necessary to protect the Owner’s interest pursuant to this Section 21.6.