Common use of FAILURE OF PAYMENT Clause in Contracts

FAILURE OF PAYMENT. If the Design Professional does not electronically approve a Certificate for Payment, through no fault of the CM/GC, within seven days after receipt of the CM/GC’s Application for Payment, or if the Owner does not pay the CM/GC within seven days after the date established in the Contract Documents the amount certified by the Design Professional or awarded by binding dispute resolution, then the CM/GC may, upon seven additional days’ written notice to the Owner and Design Professional, stop the Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately, and the Contract Sum shall be increased by the amount of the CM/GC’s reasonable costs of shut-down, delay and start-up, plus interest as provided for in the Contract Documents.

FAILURE OF PAYMENT. If the Design Professional does not electronically approve a Certificate for Payment, through no fault of the CM/GC, within seven days after receipt of the CM/GC’s Application for Payment, or if the Owner does not pay the CM/GC within seven days after the date established in the Contract Documents the amount certified by the Design Professional or awarded by binding dispute resolution, then the CM/GC may, upon seven additional days’ written notice to the Owner and Design Professional, stop the Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately, appropriately and the Contract Sum shall be increased by the amount of the CM/GC’s reasonable costs of shut-down, delay and start-up, plus interest as provided for in the Contract Documents.