Common use of Grounds for Withholding Payment Clause in Contracts

Grounds for Withholding Payment. A. Owner may withhold payment due Contractor for Defective Work which has not been corrected in compliance with terms of this agreement. B. Grounds entitling Owner to withhold certain amounts due Contractor under this agreement shall not relieve Owner from the obligation to pay Contractor other amounts then due and shall not relieve Owner of the obligation to pay in full when the reason for withholding payment no longer exists. C. Should any mediation, arbitration or court proceeding determine that Owner was not justified in withholding payment to Contractor, the amount wrongfully withheld shall be treated as an unpaid balance and accrue interest as provided by Law or this contract from the Calendar Day payment was wrongfully withheld.