Common use of Payment for the Work Clause in Contracts

Payment for the Work. Purchaser shall obtain quotes from three contractors to perform the Work or any portion thereof (excluding subcontractors) within a reasonable period after the Closing. The selection of the contractor(s) that will perform the Work or any portion thereof shall be by mutual agreement, provided that Seller must approve at least one of the contractors for each portion of the Work from whom Purchaser obtained a quote. Upon the completion of the Work, each party shall execute and deliver a direction to the Title Company authorizing it to pay to Purchaser all or the portion of the funds held in the Holdback Escrow as necessary to cover Seller's Share of the actual costs of the Work as set forth on a statement of the final costs of the Work which shall include final invoices from each contractor (the "Final Costs"). If Seller's Share of the Final Costs exceeds the amount paid to Purchaser from the Holdback Escrow, Seller shall, within 10 days after receiving the notice of the Final Costs, pay to Purchaser the amount of funds necessary to have fully paid Seller's Share of the Final Costs. If Seller's Share of the Final Costs is less than the amount of funds in Holdback Escrow, then after the payment of Seller's Share of the Final Costs to Purchaser, all remaining funds shall be promptly released to Seller by the Title Company and in such event Seller and Purchaser agree to execute and deliver a joint direction to direct the Title Company to pay such remaining funds to Seller.