Common use of PAYMENT WITHHELD Clause in Contracts

PAYMENT WITHHELD. A. The Owner may withhold payment or, on account of subsequently discovered evidence, may nullify the whole or part of any payment certificate of such extent as may be necessary to protect the Owner from loss on account of any one or more of the following: 1. Defective Work not remedied. 2. Claims filed or notice indicating probable filing of claims of other parties against the Contractor. 3. Failure of the Contractor to make payments properly to Subcontractors or to make payments for labor, Material, Equipment, Construction Equipment or equipment rental. 4. A reasonable doubt that the Contract can be completed for the balance then unpaid. 5. Damage to a Subcontractor or another contractor. 6. Failure or refusal by the Contractor to comply with an instruction of the Owner within a reasonable time. 7. Unsatisfactory prosecution of the Work. 8. Liquidated Damages payable by the Contractor. 9. Any other violation of or failure to comply with the provisions of the Contract Documents. 10. Being in arrears to the Owner for any invoices. 11. Failure to supply or update the Contractor’s Schedule of Work. 12. Damage to the Owner’s Property or Equipment. B. When the above grounds are removed, payment shall be made for amounts withheld because of them. The right to withhold payment however, shall not preclude the Owner from his right to declare the Contractor in default of his Contract for any of the reasons stipulated under General Conditions, Section 76 Contract in Default.

PAYMENT WITHHELD. A. The Owner may withhold payment or, on account of subsequently discovered evidence, may nullify the whole or part of any payment certificate of such extent as may be necessary to protect the Owner from loss on account of any one or more of the following: 1. Defective Work not remedied. 2. Claims filed or notice indicating probable filing of claims of other parties against the Contractor.. EXAMPLE 3. Failure of the Contractor to make payments properly to Subcontractors or to make payments for labor, Material, Equipment, Construction Equipment or equipment rental. 4. A reasonable doubt that the Contract can be completed for the balance then unpaid. 5. Damage to a Subcontractor or another contractor. 6. Failure or refusal by the Contractor to comply with an instruction of the Owner within a reasonable time. 7. Unsatisfactory prosecution of the Work. 8. Liquidated Damages payable by the Contractor. 9. Any other violation of or failure to comply with the provisions of the Contract Documents. 10. Being in arrears to the Owner for any invoices. 11. Failure to supply or update the Contractor’s Schedule of Work. 12. Damage to the Owner’s Property or Equipment. B. When the above grounds are removed, payment shall be made for amounts withheld because of them. The right to withhold payment however, shall not preclude the Owner from his right to declare the Contractor in default of his Contract for any of the reasons stipulated under General Conditions, Section 76 Contract in Default.