Common use of Payments and Terms Clause in Contracts

Payments and Terms. Payments shall be made in accordance with the terms specified on the fact of this Contract Agreement. Final Payment is due upon substantial completion. In the event that minor “punch- out” items remain unfinished following Substantial Completion of the work, it is agreed that the owner may withhold a retainage amount not to exceed 10% of the “Total Cost” of the contract until such items have been corrected to the satisfaction of a prudently reasonable person.