Common use of Payments Withheld Clause in Contracts

Payments Withheld. The Owner or Program Manager may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request or certificate to such extent as may be necessary to protect the Owner from loss on account of: (a) Defective work not remedied (b) Claims filed or reasonable evidence indicating probable filing of claims. (c) Failure of the Contractor to make payments properly to subcontractor or for materials or labor. (d) A reasonable doubt that the contract can be completed for the balance then unpaid. (e) Damage to another contractor or to some third party. (f) Failure to maintain a rate of progress in accordance with the construction progress schedule. (g) Failure to supply enough skilled workmen or proper materials. When the above grounds are removed, payment shall be made for amounts withheld because of them. With regard to cases (b) and (c) above, the Owner may agree to payment upon receipt of a satisfactory Bond to Discharge Claim in the amount of double the claim (see Section 7, Contract Forms). At the option of the Owner, adherence to the construction progress schedule shall be a condition precedent to the right of the Design-Builder to demand payment. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may be expedient.

Appears in 16 contracts

Sources: Design Build Contract, Design Build Contract, Design Build Contract

Payments Withheld. The Owner or Program Manager or Owner may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request application for payment or certificate to such extent as may be necessary to protect the Owner from loss on account of: (a) Defective work not remedied (b) Claims filed or reasonable evidence indicating probable filing of claims. (c) Failure of the Contractor to make payments properly to subcontractor or for materials or labor. (d) A reasonable doubt that the contract can be completed for the balance then unpaid. (e) Damage to another contractor or to some third party. (f) Failure to maintain a rate of progress in accordance with the construction progress schedule. (g) Failure to supply enough skilled workmen or proper materials. When the above grounds are removed, payment shall be made for amounts withheld because of them. With regard to cases (b) and (c) above, the Owner may agree to payment upon receipt of a satisfactory Bond to Discharge Claim in the amount of double the claim (see Section 76, Contract Forms). At the option of the Owner, Owner adherence to the construction progress schedule shall be a condition precedent to the right of the Design-Builder to demand paymentpayment of an application for payment or certificate. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may be expedient.

Appears in 16 contracts

Sources: Design Build Contract, Design Build Contract, Design Build Contract

Payments Withheld. The Owner or Program Manager or Owner may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request application for payment or certificate to such extent as may be necessary to protect the Owner from loss on account of: (a) Defective work not remedied (b) Claims filed or reasonable evidence indicating probable filing of claims. (c) Failure of the Contractor to make payments properly to subcontractor or for materials or labor. (d) A reasonable doubt that the contract can be completed for the balance then unpaid. (e) Damage to another contractor or to some third party. (f) Failure to maintain a rate of progress in accordance with the construction progress schedule. (g) Failure to supply enough skilled workmen or proper materials. When the above grounds are removed, payment shall be made for amounts withheld because of them. With regard to cases (b) and (c) above, the Owner may agree to payment upon receipt of a satisfactory Bond to Discharge Claim in the amount of double the claim (see Section 76, Contract Forms). At the option of the Owner, Owner adherence to the construction progress schedule shall be a condition precedent to the right of the Design-Builder CM/GC to demand paymentpayment of an application for payment or certificate. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may be expedient.

Appears in 3 contracts

Sources: Construction Management Agreement, Construction Management Agreement, Construction Management Agreement

Payments Withheld. The Owner or Program Manager or Owner may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request application for payment or certificate to such extent as may be necessary to protect the Owner from loss on account of: (a) Defective work not remedied (b) Claims filed or reasonable evidence indicating probable filing of claims. (c) Failure of the Contractor to make payments properly to subcontractor or for materials or labor. (d) A reasonable doubt that the contract can be completed for the balance then unpaid. (e) Damage to another contractor or to some third party. (f) Failure to maintain a rate of progress in accordance with the construction progress scheduleOverall Project Schedule. (g) Failure to supply enough skilled workmen or proper materials. When the above grounds are removed, payment shall be made for amounts withheld because of them. With regard to cases (b) and (c) above, the Owner may agree to payment upon receipt of a satisfactory Bond to Discharge Claim in the amount of double the claim (see Section 7, Contract Forms). At the option of the Owner, Owner adherence to the construction progress schedule Overall Project Schedule shall be a condition precedent to the right of the Design-Builder CM/GC to demand paymentpayment of an application for payment or certificate. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule Overall Project Schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may be expedient.

Appears in 3 contracts

Sources: Construction Management Agreement, Construction Management Agreement, Construction Management Agreement

Payments Withheld. The Owner or Program Manager may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request or certificate to such extent as may be necessary to protect the Owner from loss on account of: (a) Defective work not remedied (b) Claims filed or reasonable evidence indicating probable filing of claims. (c) Failure of the Contractor to make payments properly to subcontractor or for materials or labor. (d) A reasonable doubt that the contract can be completed for the balance then unpaid. (e) Damage to another contractor or to some third party. (f) Failure to maintain a rate of progress in accordance with the construction progress schedule. (g) Failure to supply enough skilled workmen or proper materials. When the above grounds are removed, payment shall be made for amounts withheld because of them. With regard to cases (b) and (c) above, the Owner may agree to payment upon receipt of a satisfactory Bond to Discharge Claim in the amount of double the claim (see Section 7, Contract Forms). At the option of the Owner, adherence to the construction progress schedule shall be a condition precedent to the right of the Design-Builder CM/GC to demand payment. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may be expedient.

Appears in 1 contract

Sources: Construction Management Agreement

Payments Withheld. The Owner or Program Manager Engineer may withhold from the Cost of the Work or, on account of subsequently discovered evidence, nullify the whole or a part of any pay request or certificate to such extent as may be necessary to protect the Owner from loss on account of: (a) Defective work not remedied; (b) Claims filed or reasonable evidence indicating probable filing of claims.; (c) Failure of the Contractor to make payments properly to subcontractor Subcontractors or for materials or labor.; (d) A reasonable doubt that the contract Project can be completed for the unpaid balance then unpaidof the Contract Price. (e) Damage to another contractor Contractor or to some third party.; (f) Failure to maintain a rate of progress in accordance with the currently approved construction progress schedule.; (g) Failure to supply enough skilled workmen workers or proper materials; or, (h)—Failure to complete all Work within the Contract Time. When the above grounds are removed, payment the Engineer shall be made for amounts withheld because of them. With regard issue to cases (b) and (c) above, the Owner may agree a certificate for such withheld amounts as he determines to payment upon receipt of a satisfactory Bond to Discharge Claim in be properly due, and the amount of double the claim Owner shall pay such amounts within ten (see Section 7, Contract Forms)10) days. At the option of the Owner, Owner adherence to the construction progress schedule shall be a condition precedent to the right of the Design-Builder Contractor to demand payment of a progress payment. No omission on the part of the Owner to exercise the aforesaid option shall be construed to be a waiver of breach of the construction progress schedule or acquiescence therein, and the Owner may exercise its option from time to time and as often as may may, in its judgment, be expedient.

Appears in 1 contract

Sources: Contract Agreement