Periodic Progress Payments Clause Samples
The Periodic Progress Payments clause establishes a schedule for the contractor to receive payments at regular intervals based on the completion of specific portions of work or achievement of project milestones. Typically, the contractor submits documentation or invoices demonstrating the percentage of work completed, which are then reviewed and approved by the client before payment is released. This clause ensures that the contractor maintains adequate cash flow throughout the project and reduces financial risk by tying payments to measurable progress, thereby incentivizing timely and quality performance.
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Periodic Progress Payments. Tenant acknowledges that the Total Costs of the Tenant Improvements may exceed the Tenant Improvement Allowance. On or before the thirtieth (30th) day of each calendar month during the construction of the Tenant Improvements, Tenant shall deliver to Landlord: (A) a request for payment from the General Contractor, approved by Tenant, in a form to be provided by Landlord, showing the schedule, by trade, of percentage of completion of the Tenant Improvements in the Premises, and detailing the portion of the work completed and the portion not completed; (B) invoices from all subcontractors and material suppliers for the Tenant Improvements for labor rendered and materials delivered to the Premises; (C) executed mechanic’s lien releases from all subcontractors and material suppliers which shall comply with the appropriate provisions, as reasonably determined by Landlord, of applicable law; and (D) all other information reasonably requested by Landlord or its Lender. Tenant’s request for payment shall be deemed Tenant’s acceptance and approval of the work furnished and/or the materials supplied as set forth in Tenant’s payment request. The Total Costs less the Tenant Improvement Allowance shall hereinafter be referred to as “Tenant’s Share.” The parties agree that Tenant shall pay Tenant’s Share of all requests for payment by the General Contractor prior to any portion of the Tenant Improvement Allowance being available. Once Tenant’s Share has been paid within twenty (20) days after Landlord’s receipt of the first request for payment for which the Tenant Improvement Allowance may be used, Landlord shall deliver a check to Tenant made jointly payable to the General Contractor and Tenant in the lesser of: (x) the amount so requested by Tenant as set forth in such payment request that is subject to reimbursement herein, less a ten percent (10%) retention (the aggregate amount of such retentions is referred to hereinafter as the “Final Retention”), and (y) the balance of any remaining available portion of the Tenant Improvement Allowance (not including the Final Retention), provided that Landlord does not dispute any request for payment based on non-compliance of any work with the final Working Drawings, or due to any substandard work, or due to the fact that reimbursement was not applicable or appropriate for one or more cost item(s) for which reimbursement was requested, or for any other just cause. Landlord’s payment of such amounts shall not, however, be deemed...
Periodic Progress Payments. The Owner shall make progress payments, less retainage, as set forth in Section 4 of the General Conditions.