Reasons for Withholding Sample Clauses
The 'Reasons for Withholding' clause defines the circumstances under which a party may refuse to grant approval, consent, or payment that would otherwise be required under the agreement. Typically, this clause outlines specific grounds or criteria that justify withholding, such as non-compliance with contractual obligations, failure to meet quality standards, or unresolved disputes. By clearly stating when withholding is permissible, the clause helps prevent arbitrary or unjustified refusals, ensuring transparency and fairness in the contractual relationship.
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Reasons for Withholding. THPRD may withhold payment or nullify previously issued Certificates of Payment, to the extent reasonably necessary to protect itself, if THPRD determines that the Work has not progressed to the point indicated in the Application for Payment or that the quality of Work is not in accordance with the Design-Build Documents or THPRD Criteria. Grounds for withholding or nullifying payment include the following:
(a) Defective Work not remedied;
(b) Third-party claims filed or reasonable evidence indicating probable filing of third-party claims unless Design-Builder provides security that is acceptable to THPRD;
(c) Design-Builder's failure to make payments properly to Subcontractors or Design Professional for labor, materials, or equipment;
(d) Reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum;
(e) Damage to THPRD or a separate contractor;
(f) Reasonable evidence that the Work will not be completed within the Construction Time, and that the unpaid balance would not be adequate to cover actual or liquidated damages for the anticipated delay;
(g) Repeated failure to carry out the Work in accordance with the Design-Build Documents;
(h) Unsatisfactory Work progress;
(i) Disputed Work, materials, or products, not to exceed 150 percent of the amount in dispute;
(j) Failure to comply with other material provisions of the Design- Build Documents;
(k) Failure to maintain current as-built documents or safety documentation; or
(l) Failure to train personnel on Design-Builder's Safety Program.
Reasons for Withholding. Owner may withhold payments otherwise due to Contractor under this Agreement for any of the following reasons:
(i) Omission of any Work required by this Agreement or Contractor's failure to cure defective or damaged Work;
(ii) Failure to submit to Owner all information and waivers and releases required under this Agreement;
(iii) Mechanics' liens, materialmen's liens, stop notices or bonded claims are filed or recorded or reasonable evidence indicating the probable filing or recording of such liens, notices or claims by Contractor or its suppliers or subcontractors, in which case Owner may withhold (1) in the case of a lien, notice or claim by Contractor, the amount claimed in the lien, notice or claim, and (2) in the case of a lien, notice or claim by Contractor's suppliers or subcontractors, One Hundred Fifty Percent (150%) of the amount sought;
(iv) Contractor's failure to make payments properly to subcontractors, suppliers, materialmen, laborers, or other persons entitled to file a mechanics' lien, materialmen's lien, stop notice or claim as well as to union fringe benefit trust funds (to the extent required);
(v) The existence of reasonable doubt by Owner that the Work will be completed for the balance of the Contract Price then unpaid, unless Contractor deposits with Owner funds in the amount of such suspected deficiency or performs a sufficient portion of the remaining Work to be performed at Contractor's sole cost so that such portion of the Contract Price then remaining unpaid is determined by Owner to be sufficient to complete the Work;
(vi) Contractor's failure to complete the Work, or any reasonable indication that the Work will not be completed within the time required in this Agreement;
(vii) Contractor's failure to construct, install or perform the items of the Work as required in this Agreement, or any reasonable indication that Contractor will be unable to perform the terms of the Work as required in this Agreement; and
(viii) Any other grounds for withholding payment permitted by the Laws, or as otherwise permitted by this Agreement.