Common use of Reduction in Payment Clause in Contracts

Reduction in Payment. DNR may withhold or, on account of subsequently discovered evidence, nullify the whole or part of any payment to such extent as may be necessary to protect DNR from loss or damage for reasons including but not limited to: 1. Work not in accordance with the Contract Documents; 2. Reasonable evidence that the Work required by the Contract Documents cannot be completed for the unpaid balance of the Contract Sum; 3. Work by DNR to correct defective Work or complete the Work; 4. Failure to perform in accordance with the Contract Documents; or 5. Cost or liability that may occur to DNR as the result of Contractor's fault or negligent acts or omissions.