Common use of Use of Payment Clause in Contracts

Use of Payment. Except for Contractor’s overhead and profit, Contractor shall use the sums advanced to it pursuant to this Article 7 only for the purpose of performance of the Work and the construction, furnishing, and equipping of the Project in accordance with the Contract Documents. Contractor shall promptly pay all bills for labor performed and material furnished by others in connection with the performance of the Work. Contractor agrees to keep the Project free and clear of any and all liens and claims of Subcontractors, materialmen and suppliers, subject to Owner’s performance of its own payment obligations. In the event any lien is filed against the Project Site which Contractor is responsible to remove pursuant to the provisions of this Agreement, Contractor shall cause such lien to be fully released and discharged within five (5) business days of demand by Owner. If not fully discharged and released within said five (5) business day period, Contractor shall obtain and post a bond within said five (5) business day period sufficient to release the lien and thereafter shall take all necessary legal action to defend Owner against any legal action related to such lien. If Contractor shall fail to post such bond within the required time, Owner may, in its sole discretion, pay any sums necessary to discharge, release and satisfy such lien, and in such case, Contractor shall reimburse Owner, on demand, for all monies paid by Owner in releasing, discharging and satisfying such lien, including any attorney’s fees incurred by Owner. In addition to foregoing, if any such lien or claim shall be filed at any time during the progress of the Work, Owner may withhold the amount of such lien or claim from payments otherwise due Contractor until such lien or claim is discharged or until Owner is indemnified by bond or other means reasonably satisfactory to Owner. No provision hereof, however, shall be construed to require Owner to ensure the proper disposition or application of sums paid to Contractor hereunder.