APPLICATION FOR PAYMENT (A Clause Samples

APPLICATION FOR PAYMENT (A. The Contractor shall deliver to the Owner, on or about the first day of each month, a request for payment on a form substantially similar to that attached hereto as Exhibit C. The Contractor shall include with this form an appropriate lien release covering the work and materials enumerated in the payment request. The Owner shall promptly approve the payment request so that there will be no delay in processing of payment and shall, save and except where a legitimate objection is raised as to a particular item as provided in Paragraph (B) below, make payment in full to the Contractor on or before the tenth (10th) day of each month. Payments not made to the Contractor on or before the tenth (10th) of the month shall bear interest at the then current prime rate of interest plus 2% as that rate is established by First Interstate Bank of Nevada. The inclusion of this interest shall be in addition to any and all other rights and remedies which the Contractor may have in the event of delinquent payments. (B) The Owner shall determine the amount owning to the Contractor based on observations at the site and on evaluation of the Contractor's request for payment. Should the Owner disapprove an item in any payment request, payment for that specific item may be withheld for a period not to exceed thirty (30) days within which time it shall be adjudicated. However, the balance requested in that payment request must be paid by the Owner to the Contractor on or before the tenth (10th) day of the month. (C) The Contractor specifically reserves the right to cease work should requested payments be unreasonably withheld or delayed. (D) Payments will be made by the Owner for materials or equipment whether the same have been incorporated into the Project or suitable stored on or off the site. Payments for said materials and equipment will be conditioned only upon inspection of the materials and equipment by the Contractor, and the Contractor's verification that suitable insurance has been secured. (E) If, after substantial completion of the work, final completion thereof is materially delayed through no fault of the Contractor or by issuance of change orders affecting final completion, the Owner shall, upon application by the Contractor, and without terminating the Contract, make payment of the balance due for that portion of the work which has been fully completed. (F) In the event of a lien or liens for material or labor is filed against the property, the Owner may withhold f...