Common use of Assurance by Company of Appropriate Treatment of Contractors and Lower Tier Subcontractors Clause in Contracts

Assurance by Company of Appropriate Treatment of Contractors and Lower Tier Subcontractors. In order to remain eligible for the city payment, upon written request by the City, Company shall provide documentation showing either that all entities with whom it has a contract to construct all or any portion of the improvements on the Property have been paid in full and on time, or that a bona fide dispute over the satisfactory completion the work to be performed exists and is in the process of being resolved in accordance with applicable law. Further, Company shall include a requirement in any agreement it enters into with any entity to construct all or any portion of the improvements on the Property requiring such entity to include a provision in any subcontract it enters into which permits the City to require that contractor and its subcontractor to provide documentation showing either that all entities who have been contracted to construct all or any portion of the improvements on the Property have been paid in full and on time, or that a bona fide dispute over the satisfactory completion the work to be performed exists and is in the process of being resolved in accordance with applicable law. The documentation the City may request shall include certified payment applications, a certificate or affidavit of payment by the Company, owner(s), prime contractors or subcontractors, invoices, cancelled checks, schedule of values or such other information as may be reasonably requested by the City. Evidence of bona fide disputes over the satisfactory completion of any work pursuant to any contract or subcontract shall include, but not be limited to, unsatisfied property or payment liens, pending lawsuits or unresolved contract claims made in writing. If the City, through its City Manager, determines that the Company has failed to pay any entity with which it has a direct contract to construct all or any portion of the improvements on the Property have not been paid in full and on time, and that a bona fide dispute over the satisfactory completion the work to be performed which is in the process of being resolved in accordance with applicable law does not exist, the City shall give the Company thirty (30) days written notice of its intent to suspend City Payments. If the Company has not provided sufficient documentation at the end of this thirty (30) day period either that the payment(s) in question have been made, or that a bona fide dispute over the satisfactory completion the work to be performed exists and is in the process of being resolved in accordance with applicable law, the City may suspend the city payment. The city payment shall be resumed upon the submission by the Company to the City of sufficient documentation showing either that the payments in question have been made, or that a bona fide dispute over the satisfactory completion the work to be performed exists and is in the process of being resolved in accordance with applicable law. The City shall have no power to suspend the city payment due to failures of contractors and subcontractors with whom the Company does not have a direct contractual relationship to comply with the terms of contracts to which the Company is not a party.

Assurance by Company of Appropriate Treatment of Contractors and Lower Tier Subcontractors. In order to remain eligible for the city paymentCity Payments, upon written request by the CityCity delivered in accordance with the notice provisions of this Agreement, Company shall provide documentation showing either that all entities with whom it has a contract to construct all or any portion of the improvements on the Property have been paid in full and on time, or that a bona fide dispute over the satisfactory completion the work to be performed exists and is in the process of being resolved in accordance with applicable law. Further, Company shall include a requirement in any agreement it enters into with any entity to construct all or any portion of the improvements on the Property requiring such entity to include a provision in any subcontract it enters into which permits the City to require that contractor and its subcontractor to provide documentation showing either that all entities who have been contracted to construct all or any portion of the improvements on the Property have been paid in full and on time, or that a bona fide dispute over the satisfactory completion the work to be performed exists and is in the process of being resolved in accordance with applicable law. The documentation the City may request shall include certified payment applications, a certificate or affidavit of payment by the Company, owner(s), prime contractors or subcontractors, invoices, cancelled checks, schedule of values or such other information as may be reasonably requested by the City. Evidence of bona fide disputes over the satisfactory completion of any work pursuant to any contract or subcontract shall include, but not be limited to, unsatisfied property or payment liens, pending lawsuits or unresolved contract claims made in writing. If the City, through its City Manager, determines that the Company has failed to pay any entity with which it has a direct contract to construct all or any portion of the improvements on the Property have not been paid in full and on time, and that a bona fide dispute over the satisfactory completion the work to be performed which is in the process of being resolved in accordance with applicable law does not exist, the City shall give the Company thirty (30) days written notice of its intent to suspend City Payments. If the Company has not provided sufficient documentation at the end of this thirty (30) day period either that the payment(s) in question have been made, or that a bona fide dispute over the satisfactory completion the work to be performed exists and is in the process of being resolved in accordance with applicable law, the City may suspend the city paymentCity Payments. The city payment City Payments shall be resumed upon the submission by the Company to the City of sufficient documentation showing either that the payments in question have been made, or that a bona fide dispute over the satisfactory completion the work to be performed exists and is in the process of being resolved in accordance with applicable law. The City shall have no power to suspend the city payment City Payments due to failures of contractors and subcontractors with whom the Company does not have a direct contractual relationship to comply with the terms of contracts to which the Company is not a party. The rights and obligations of the City and the Company pursuant to this Section 3.1.4 shall only apply during the City Payment Period, and only shall apply to the initial construction of the Use Development Requirements pursuant to this Agreement, and not to any subsequent construction work or tenant upfit performed on the Property at a later date.