Common use of Deductions and Withholding Clause in Contracts

Deductions and Withholding. In addition to the deductions provided for under Section 14.3.1, Owner may deduct from each progress payment, or may withhold the entire progress payment, as a result of the following: (a) Any Owner Claims or losses for which Contractor is responsible hereunder or any Liquidated Damages which have accrued as of the date of the application for payment; (b) Any third party Claims or losses for which Contractor is responsible hereunder, if and to the extent Contractor has failed to honor its indemnity obligations in that regard; (c) Any sums expended by Owner in performing any of Contractor’s obligations under this Contract which Contractor has failed to perform; (d) a notice of Lien or Claim is filed with Owner by any Subcontractor, laborer or Utility Owner due to Contractor’s failure to pay for labor, Equipment and Materials, or other Work, or to pay or reimburse amounts due or claimed to be due to any Utility Owner, money due or claimed to be due for such labor, Equipment and Materials, or other Work, plus twenty-five percent (25%), will be withheld from payment to Contractor, unless and until Contractor posts bonds as required by applicable Laws, Regulations, and Ordinances as security against such notice of Lien or Claim; or (e) Any other sums which Owner is entitled to recover from Contractor under the terms of the Contract Documents. The failure by Owner to deduct any of these sums from a progress payment shall not constitute a waiver of Owner’s right to recover such sums or to deduct such funds from future progress payments. All amounts Contractor owes to Owner under this Contract shall earn interest from the date on which such amount is due (unless a different date is specified herein) until paid at the lesser of: (i) seven and one-half percent (7.5%) per annum; or (ii) the maximum rate allowable under applicable Laws, Regulations and Ordinances.

Deductions and Withholding. In addition to the deductions provided for under Section 14.3.1, Owner may deduct from each progress payment, or may withhold the entire progress payment, as a result of the following: (a) Any Owner Claims or losses for which Contractor is responsible hereunder or any Liquidated Damages which have accrued as of the date of the application for payment; (b) Any third party Claims or losses for which Contractor is responsible hereunder, if and to the extent Contractor has failed to honor its indemnity obligations in that regard; (c) Any sums expended by Owner in performing any of Contractor’s obligations under this Contract which Contractor has failed to perform; (d) a notice of Lien or Claim is filed with Owner by any Subcontractor, Subcontractor or laborer or Utility Owner due to Contractor’s failure to pay for labor, Equipment equipment and Materialsmaterials, or other Work, or to pay or reimburse amounts due or claimed to be due to any Utility Owner, money due or claimed to be due for such labor, Equipment equipment and Materialsmaterials, or other Work, plus twenty-five percent (25%), will be withheld from payment to Contractor, unless and until Contractor posts bonds as required by applicable Laws, Regulations, and Ordinances as security against such notice of Lien or Claim; or (e) Any other sums which Owner is entitled to recover from Contractor under the terms of the Contract Documents. The failure by Owner to deduct any of these sums from a progress payment shall not constitute a waiver of Owner’s right to recover such sums or to deduct such funds from future progress payments. All amounts Contractor owes to Owner under this Contract shall earn interest from the date on which such amount is due (unless a different date is specified herein) until paid at the lesser of: (i) seven and one-half percent (7.5%) per annum; or (ii) the maximum rate allowable under applicable Laws, Regulations and Ordinances.

Deductions and Withholding. In addition to the deductions provided for under Section 14.3.1, Owner may deduct from each progress payment, or may withhold the entire progress payment, as a result of the following: (a) Any Owner Claims or losses for which Contractor is responsible hereunder or any Liquidated Damages which have accrued as of the date of the application for payment; (b) Any third party Claims or losses for which Contractor is responsible hereunder, if and to the extent Contractor has failed to honor its indemnity obligations in that regard; (c) Any sums expended by Owner in performing any of Contractor’s obligations under this Contract which Contractor has failed to perform; (d) a notice of Lien or Claim is filed with Owner by any Subcontractor, Subcontractor or laborer or Utility Owner due to Contractor’s failure to pay for labor, Equipment equipment and Materialsmaterials, or other Work, or to pay or reimburse amounts due or claimed to be due to any Utility Owner, money due or claimed to be due for such labor, Equipment equipment and Materialsmaterials, or other Work, plus twenty-five percent (25%), will be withheld from payment to Contractor, unless and until Contractor posts bonds as required by applicable Laws, Regulations, and Ordinances as security against such notice of Lien or Claim; or (e) Any other sums which Owner is entitled to recover from Contractor under the terms of the Contract Documents. The failure by Owner to deduct any of these sums from a progress payment shall not constitute a waiver of Owner’s right to recover such sums or to deduct such funds from future progress payments. All amounts Contractor owes to Owner under this Contract shall earn interest from the date on which such amount is due (unless a different date is specified herein) until paid at the lesser of: (i) seven and one-half percent (7.5%) per annum; or (ii) the maximum rate allowable under applicable Laws, Regulations and Ordinances.