Common use of Good Cause Exception Clause in Contracts

Good Cause Exception. If the Contractor has “good cause” to delay or withhold a Subcontractor’s or Supplier’s, as applicable, progress payment, the Contractor shall notify the Principal Representative and the Subcontractor or Supplier, as applicable, in writing within seven days after receiving payment from the Principal Representative. The notification shall specify the amount being withheld and provide adequate justification for withholding the payment. The notice shall also clearly state what conditions the Subcontractor or Supplier, as applicable, must meet to receive payment. “Good cause” shall include, but not be limited to, the failure of the Subcontractor or Supplier, as applicable, to make timely submission of required paperwork.