Common use of Grounds for Withholding Payment Clause in Contracts

Grounds for Withholding Payment. Contractor may withhold or, on account of subsequently discovered evidence, nullify the whole or part of any payment to the extent necessary to protect Contractor from loss, including costs and actual attorneys’ fees, on account of (1) defective work not remedied; (2) claims filed or reasonable evidence indicating probable filing of claim; (3) failure of Subcontractor to make payments properly to its subcontractors, suppliers, unions, employees, etc. or for material, labor or fringe benefits; (4) a reasonable doubt that this Agreement can be completed for the balance then unpaid; (5) damage to another subcontractor; (6) penalties assessed against Contractor by Owner due to the actions and/or inactions of Subcontractor or for failure of Subcontractor to comply with state, federal or local laws and regulations; or (7) failure to comply with the administrative requirements, forms, insurance, etc. required by this Subcontract. Where Subcontractor repeatedly fails to submit complete and/or accurate documents in a timely manner, Subcontractor agrees to pay to Contractor an administrative fee of $100 for excessive administration costs incurred by Contractor; (8) any other ground for withholding payment allowed by state or federal law, or as otherwise provided in this Agreement. When the above matters are rectified, such amounts as then due and owing shall be paid or credited to Subcontractor.

Grounds for Withholding Payment. Contractor may withhold or, on account of subsequently discovered evidence, nullify the whole or part of any payment to the extent necessary to protect Contractor from loss, including costs and actual attorneys’ fees, on account of (1) defective work not remedied; (2) claims filed or reasonable evidence indicating probable filing of claim; (3) failure of Subcontractor to make payments properly to its subcontractors, suppliers, unions, employees, etc. or for material, labor or fringe benefits; (4) a reasonable doubt that this Agreement can be completed for the Subcontract balance then unpaidunpaid or within the time then remaining pursuant to the current project schedule; (5) damage to another subcontractor; (6) penalties assessed against Contractor by Owner due to the actions and/or inactions of Subcontractor or for failure of Subcontractor to comply with state, federal or local laws and regulations; or (7) failure to comply with the administrative requirements, forms, insurance, etc. required by this Subcontract. Where Subcontractor repeatedly fails to submit complete and/or accurate documents in a timely manner, Subcontractor agrees to pay to Contractor an administrative fee of $100 for excessive administration costs incurred by ContractorContractor in addition to other remedies; (8) any other ground for withholding payment allowed by state or federal law, or as otherwise provided in this Agreement. When the above matters are rectified, such amounts as then due and owing shall be paid or credited to Subcontractor.