Holdback For Construction Costs Sample Clauses
The Holdback For Construction Costs clause establishes that a portion of funds will be withheld from payment until certain construction milestones or completion criteria are met. In practice, this means that the payer retains a specified percentage of the contract price, releasing it only after the contractor fulfills agreed-upon obligations, such as passing inspections or completing specific phases of work. This clause serves to protect the payer by ensuring that construction is completed to the required standards before full payment is made, thereby reducing the risk of incomplete or substandard work.
Holdback For Construction Costs. The parties agree that a portion of the purchase price shall be held back and set aside at close of escrow in order to pay for Seller’s costs of constructing the Infrastructure Improvements and the Rail Track (the “Work”). The parties shall comply with the following provisions regarding the payment for the Work.