Payment at Material Completion Clause Samples
The 'Payment at Material Completion' clause defines the requirement for payment to be made when a project or a specific stage of work reaches material completion. In practice, this means that once the contractor has substantially finished the agreed-upon work—though minor defects or incomplete items may remain—the client is obligated to release a significant portion of the contract sum. This clause ensures that contractors are compensated promptly for the majority of their work, while also providing an incentive to address any outstanding issues before final completion, thereby balancing cash flow needs and project quality assurance.
Payment at Material Completion. When the Certificate for Material Completion has been executed by the Design Professional pursuant to the Section 6, Part 5, of the General Conditions, partial payment shall be made in a sum sufficient to increase payment to 95 percent of the Basic Construction Contract Administration Services Fee.