Common use of Payment to Subcontractors and Suppliers Clause in Contracts

Payment to Subcontractors and Suppliers. Without creating any rights in favor of the subcontractors or suppliers in this Contract, no later than seven (7) days after receipt, pursuant to Business and Professions Code Section 7108.5, the CONTRACTOR shall pay to each Subcontractor, out of the amount paid to the CONTRACTOR on account of such Subcontractor's portion of the Work or supplier’s materials or equipment furnished, the amount to which said Subcontractor or supplier is entitled, reflecting percentages actually retained from payments to the CONTRACTOR on account of such Subcontractor's portion of the Work or supplier’s portion of the materials. The CONTRACTOR shall, by appropriate agreement with each Subcontractor, require each Subcontractor to make payments to Sub- subcontractors and Sub-suppliers in a similar manner.