Common use of Payments to Subcontractors Clause in Contracts

Payments to Subcontractors. The CONTRACTOR shall pay to his/ her Subcontractors or material suppliers, and each Subcontractor shall pay to his/ her Subcontractor or material supplier, within seven (7) days of receipt of each progress payment, unless otherwise agreed in writing by the parties, the respective amounts allowed the CONTRACTOR or Subcontractor on account of the work performed by his/ her Subcontractors, to the extent of each such Subcontractor’s interest therein, except that no Contract for construction may materially alter the rights of any CONTRACTOR, Subcontractor or material supplier to receive prompt and timely payment as provided under ARS Section 34-221(E). Such payments to Subcontractors or material suppliers shall be based on payments received pursuant to that Section. Any diversion by the CONTRACTOR or Subcontractor or payments for work performed on a Contract, or failure to reasonably account for the application or use of such payments, constitutes grounds for disciplinary action by the Registrar of CONTRACTORs. The Subcontractor or material supplier shall notify the Registrar of Contractors and the TOWN in writing of any payment less than the amount or percentage approved for the class or item of work as set forth in that Section. Nothing herein prevents the CONTRACTOR or Subcontractor, at the time of application and certification to the TOWN or CONTRACTOR, from withholding such application and certification to the TOWN or CONTRACTOR for payment to the Subcontractor or material supplier for unsatisfactory job progress, defective construction work or materials not remedied, disputed work or materials, third-party claims filed or reasonable evidence that a claim will be filed, failure of a Subcontractor to make timely payments for labor, equipment and materials, damage to the CONTRACTOR or another Subcontractor, reasonable evidence that the Subcontract cannot be completed for the unpaid balance of the Subcontract sum, or a reasonable amount for retention that does not exceed the actual percentage retained by the TOWN.

Payments to Subcontractors. The CONTRACTOR shall pay to his/ his/her Subcontractors or material suppliers, and each Subcontractor shall pay to his/ his/her Subcontractor or material supplier, within seven (7) days of receipt of each progress payment, unless otherwise agreed in writing by the parties, the respective amounts allowed the CONTRACTOR or Subcontractor on account of the work performed by his/ his/her Subcontractors, to the extent of each such Subcontractor’s interest therein, except that no Contract for construction may materially alter the rights of any CONTRACTOR, Subcontractor or material supplier to receive prompt and timely payment as provided under ARS Section 34-221(E). Such payments to Subcontractors or material suppliers shall be based on payments received pursuant to that Section. Any diversion by the CONTRACTOR or Subcontractor or payments for work performed on a Contract, or failure to reasonably account for the application or use of such payments, constitutes grounds for disciplinary action by the Registrar of CONTRACTORs. The Subcontractor or material supplier shall notify the Registrar of Contractors and the TOWN in writing of any payment less than the amount or percentage approved for the class or item of work as set forth in that Section. Nothing herein prevents the CONTRACTOR or Subcontractor, at the time of application and certification to the TOWN or CONTRACTOR, from withholding such application and certification to the TOWN or CONTRACTOR for payment to the Subcontractor or material supplier for unsatisfactory job progress, defective construction work or materials not remedied, disputed work or materials, third-party claims filed or reasonable evidence that a claim will be filed, failure of a Subcontractor to make timely payments for labor, equipment and materials, damage to the CONTRACTOR or another Subcontractor, reasonable evidence that the Subcontract cannot be completed for the unpaid balance of the Subcontract sum, or a reasonable amount for retention that does not exceed the actual percentage retained by the TOWN.