Common use of Retainages Clause in Contracts

Retainages. At the time of each Mexican Draw Disbursement and disbursement of the proceeds of the Capex Loans, as applicable, seven percent (7%) of the amount specified and described in Clause 5 of the Construction Contract with respect to retainage, then due the Construction Contractor and excluding the amounts due with respect to the steel set forth in Clause 25 of the Construction Contract, shall be withheld from the amount disbursed. The retained amounts for the Construction costs will be disbursed only at the time of the final disbursement of Loan proceeds pursuant to Section 12.3 hereof; provided that, upon the satisfactory completion of one hundred percent (100%) of the work with respect to any trade (including any trade performed by the Construction Contractor) or the delivery of all materials pursuant to a purchase order in accordance with the Plans and Specifications, as certified by the Construction Contractor and the Consultant, Agent may decide, on a case by case basis (but shall not be obligated), to permit retainages with respect to such trade or order to be disbursed to the appropriate Borrower upon the Consultant’s approval of all work and materials, and Agent’s receipt of a final waiver of lien with respect to such completed work or delivered materials.