Common use of Retainages Clause in Contracts

Retainages. At the time of each disbursement of Loan proceeds, five percent (5%) of the total amount then due the General Contractor and the various contractors, subcontractors and material suppliers for costs of the Construction shall be withheld from the amount disbursed. Notwithstanding the foregoing, there shall be no retainage with respect to the General Contractor’s fees; provided, however, that the General Contractor’s fees shall not exceed the amount set forth in the Budget and shall be disbursed based on the percentage of completion of Construction. The retained Loan amounts for the Construction costs will be disbursed only at the time of the final disbursement of Loan proceeds under Article 12 below; provided, however, upon the satisfactory completion of one hundred percent (100%) of the work with respect to any trade (including any trade performed by the General Contractor) or the delivery of all materials pursuant to a purchase order in accordance with the Plans and Specifications as certified by the Architect and the Lender’s Consultant, Lender may decide on a case by case basis (but shall not be obligated) to permit retainages with respect to such trade or order, as the case may be, to be disbursed to Borrower upon the Lender’s Consultant’s approval of all work and materials and Lender’s receipt of a final waiver of lien with respect to such completed work or delivered materials.

Retainages. At the time of each disbursement of Loan proceeds, five retainage in the amount of ten percent (510%) of the total amount (or as provided in the General Contract or the various subcontracts or supply contracts) then due the General Contractor and the various contractors, subcontractors and material suppliers for costs of the Construction shall be withheld from the amount disbursed. Notwithstanding the foregoing, there shall be no retainage with respect to the General Contractor’s fees; provided, however, that the General Contractor’s fees shall not exceed the amount set forth in the Budget and shall be disbursed based on the percentage of completion of Construction. The retained Loan amounts for the Construction costs will be disbursed only at the time of the final disbursement of Loan proceeds under Article 12 Section 10.7 below; provided, however, upon the satisfactory completion of fifty percent (50%) of the work with respect to any trade, the retainage for such trade may be reduced to five percent (5%). Furthermore, upon the satisfactory completion of one hundred percent (100%) of the work with respect to any trade (including any trade performed by the General Contractor) ), or the delivery of all materials pursuant to a purchase order in accordance with the Plans and Specifications as certified by the Architect and the Lender’s Consultant, Lender may decide on a case by case basis (but shall not be obligated) to permit retainages with respect to such trade or order, as the case may be, to be disbursed to Borrower upon the Lender’s Consultant’s approval of all work and materials and Lender’s receipt of a final waiver of lien with respect to such completed work or delivered materials.