Retention Reduction Sample Clauses
The Retention Reduction clause defines the conditions under which the amount of money withheld (retention) from payments to a contractor or service provider can be decreased during the course of a project. Typically, this clause specifies milestones or performance criteria—such as completion of a certain percentage of work or passing inspections—after which the retention percentage is reduced. Its core practical function is to incentivize timely and quality work by gradually releasing withheld funds, while still protecting the client’s interests until the project is satisfactorily completed.
Retention Reduction. If all the conditions of payment set forth in Article 11(c) have been met (except for minor punch list items or claims of non-material deficiencies in the Work, the value of which items or claims will be mutually determined in good faith by Purchaser and Seller), Seller will invoice Purchaser for the retention amount less twice the determined value of such items or claims. Upon the correction or elimination of such items or claims, Seller will invoice Purchaser for the balance of the retention amount.
Retention Reduction. If all the conditions of payment set forth in Article 11(c) have been met (except for minor punch list items or claims of non-material deficiencies in the Work, the value of which items or claims will be mutually determined in good faith by Purchaser and Seller), Seller will invoice Purchaser for the retention amount less twice the determined value of such items or claims. Upon the correction or elimination of such items or claims, Seller will invoice Purchaser for the balance of the retention amount. -------------- [*] = omitted, confidential material, which material has been filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.