The Right of Owner to Withhold Payment Clause Samples

The Right of Owner to Withhold Payment. The Owner may withhold or, on account of subsequent evidence, nullify, the whole or part of any Progress Payment, including the Final Payment, to such extent as may be necessary to reasonably protect itself from any of the following: (a) unacceptable work as further described in Section 50-10 of the FAA General Provisions; or (b) third-party claims filed or reasonable evidence indicating probable filing of such claims; or (c) reasonable doubt that the Work will be substantially completed by the Substantial Completion Date; or (d) failure of the Contractor to make payments properly to subcontractors or for equipment, materials, services or labor; or (e) reasonable evidence of fraud, over-billing or overpayment; or (f) failure of the Contractor to perform the Work in accordance with the Contract Documents; or (g) a reasonable doubt that the Work can be completed for the unpaid balance of the Contract Price; or (h) damage to the Owner, or to another contractor, subcontractor or sub-subcontractor caused by the Contractor; or (i) failure to provide certified payroll records; or (j) failure to provide any documents required by the Owner Controlled Insurance Program (OCIP); or (k) failure to keep the record drawings current each month in accordance with Article 6 of this Contract.