ARTICLE 6 - PAYMENT PROCEDURES
6.01 Submittal and Processing of Payments
A. CONTRACTOR shall submit Applications for Payment in accordance with Article 14 of the General
Conditions. Applications for Payment will be processed by ENGINEER as provided in the General Conditions.
B. CONTRACTOR shall submit Applications for Payment under this agreement directly to:
City of Nashua, City Hall
Attn: Accounts Payable
229 Main Street
Nashua, NH 03060
Please do not submit invoices both electronically and paper copy.
To facilitate the proper and timely payment of applications, the City of Nashua requires that all invoices contain
a valid PURCHASE ORDER NUMBER.
6.02 Progress Payments; Retainage
A. Progress Payments. The OWNER will once each month make a progress payment to the
CONTRACTOR on the basis of an estimate of the total amount of work done to the time of the estimate and its value
as prepared by the CONTRACTOR and approved by the ENGINEER. All such payments will be measured by the
schedule of values established in paragraph 2.07.A of the General Conditions (and in the case of Unit Price Work based
on the number of units completed) or, in the event there is no schedule of values, as provided in the General
Requirements.
B. Retainage. The OWNER will retain a portion of the progress payment, each month, in accordance
with the following procedures:
1. The OWNER will establish an escrow account in the bank of the OWNER’S choosing.
The account will be established such that interest on the principal will be paid to the
CONTRACTOR. The principal will be the accumulated retainage paid into the account by
the OWNER. The principal will be held by the bank, available only to the OWNER, until
termination of the contract.
2. Until the work is 50% complete, as determined by the ENGINEER, retainage shall be 10%
of the monthly payments claimed. The computed amount of retainage will be deposited in the
escrow account established above.
3. After the work is 50% complete, and provided the CONTRACTOR has satisfied the
ENGINEER in quality and timeliness of the work, and provided further that there is no
specific cause for withholding additional retainage no further amount will be withheld. The
escrow account will remain at the same balance throughout the remainder of the project.
6.03 Final Payment
A. Upon final completion and acceptance of the Work in accordance with paragraph 14.07 of the General
Conditions, OWNER shall hold 2% retainage during the 1 (one) year warranty period and release it only after the
project has been accepted.
AG - 3 0f7
