3. Application for Payment performed under this agreement shall be submitted directly to:
City of Nashua
Accounts Payable
PO Box 2019
Nashua, NH 03061-2019
Attn:
To facilitate the proper and timely payment of applications, the City of Nashua
requires that all applications contain a valid PURCHASE ORDER NUMBER.
4. The Contractor warrants that title to all Work covered by an Application for Payment will
pass to the Owner no later than the time of payment. The Contractor further warrants that
upon submittal of an Application for Payment, all Work for which Certificates for Payment
have been previously issued and payments received from the Owner shall, to the best of the
Contractor’s knowledge, information and belief, be free and clear of liens, claims, security
interests or other encumbrances adverse to the Owner's interests.
5. OWNER shall make payments on the basis of Contractors Application for Payment,
approximately 30 days from the time the final payment application is received by the
Owner, depending upon the timing of submittals and approvals.
6. The Contractor shall promptly pay each Subcontractor and material supplier out of the
amount paid to the Contractor on account of such entities’ portion of the Work.
7, The Owner shall have no responsibility for the payment of money to a Subcontractor or
material supplier.
8. An Application for Payment, a progress payment. or partial or entire use or occupancy of
the project by the Owner shall not constitute acceptance of Work not in accordance with
the requirements of the Contract Documents.
9. Substantial completion is the stage in the progress of the Work when the Work or
designated portion thereof is sufficiently complete in accordance with the Contract
Documents so the Owner can occupy or utilize the Work for its intended use.
10. When the Work or designated portion thereof is substantially complete, the Contractor and
Owner shall establish responsibilities for completion and shall fix the time within which the
Contractor shall finish all items on the list accompanying the Certificate. Warranties
required by the Contract Documents shall commence on the date of Substantial Completion
of the Work or designated portion thereof unless otherwise provided in the Certificate of
Substantial Completion.
11. Upon receipt of a final Application for Payment, the Owner will inspect the Work. When
he finds the Work acceptable and the Contract fully performed, the Owner will promptly
issue a final Certificate for Payment.
. Acceptance of final payment by the Contractor, a Subcontractor or material supplier shall
constitute a waiver of claims by that payee except those previously made in writing and
identified by that payee as unsettled at the time of final Application for Payment.
ARTICLE 11~ RETAINAGE
1. The OWNER will retain a portion of the progress payment, each month, in accordance with
the following procedures:
a, 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
AG-7
