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.
ARTICLE 7 - CONTRACTOR'S REPRESENTATIONS
7.01 In order to induce OWNER to enter into this Agreement CONTRACTOR makes the following representations:
A. CONTRACTOR has examined and carefully studied the Contract Documents and the other related data
identified in the Bidding Documents.
B. CONTRACTOR has visited the Site and become familiar with and is satisfied as to the general, local,
and Site conditions that may affect cost, progress, and performance of the Work.
C. CONTRACTOR is familiar with and is satisfied as to all federal, state, and local Laws and Regulations
that may affect cost, progress, and performance of the Work.
D. CONTRACTOR has carefully studied all (if any): (1) reports of explorations and tests of subsurface
conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or
subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the
Supplementary Conditions as provided in paragraph 4.02 of the General Conditions and (2) reports and drawings of a
Hazardous Environmental Condition, if any, at the Site which has been identified in the Supplementary Conditions as
provided in paragraph 4.06 of the General Conditions.
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