23.
24.
C-1.18
made by Change Order to compensate the Contractor for the costs and delays necessarily
caused by the failure of the Owner or Engineer.
Construction Schedule and Periodic Estimates shall provide for the following:
23.1 Before starting the work or upon request by the Engineer during its progress, the
Contractor shall submit to the Engineer a work plan showing construction methods and
the various steps he intends to take in completing the work.
23.2 Before the first partial payment is made, the Contractor shall prepare and submit
to the Engineer:
a. A written schedule fixing the dates for submission of drawings; and
b. A written schedule fixing the respective dates for the start and completion
of segments of the work. Each such schedule shall be subject to review and
change during the progress of the work.
c. Respective dates for submission of Shop Drawings and for the beginning
of manufacture, the testing, and the installation of materials, supplies, and
equipment.
d. A schedule of payments that the Contractor anticipates will be earned
during the course of the Work.
Payments to Contractor. Payments to the Contractor shall be made as follows:
24.1 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.
24.2 Retainage by Owner. 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
into the account by the Owner. The principal will be held by the bank, available
only to the Owner, until termination of the contract.
b 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.
c. 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, unless drawn upon by the Owner in accordance with
articles 19, 22, and 58.
