C-1.19
d. Upon substantial or final completion (as defined in article 25), the amount
of retainage will be reduced to 2% of the total Contract Price plus an additional
retainage based on the Engineer's estimate of the fair value of the punch list items
and the cost of completing and/or correcting such items of work, with specified
amounts for each incomplete or defective item of work. As these items are
completed or corrected, they shall be paid for out of the retainage until the entire
project is declared completed (See article 25). The final 2% retainage shall be
held during the one-year warranty period and released only after the Owner has
accepted the project.
24.3 In reviewing monthly estimates for payments of the value of work done, the
Engineer may accept in the estimate, prior to subtracting the retainage, the delivered cost
of certain equipment and nonperishable material which have been delivered to the site or
off-site location and which are properly stored and protected from damage. With the
estimate, the Contractor shall submit to the Engineer invoices as evidence that the
material has been delivered to the site. Prior to submitting the next monthly estimate, the
Contractor shall provide the Engineer with paid invoices or other evidence that the
materials have been paid for. If the Contractor fails to submit such evidence, the
Engineer may then subtract the value of such materials or equipment for which the
Owner has previously paid, from the next monthly estimate. The type of equipment and
material eligible for payment prior to being incorporated in the work will be at the
Engineer's discretion. Material and equipment made specifically for the subject job will
be eligible for payment.
24.4 All material and work for which partial payments have been made shall thereupon
become the sole property of the Owner. This provision shall not be construed as
relieving the Contractor from the sole responsibility for the care and protection of
materials and work upon which payments have been made or for the restoration of any
damaged work, or as a waiver of the right of the Owner to require compliance with all of
the terms of the contract.
24.5 Owner's right to withhold payments and make application. The Contractor agrees
that he will indemnify and save the Owner or the Owner's agents harmless from all
claims growing out of the lawful demands of Subcontractors, laborers, workmen,
mechanics, material men, and furnishers of machinery and parts, equipment, power, tools
and all supplies, including commissary, incurred in the furtherance of the performance of
this contract. The Contractor shall, at the Owner's request, furnish satisfactory evidence
that all claims of the nature hereinabove designated have been paid, discharged, or
waived. If the Contractor fails to do so, then the Owner may, upon written notice to the
Contractor either pay unpaid bills of which the Owner has written notice directly, or
withhold from the Contractor's unpaid compensation a sum of money to pay any and all
such lawful claims until satisfactory evidence is furnished that all liabilities have been
fully discharged. Payment to the Contractor shall then be resumed in accordance with the
terms of this contract but in no event shall the above provisions be construed to impose
any obligations upon the Owner to either the Contractor or his surety or any third party.
In paying any unpaid bills of the Contractor, the Owner shall be deemed the agent of the
Contractor, and any payment so made by the Owner shall be considered as payment made
under contract by the Owner to the Contractor and the Owner shall not be liable to the
Contractor for any such payments made in good faith.
24.6 If the Owner fails to make payment forty-five (45) days after approval by the
Engineer, in addition to other remedies available to the Contractor, there shall be added to
