ARTICLE li- 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
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 total value of the contract work is 50% complete, as determined by the
OWNER, 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 total value of the contract work work is 50% complete, and provided the
CONTRACTOR has satisfied the OWNER 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.
2. Upon final completion and acceptance of the total value of the contract work, OWNER shall
hold 2% retainage during the 1 (one) year warranty period and release it only after the project
has been accepted.
ARTICLE 12— PROTECTION OF PERSONS AND PROPERTY
1.
The CONTRACTOR shall be responsible for initiating, maintaining and supervising all safety
precautions and programs, including all those required by law in connection with performance
of the Contract. The CONTRACTOR shall promptly remedy damage and loss to property
caused in whole or in part by the CONTRACTOR, or by anyone for whose acts the
CONTRACTOR may be liable.
ARTICLE 13 — CORRECTION OF WORK
1.
The CONTRACTOR shall promptly correct Work rejected by the OWNER as failing to
conform to the requirements of the Contract Documents. The CONTRACTOR shall bear the
cost of correcting such rejected work
In addition to the CONTRACTOR’s other obligations including warranties under the
Contract, the CONTRACTOR shall, for a period of one year after Substantial Completion,
correct work not conforming to the requirements of the Contract Documents.
. If the CONTRACTOR fails to correct nonconforming Work within a reasonable time, the
OWNER may correct it and the CONTRACTOR shall reimburse the OWNER for the cost of
the correction.
ARTICLE 14 — PROHIBITED INTERESTS
CONTRACTOR shall not allow any officer or employee of the OWNER to have any indirect or
direct interest in this contract or the proceeds of this contract. CONTRACTOR warrants that no
officer or employee of the OWNER has any direct or indirect interest, whether contractual, non-
contractual, financial or otherwise, in this contract or in the business of the CONTRACTOR.
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