c. OWNER has been required to correct defective Work or complete Work in accordance with paragraph
13.09; or
d. ENGINEER has actual knowledge of the occurrence of any of the events enumerated in paragraph 15.02.A.
B. Applications for Payments.
1,
CONTRACTOR shall submit to OWNER the ENGINEER recommended Application for Payment filled out
and signed by CONTRACTOR covering the Work completed as of the date of the Application and
accompanied by such supporting documentation as is required by the Contract Documents. If payment is
requested on the basis of materials and equipment not incorporated in the Work but delivered and suitably
stored at the Site or at another location agreed to in writing, the Application for Payment shall also be
accompanied by a bill of sale, invoice, or other documentation warranting that OWNER has received the
materials and equipment free and clear of all Liens and evidence that the materials and equipment are covered
by appropriate property insurance or other arrangements to protect OWNER's interest therein, all of which
must be satisfactory to OWNER. Any request for partial or final payment shall specifically list the work
completed. Requests for payment for services performed under this agreement shall be submitted as stipulated
in Article 6 - Payment and Procedures in the Agreement.
2. Beginning with the second Application for Payment, each Application shall include an affidavit of
CONTRACTOR stating that all previous progress payments received on account of the Work have been applied
on account to discharge CONTRACTOR's legitimate obligations associated with prior Applications for Payment.
3. The amount of retainage with respect to progress payments will be stipulated in the Agreement.
C. Payment Becomes Due
1.
Not more than 30 days after presentation of the application for payment to OWNER with ENGINEER’s
recommendation, the amount recommended will become due, and when due will be paid by OWNER to
CONTRACTOR.
D. Reduction in Payment.
1. OWNER may refuse to make payment of the full amount recommended by ENGINEER because:
a. Claims have been made against OWNER on account of CONTRACTOR's performance or furnishing of the
Work;
b. Liens have been filed in connection with the Work, except where CONTRACTOR has delivered a specific
Bond satisfactory to OWNER to secure the satisfaction and discharge of such Liens;
c, There are other items entitling OWNER to a set-off against the amount recommended; or
d. OWNER has actual knowledge of the occurrence of any of the events enumerated in paragraphs 14.02.B.5.a
through 14.02.B.5.c or paragraph 15.02.A.
2. If OWNER refuses to make payment of the full amount recommended by ENGINEER, OWNER must give
CONTRACTOR immediate written notice (with a copy to ENGINEER) stating the reasons for such action and
promptly pay CONTRACTOR any amount remaining after deduction of the amount so withheld. OWNER shall
promptly pay CONTRACTOR the amount so withheld, or any adjustment thereto agreed to by OWNER and
CONTRACTOR, when CONTRACTOR corrects to OWNER's satisfaction the reasons for such action.
GC - 47 of 53
