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.
CONTRACTOR is entitled to rely upon the general accuracy of the “technical data” as provided in paragraph 4.2
of the General Conditions. CONTRACTOR acknowledges that such reports and drawings are not Contract
Documents and may not be complete for CONTRACTOR's purposes. CONTRACTOR acknowledges that OWNER
and ENGINEER do not assume responsibility for the accuracy or completeness of information and data shown or
indicated in the Contract Documents with respect to Underground Facilities at or contiguous to the site.
AG -40f7
