ARTICLE 12— 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 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.
G. 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.
2. Upon final completion and acceptance of the Work, OWNER shall hold 2% retainage during
the 1 (one) year warranty period and release it only after the project has been accepted.
ARTICLE 13— PROTECTION OF PERSONS AND PROPERTY
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 14 —- 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.
1. 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.
2. 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 15 — 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.
CONTRACTOR also warrants that it presently has no interest and that it will not acquire any interest,
direct or indirect, which would conflict in any manner or degree with the performance of services
required to be performed under this contract. CONTRACTOR further warrants that no person having
such an interest shall be employed in the performance of this contract. If any such interest comes to
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