Kernersville B-40 & South - Town of Kernersville

The Project Manager's approval of any payment requested in an Application for Payment shall constitute a
representation by him to the Owner based on the Project Manager's on-site observations of the work in
progress as an experienced and qualified construction inspector/manager and on his review of the
Application for Payment and the supporting data, that the work has progressed to the point indicated;
that, to the best of his knowledge, information and belief, the quality of the work is in accordance with the
Contract Documents. However, as stated above, the Owner reserves the right to review and conduct field
checks to completely satisfy himself that all work and materials applied for have been completed or stored
on site, respectively.
The Contractor shall make the following certification on each request for payment:
"I hereby certify that the labor and materials listed on this request for payment have
been used in the construction of this work, or that all materials included in this
request for payment and not yet incorporated into the construction are now on the
site, and that all lawful charges for labor, materials, etc., covered by previous
Certificates for Payment have been paid and that all other lawful charges on which
this request for payment is based have been paid in full or will be paid in full from the
funds received in payment of this request within ten (10) calendar days from receipt
of this partial payment from Owner."
The Project Manager may refuse to approve the whole or any part of any payment if, in his opinion, he is
unable to make such representations to the Owner. He may also refuse to approve any such payment or,
because of subsequently discovered evidence or the results of subsequent inspections or tests, nullify any
such payment previously approved to such extent as may be necessary in his opinion to protect the Owner
from loss because:
1. The work is defective.
2. The work for which payment is requested cannot be verified.
3. Claims have been filed or there is reasonable evidence indicating the probable filing
thereof.
4. The Contract price has been reduced because of Modifications.
5. The Owner has been required to correct defective work or complete the work
6. Of unsatisfactory prosecution of the work including failure to clean up as required
C. NC SALES AND USE TAX:
In accordance with GC 105-164 of the 1961 Statutes of North Carolina, the Contractor shall pay North
Carolina Sales or Use Tax on all construction materials becoming a permanent part of a completed project.
The Contractor shall comply with all provisions of this law. Under the law, municipalities are eligible for
Sales or Use Tax refunds by the state.
The Contractor shall furnish the Owner, prior to the payment of the periodic estimate, documentary
evidence showing materials used and sales tax paid by the Contractor and each of his Subcontractors. The
documentary evidence shall consist of a certified statement by the Contractor and each of his
Subcontractors individually, showing total purchases of materials from each separate vendor and total
sales taxes paid each vendor. The certified statement shall show the name of the vendor, the invoice
number or numbers covered and inclusive dates of such invoices.
Materials used from the Contractor's or his Subcontractor's warehouse stock shall be shown in the
certified statement at warehouse stock prices.
Prior to final project acceptance and payment, the Contractor shall furnish the Owner a sworn affidavit
summary statement including all project items on which North Carolina Sales Tax has been paid.
11509; WBS #: 3709.3.23 B40 Interchange Landscape 52