Subcontractors

ARTICLE 14 - PAYMENTS TO CONTRACTOR ANDCOMPLETION5. The OWNER will retain the following amounts fromeach properly certified estimate:14.01 Schedule of Valuesa. Until the value of the Work completed, includingA. The schedule of values established as provided in stored materials, is at least 50 percent of the Contractparagraph 2.07.A will serve as the basis for progress amount, 10 percent of the value of all Work satisfactorilypayments and will be incorporated into a form of Applica- completed, including stored materials.tion for Payment acceptable to ENGINEER. Progresspayments on account of Unit Price Work will be based on b. When the value of the completed Work totals at least 50the number of units completed.percent of the Contract amount, the Owner will discontinueretaining additional amounts provided the Work is14.02 Progress Payments progressing satisfactorily and there is no specific cause forretaining a larger sum. The total amount retained will be atA. Applicationsfor Payments least 5 percent of the Contract amount. adiusted for ChangeOrders, until the date of final payment.1. At least 20 days before the date established for eachprogress payment (but not more often than once a month), c. The Owner may elect to reinstate retainage of 10 percentCONTRACTOR shall submit to ENGINEER for review an of the value of the Work completed if at any time theApplication for Payment filled out and signed by Contractor fails to make satisfactory progress or if there isCONTRACTOR covering the Work completed as of the other specific cause. Satisfactory progress is identified asdate of the Application and accompanied by such sup- conforming to the construction progress schedule asporting documentation as is required by the Contract Docu- required in Article 24, as modified by the Supplementaryments. If payment is requested on the basis of materials and Conditions.equipment not incorporated in the Work but delivered andsuitably stored at the Site or at anzther 196atin agFred to in 6. No form of collateral in lieu of cash will bewriting, the Application for Payment shall also be acceptable as retainage.accompanied by a bill of sale, invoice, or other documentationwarranting that OWNER has received the materials 7- Amounts retained by the Contractor from paymentsand equipment free and clear of all Liens and evidence that due to suppliers and subcontractors (expressed as athe materials and equipment are covered by appropriate percentage) shall not exceed that being retained by theproperty insurance or other arrangements to protect Owner.OWNER's interest therein, all of which must be satisfactoryto OWNER. 8. Payments Withheld: The Engineer may decline toapprove an Application for Payment and may withhold2. Beginning with the second Application for Payment, certificate, in whole or in part. as may be necessary toeach Application shall include an affidavit of protect the Owner from loss because of.CONTRACTOR stating that all previous progress paymentsreceived on account of the Work have been applied on a. Failure of the Contractor to make payments proerlaccount to discharge CONTRACTOR's legitimate to subcontractors or for labor or products.obligations associated with prior Applications for Payment.b. Unsatisfactory prosecution of the Work by the3. The amount of retainage with respect to progress pay- Contractor either due to quality of the Work or if thements will be as stipulated in the Ageementbelow.Contractor is behind the currently approved construction4. If requested, CONTRACTOR shall furnish evidence schedule.that payment received on the basis of materials and 9. When the above reasons for nonpayment areequipment not incorporated and suitably stored, has in fact corrected, then payment will be made for amounts withheldbeen paid to the respective suoplier(s) within fifteen days because of such reasons, not later than the next payment.of payment by OWNER. Failure to provide such evidenceof payment may result in the withdrawal of previousapproval(s) and removal of the cost of related materials . Review of Applicationsand equipment from the next submitted Application forPayment.1. ENGINEER will, within 10 days after receipt of eachApplication for Payment, either indicate in writing arecommendation of payment and present the Application toEJCDC No. 1910-8 (1996 Edition) 00 72 00 - 41wI JJG Modifications (Reo03/06/08)