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Document 00800<br />

Page 7<br />

“With each Application for Payment, Contractor shall submit a Conditional Upon Progress Lien Waiver for each<br />

subcontractor, vendor, or material supplier who has furnished a Preliminary Lien Notice. Furthermore, Contractor shall<br />

provide an Unconditional Upon Progress Lien Waiver prior to submitting subsequent Applications for Payment for<br />

additional disbursements. All Conditional and Unconditional Upon Progress Lien Waivers shall be provided in<br />

accordance with the laws governing the State in which the Work is being performed.”<br />

9.5.1 Delete Paragraphs 9.5.1.1 though 9.5.1.7 and replace with the following 9.5.1.1 through 9.5.1.9:<br />

9.5.1.1 The omission of any Work required by the Contract Documents, or defective Work which has not been<br />

remedied, in which case the Owner may, with notice to the Contractor, withhold one hundred and fifty percent<br />

(150%) of the estimated cost or expense as a reasonable value to correct such omission or defective Work and<br />

any damage suffered or expense incurred to remedy the omission or defect on account thereof;<br />

9.5.1.2 Third-party claims filed or reasonable evidence indicating probable filing of such claims, including but not<br />

limited to mechanic’s liens or stop notices, in which case Owner may withhold one hundred fifty percent<br />

(150%) thereof as a reasonable value to protect Owner against such third-party claims and legal costs incurred<br />

on account thereof;<br />

9.5.1.3 Failure of Contractor to make payments properly to subcontractors, material men, laborers, or other persons<br />

entitled to payment, in which case the Owner may withhold the amount of such failure to pay and any amount<br />

of damage suffered or expense incurred on account thereof;<br />

9.5.1.4 Reasonable evidence that the Work cannot be completed with the unpaid balance of the Contract Price, in<br />

which case the Owner may withhold the unpaid balance of the Contract Sum;<br />

9.5.1.5 Failure to carry out the Work in accordance with the Contract Documents, Supplementary Instructions, or<br />

Project Schedule, which failure must be communicated to Contractor in writing for each cause or incident. If<br />

Contractor fails or refuses to correct or remedy failure or deficiency, then the Owner may withhold an amount<br />

sufficient to discharge the damage and any expenses suffered or incurred on account thereof;<br />

9.5.1.6 Reasonable evidence that the Work will not be completed within the Contract Time, in which case the Owner<br />

may withhold an amount sufficient to discharge the damage or expense anticipated to be suffered or incurred;<br />

9.5.1.7 Any damage to Owner, another Contractor, or to another subcontractor performing Work on the Project to the<br />

extent that such damage suffered and the expense incurred on account thereof is not covered by insurance, in<br />

which case the Owner may withhold sufficient funds to discharge said damage and any expenses suffered or<br />

incurred on account thereof;<br />

9.5.1.8 The breach of any provisions in the Agreement or Contract Documents by Contractor to the extent of the<br />

damage or expense suffered or incurred or the amount that can be reasonably anticipated to be suffered or<br />

incurred on account thereof, in which case the Owner may withhold an amount sufficient to discharge the<br />

damage and any expenses suffered or incurred on account thereof;<br />

9.5.1.9 Failure to maintain Record Drawings updated to the “as-built” condition, or the failure to perform the Work in<br />

accordance with approved Shop Drawings and Submittals, or the failure to perform the Work in accordance<br />

with duly-authorized Supplementary Instructions, Change Orders or Construction Change Directives, in which<br />

case the Owner may withhold one hundred twenty-five percent (125%) of the estimated cost and related<br />

expenses as a reasonable value to correct such failure or reasonable expenses incurred thereof.<br />

9.5.2 Delete this paragraph in its entirety and replace with:<br />

“Whenever the grounds giving rise to the above withholding (Subparagraphs 9.5.1.1 through 9.5.1.9) have been<br />

removed, Owner shall pay to Contractor the amount withheld because of such grounds, less any damages in resulting<br />

expenses actually sustained by Owner as a result of the grounds for the withholding, the cost of the withholding, or<br />

removal of the cause of the withholding.”<br />

NAPA CENTURY CENTER XD 12<br />

#165582

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