.2 third party claims filed or reasonable evidence indicating probable filing of such claims unless
<br />security acceptable to the Owner is provided by the Contractor;
<br />.3 failure of the Contractor to make payments properly to Subcontractors or for labor, materials or
<br />equipment;
<br />.4 reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum;
<br />.5 damage to the Owner or another contractor;
<br />.6 reasonable evidence that the Work will not be completed within the Contract Time, and that the
<br />unpaid balance would not be adequate to cover actual or liquidated damages for the anticipated delay;
<br />or
<br />.7 persistent failure to carry out the Work in accordance with the Contract Documents.
<br />§ 9.5.2 When the above reasons for withholding certification are removed, certification will be made ;r amounts
<br />previously withheld.
<br />§ 9.6 PROGRESS PAYMENTS
<br />§ 9.6.1 After the Architect has issued a Certificate for Payment, the Owner shall make payment in the manner and
<br />within the time provided in the Contract Documents, and shall so notify the Architect.
<br />§ 9.6.2 The Contractor shall promptly pay each Subcontractor, upon receipt of payment from the Owner, out of the
<br />amount paid to the Contractor on account of such Subcontractor's portion of the Work, the amount to which said
<br />Subcontractor is entitled, reflecting percentages actually retained from payments to the Contractor on account of
<br />such Subcontractor's portion of the Work. The Contractor shall, by appropriate agreement with each Subcontractor,
<br />require each Subcontractor to make payments to .Sub -subcontractors in a similar manner.
<br />§ 9.6.3 The Architect will, on request, furnish to a Subcontractor, if practicable, information regarding percentages of
<br />completion or amounts applied for by the Contractor and action taken thereon by the Architect and Owner on
<br />account of portions of the Work done by such Subcontractor.
<br />§ 9.6.4 Neither the Owner nor Architect shall have an obligation to pay or to see to the payment of money to a
<br />Subcontractor except as may otherwise be required by law.
<br />§ 9.6.5 Payment to material suppliers shall be treated in a manner similar to that provided in Sections 9.6.2, 9.6_3 and
<br />9.6.4.
<br />§ 9.6.6 A Certificate for Payment, a progress payment, or partial or entire use or occupancy of the Project by the
<br />Owner shall not constitute acceptance of Work not in accordance with the Contract Documents.
<br />§ 9.6.7 Unless the Contractor provides the Owner with a payment bond in the full penal sum of the Contract Sum,
<br />payments received by the Contractor for Work properly performed by Subcontractors and suppliers shall be held by
<br />the Contractor for those Subcontractors or suppliers who performed Work or furnished materials, or both, under
<br />contract with the Contractor for which payment was made by the Owner. Nothing contained herein shall require
<br />money to be placed in.a separate account and not commingled with money of the Contractor, shall create any
<br />fiduciary liability or tort liability on the part of the Contractor for breach of trust or shall entitle any person or entity
<br />to an award of punitive damages against the Contractor for breach of the requirements of this provision.
<br />§ 9.7 FAILURE OF PAYMENT
<br />§ 9.7.1 If the Architect does not issue a Certificate for Payment, through no fault of the Contractor, within seven days
<br />after receipt of the Contractor's Application for Payment, or if the Owner does not pay the Contractor within seven
<br />days after the date established in the Contract Documents the amount certified by the Architect or awarded by
<br />arbitration, then the Contractor may, upon seven additional days' written notice to the Owner and Architect, stop the
<br />Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately and
<br />the Contract Sum shall be increased by the amount of the Contractor's reasonable costs of shut -down, delay and
<br />start-up, plus interest as provided for in the Contract Documents.
<br />Init. AIA Document A201 � —1997. Copyright
<br />Institute of Architects. All rights reserved.
<br />reproduction or distribution of this AIA®
<br />maximum extent possible under the law.
<br />expires on 10120,12009, and is not for resale.
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