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Page 41 of 53 <br />5-2-25 <br /> <br /> <br />42.9.7. Subtract retainage as provided below. <br /> <br />42.10 Except with the Owner’s prior approval, payments allocated to Subcontractors shall be subject to a <br />retention of five (5%). Whenever any item of Work indicated on the CMAR’s schedule of values <br />is completed on or before a target date mutually agreed upon by the Owner, Project Designer and <br />the CMAR, and the Project Designer and Owner agree the Work is completed, the Owner may <br />reduce the amount of retainage on that item by fifty (50%) for the remainder of the Project. <br /> <br />42.11 Retainage in the traditional sense shall not be held on the CMAR’s Fee. <br />Satisfactory completion and close out of the Project means that the Owner and <br />Project Designer are satisfied that the Project has been completed in accordance <br />with the Construction Documents and within the GMP, all general conditions of <br />the Contract pertaining to the close out have been satisfied, and all Subcontractors <br />have satisfactorily completed their respective contracts. Retainage is applicable <br />only as related to Subcontractors. There will be no retainage held on the <br />following costs: general conditions, general requirements, site services, <br />insurances, bonds, or fee. <br /> <br />42.12. Except with the Owner’s prior approval, the CMAR shall not made advance payments to suppliers <br />for material or equipment that has not been delivered and stored at the site. <br /> <br />42.13. The Project Designer shall take action on the CMAR’s application for payment in accordance with <br />the agreement between the Owner and Project Designer. The Project Designer’s certification for <br />payment shall be based upon the Project Designer’s on-site observation and the documentation <br />submitted in accordance with this paragraph and the CMAR’s application for payment. <br /> <br />43. CERTIFICATES OF PAYMENT AND FINAL PAYMENT <br /> <br />43.1. Within five (5) days from receipt of request for payment from the CMAR, the Project Designer <br />shall issue and forward to the Owner a certificate for payment. This certificate shall indicate the <br />amount requested or as approved by the Project Designer. If the certificate is not approved by the <br />Project Designer, it shall state in writing to the CMAR and the Owner its reasons for withholding <br />payment. No certificate issued or payment made shall constitute an acceptance of the Work or any <br />part thereof. <br /> <br />43.2. The Owner reserves the right, prior to making final payment to the CMAR, to <br />conduct a final audit of the expenditures by the CMAR on the Project for <br />assurances that the final payment to the CMAR does not exceed the amounts <br />properly payable to the CMAR for the Cost of the Work, General Conditions, any <br />special allowances, and CMAR-GMP Contingency savings. In the event an audit <br />determines that the CMAR has been paid more than it is entitled to be paid under <br />the Contract, the CMAR will refund the overpayment to the Owner. <br />Notwithstanding anything contained herein to the contrary, the Owner’s audit <br />rights shall not extend to any lump sum amounts, unit rates, established charges, <br />fixed rates or multipliers. <br /> <br />43.3. The making and acceptance of final payment shall constitute a waiver of all claims by the Owner <br />except: <br /> <br />43.3.1. Claims arising from unsettled liens or claims against the CMAR. <br /> <br />43.3.2. Faulty Work or materials appearing after final payment. <br /> <br />43.3.3. Failure of the CMAR to perform the Work in accordance with drawings and <br />specifications, such failure appearing after payment. <br />Docusign Envelope ID: 5A9E3BC2-EAE1-4C35-82D9-B4D6A375FA78