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4. PROGRESS PAYMENTS: The Contractor agrees that the total contract price shall be paid in one or more payments, based upon the value of the work completed at the time the progress payment is made. Such progress payments shall be disbursed at the time and in the amounts specified in the Payment Schedule, after inspection and approval of the work by Owner and the Contract Administrator, less a holdback of 10 percent of the price of work completed. The holdback shall be retained until final payment in order to protect the Owner from any default by the Contractor. In the event the Contractor defaults, the holdback shall be disbursed in accardance with Part II, paragraph 10 of this Contract. Final payment shall be due upon satisfactory compleUon and acceptance of the work as in compliance with this Contract by the Owner and the Contract Administrator, permit sign-off, submission of satisfactory waiver(s) of liens or a bond satisfactory to the Owner and Contract Administrator indemnifying the Duvner against any lien, and submission of ali waRanties and guarantees. The Owner shall not withhold payment to the Contractor except for noncompliance with the terms of this Contract, and shall not request the Contractor to perform work outside the soope of this Contract as a condition of receiving payment. The Contractor acknowledges that it is a matedal breach of this ConUact to request or accept a progress or final payment which is in excess of the prica af the worlc compieted at the time such payment is requested, less the required holdback. 5. WARRANTY: The Contractor wairants that all improvements, hardware and fixtures of whatever kind or nature to be installed or constructed on #he property by the Contractor or the Contractor's subcontractors will be of good quality, suitable for their purpose and free from defects in workmanship or materials, or other deficiencies. This is e full warranty extending to the Owner and subsequent owners of the property; provided, however, that the waRanty set forth in this paragraph shail apply only to deficiencies and defects about which the Owner or subsequent owner(s) shali have notified the Contractor at the address stated above within ane year, except for any extended warranty periods on roof shingies, kitchen appliances, HVAC and water heater. 6. PARTIES TO CONTRACT: The Owner and Contractor agree that they are the sole parties to this Contract and are salely responsible for its performance. The parties agree that the Contract Administrator, Texas Department of Housing and Community Affairs, or the United States Department of Housing and Urban Development do not assums any liability or responsibility whatsoever for the performance of any term of this Contract. 266