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opinion to protect the Owner from loss for which the Contractor is responsible, including loss resulting from acts and omissions described in Subparagraph 3.3.2, because oE t defective Work not remedied; .z third party claims filed or reasonable evidence indicating probable filing of such claims unless security acceptable to the Owner is provided by the Contractor, .3 Eailure of the Contractor to make payments properly to Subcontractors or for labor, materials or equipment; .4 reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum; s damage to the Owner or another contractor; .s reasonable evidence that the Work will not be completed within the Contrad Time, and that the unpaid balance would not be adequate to cover actual or liquidated damages foi the anticipated delay; or 7 persistent failure to carry out the Work in accordance with the Contract Documents. 9.5.2 When the above reasons for withholding certification are removed, certification will be made for amounts previously withheld. ' 9.6 PROGRESS PAYMENTS 9.6.1 After the Architect has issued a Certificate for Payment, the Owner shall make payment in the manner and within the time provided in the Contrad Documents, and shall so notify the Architect. 9.6.2 The Contractor shall promptly pay each Subcontractor, upon receipt of payment from the Owner, oui of the amount paid to the Contractor on account of such Subcontrador's portion of the Work, the amount to which said $ubcontractor is entitled, reFlecting percentages actually retained from payments to ihe Contrattor on account of such Subcontractor's portion of the Work. The Contractor shall, by appropriate agreement with each Subcontractor, require each Subcontractor to make payments to Sub-subcontractors in a similar manner. 9.63 The Architect will, on reguest, fumish to a Subcontractor, if practicable, information regarding percentages of completion or amounts applied for by the Contractor and action taken thereon by the Architect and Owner on account o£ portions of the Work done by such Subcontrador. 9.6.4 Neither the Owner nor Architect shall have an obligation to pay or to see to the payment of money to a Subcontracior except as may otherwise be required by law. 9.6.5 Payment to material suppliers shall be treated in a manner similar to that provided in Subparagraphs 9.6.2, 9.6.3 and 9.6.4. fl 9.6.6 A Certificate for Payment, a progress payment; orpartial or entire use or occupancy of the Project by the Owner shall not constiwte acceptance oF Work not in accordance with the Contract Documents. 9.6J Unless the Contractor providesthe Owner with a payment bond in the full penal sum of the Contrad Sum, payments received 'by%-{he' Contractor for Work properly performed by Subcontractors and suppliers shall be held iby; the Contractor for those Subcontractors or suppliers who performed Work ar furnished materials, or both, under contract with the Contractor for which paymeni was made by the Ownec Nothing contained herein shall require tmoney to be placed in a sepazate account and not commingled with money of the Contrador, shall create any fiduciary liabflity ox iort liability on the part of the Contractor for breach of trust or shall entiUe any person or entity to an award of punitive damages against the Contractor for breach of the requirements of this provision. m ~ A 00 ~.oo o ~ 01997 AIAO AIA DOCUMENT A207-7997 GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION The American Institute of Architects 1735 New York Avenue, N.W. Washington, D.C. 70006-5291 WAANING: Unlicensed phofocopying violatas U.S. <opyright laws end wlll suhject the violator ro legal prosecution.