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Section 8 – Measurement and Payment

possession of the Work or any part thereof shall be a waiver of any of the terms and conditions

of the Contract, the powers reserved by the Agency, or any right of the Agency to damages or to

reject the Work in whole or part. No breach of this Contract shall be construed a waiver of any

other or subsequent breach. All remedies provided in the Contract shall be cumulative and

shall be in addition to all other rights and remedies that may exist at law or in equity.

8-7.01 Retention to Ensure Performance

As described in Section 8-11, “Final Estimate and Payment”, in this Section of these

Specifications, the Agency will retain ten percent (10%) of each Progress Payment to ensure

performance under the Contract until thirty-five (35) days after filing of the Notice of Completion.

8-7.02 Non-Compliance

The Agency may also retain portions of a Progress or Final Payment for Contract non-

compliance in an amount deemed appropriate by the Agency.

8-7.03 Substitution Of Securities

At the request and expense of the Contractor, in accordance with California Public Contract

Code Section 22300, in lieu of the Agency withholding the ten percent (10%) retention defined

in Section 8-7.01, “Retention to Ensure Performance”, in this Section of these Specifications,

the Contractor may: 1) substitute a deposit of securities at least equivalent to the retention to be

paid, or 2) request the Agency pay retention directly to an escrow agent.

The Contractor and Agency shall enter an escrow agreement in the exact form set forth in

Public Contract Code Section 22300. All forms or correspondence pertaining to

Security Deposit in Lieu of Withhold shall be addressed to:

Sacramento County Department of County Engineering and Administration

Accounting and Fiscal Services – Contract Desk

827 Seventh Street, Room 304

Sacramento, CA 95814

8-8 WITHHOLDINGS/DENIAL OF PROGRESS PAYMENT REQUEST

The Agency may deny a Progress Payment request and/or withhold money from any

Progress Payment to:

cover any unpaid claims filed pursuant to Civil Code Sections 3179 et seq.;

protect the Agency's interest; and/or

pay any fines levied against the Work by the Agency or other entities.

The Agency may also deny a Progress Payment request and/or withhold money, or modify

any previous Progress Payment, as necessary to protect the Agency from loss due to or

affecting enforcement of:

Defective work not remedied.

Failure of the Contractor to make payments properly to Subcontractors for labor,

materials, or equipment.

Evidence that the Work cannot be completed for the unpaid balance of the Contract

Evidence that the Work will not be completed within the Contract time.

Damage to the Agency or another contractor.

Failure to carry out the Work in accordance with the Contract.