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Can the Owner deduct anything from the payment due the Contractor?
Yes, the Owner may deduct from any payment due the contractor for:
• The estimated cost of defective work not remedied; (Note: Unqualified power should not be allowed)
• The amount of substantiated and unpaid claims by subcontractors and suppliers unjustifiably withheld by the Contractor; and
• The amount which has accrued as liquidated damages.