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.