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e e e GC.25 c. With each partial payment estimate, the CONTRACTOR shall have forwarded to the OWNER statements from all of his suppliers and SUBCONTRACTORS indicating that payments owed them by the CONTRACTOR, as of the date of the statement, had been received. In effect these statements will constitute lien waivers covering the WORK done to date. d. The CONTRACTOR may substitute acceptable securities, as defined below for the whole or any portion of the retainage. Acceptable securities are limited to Federal securities, Colorado State and political general obligations bonds, certificates of deposit insured by the FDIC or the FSLIC, or similar negotiable securities. Before the OWNER will exercise its option to reduce the percentage of monies retained when the WORK is fifty percent complete, the CONTRACTOR shall have forwarded to the OWNER statements from all of his suppliers and SUBCONTRACTORS indicating that payments owed them by the CONTRACTOR, as of the date of the statement, had been received. In effect these statements will constitute lien waivers covering the WORK done to date. In addition to the foregoing procedures, for any construction contract exceeding $80,00000 execnted on or after January l, 1980, partial payments shall be made by the OWNER to the CONTRACTOR on a monthly basis provided the CONTRACTOR is satisfactorily performing the contract. Said monthly payments shall be based on information submitted by the CONTRACTOR in monthly payment requests as described above. For this class of contracts, the OWNER may withhold no more than 10 % of all monthly partial payments until 50'1c of the work requested by the contract has been performed, but, hereafter, the OWNER shall not WithllOld any further amounts from the monthly payments, provided satisfactory progress is being made in the work in the opinion of the ENGINEER. Also, if the work is progressing satisfactorily, the OWNER may honor a written request from the CONTRACTOR to make additional payments to the CONTRACTOR from the retained percentage of the contract price, provided prior approval therefore is received from the CONTRACTOR's surety, and the OWNER detennines satisfactory and substantial reasons exist for such payment. Alternatively, the CONTRACTOR may withdraw from the OWNER part or all of said retained percentage if the CONTRACTOR deposits acceptable securities with the OWNER. The foregoing procedures must be carried out consistent with applicable Colorado state law. The market value of materials and equipment delivered to the constrnction site but not yet incorporated in the WORK may, at the discretion of the OWNER, be included with a progress payment. However, payment by the OWNER for such materials and equipment shall not relieve the CONTRACTOR of the responsibility for the care of such materials and equipment because the OWNER does not intend to assume ownership of the materials or equipment until these are incorporated into the completed WORK. Such increases to progress payments are intended only to reduce the cost of doing business with the OWNER. ADDITIONAL WITHHOLDING OF PROGRESS PAYMENTS. The OWNER may, at its sole discretion, withhold additional sums from progress payment monies due the CONTRACTOR. Such additional withholding can be made for but is not limited to any of the following described reasons; and whenever the reasons for such withholding no longer exist, the OWNER will make payment of the sums withheld for these reasons. a. FAILURE TO REPAIR DEFECTIVE WORK. If the estimated cost of repairing or replacing defective work appears to exceed the sums of money normally withheld, the OWNER may retain as many additional sums as it believes necessary to insure that the defective work is repaired or replaced. b. CLAIMS AGAINST THE CONTRACTOR. If claims in connection with the work have been filed against the CONTRACTOR, the OWNER will withhold sufficient III.20 (1723 - 10/93)