In addition to any other rights or options herein granted to or reserved by the City, the City may withhold from any payment otherwise due to the contractor hereunder an amount or amounts sufficient to cover:
(a) Just claims due and payable to any person for labor or materials furnished in and about the performance of the work on the project under this contract;
(b) The cost estimated by the City Engineer or Director of Public Service of remedying, replacing or restoring any defective work or material performed or furnished in and about the project;
(c) Past-due payments to any subcontractor; and
(d) Accrued damages for delay in accordance with Section 177.07.
The City shall have the right to disburse such funds as have been withheld pursuant to this section to the party or parties entitled thereto and shall render to the contractor a proper accounting thereof, but in so doing shall be liable to the contractor only for gross negligence or willful misconduct in making such payment or disbursement of funds so withheld.
(Ord. 33-1960. Passed 3-7-60.)