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<br />incurring interest pursuant to this Section shall be reduced by the number of days by which the City <br />exceeds the seven-day returu requirement set forth in this Article 7, Section 7.5.2. <br />7.7 In making these progress payments, the City will retain ten percent (10%) (of the direct cost <br />component of the Project Budget only-excluding fees payable to the Program Manager) of the <br />estimated amount until final completion and acceptance of the work unless otherwise agreed upon <br />by Program Manager and the City. When the work is substantially complete as defined in Article 5, <br />the City shall retain a maximum amount of 5% and shall release to Program Manager all of any <br />excess amount for disbursement to the Contractors. <br />7.8 Except as otherwise prohibited by law, Program Manager may elect to require the City to <br />disburse to Program Manager payments payable to Contractors without any retention, by causing <br />the affected Contractors to post securities in accordance with California Public Contract Code <br />Section 22300. <br />7.9 The City may withhold payment (in excess of retentions) or, on account of subsequently <br />discovered evidence, nullify the whole or a part of any certificate to such extent as may be <br />necessary to protect the City from loss on account of the following (and each contract awarded to <br />Contractors shall allow withholding for): <br />1. Defective work not in the process of being remedied. <br />2. "Stop Notice" claims filed. <br />3. Failure of Program Manager or its Construction to make payments properly <br />to Contractors for material or labor when no actual dispute exists concerning <br />such payment. <br />4. Default of Program Manager, in the performance of the material terms of this <br />Agreement. <br />7.10 If stop notices are filed with the City, the City shall withhold the amount required from <br />certificates until such claims shall have been resolved pursuant to applicable law California Civil <br />Code Section 3179, et seq. <br />ARTICLE 8 <br />FINAL PAYMENT <br />8.1 The City shall pay the final payment due Program Manager under this Agreement and Program <br />Manager shall be authorized to disburse same when: <br />1. The Agreement has been fully performed by the Program Manager; <br />2. Request for Final Payment has been made; <br />3. Release of all liens and Stop Notices has been accomplished; <br />4. Program Manager has presented to the City releases of all filed claims against <br />the City by the Contractors; and, <br />