If the owner fails to make payments to the contractor as and when provided in the contract, the contractor ought to have the right to suspend the work, but he should be ready to renew his activity if the payment is delivered before the expiration of some prescribed time limit. This action certifies that the owner can now occupy the project for its intended use. A provision appearing in many contracts is that upon substantial completion, the contractor is entitled to be paid up to a specified percentage of the total contract sum. After the contractor corrects items on the deficiency list, a final inspection is held and a final certificate for payment is issued. Commonly, final payment is due the contractor 30 days after substantial completion, provided all work has been completed satisfactorily.
Final payment includes all retainage still held by the owner.
This practice can be inequitable for the subcontractor.