This form is a sample agreement between the owner of property and the contractor agreeing that acceptance by contractor of late payments as described in the agreement do not constitute a waiver of the right to receive timely payments pursuant to the agreement in the future.
Alaska Non-Waiver Agreement between Contractor and Owner Regarding Accepting Late Payments In the construction industry, delays in payment can often disrupt project progress and strain relations between contractors and owners. To address this issue, an Alaska Non-Waiver Agreement between Contractor and Owner Regarding Accepting Late Payments serves as a legally binding contract outlining the terms and conditions agreed upon in the event of delayed payments. This agreement includes the following vital elements: 1. Definitions: The agreement begins with a section that defines specific terms used throughout the document, such as "Contractor," "Owner," "Project," and "Late Payment," to establish a common understanding between both parties. 2. Late Payment Acceptance: This agreement asserts that the Contractor agrees to accept late payments from the Owner without waiving their rights to enforce prompt payment or take legal action for non-payment. By signing this agreement, the Contractor acknowledges that accepting late payment does not constitute a waiver of their rights. 3. Notice Requirement: The agreement specifies a notice requirement in cases of late payment. The Owner must provide written notice within a designated timeframe, informing the Contractor of the delay. This ensures that the Contractor is aware of the delay and can take appropriate steps to address the situation. 4. Interest and Penalties: To discourage late payments, a Non-Waiver Agreement may include provisions for interest charges or penalties imposed on the Owner for delayed payments. This section outlines the specific interest rate or penalty amounts applicable after the grace period. Alaska Non-Waiver Agreement Types: 1. Standard Non-Waiver Agreement: This is the overarching type of agreement and encompasses the core terms discussed above. It serves as a general template for addressing late payments and protecting the Contractor's rights while allowing for late payment acceptance. 2. Customized Non-Waiver Agreement: Some Contractors and Owners may choose to customize the agreement based on their specific project needs, payment terms, or industry requirements. This may include additional provisions, such as milestone payment schedules, escrow arrangements, or alternate dispute resolution mechanisms. 3. Progressive Waiver Agreement: In certain cases, the Contractor and Owner may agree to a progressive waiver provision as an addendum to the Non-Waiver Agreement. This provision allows the Contractor to waive their rights to prompt payment enforcement for specific instances while maintaining their rights for future late payments. It grants flexibility in addressing occasional delays without compromising the overall intent of the agreement. 4. Partial Non-Waiver Agreement: If the Contractor and Owner agree to accept late payments for a specific portion of the project or certain agreed-upon circumstances, a partial non-waiver agreement can be drafted. This agreement would only apply to the identified sections or conditions, leaving the remaining aspects subject to standard payment terms and conditions. By establishing an Alaska Non-Waiver Agreement between Contractor and Owner Regarding Accepting Late Payments, both parties can mitigate potential conflicts arising from delayed payments while ensuring that the project progresses smoothly. It offers a structured framework that protects the Contractor's rights and enables effective resolution of payment disputes, ultimately fostering a stronger working relationship between the Contractor and the Owner.
