Pursuant to the Prompt Payment Act a Payor can withhold all or some of the money owed to a Contractor, Subcontractor, or Supplier if there is a legitimate reason to do so, referred to as a “Good Faith Dispute”. A Payor (Property Owner, Contractor or Subcontractor) may withhold 100% (commercial projects) or 110% (residential projects) of the disputed amount from the overall payment until the dispute is resolved, but no more. A good faith dispute can be for any legitimate reason, including accounting errors, disputed charges, defective work, incomplete work, or a right provided for by Contract, e.g., statutory or contractual retainage, or an administrative condition precedent to payment like the execution/exchange of a Conditional Lien Waiver & Release. The Payor can use the Prompt Payment Act to withhold funds from a progress or final payment until the dispute is resolved.