Ballard Marine Construction 7/14/2023

General Conditions - 5 (2) If the unpaid balance of the Contract Price exceeds the direct and indirect cost of the completed Work, including construction management services, such excess shall be paid to the Contractor. If such costs exceed such unpaid balance, the Contractor shall pay the difference to the City. Such costs incurred by the City will be verified by the City and incorporated into a change order, but in finishing the Work, the City may negotiate for materials, equipment, and services to complete the Work and will not be required to obtain the lowest figure for Work performed. (3) Where the Contractor services have been so terminated by the City, the termination shall not affect any rights of the City against the Contractor then existing or which may thereafter accrue. Any retention or payment of monies due to the Contractor by the City will not release the Contractor from liability. (4) If the City terminates this Contract for default, and it is thereafter determined that the Contractor had not so failed to perform its obligations or defaulted in any way, the termination shall then be deemed to have been made for the convenience of the City pursuant to subsection B. below, Termination for Convenience. B. Termination for Convenience. Without prejudice to any other remedy it may have under law or and/or the provisions of the Contract, the City may terminate this Contract for convenience, with or without cause, in whole or in part, at any time by giving written notice to the Contractor. Termination will be effective upon receipt of such notice by the Contractor. The Contractor shall immediately discontinue Work and take all reasonable steps with its suppliers and subcontractors to minimize cancellation charges and other costs. (1) After termination for convenience, payment to the Contractor shall only be for Work completed through the termination date. (2) To the extent not paid for by the Contract Price for completed Work, the City will pay as part of an adjustment of Contract Price those direct costs necessarily and actually incurred by the Contractor in reasonable anticipation of performing the Work that has been deleted or terminated. (3) No claim for damages of any kind for loss of anticipated profits or consequential damages will be allowed because of termination for convenience. (4) In no event will the total payment to the Contractor exceed the total Contract Price as modified by approved change orders less those amounts paid to the Contractor before the effective date of the termination. 1.15 INSURANCE A. The Contractor shall comply with the following conditions and procure and keep in force during the term of this Contract, at the Contractor’s own cost and expense, the following policies of insurance with companies authorized to do business in the State of Washington, which are rated at least “A” or better and with a numerical rating of no less than seven (7), by A.M. Best Company and which are acceptable to the City. a. Workers’ Compensation Insurance as required by Washington law and Employer’s Liability Insurance with limits not less than $1,000,000 per occurrence.