Laserfiche WebLink
5.4 Termination Procedures <br /> A. Termination by Owner for Default <br /> 1. The Owner may terminate the Contract upon written notice to Contractor and its surety <br /> whenever the Contractor is deemed to be in default or fails to fulfill, in a timely and proper <br /> manner, one or more Contract obligations, or is in violation of any provisions or covenants <br /> of the Contract. Termination shall be effective upon receipt of such notice by the <br /> Contractor. <br /> 2. For purposes of this paragraph, the Contractor shall be deemed to be in default upon the <br /> occurrence of any one or more of the following events: <br /> a. If Contractor is bankrupt or insolvent. <br /> b. If Contractor makes a general assignment for the benefit of creditors. <br /> c. If a trustee or receiver is appointed for Contractor, or for any of Contractor's property. <br /> d. If Contractor files a petition to take advantage of any debtor's law, or to reorganize <br /> under any bankruptcy chapter or law. <br /> e. If Contractor repeatedly fails to make prompt payments to Subcontractors or others for <br /> labor, materials, or Equipment. <br /> f. If Contractor disregards laws, ordinances, rules, regulations, or orders of any public <br /> body having jurisdiction. <br /> g. If Contractor disregards the authority of the Owner or Owner's Representative. <br /> h. If Contractor violates in a substantial way the provisions of the Contract Documents or <br /> fails, neglects, or refuses to proceed in compliance with the provisions of the Contract <br /> Documents. <br /> i. If the Contractor made material misrepresentations to the Owner with respect to: (a) its <br /> qualifications or those of its Subcontractors; (b) its or its subcontractors' ability to <br /> perform the Work in a timely, workmanlike manner; (c) the materials installed or to be <br /> installed; or(d)progress pay estimates. <br /> 3. After termination of the Contractor for default, the Owner may transfer performance of the <br /> Work to the Contractor's surety. The Owner may exclude the Contractor from the Site and <br /> take possession of the Work and all of the Contractor's tools, appliances, owned or rented <br /> construction equipment, and machinery at the Site and use the same to the full extent they <br /> could be used by the Contractor. The Owner may incorporate in the Work all materials and <br /> Equipment stored at the Site or for which the Owner has paid the Contractor, but which are <br /> not yet on Site. In such case, the Contractor will not be entitled to receive any further <br /> payment until the Work is finished. At the Owner's sole option, Contractor shall assign and <br /> transfer any contractual rights to material and Equipment to be installed, incorporated, or <br /> used in the performance of the Work. Owner shall credit Contractor for the reasonable fair <br /> market rental value of any and all Contractor owned equipment for so long as retained and <br /> used by the Owner. Owner shall credit Contractor for all materials and supplies on Site or <br /> on order, but not yet paid for by Owner,provided that ownership is transferred and assigned <br /> to the Owner and the materials and supplies conform to the requirements of the Contract <br /> Documents. <br /> 4. If the unpaid balance of the Contract Sum exceeds the direct and indirect cost of the <br /> completed Work, including construction management services, such excess shall be paid to <br /> the Contractor. If such costs exceed such unpaid balance, the Contractor shall pay the <br /> difference to the Owner. Such costs incurred by the Owner will be verified by the Owner's <br /> Representative and incorporated into a Change Order, but in finishing the Work, the Owner <br /> WFP Operations Building Seismic Retrofit-Rebid January 6, 2017 <br /> WO#UP3600 007213 -25 <br />