Reece Construction Company Inc. 5/24/2017

CITY OF EVERETT SPECIAL PROVISIONS 5. If Contractor repeatedly fails to make prompt payments to subcontractors or others for labor, materials, or Equipment. 6. If Contractor disregards laws, ordinances, rules, regulations, or orders of public bodies having jurisdiction. 7. If Contractor disregards the authority of the City or City's Representative. 8. If Contractor substantially violates the provisions of the Contract Documents or fails, neglects, or refuses to proceed in compliance with the provisions of the Contract Documents. 9. If the Contractor made material misrepresentations to the City with respect to: (a) its qualifications or those of its subcontractors; (b) its or its subcontractors' ability to perform the Work in a timely, workmanlike manner; (c) the materials installed or to be installed; or (d) progress pay estimates. After termination of the Contractor for default, the City may transfer performance of the Work to the Contractor's Surety or elect to prosecute to completion by contract or otherwise. If the City chooses to provide such sufficiency of labor or materials as required to complete the Work, the City may exclude the Contractor from the site and take possession of the Work and all of the Contractor's tools, appliances, owned or rented construction equipment, and machinery at the site and use the same to the full extent they could be used by the Contractor. The City may incorporate in the Work all materials and Equipment stored at the site or for which the City has paid the Contractor, but which are not yet on site. In such case, the Contractor will not be entitled to receive any further payment until the Work is finished. At the City's sole option, Contractor shall assign and transfer any contractual rights to material and Equipment to be installed, incorporated, or used in the performance of the Work. City shall credit Contractor for the reasonable fair market rental value of any and all Contractor owned equipment for so long as retained and used by the City. City shall credit Contractor for all materials and supplies on site or on order, but not yet paid for by City, provided that ownership is transferred and assigned to the City and the materials and supplies conform to the requirements of the Contract Documents. If the unpaid balance of the Contract Sum 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's Representative 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. Where the Contractor services have been so terminated by the City, the termination shall not affect rights of the City against the Contractor then existing or which may thereafter accrue. Any retention or payment of monies due the Contractor by the City will not release the Contractor from liability. If the City terminates this agreement 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 1-08.10(2) TERMINATION FOR PUBLIC Water Main Replacement R Division 1 —GENERAL REQUIREMENTS March 1, 2017 WO No—UP3646 SP-96