Alternatives to Default Termination. If Subcontractor fails to comply or becomes disabled from complying with this Subcontract concerning the character, quantity or quality of the Subcontract Work or time for performance, or if Subcontractor refuses to proceed with the Subcontract Work as directed by Contractor or fails to perform the Subcontract Work in accordance with this Subcontract, in whole or in part, or fails to perform any material provision of this Subcontract, Contractor may, at its option, and upon 48 hours written notice to Subcontractor’s last known address, and without prejudice to any other right or remedy it may have under this Subcontract or at law or in equity, take such reasonable steps as Contractor believes advisable or necessary to secure any labor, materials, equipment, tools, supplies, services, or subcontracts required to prosecute the Subcontract Work. Contractor may take over and prosecute the Subcontract Work to completion. Alternatively, Contractor may, without taking over the Subcontract Work, supplement Subcontractor’s resources by furnishing labor, materials, equipment, tools, supplies, services, or subcontracts necessary to remedy the situation. In either event, all amounts reasonably expended and all of the losses, damages, and extra expenses reasonably incurred by Contractor will be deducted from the Subcontract Price. If these expenditures, together with losses, damages, and extra expenses exceed the amount otherwise due to Subcontractor, then Subcontractor agrees to pay Contractor on demand the full amount of the excess together with accrued interest. Interest will accrue from the original billing date until paid at the maximum legal rate of interest in the state where the Project is located. Subcontractor may be considered disabled from complying when, among other things, Subcontractor files a petition for protection under applicable bankruptcy laws or when a petition for assignment of a receiver is filed by or against Subcontractor.
