Common use of Construction Period Termination Clause in Contracts

Construction Period Termination. Subject to Section 18.3, upon a Construction Period Termination, the Province shall pay to the Contractor a Termination Payment equal to the Capital Amount less: (a) such portion of the Provincial Funding as the Contractor has received through Progress Payments; (b) the reasonable cost to the Province, established by competitive bidding process (and including out-of-pocket costs incurred by the Province in relation to that process), of completing the Project, where the competitive bidding process is premised on: (i) a design-build or conventional contract with progress payments and standard industry warranty; (ii) use of as much of the Contractor’s Designs as is practicable; and (iii) a duty on the part of the Province to mitigate the cost of completing the Project and thereby minimize the amount deductible under this clause (b); and (c) liquidated damages of $40 million to compensate the Province for loss of its bargain.

Construction Period Termination. Subject to Section 18.3, upon a Construction Period Termination, the Province shall pay to the Contractor a Termination Payment equal to the Capital Amount less: (a) such portion of the Provincial Funding as the Contractor has received through Progress Payments; (b) the reasonable cost to the Province, established by competitive bidding process (and including out-of-pocket costs incurred by the Province in relation to that process), of completing the Project, where the competitive bidding process is premised on: (i) a design-build or conventional contract with progress payments and standard industry warranty; (ii) use of as much of the Contractor’s Designs as is practicable; and (iii) a duty on the part of the Province to mitigate the cost of completing the Project and thereby minimize the amount deductible payable by the Contractor under this clause (b); and (c) liquidated damages of $40 7.5 million to compensate the Province for loss of its bargain.

Construction Period Termination. Subject to Section 18.3, upon a Construction Period Termination, the Province shall pay to the Contractor a Termination Payment equal to the Capital Amount less: (a) such portion of the Provincial Funding as the Contractor has received through Progress Payments; (b) the reasonable cost to the Province, established by competitive bidding process (and including out-of-pocket costs incurred by the Province in relation to that process), of completing the Project, where the competitive bidding process is premised on: (i) a design-build or conventional contract with progress payments and standard industry warranty; (ii) use of as much of the Contractor’s Designs as is practicable; and (iii) a duty on the part of the Province to mitigate the cost of completing the Project and thereby minimize the amount deductible under this clause (b); and (c) liquidated damages of $40 10 million to compensate the Province for loss of its bargain.

Construction Period Termination. Subject to Section 18.3, upon a Construction Period Termination, the Province shall pay to the Contractor a Termination Payment equal to the Capital Amount less: (a) such portion of the Provincial Federal Funding as the Contractor has received through Progress Payments; (b) the reasonable cost to the Province, established by competitive bidding process (and including out-of-pocket costs incurred by the Province in relation to that process), of completing the Project, where the competitive bidding process is premised on: (i) a design-build or conventional contract with progress payments and standard industry warranty; (ii) use of as much of the Contractor’s Designs as is practicable; : and (iii) a duty on the part of the Province to mitigate the cost of completing the Project and thereby minimize the amount deductible payable by the Contractor under this clause (b); and (c) liquidated damages of $40 7.5 million to compensate the Province for loss of its bargain.