Common use of Contractor’s Default Clause in Contracts

Contractor’s Default. If the Contractor shall fail to carry out the Services or any part thereof with due diligence and expedition, or shall refuse or fail to comply with any reasonable order given to it in writing by the UNDP, the UNDP may immediately give notice in writing to the Contractor to make good such failure or contravention. Should the Contractor fail to comply with the notice referred to in Sub-Clause 15.1 either within seven days from receipt of such notice, or otherwise within such times as may be reasonably necessary for making it good, the UNDP without prejudice to any other right it may have under the RLA may, subject to the prior notification of the Contractor employ others to carry out that part of the Services which the Contractor shall have failed to carry out, or take the Services in whole or in part out of the Contractor’s hands and recontract with others as may be appropriate. If the cost to the UNDP of employing others to carry out part or all of the Services in accordance with Sub-Clause 15.2. exceeds the amount which would have become payable to the Contractor had it completed that part or all of the Services, then the UNDP shall have the right to charge such excess cost to the Contractor. The UNDP shall also have the right to retain part or all of any sum which would otherwise be due to the Contractor under the RLA and set such sum against the excess due from the Contractor. If the Contractor fails to carry out the Services in part or in whole, the Contractor shall refund to the UNDP any advance payment made in respect of that portion of the Services not carried out. Nothing in this Clause shall, in the event of a malfunction, prevent emergency action being taken by the UNDP to meet operational requirements but, if such actions result in the UNDP incurring additional costs in carrying out the Services, such reasonable costs shall be reimbursed to the Contractor by the UNDP provided such emergency action is not taken as a result of failure by the Contractor.