Contractor’s Default. 1. The following shall constitute Event of Default by Contractor: a. If the Contractor fails to begin the Work when required to do so; or b. If, at any time during the progress of the Work, the Owner determines that the Contractor is not prosecuting the Work with reasonable speed and diligence, or is delaying the Work unreasonably or unnecessarily; or c. If the force of workmen or the quality or quantity of material furnished is not sufficient to ensure completion of the Work within the specified time and in accordance with the Contract Documents; or d. If the Contractor fails to make prompt payments to suppliers or to Subcontractors for Work performed in connection with the Contract; or e. If the Contractor fails in any manner of substance to observe the provisions of this Contract. 2. Upon the occurrence of an Event of Default by Contractor, the Owner may declare the Contractor in default, in whole or in part, and give to the Contractor three (3) Days written Notice to cure such default. If Contractor fails to cure such default within such three (3) day period, or within such longer time as the Owner, in its sole discretion, may prescribe, the Owner shall have the right to do any one or more of the following in any combination: a. Have the defaulted Work performed by others and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead; b. Supplement Contractor’s workforce and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead; c. Repair or replace any defective Work and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead; d. Withhold payments due the Contractor and use such payments to satisfy any claims for moneys owed by the Contractor in connection with the Contract, in accordance with any provisions of the Contract Documents; e. Terminate the Contractor’s performance of the Contract in whole or in part. 3. Without prejudice to any other rights or remedies the Owner may have, the Owner shall have the right to terminate the Contract immediately upon written notice to the Contractor or, in the Owner’s sole discretion, exercise any other rights available to it for default, upon the occurrence of any of the following: a. Institution of legal proceedings by others than the Owner in such manner as to interfere with the progress of the Work and to potentially subject the Owner to the peril of litigation or outside claims; or b. Adjudication of the Contractor as a bankrupt or an assignment for the benefit of creditors by Contractor, the dissolution of the Contractor, or if a sole proprietorship the death or determination of incompetence of the Contractor; or c. Entry of an order in any proceeding instituted by or against the Contractor granting an extension of the time of payment, composition, adjustment, modification, settlement or satisfaction of its debts or liabilities; or d. Appointment of a receiver or trustee for the Contractor or the Contractor's property; or e. Assignment of the Contract or any part thereof without the prior written consent of the Owner; or f. Assignment by the Contractor of any rights, moneys, or claims hereunder in whole or in part, otherwise than as herein specified; or g. Abandonment of the Work to be done under this Contract. 4. Immediately, but no later than three (3) days after receipt of Notice that it is in default hereunder, the Contractor shall discontinue all further operations in connection with the Work, or such specified part thereof, and shall immediately vacate the Project Site, or such specified part thereof, leaving untouched all plant, materials, equipment, tools, supplies and job site records. 5. In the event the Owner declares the Contractor in default in accordance with the provisions of the Contract Documents with respect to a portion of the Work but not the Work as a whole, the Contractor shall discontinue such portion of the Work declared in default, shall continue performing the remainder of the Work in strict conformity with the terms of the Contract and shall not hinder or interfere with any other Contractor or persons whom the Owner may engage to complete the Work for which the Contractor was declared in default. The expense of such completion, plus an administrative fee of ten percent (10%) to cover overhead and administrative costs, shall be paid by the Contractor to the Owner as provided in the Contract Documents. 6. In the event the Owner terminates the Contract for default and it subsequently is determined by any means that the termination was without sufficient justification, the termination shall be deemed to have been a termination for convenience and the Contractor’s damages shall be limited to the provisions of Section 37.C. Termination for Convenience.
Appears in 3 contracts
Samples: Swimming Pool Preventive Maintenance and Repair, Construction Contract, Construction Contract
Contractor’s Default. 1. The following shall constitute Event of Default by Contractor:
a. If the Contractor fails to begin the Work when required to do so; or
b. If, at any time during the progress of the Work, the Owner determines that the Contractor is not prosecuting the Work with reasonable speed and diligence, or is delaying the Work unreasonably or unnecessarily; or
c. If the force of workmen or the quality or quantity of material furnished is not sufficient to ensure completion of the Work within the specified time and in accordance with the Contract Documents; or
d. If the Contractor fails to make prompt payments to suppliers or to Subcontractors for Work performed in connection with the Contract; or
e. If the Contractor fails in any manner of substance to observe the provisions of this Contract.
2. Upon the occurrence of an Event of Default by Contractor, the Owner may declare the Contractor in default, in whole or in part, and give to the Contractor three (3) Days written Notice to cure such default. If Contractor fails to cure such default within such three (3) day period, or within such longer time as the Owner, in its sole discretion, may prescribe, the Owner shall have the right to do any one or more of the following in any combination:
a. Have the defaulted Work performed by others and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead;
b. Supplement Contractor’s workforce and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead;
c. Repair or replace any defective Work and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead;
d. Withhold payments due the Contractor and use such payments to satisfy any claims for moneys owed by the Contractor in connection with the Contract, in accordance with any provisions of the Contract Documents;
e. Terminate the Contractor’s performance of the Contract in whole or in part.
3. Without prejudice to any other rights or remedies the Owner may have, the Owner shall have the right to terminate the Contract immediately upon written notice to the Contractor or, in the Owner’s sole discretion, exercise any other rights available to it for default, upon the occurrence of any of the following:
a. Institution of legal proceedings by others than the Owner in such manner as to interfere with the progress of the Work and to potentially subject the Owner to the peril of litigation or outside claims; or
b. Adjudication of the Contractor as a bankrupt or an assignment for the benefit of creditors by Contractor, the dissolution of the Contractor, or if a sole proprietorship the death or determination of incompetence of the Contractor; or
c. Entry of an order in any proceeding instituted by or against the Contractor granting an extension of the time of payment, composition, adjustment, modification, settlement or satisfaction of its debts or liabilities; or
d. Appointment of a receiver or trustee for the Contractor or the Contractor's property; or
e. Assignment of the Contract or any part thereof without the prior written consent of the Owner; or
f. Assignment by the Contractor of any rights, moneys, or claims hereunder in whole or in part, otherwise than as herein specified; or
g. Abandonment of the Work to be done under this Contract.
4. Immediately, but no later than three (3) days after receipt of Notice that it is in default hereunder, the Contractor shall discontinue all further operations in connection with the Work, or such specified part thereof, and shall immediately vacate the Project Site, or such specified part thereof, leaving untouched all plant, materials, equipment, tools, supplies and job site records.
5. In the event the Owner declares the Contractor in default in accordance with the provisions of the Contract Documents with respect to a portion of the Work but not the Work as a whole, the Contractor shall discontinue such portion of the Work declared in default, shall continue performing the remainder of the Work in strict conformity with the terms of the Contract and shall not hinder or interfere with any other Contractor or persons whom the Owner may engage to complete the Work for which the Contractor was declared in default. The expense of such completion, plus an administrative fee of ten percent (10%) to cover overhead and administrative costs, shall be paid by the Contractor to the Owner as provided in the Contract Documents.
6. In the event the Owner terminates the Contract for default and it subsequently is determined by any means that the termination was without sufficient justification, the termination shall be deemed to have been a termination for convenience and the Contractor’s damages shall be limited to the provisions of Section 37.C. 33.C. Termination for Convenience.
Appears in 1 contract
Samples: Contract for Services
Contractor’s Default. 1. The following shall constitute Event of Default by Contractor:
a. If the Contractor fails to begin the Work when required to do so; or
b. If, at any time during the progress of the Work, the Owner determines that the Contractor is not prosecuting the Work with reasonable speed and diligence, or is delaying the Work unreasonably or unnecessarily; or
c. If the force of workmen or the quality or quantity of material furnished is not sufficient to ensure completion of the Work within the specified time and in accordance with the Contract Documents; or
d. If the Contractor fails to make prompt payments to suppliers or to Subcontractors for Work performed in connection with the Contract; or
e. If the Contractor fails in any manner of substance to observe the provisions of this Contract.
2. Upon the occurrence of an Event of Default by Contractor, the Owner may declare the Contractor in default, in whole or in part, and give to the Contractor three (3) Days written Notice to cure such default. If Contractor fails to cure such default within such three (3) day period, or within such longer time as the Owner, in its sole discretion, may prescribe, the Owner shall have the right to do any one or more of the following in any combination:
a. Have the defaulted Work performed by others and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead;
b. Supplement Contractor’s workforce and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead;
c. Repair or replace any defective Work and charge the Contractor the cost thereof, plus an administrative fee of ten percent (10%) to cover all associated costs of administration and overhead;
d. Withhold payments due the Contractor and use such payments to satisfy any claims for moneys owed by the Contractor in connection with the Contract, in accordance with any provisions of the Contract Documents;
e. Terminate the Contractor’s performance of the Contract in whole or in part.
3. Without prejudice to any other rights or remedies the Owner may have, the Owner shall have the right to terminate the Contract immediately upon written notice to the Contractor or, in the Owner’s sole discretion, exercise any other rights available to it for default, upon the occurrence of any of the following:
a. Institution of legal proceedings by others than the Owner in such manner as to interfere with the progress of the Work and to potentially subject the Owner to the peril of litigation or outside claims; or
b. Adjudication of the Contractor as a bankrupt or an assignment for the benefit of creditors by Contractor, the dissolution of the Contractor, or if a sole proprietorship the death or determination of incompetence of the Contractor; or
c. Entry of an order in any proceeding instituted by or against the Contractor granting an extension of the time of payment, composition, adjustment, modification, settlement or satisfaction of its debts or liabilities; or
d. Appointment of a receiver or trustee for the Contractor or the Contractor's property; or
e. Assignment of the Contract or any part thereof without the prior written consent of the Owner; or
f. Assignment by the Contractor of any rights, moneys, or claims hereunder in whole or in part, otherwise than as herein specified; or
g. Abandonment of the Work to be done under this Contract.
4. Immediately, but no later than three (3) days after receipt of Notice that it is in default hereunder, the Contractor shall discontinue all further operations in connection with the Work, or such specified part thereof, and shall immediately vacate the Project Site, or such specified part thereof, leaving untouched all plant, materials, equipment, tools, supplies and job site records.
5. In the event the Owner declares the Contractor in default in accordance with the provisions of the Contract Documents with respect to a portion of the Work but not the Work as a whole, the Contractor shall discontinue such portion of the Work declared in default, shall continue performing the remainder of the Work in strict conformity with the terms of the Contract and shall not hinder or interfere with any other Contractor or persons whom the Owner may engage to complete the Work for which the Contractor was declared in default. The expense of such completion, plus an administrative fee of ten percent (10%) to cover overhead and administrative costs, shall be paid by the Contractor to the Owner as provided in the Contract Documents.
6. In the event the Owner terminates the Contract for default default, and it subsequently is determined by any means that the termination was without sufficient justification, the termination shall be deemed to have been a termination for convenience and the Contractor’s damages shall be limited to the provisions of Section 37.C. Termination for Convenience.
Appears in 1 contract
Samples: Contract for Services
