Common use of Contractor’s Default Clause in Contracts

Contractor’s Default. 39.1 If the Contractor neglects to perform the Contract with due diligence and expedition or refuse or neglect to comply with any reasonable orders given to him in writing by USF or any of its authorized representative in connection with the performance of the Contract or contravene the provisions of the contract, USF may give notice in writing to the Contractor to make good the failure, neglect or contravention complained of. 39.2 Should the Contractor fail to comply with the said notice within fifteen (15) days from the date of issue of said notice thereof, it shall be lawful for USF forthwith to terminate the Contract by notice in writing to the Contractor without prejudice to any rights which may have occurred under the Contract to either party prior to such termination. 39.3 If the Contractor fails to complete any of its obligations under the clause titled “DEFECTS AFTER PROVISIONAL ACCEPTANCE” within the time fixed in the Contract or within any extension of time granted by USF under “FORCE MAJEURE”, USF shall be entitled to deduct from the Contract (01%) one percent of Contract value of the System which cannot be in consequence of the said failure be put to the use intended for such work for each week between the time fixed in the Contract (except as aforesaid) and the actual date of completion, subject to a maximum deduction of 15% [ten percent] of the value of the Contract.

Contractor’s Default. 39.1 If the Contractor neglects to perform the Contract with due diligence and expedition or refuse or neglect to comply with any reasonable orders given to him in writing by USF or any of its authorized representative in connection with the performance of the Contract or contravene the provisions of the contract, USF may give notice in writing to the Contractor to make good the failure, neglect or contravention complained of. 39.2 Should the Contractor fail to comply with the said notice within fifteen (15) days from the date of issue of said notice thereof, it shall be lawful for USF forthwith to terminate the Contract by notice in writing to the Contractor without prejudice to any rights which may have occurred under the Contract to either party prior to such termination. 39.3 If the Contractor fails to complete any of its obligations under the clause titled “DEFECTS AFTER PROVISIONAL ACCEPTANCE” within the time fixed in the Contract or within any extension of time granted by USF under “FORCE MAJEURE”, USF shall be entitled to deduct from the Contract (01%) one percent of Contract value of the System which cannot be in consequence of the said failure be put to the use intended for such work for each week between the time fixed in the Contract (except as aforesaid) and the actual date of completion, subject to a maximum deduction of 1510% [ten percent] of the value of the Contract.