Common use of Contractor’s Right to Terminate Clause in Contracts

Contractor’s Right to Terminate. IF THE WORK IS STOPPED FOR A PERIOD OF SIXTY (60) DAYS UNDER AN ORDER OF ANY COURT OR OTHER PUBLIC AUTHORITY HAVING JURISDICTION, OR AS A RESULT OF AN ACT OF GOVERNMENT, SUCH AS A DECLARATION OF A NATIONAL EMERGENCY MAKING MATERIALS UNAVAILABLE, THROUGH NO ACT OR FAULT OF THE CON- TRACTOR OR A SUBCONTRACTOR OR THEIR AGENTS OR EMPLOYEES OR ANY OTHER PERSONS PERFORMING ANY OF THE WORK UNDER A CONTRACT WITH THE CONTRACTOR, OR BECAUSE OWNER HAS IMPROPERLY FAILED TO MAKE A PAYMENT DUE AND CONTRACTOR IS NOT IN DEFAULT UNDER THIS CONTRACT, THEN CONTRACTOR MAY, UPON SEVEN (7) ADDITIONAL DAYS' WRITTEN NOTICE TO OWNER, TERMINATE THE CONTRACT AND RECOVER FROM OWNER PAYMENT FOR ALL WORK EXECUTED AND FOR ANY PROVEN LOSS SUSTAINED UPON ANY MATERIALS, EQUIPMENT, TOOLS, CONSTRUCTION EQUIPMENT AND MACHINERY, INCLUDING A REASONABLE PORTION OF ITS OVERHEAD AND PROFIT, PROVIDED THAT THE TOTAL AMOUNT PAID TO CONTRACTOR SHALL NOT EXCEED THE CONTRACT SUM.

Contractor’s Right to Terminate. IF THE WORK IS STOPPED FOR A PERIOD OF SIXTY (60) DAYS UNDER AN ORDER OF ANY COURT OR OTHER PUBLIC AUTHORITY HAVING JURISDICTION, OR AS A RESULT OF AN ACT OF GOVERNMENT, SUCH AS A DECLARATION OF A NATIONAL EMERGENCY MAKING MATERIALS UNAVAILABLE, THROUGH NO ACT OR FAULT OF THE CON- TRACTOR OR A SUBCONTRACTOR OR THEIR AGENTS OR EMPLOYEES OR ANY OTHER PERSONS PERFORMING ANY OF THE WORK UNDER A CONTRACT WITH THE CONTRACTOR, OR BECAUSE OWNER HAS IMPROPERLY FAILED TO MAKE A PAYMENT DUE AND CONTRACTOR IS NOT IN DEFAULT UNDER THIS CONTRACT, THEN CONTRACTOR MAY, UPON SEVEN (7) ADDITIONAL DAYS' WRITTEN NOTICE TO OWNER, TERMINATE THE CONTRACT AND RECOVER FROM OWNER PAYMENT FOR ALL WORK EXECUTED AND FOR ANY PROVEN LOSS SUSTAINED UPON ANY MATERIALS, EQUIPMENT, TOOLS, CONSTRUCTION EQUIPMENT AND MACHINERY, INCLUDING A REASONABLE PORTION OF ITS OVERHEAD AND PROFITPROFIT ON THE WORK COMPLETED PRIOR TO THE DATE OF TERMINATION, PROVIDED THAT THE TOTAL AMOUNT PAID TO CONTRACTOR SHALL NOT EXCEED THE CONTRACT SUM.