DB Contractor Maintenance Defaults Sample Clauses
The "DB Contractor Maintenance Defaults" clause defines the circumstances and procedures that apply when a design-build contractor fails to perform required maintenance obligations under a contract. Typically, this clause outlines what constitutes a maintenance default, such as neglecting scheduled repairs or failing to meet performance standards, and describes the steps the project owner may take in response, which can include issuing notices, imposing penalties, or arranging for third-party maintenance at the contractor's expense. Its core practical function is to ensure that the contractor remains accountable for ongoing maintenance, thereby protecting the owner's interests and ensuring the continued functionality and safety of the project.
DB Contractor Maintenance Defaults. DB Contractor shall be in default under this CMA upon the occurrence of any one or more of the following events or conditions (each, a “DB Contractor Maintenance Default”):
(a) A DB Contractor Event of Default under the Design-Build Contract;
(b) DB Contractor fails to timely observe or perform, or cause to be observed or performed, any covenant, agreement, obligation, term or condition required to be observed or performed by DB Contractor under the CMA Documents, including failure to perform the Maintenance Services in accordance with the CMA Documents;
(c) DB Contractor fails to resume performance of Maintenance Services that have been suspended or stopped within the time specified in the originating notification after receipt of notice from TxDOT to do so or (if applicable) after cessation of the event preventing performance;
(d) DB Contractor suspends, ceases, stops or abandons performance of the Maintenance Services or fails to continuously and diligently prosecute the Maintenance Services (exclusive of work stoppage (i) due to termination by TxDOT, or (ii) due to and during the continuance of a Force Majeure Event or suspension by TxDOT);
(e) DB Contractor fails to provide and maintain any of the insurance, bonds, letters of credit and guarantees required hereunder;
(f) DB Contractor attempts or purports to assign or transfer the CMA Documents or any right or interest herein, except as expressly permitted under this CMA;
(g) DB Contractor fails, absent a valid dispute, to make payment when due for labor, equipment or materials in accordance with its agreements with Subcontractors or Suppliers and in accordance with applicable Laws, or shall have failed to comply with any Law or failed reasonably to comply with the instructions of TxDOT consistent with the CMA Documents, or fails to make payment to TxDOT when due of any amounts owing to TxDOT under this CMA;
(h) DB Contractor breaches any other agreement, representation, covenant or warranty contained in the CMA Documents;
(i) DB Contractor fails to discharge or obtain a stay within 10 Days of any final judgment or order for the payment of money against it in excess of $100,000 in the aggregate arising out of the prosecution of the Maintenance Services (provided that, for purposes hereof, posting of a bond in the amount of 125% of such judgment or order shall be deemed an effective stay);
(j) Any Guarantor revokes or attempts to revoke its obligations under its guarantee or otherwise takes the positio...