Common use of DEFAULTS BY SUBCONTRACTOR Clause in Contracts

DEFAULTS BY SUBCONTRACTOR. Subcontractor shall be deemed to be in default of this Agreement if Subcontractor (1) fails to commence work when required; (2) fails to prosecute the work diligently or to make the progress required; (3) fails to furnish a sufficient number of properly skilled workmen or a sufficient quantity of suitable materials or adequate equipment; (4) fails to perform the work in the order and sequence directed; (5) fails to correct or replace any damaged or defective work or materials; (6) becomes insolvent or subject to any receivership proceedings; (7) becomes subject to a tax lien or levy; (8) makes an assignment for the benefit of creditors; (9) fails to complete the work or any portion thereof within the time directed by Contractor; (10) becomes involved in any labor difficulty; or (11) commits a material breach of this Subcontract. Subcontractor shall be liable for all losses, costs, expenses, liabilities and damages sustained by Contractor, or for which Contractor may be liable, because of Subcontractor’s default. If Subcontractor is deemed to be in default, Contractor, at its option, shall have the right: (a) to provide all labor and materials necessary to correct the problem, or to contract with one or more additional contractors to perform such part of Subcontractor's work, and to deduct the cost thereof, plus fifteen percent (15%) overhead and profit, from any money then due or thereafter to become due to Subcontractor under this Agreement; or (b) to terminate Subcontractor’s right to proceed with the work and, in that event, Contractor shall have the right to enter upon the premises of the Project and take possession of all of Subcontractor’s materials, tools, machinery and equipment, and may employ others to finish the work and provide materials. Upon such termination, Contractor shall have the right to assume, at Contractor's sole option, any or all of Subcontractor's lower tier subcontracts and materialmen, supplier and vendor agreements and to derive the benefits therefrom. Contractor may deduct the cost of finishing Subcontractor’s work from any money then due or thereafter to become due to Subcontractor under this Agreement, including, a xxxx-up for Contractor’s profit and overhead in the amount of fifteen percent (15%). If the unpaid balance under this Agreement exceeds the expenses Contractor incurs in finishing Subcontractor’s work, the excess shall be paid to Subcontractor; if the expenses incurred by Contractor exceed the unpaid balance, then Subcontractor shall promptly pay to Contractor the amount by which the expenses have exceeded the unpaid balance. In order to secure Subcontractor’s payment, Contractor shall have a lien upon all of Subcontractor’s materials, tools, machinery and equipment at the project site on the date of default. Contractor shall only exercise the rights listed under (a) and (b) above after giving Subcontractor two (2) working days written notice of its intent to exercise those rights. No further notice to Subcontractor shall be required if Subcontract has failed to cure the problem during such notice period. Notice shall be sufficient and complete when delivered to Subcontractor or an address provided by Subcontractor by personal delivery or by email with acknowledgment by Subcontractor by reply email, by fax as shown by electronic confirmation of delivery, by certified mail with return receipt requested as shown by return receipt, or by recognized courier, such as FedEx or UPS, as shown by their tracking systems. If an emergency affecting the safety of persons or property occurs, no notice shall be required. Each of the rights and remedies granted to Contractor pursuant to this section or pursuant to any of other the provisions of this Agreement shall be in addition to and without prejudice to, and shall in no way limit, any other rights or remedies which Contractor may have pursuant to any other provision(s) of this Agreement, or pursuant to law or equity.

DEFAULTS BY SUBCONTRACTOR. Subcontractor shall be deemed to be in default of this Agreement if Subcontractor (1) fails to commence work when required; (2) fails to prosecute the work diligently or to make the progress required; (3) fails to furnish a sufficient number of properly skilled workmen or a sufficient quantity of suitable materials or adequate equipment; (4) fails to perform the work in the order and sequence directed; (5) fails to correct or replace any damaged or defective work or materials; (6) becomes insolvent or subject to any receivership proceedings; (7) becomes subject to a tax lien or levy; (8) makes an assignment for the benefit of creditors; (9) fails to complete the work or any portion thereof within the time directed by Contractor; (10) becomes involved in any labor difficulty; or (11) commits a material breach of this Subcontract. Subcontractor shall be liable for all losses, costs, expenses, liabilities and damages sustained by Contractor, or for which Contractor may be liable, because of Subcontractor’s default. If Subcontractor is deemed to be in default, Contractor, at its option, shall have the right: (a) to provide all labor and materials necessary to correct the problem, or to contract with one or more additional contractors to perform such part of Subcontractor's work, and to deduct the cost thereof, plus fifteen percent (15%) overhead and profit, from any money then due or thereafter to become due to Subcontractor under this Agreement; or (b) to terminate Subcontractor’s right to proceed with the work and, in that event, Contractor shall have the right to enter upon the premises of the Project and take possession of all of Subcontractor’s materials, tools, machinery and equipment, and may employ others to finish the work and provide materials. Upon such termination, Contractor shall have the right to assume, at Contractor's sole option, any or all of Subcontractor's lower tier subcontracts and materialmen, supplier and vendor agreements and to derive the benefits therefrom. Contractor may deduct the cost of finishing Subcontractor’s work from any money then due or thereafter to become due to Subcontractor under this Agreement, including, a xxxx-up for Contractor’s profit and overhead in the amount of fifteen percent (15%). If the unpaid balance under this Agreement exceeds the expenses Contractor incurs in finishing Subcontractor’s work, the excess shall be paid to Subcontractor; if the expenses incurred by Contractor exceed the unpaid balance, then Subcontractor shall promptly pay to Contractor the amount by which the expenses have exceeded the unpaid balance. In order to secure Subcontractor’s payment, Contractor shall have a lien upon all of Subcontractor’s materials, tools, machinery and equipment at the project site on the date of default. Contractor shall only exercise the rights listed under (a) and (b) above after giving Subcontractor two (2) working days written notice of its intent to exercise those rights. No further notice to Subcontractor shall be required if Subcontract has failed to cure the problem during such notice period. Notice shall be sufficient and complete when delivered mailed, faxed or e-mailed to Subcontractor or an address provided by Subcontractor by personal delivery or by email with acknowledgment by Subcontractor by reply email, by fax as shown by electronic confirmation of delivery, by certified mail with return receipt requested as shown by return receipt, or by recognized courier, such as FedEx or UPS, as shown by their tracking systemsSubcontractor. If an emergency affecting the safety of persons or property occurs, no notice shall be required. Each of the rights and remedies granted to Contractor pursuant to this section or pursuant to any of other the provisions of this Agreement shall be in addition to and without prejudice to, and shall in no way limit, any other rights or remedies which Contractor may have pursuant to any other provision(s) of this Agreement, or pursuant to law or equity.