Common use of Effects of Suspension and Termination Clause in Contracts

Effects of Suspension and Termination. Costs incurred by Contractor during a suspension or after termination of an award are not allowable unless City expressly authorizes them in the notice of suspension or termination or subsequently. Other Contractor costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: i. The costs result from obligations which were properly incurred by Contractor before the effective date of suspension or termination, are not in anticipation of it, and, in the case of a termination, are noncancellable; and ii. The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the termination takes effect.

Effects of Suspension and Termination. Costs incurred by Contractor during a suspension or after termination of an award are not allowable unless City expressly authorizes them in the notice of suspension or termination or subsequently. Other Contractor costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: i. 1. The costs result from obligations which were properly incurred by Contractor before the effective date of suspension or termination, are not in anticipation of it, and, in the case of a termination, are noncancellable; and ii2. The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the termination takes effect.