Maintenance Contractor Defaults Sample Clauses
The 'Maintenance Contractor Defaults' clause defines the circumstances under which a maintenance contractor is considered to be in default of their contractual obligations. Typically, this clause outlines specific actions or failures—such as not performing required maintenance, failing to meet quality standards, or missing deadlines—that would trigger a default. For example, if a contractor repeatedly neglects scheduled inspections or does not address repair requests within agreed timeframes, these could constitute defaults. The core function of this clause is to provide a clear framework for identifying and addressing contractor failures, thereby protecting the interests of the party receiving maintenance services and enabling remedies such as termination or penalties if defaults occur.
Maintenance Contractor Defaults. Maintenance Contractor shall be in default under this Comprehensive Maintenance Agreement upon the occurrence of any one or more of the following events or conditions (each a “Maintenance Contractor Default”):
(a) A DB Contractor Event of Default under the Design-Build Agreement.
(b) Maintenance 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 Maintenance Contractor under the COMA Documents, including failure to perform the Maintenance Services in accordance with the COMA Documents.
(c) Maintenance Contractor fails to resume performance of Maintenance Services which 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) Maintenance 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) Maintenance Contractor fails to maintain the insurance, bonds, letters of credit and guarantees required hereunder; provided, however, that TxDOT shall not seek recourse against the then-current Maintenance Performance Bond in the event of Maintenance Contractor’s failure to provide a Maintenance Payment Bond or a Maintenance Performance Bond for any subsequent Maintenance Term.
(f) Maintenance Contractor attempts or purports to assign or transfer the COMA Documents or any right or interest herein, except as expressly permitted under this Comprehensive Maintenance Agreement.
(g) Maintenance 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 COMA Documents, or fails to make payment to TxDOT when due of any amounts owing to TxDOT under this Comprehensive Maintenance Agreement.
(h) Maintenance Contractor breaches any other agreement, representation, covenant or warranty contained in the COMA Documents.
(i) Maintenance Contractor fails to discharge or obtain a st...