Common use of Major Infractions Clause in Contracts

Major Infractions. Each Utility, or its implementation Contractor, will monitor Contractor performance and share its discovery of major infractions with the other Utilities. Examples of major infractions include, but are not limited to: • Any actions that pose a significant threat to human health and safety; • Evidence of intentionally incorrect or incomplete data submittals or repeated incorrect or incomplete data submittals that have occurred in spite of remedial action having been previously taken; • Evidence of intentionally incorrect or incomplete equipment ratings or repeated incorrect or incomplete equipment ratings that have occurred in spite of remedial action having been previously taken; • Evidence of dishonesty, fraud, deception, misrepresentation, false promise or false pretense; • Evidence the Contractor has engaged in repeated acts of negligence, deficient service, unethical, misleading, or illegal sales or commercial practices, or other failures to meet standards of business conduct and/or professional standards required under their licensing or technical requirements; • Evidence the Contractor has been accused of engaging in acts constituting, any crime or offense relating to the Contractor’s business; • Evidence that any of the Contractor’s personnel is engaged in drug or alcohol use that is reasonably likely to impair such personnel’s ability to conduct Contractor’s business with reasonable skill and safety; • Misrepresentation within the Contractor’s participation agreement (where applicable); • Violation of applicable New Jersey licensing requirements or any applicable law or regulation. Contractors will be notified in writing of major infractions identified by a Utility, along with planned remediation strategies, which may include but are not limited to probation, suspension, or termination from the Programs. The remediation strategies employed with regard to a major infraction shall be in the sole discretion of each Utility that identifies a major infraction in its Program. Each Utility shall have the right to impose a remediation strategy based on another Utility’s determination that a major infraction has occurred. For the purposes of this policy, these actions shall be defined as: Probation: Defined period of days where every pending project for that Contractor for a particular Utility will be inspected before issuing payment and all applications pending will require pre- approval from a Manager or higher for all Programs for the Utility. Suspension: Defined period of days where the Contractor will be prohibited from submitting any new applications to any Program or participating in any new Program customer applications as a subcontractor. Existing applications that are in process and deemed complete prior to the suspension will be allowed to proceed; provided however that the Utility will have the right but not the obligation to inspect up to 100% of the Contractor’s remaining projects. A Contractor that has been suspended is precluded from using any Utility forms or software. Termination: Contractor is prohibited from participation in any Program.