Common use of Owner May Terminate for Cause Clause in Contracts

Owner May Terminate for Cause. A. Contractor’s failure to perform the Work in accordance with the Contract Documents or other failure to comply with a material term of the Contract Documents will constitute a default by Contractor and justify termination for cause. B. If Contractor defaults in its obligations, then after giving Contractor and any surety ten days written notice that Owner is considering a declaration that Contractor is in default and termination of the Contract, Owner may proceed to: 1. Declare Contractor to be in default, and give Contractor and any surety notice that the Contract is terminated; and 2. Enforce the rights available to Owner under any applicable performance bond. C. Owner may not proceed with termination of the Contract under Paragraph 15.02.B if Contractor within seven days of receipt of notice of intent to terminate begins to correct its failure to perform and proceeds diligently to cure such failure. D. Subject to the terms and operation of any applicable performance bond, if Owner has terminated the Contract for cause, Owner may exclude Contractor from the Site, take possession of the Work, incorporate in the Work all materials and equipment stored at the Site or for which Owner has paid Contractor but which are stored elsewhere, and complete the Work as Owner may deem expedient. E. In the case of a termination for cause, if the cost to complete the Work, including related claims, costs, losses, and damages, exceeds the unpaid contract balance, Contractor shall pay the difference to Owner.

Owner May Terminate for Cause. A. Contractor’s failure to perform the Work in accordance with the Contract Documents or other failure to comply with a material term of the Contract Documents will constitute a default by Contractor and justify termination for cause. B. If Contractor defaults in its obligations, then after giving Contractor and any surety ten (10) days written notice that Owner is considering a declaration that Contractor is in default and termination of the Contract, Owner may proceed to: 1. Declare Contractor to be in default, and give Contractor and any surety notice that the Contract is terminated; and 2. Enforce the rights available to Owner under any applicable performance bond. C. Owner may not proceed with termination of the Contract under Paragraph 15.02.B if Contractor within seven (7) days of receipt of notice of intent to terminate begins to correct its failure to perform and proceeds diligently to cure such failure. D. Subject to the terms and operation of any applicable performance bond, if Owner has terminated the Contract for cause, Owner may exclude Contractor from the Site, take possession of the Work, incorporate in the Work all materials and equipment stored at the Site or for which Owner has paid Contractor but which are stored elsewhere, and complete the Work as Owner may deem expedient. E. In the case of a termination for cause, if the cost to complete the Work, including related claims, costs, losses, and damages, exceeds the unpaid contract balance, Contractor shall pay the difference to Owner. F. A termination for cause is later found to have been improper or unsupported shall be treated as a termination for convenience.

Owner May Terminate for Cause. A. Contractor’s failure to perform the Work in accordance with the Contract Documents or other failure to comply with a material term of the Contract Documents will constitute a default by Contractor and justify termination for cause. B. If Contractor defaults in its obligations, then after giving Contractor and any surety ten days written 10 days’ notice that Owner is considering a declaration that Contractor is in default and the termination of the Contract, Owner may proceed to: 1. Declare Contractor to be in default, and give Contractor and any surety notice that the Contract is terminated; and 2. Enforce the rights available to Owner under any applicable performance bond. C. Owner may not proceed with termination of the Contract under Paragraph 15.02.B if Contractor within seven 7 days of receipt of notice of intent to terminate begins to correct its failure to perform and proceeds diligently to cure such failure. D. Subject to the terms and operation of any applicable performance bond, if Owner has terminated the Contract for cause, Owner may exclude Contractor from the Site, take possession of the Work, incorporate in the Work all materials and equipment stored at the Site or for which Owner has paid Contractor but which are stored elsewhere, and complete the Work as Owner may deem expedient. E. In the case of a termination for cause, if the cost to complete the Work, including related claims, costs, losses, and damages, exceeds the unpaid contract balance, Contractor shall pay the difference to Owner. F. If Contractor has provided a performance bond, the provisions of that bond will govern over any inconsistent provisions of Paragraph 15.02.