Common use of Owner’s Remedies for Contractor Event of Default Clause in Contracts

Owner’s Remedies for Contractor Event of Default. 25.2.1 Upon the occurrence of a Contractor Event of Default, Owner’s obligation to make payments to Contractor hereunder shall be suspended (but only to the extent necessary to protect Owner from loss) unless and until such Contractor Event of Default is cured. 25.2.2 If a Contractor Event of Default is not cured within the time period required in Section 25.1 above, or, if not curable within such time period, Contractor fails to commence such cure and fails to diligently pursue such cure within such time period, Owner, without prejudice to any other rights and remedies that may be available and subject to any limitations in this Contract, may: (a) supplement Contractor’s forces; (b) take over and perform part of the Work by issuing a deductive Change Order; or (c) terminate all or a part of this Contract by delivering to Contractor a Notice of Termination. 25.2.3 In the event of termination by Owner under this Article 25, the close-out procedures in Sections 27.2.1 and 27.2.2 shall apply, and Owner shall have the right: (a) to request the Surety and/or Guarantors to complete the Work; (b) to take temporary possession of and use all Contractor equipment, Work Product, Equipment and Materials, documents, records, and files at the Site on the date of the Notice of Termination for the purpose of completing the Work; (c) to require Contractor to assign to Owner any or all Subcontracts relating to the terminated Work; (d) to complete the terminated Work by whatever method Owner may deem necessary, including, but not limited to, entering into an agreement with another contractor for the completion of the Work; (e) to make such expenditures and to use such other methods as Owner deems necessary in its sole discretion to accomplish the timely completion of the terminated Work in accordance with the terms of the Contract Documents; and (f) to deduct from any moneys due or to become due to Contractor, the Surety, or any Guarantor, all amounts for which Contractor is liable under Section 25.2.4. If any Subcontracts are assigned to Owner under this Section 25.2.3, Owner shall not be directly liable to any Subcontractor for amounts owed to such Subcontractor for work performed prior to termination, and Contractor shall remain liable to any Subcontractor for such amounts. 25.2.4 Subject to the limitations in Sections 26.2 and 26.3, in the event of termination by Owner under this Article 25, Contractor shall be responsible for and shall reimburse Owner for the following: (a) all costs and expenses incurred in connection with the act of termination of this Contract; (b) all Liquidated Damages incurred as a result of Substantial Completion occurring after the Scheduled Substantial Completion Date; (c) the amount by which the cost to complete or cure deficiencies in the Work, including, without limitation, all costs and expenses incurred by Owner to engage third-party contractor(s), plus the amount paid or payable by Owner to Contractor, exceeds the Contract Price; and (d) attorneys’ and consultants’ fees and expenses incurred by Owner in enforcing its rights against Contractor, Surety or Guarantor(s). Termination by Owner pursuant to this Article 25 shall not relieve Contractor, Surety or Guarantor from liability for Liquidated Damages. If this Contract is terminated pursuant to this Article 25, Contractor’s liability to Owner shall be limited to the Liability Cap. If, after termination under this Article 25, it is determined that there was no Contractor Event of Default, the rights and obligations of the Parties will be the same as if the termination had been issued for the convenience of Owner under Article 26. 25.2.5 All costs incurred by Owner as set forth in this Section 25.2, together with the cost of completing the Work, will be deducted from any moneys due or that may become due Contractor, the Surety or any Guarantor, including the remaining portion of the Contract Price that would have been paid had Contractor completed the Work in accordance with the Contract Documents, subject to Owner’s good faith efforts to mitigate damages. Subject to Sections 25.2.6 Each right of Owner hereunder shall be cumulative and shall be in addition to every other right provided herein, and the exercise or beginning of the exercise by Owner of any one or more of any of such rights shall not preclude the simultaneous or later exercise of any or all other such rights.

Owner’s Remedies for Contractor Event of Default. 25.2.1 Upon the occurrence of a Contractor Event of Default, Owner’s obligation to make payments to Contractor hereunder shall be suspended (but only to the extent necessary to protect Owner from loss) unless and until such Contractor Event of Default is cured. 25.2.2 If a Contractor Event of Default is not cured within the time period required in Section 25.1 above, or, if not curable within such time period, Contractor fails to commence such cure and fails to diligently pursue such cure within such time period, Owner, without prejudice to any other rights and remedies that may be available and subject to any limitations in this Contract, may: (a) supplement Contractor’s forces; (b) take over and perform part of the Work by issuing a deductive Change Order; or (c) terminate all or a part of this Contract by delivering to Contractor a Notice of Termination.perform 25.2.3 In the event of termination by Owner under this Article 25, the close-out procedures in Sections 27.2.1 and 27.2.2 shall apply, and Owner shall have the right: (a) to request the Surety and/or Guarantors to complete the Work; (b) to take temporary possession of and use all Contractor equipment, Work Product, Equipment and Materialsmaterials, documents, records, and files at the Site on the date of the Notice of Termination for the purpose of completing the Work; (c) to require Contractor to assign to Owner any or all Subcontracts relating to the terminated Work; (d) to complete the terminated Work by whatever method Owner may deem necessary, including, but not limited to, entering into an agreement with another contractor for the completion of the Work; (e) to make such expenditures and to use such other methods as Owner deems necessary in its sole discretion to accomplish the timely completion of the terminated Work in accordance with the terms of the Contract Documents; and (f) to deduct from any moneys due or to become due to Contractor, Contractor or the Surety, or any Guarantor, all amounts for which Contractor is liable under Section 25.2.4. If any Subcontracts are assigned to Owner under this Section 25.2.3, Owner shall not be directly liable to any Subcontractor for amounts owed to such Subcontractor for work performed prior to termination, and Contractor shall remain liable to any Subcontractor for such amounts. 25.2.4 Subject to the limitations in Sections 26.2 and 26.3, in the event of termination by Owner under this Article 25, Contractor shall be responsible for and shall reimburse Owner for the following: (a) all costs and expenses incurred in connection with the act of termination of this Contract; (b) all Liquidated Damages incurred as a result of Substantial Completion occurring after the Scheduled Substantial Completion Datedate set forth in Section 17.2.2 above; (c) the amount by which the cost to complete or cure deficiencies in the Work, including, without limitation, all costs and expenses incurred by Owner to engage third-party contractor(s), plus the amount paid or payable by Owner to Contractor, exceeds the Contract Price; and (d) attorneys’ and consultants’ fees and expenses incurred by Owner in enforcing its rights against Contractor, Surety Contractor or Guarantor(s)Surety. Termination by Owner pursuant to this Article 25 shall not relieve Contractor, Contractor or Surety or Guarantor from liability for Liquidated Damages. If this Contract is terminated pursuant to this Article 25, Contractor’s liability to Owner shall be limited to the Liability Cap. If, after termination under this Article 25, it is determined that there was no Contractor Event of Default, the rights and obligations of the Parties will be the same as if the termination had been issued for the convenience of Owner under Article 26. 25.2.5 All costs incurred by Owner as set forth in this Section 25.2, together with the cost of completing the Work, will be deducted from any moneys due or that may become due Contractor, Contractor or the Surety or any GuarantorSurety, including the remaining portion of the Contract Price that would have been paid had Contractor completed the Work in accordance with the Contract Documents, subject to Owner’s good faith efforts to mitigate damages. Subject to SectionsSections 25.3.1 and 25.3.2, if such expense exceeds the sum which would be available from such moneys, then Contractor shall be liable and shall pay to Owner the amount of such excess. 25.2.6 Each right of Owner hereunder shall be cumulative and shall be in addition to every other right provided herein, and the exercise or beginning of the exercise by Owner of any one or more of any of such rights shall not preclude the simultaneous or later exercise of any or all other such rights.

Owner’s Remedies for Contractor Event of Default. 25.2.1 Upon the occurrence of a Contractor Event of Default, Owner’s obligation to make payments to Contractor hereunder shall be suspended (but only to the extent necessary to protect Owner from loss) unless and until such Contractor Event of Default is cured. 25.2.2 If a Contractor Event of Default is not cured within the time period required in Section 25.1 above, or, if not curable within such time period, Contractor fails to commence such cure and fails to diligently pursue such cure within such time period, Owner, without prejudice to any other rights and remedies that may be available and subject to any limitations in this Contract, may: (a) supplement Contractor’s forces; (b) take over and perform part of the Work by issuing a deductive Change Order; or (c) terminate all or a part of this Contract by delivering to Contractor a Notice of Termination. 25.2.3 In the event of termination by Owner under this Article 25, the close-out procedures in Sections 27.2.1 and 27.2.2 shall apply, and Owner shall have the right: (a) to request the Surety and/or Guarantors to complete the Work; (b) to take temporary possession of and use all Contractor equipment, Work Product, Equipment and Materialsmaterials, documents, records, and files at the Site on the date of the Notice of Termination for the purpose of completing the Work; (c) to require Contractor to assign to Owner any or all Subcontracts relating to the terminated Work; (d) to complete the terminated Work by whatever method Owner may deem necessary, including, but not limited to, entering into an agreement with another contractor for the completion of the Work; (e) to make such expenditures and to use such other methods as Owner deems necessary in its sole discretion to accomplish the timely completion of the terminated Work in accordance with the terms of the Contract Documents; and (f) to deduct from any moneys due or to become due to Contractor, Contractor or the Surety, or any Guarantor, all amounts for which Contractor is liable under Section 25.2.4. If any Subcontracts are assigned to Owner under this Section 25.2.3, Owner shall not be directly liable to any Subcontractor for amounts owed to such Subcontractor for work performed prior to termination, and Contractor shall remain liable to any Subcontractor for such amounts. 25.2.4 Subject to the limitations in Sections 26.2 and 26.3, in In the event of termination by Owner under this Article 25, Contractor shall be responsible for and shall reimburse Owner for the following: (a) all costs and expenses incurred in connection with the act of termination of this Contract; (b) all Liquidated Damages incurred as a result of Substantial Completion occurring after the Scheduled Substantial Completion Date; (c) the amount by which the cost to complete or cure deficiencies in the Work, including, without limitation, all costs and expenses incurred by Owner to engage third-party contractor(s), plus the amount paid or payable by Owner to Contractor, exceeds the Contract Price; and (dc) attorneys’ and consultants’ fees and expenses incurred by Owner in enforcing its rights against Contractor, Surety Contractor or Guarantor(s). Termination by Owner pursuant to this Article 25 shall not relieve Contractor, Surety or Guarantor from liability for Liquidated Damages. If this Contract is terminated pursuant to this Article 25, Contractor’s liability to Owner shall be limited to the Liability CapSurety. If, after termination under this Article 25, it is determined that there was no Contractor Event of Default, the rights and obligations of the Parties will be the same as if the termination had been issued for the convenience of Owner under Article 2627. 25.2.5 All costs incurred by Owner as set forth in this Section 25.2, together with the cost of completing the Work, will be deducted from any moneys due or that may become due Contractor, Contractor or the Surety or any GuarantorSurety, including the remaining portion of the Contract Price that would have been paid had Contractor completed the Work in accordance with the Contract Documents, subject to Owner’s good faith efforts to mitigate damages. Subject to SectionsSections 25.3.2, if such expense exceeds the sum which would be available from such moneys, then Contractor shall be liable and shall pay to Owner the amount of such excess. 25.2.6 Each right of Owner hereunder shall be cumulative and shall be in addition to every other right provided herein, and the exercise or beginning of the exercise by Owner of any one or more of any of such rights shall not preclude the simultaneous or later exercise of any or all other such rights.

Owner’s Remedies for Contractor Event of Default. 25.2.1 Upon the occurrence of a Contractor Event of Default, Owner’s obligation to make payments to Contractor hereunder shall be suspended (but only to the extent necessary to protect Owner from loss) unless and until such Contractor Event of Default is cured. 25.2.2 If a Contractor Event of Default is not cured within the time period required in Section 25.1 above, or, if not curable within such time period, Contractor fails to commence such cure and fails to diligently pursue such cure within such time period, Owner, without prejudice to any other rights and remedies that may be available and subject to any limitations in this Contract, may: (a) supplement Contractor’s forces; (b) take over and perform part of the Work by issuing a deductive Change Order; or (c) terminate all or a part of this Contract by delivering to Contractor a Notice of Termination. 25.2.3 In the event of termination by Owner under this Article 25, the close-out procedures in Sections 27.2.1 and 27.2.2 shall apply, and Owner shall have the right: (a) to request the Surety and/or Guarantors to complete the Work; (b) to take temporary possession of and use all Contractor equipment, Work Product, Equipment and Materials, documents, records, and files at the Site on the date of the Notice of Termination for the purpose of completing the Work; (c) to require Contractor to assign to Owner any or all Subcontracts relating to the terminated Work; (d) to complete the terminated Work by whatever method Owner may deem necessary, including, but not limited to, entering into an agreement with another contractor for the completion of the Work; (e) to make such expenditures and to use such other methods as Owner deems necessary in its sole discretion to accomplish the timely completion of the terminated Work in accordance with the terms of the Contract Documents; and (f) to deduct from any moneys due or to become due to Contractor, Contractor or the Surety, or any Guarantor, Surety all amounts for which Contractor is liable under Section 25.2.4. If any Subcontracts are assigned to Owner under this Section 25.2.3, Owner shall not be directly liable to any Subcontractor for amounts owed to such Subcontractor for work performed prior to termination, and Contractor shall remain liable to any Subcontractor for such amounts. 25.2.4 Subject to the limitations in Sections 26.2 and Section 26.3, in the event of termination by Owner under this Article 25, Contractor shall be responsible for and shall reimburse Owner for the following: (a) all costs and expenses incurred in connection with the act of termination of this Contract; (b) all Liquidated Damages incurred as a result of Substantial Completion occurring after the Scheduled Substantial Completion Date; (c) the amount by which the cost to complete or cure deficiencies in the Work, including, without limitation, all costs and expenses incurred by Owner to engage third-party contractor(s), plus the amount paid or payable by Owner to Contractor, exceeds the Contract Price; and (d) attorneys’ and consultants’ fees and expenses incurred by Owner in enforcing its rights against Contractor, Surety Contractor or Guarantor(s)Surety. Termination by Owner pursuant to this Article 25 shall not relieve Contractor, Contractor or Surety or Guarantor from liability for Liquidated Damages. If this Contract is terminated pursuant to this Article 25, Contractor’s liability to Owner shall be limited to the Liability Cap. If, after termination under this Article 25, it is determined that there was no Contractor Event of Default, the rights and obligations of the Parties will be the same as if the termination had been issued for the convenience of Owner under Article 26. 25.2.5 All costs incurred by Owner as set forth in this Section 25.2, together with the cost of completing the Work, will be deducted from any moneys due or that may become due Contractor, Contractor or the Surety or any GuarantorSurety, including the remaining portion of the Contract Price that would have been paid had Contractor completed the Work in accordance with the Contract Documents, subject to Owner’s good faith efforts to mitigate damages. Subject to SectionsSections 25.3.1 and 25.3.2, if such expense exceeds the sum which would be available from such moneys, then Contractor shall be liable and shall pay to Owner the amount of such excess. 25.2.6 Each right of Owner hereunder shall be cumulative and shall be in addition to every other right provided herein, and the exercise or beginning of the exercise by Owner of any one or more of any of such rights shall not preclude the simultaneous or later exercise of any or all other such rights.