Common use of Owner's Right to Perform CM's Obligations and Termination by Owner for Cause Clause in Contracts

Owner's Right to Perform CM's Obligations and Termination by Owner for Cause. (1) If the CM fails to timely perform any of his obligations under this Agreement, including any obligation the CM assumes to perform work with his own forces, the Owner may, after seven (7) days' written notice, during which period the CM fails to perform such obligation, make good such deficiencies and perform such actions. The GMP, or the actual cost of the PROJECT, whichever is less, shall be reduced by the cost to the Owner of making good such deficiencies and the CM's compensation shall be reduced by an amount required to manage the deficiencies, provided, however, nothing contained herein shall limit or preclude Owner from pursuing additional damages from CM as a result of its breach. (2) If the CM is adjudged bankrupt, or if it makes a general assignment for the benefit of its creditors or if a receiver is appointed on account of its insolvency, or if it persistently or repeatedly refuses or fails, except in case for which extension of time is provided, to supply enough properly skilled workmen or proper materials, or fails, without being excused, to maintain an established schedule (failure to maintain schedule shall be defined as any activity on the critical path that falls 30 days or more behind schedule) which has been adopted by the Construction Team, or if it fails to make prompt payment to subcontractors for materials or labor, or disregards laws, rules, ordinances, regulations, or orders of any public authority having jurisdiction, or otherwise is guilty of substantial violations of a provision of the Agreement, then the Owner may, without prejudice to any other right or remedy, and after giving the CM and its surety, if any, 14 days' written notice, and during which period the CM fails to cure the violation, terminate the employment of the CM and take possession of the Project Site and of all materials, equipment, tools, construction equipment, and machinery thereon owned by the CM, and may finish the PROJECT by whatever method the Owner may deem expedient. In such case, the CM shall not be entitled to receive any further payment. Owner shall be entitled to recover all costs and damages arising as a result of failure of CM to perform as provided in this Agreement, as well as reasonable termination expenses and costs and damages incurred by the Owner may be deducted from any payments left owing the CM.

Appears in 11 contracts

Samples: Construction Manager Agreement, Construction Management Agreement, Construction Management Agreement

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Owner's Right to Perform CM's Obligations and Termination by Owner for Cause. (1) If the CM fails to timely perform any of his obligations under this Agreement, including any obligation the CM assumes to perform work with his own forces, the Owner may, after seven (7) calendar days' written notice, during which period the CM fails to perform such obligation, make good such deficiencies and perform such actions. The GMP, or the actual cost of the PROJECT, whichever is less, shall be reduced by the cost to the Owner of making good such deficiencies and the CM's compensation shall be reduced by an amount required to manage the deficiencies, provided, however, nothing contained herein shall limit or preclude Owner from pursuing additional damages from CM as a result of its breach. (2) If the CM is adjudged bankrupt, or if it makes a general assignment for the benefit of its creditors or if a receiver is appointed on account of its insolvency, or if it persistently or repeatedly refuses or fails, except in case for which extension of time is provided, to supply enough properly skilled workmen or proper materials, or fails, without being excused, to maintain an established schedule (failure to maintain schedule shall be defined as any activity on the critical path that falls 30 thirty (30) calendar days or more behind schedule) which has been adopted by the Construction Team, or if it fails to make prompt payment to subcontractors for materials or labor, or disregards laws, rules, ordinances, regulations, or orders of any public authority having jurisdiction, or otherwise is guilty of substantial violations of a provision of the Agreement, then the Owner may, without prejudice to any other right or remedy, and after giving the CM and its surety, if any, 14 fourteen (14) calendar days' written notice, and during which period the CM fails to cure the violation, terminate the employment of the CM and take possession of the Project Site and of all materials, equipment, tools, construction equipment, and machinery thereon owned by the CM, and may finish the PROJECT by whatever method the Owner may deem expedient. In such case, the CM shall not be entitled to receive any further payment. Owner shall be entitled to recover all costs and damages arising as a result of failure of CM to perform as provided in this Agreement, as well as reasonable termination expenses and costs and damages incurred by the Owner may be deducted from any payments left owing the CM.

Appears in 5 contracts

Samples: Construction Management Agreement, Construction Management Agreement, Construction Manager Agreement

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