Common use of Owner's Right to Suspend Completion of the Services Clause in Contracts

Owner's Right to Suspend Completion of the Services. Owner may elect to suspend completion of all or any part of the Services upon ten days' prior written notice to Contractor (or, in Emergency situations, upon such prior notice as circumstances permit) indicating (a) the portion of the Services the completion of which Owner has elected to defer; (b) Owner's estimate of the duration of such suspension; and (c) the effective date of such suspension of the Services. Upon receipt of and consistent with the effective date of such notice, Contractor shall stop performance of the Services which Owner has elected to defer and shall continue to complete performance of the balance of the Services. In the event of a suspension of the Services pursuant to this Section 15.1.1, Owner shall (i) within fifteen (15) days after receipt from Contractor of an invoice and such supporting documentation as Owner reasonably requires to verify the invoiced amounts, pay to Contractor the sum of (1) such amount, if any, of the unpaid Contract Price that is representative of the actual stage of completion of the Services being deferred that have been performed to date and not previously compensated for through Contract Price payments made through such date (as reasonably determined based upon the percentage completion of applicable milestones relating to such deferred work as set forth in the Payment and Milestone Schedule or as otherwise mutually and reasonably agreed upon by the Parties), plus (2) if and to the extent appropriate based upon the duration and scope of the suspension, such reasonable demobilization costs incurred by Contractor as a result of such suspension, and (ii) authorize a Scope Change Order making equitable adjustments to one or more of the Guaranteed Completion Dates, the Construction Progress Milestone Dates, the Contract Price, the Payment and Milestone Schedule, the Project Schedule, the Performance Guarantees and such other provisions of this Agreement 128 which may be affected thereby, as appropriate. Contractor shall mitigate expenses to be borne by Owner as a result of suspension of the Services pursuant to this Section 15.1.1.

Appears in 3 contracts

Samples: Engineering, Procurement and Construction Services Agreement (Aes Ironwood LLC), Engineering, Procurement and Construction Services Agreement (Aes Ironwood LLC), Engineering, Procurement and Construction Services Agreement (Aes Ironwood LLC)

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Owner's Right to Suspend Completion of the Services. (a) Owner may elect to suspend completion of all or any part of the Services upon ten (10) days' prior written notice to Contractor (or, in Emergency emergency situations, upon such prior notice as circumstances permit) indicating (ai) the portion of the Services the completion of which Owner has elected to defer; (bii) Owner's estimate of the duration of such suspension; and (ciii) the effective date of such suspension of the Services. Upon receipt of and consistent with the effective date of such notice, Contractor shall stop performance of the Services which Owner has elected to defer and shall continue to complete performance of the balance of the Services. In the event of a suspension of the Services 1. Contractor shall promptly resume the suspended portion of the Services pursuant upon receipt of a written notice from Owner authorizing reinstatement of such portion and specifying the effective date of resumption. (b) Notwithstanding anything to the contrary in this Section 15.1.1Agreement, Owner shall in the event that (i) within fifteen (15) days after receipt from Contractor Owner desires to suspend completion of an invoice and such supporting documentation as Owner reasonably requires to verify all the invoiced amounts, pay to Contractor the sum of (1) such amount, if any, Services hereunder or any portion of the unpaid Contract Price that is representative of the actual stage of completion of the CTG Services being deferred that have been performed to date and not previously compensated for through Contract Price payments made through such date (as reasonably determined based upon the percentage completion of applicable milestones relating to such deferred work as set forth its convenience in the Payment and Milestone Schedule or as otherwise mutually and reasonably agreed upon by the Parties), plus (2accordance with Section 15.1.1(a) if and to the extent appropriate based upon the duration and scope of the suspension, such reasonable demobilization costs incurred by Contractor as a result of such suspensionhereof, and (ii) authorize despite its use of all reasonable efforts Contractor is unable to obtain a Scope Change Order making corresponding suspension under the CTG Subcontract (it being understood that Contractor has no right or power under the CTG Subcontract to require Siemens Westinghouse Power Corporation to accept a suspension thereunder), then Owner shall thereafter for the duration of such suspension pay to Contractor all amounts (other than any that are caused by Contractor's failure to perform its obligations thereunder) which become due and payable from Contractor under the CTG Subcontract on or before the corresponding payment date under the CTG Subcontract. In the event Owner elects to resume performance of the CTG Services hereunder, (i) its payment of such suspension period CTG-related payments (exclusive of any accrued interest paid thereon) shall be credited against the Contract Price, and (ii) the continued performance by Contractor and Siemens Westinghouse Power Corporation under the CTG Subcontract during such suspension period shall be taken into account in determining the appropriate equitable adjustments to be made to one or more of the Contract Price, the Guaranteed Completion 103 Dates, the Construction Progress Milestone Dates, the Contract Price, the Payment and Milestone Schedule, the Project Schedule, the Performance Guarantees and such any other provisions of this Agreement 128 which may be affected thereby, as appropriate. Contractor shall mitigate expenses to be borne by Owner as a result of suspension of the Services pursuant to this Section 15.1.1such suspension.

Appears in 1 contract

Samples: Engineering, Procurement and Construction Services Agreement (Aes Red Oak LLC)

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