Common use of Right of Termination for Convenience Clause in Contracts

Right of Termination for Convenience. Prior to, or during the performance of the Work, the Owner reserves the right to terminate the Contract in whole or in part, for any reason whatsoever (including, but not necessarily limited to, funding limitations). Upon such an occurrence the Owner will immediately notify the design professional and the Contractor in writing specifying the effective termination date of the Contract. After receipt of the Notice of Termination, the Contractor shall immediately proceed with the following obligations, regardless of any delay in determining or adjusting any amounts due at the point in the Contract: i. Stop all construction; ii. Place no further orders for materials or services; iii. Terminate all subcontracts; iv. Cancel all material and equipment orders as applicable; and v. Take whatever action is necessary to protect and preserve all property related to this Contract, which is in the possession of the Contractor. Within 180 days of the date of the Notice of Termination, the Contractor shall submit a final termination settlement proposal to the Owner based upon costs up to the date of termination, including reasonable profit as allowed by the Contract Documents on completed Work, and reasonable demobilization costs as allowed by the Contract Documents. If the Contractor fails to submit the proposal within the time allowed, the Owner may determine the amount due to the Contractor because of the termination and shall pay the determined amount to the Contractor.