Common use of Right to Demand Assurances of Performance Clause in Contracts

Right to Demand Assurances of Performance. 1605 If the County believes in good faith that the Contractor's ability to perform under the Agreement has 1606 been placed in substantial jeopardy by one (1) of the events enumerated below, the County Contract 1607 Manager may, at his option and in addition to all other remedies the County may have, require that 1608 Contractor provide County Contract Manager with a financial surety instrument exceeding the 1609 performance bond amount provided under Section 12.3 and/or sufficient proof that none of the events 1610 enumerated below will in fact impair Contractor from performing its obligations under the Agreement: 1611 A. Contractor is the subject of any labor unrest, including work stoppages or slowdown, sick-out, 1612 picketing, or other concerted job action; 1613 B. Contractor appears, in the reasonable judgment of the County, to be unable to regularly pay its 1614 bills as they become due; or, 1615 C. Contractor is the subject of a civil or criminal judgment or order entered by a federal, state, 1616 regional, or local agency for violation of Applicable Law. 1617 If the Contractor fails or refuses to provide to the County adequate information to establish its ability to 1618 perform within thirty (30) days, such failure or refusal shall be an Event of Default for purposes of 1619 Section 13.1.A.