Sanctions for Non-compliance. For purposes of this Part D, non-compliance refers to either Developer’s or any Subcontractor’s breach of the warranties set forth in Part B, above, or Developer’s failure to comply with the compliance verification procedure described in Part C, above. Such non-compliance shall be deemed a material breach of the Agreement, subjecting Developer to the remedies set forth in this Part. ADOT will reduce Developer’s compensation under the Agreement for non- compliance as follows: (3) $10,000 for Developer’s and any Subcontractor’s first instance of non- compliance; (4) $10,000 for Developer’s and any Subcontractor’s subsequent non- compliance occurring more than two years after the Developer’s or the Subcontractor’s, as applicable, preceding non-compliance; and (5) $50,000 for Developer’s or any Subcontractor’s subsequent non- compliance occurring less than two years after the Developer’s or the Subcontractor’s, as applicable, preceding non-compliance. If either Developer or any Subcontractor is in non-compliance more than three times within a two-year period, then, in addition to the monetary sanctions set forth in this Part D, ADOT may apply other remedies available under the Contract Documents, including the following: (1) In the case of Developer, ADOT may (a) suspend the Work for cause in accordance with Section 18.2.1(i) of the Agreement, (b) declare a Developer Default under Section 19.1.1(i) of the Agreement, and (c) if such Developer Default is not cured within the applicable cure period, terminate the Agreement in accordance with Section 19.2.1
Appears in 5 contracts
Samples: Design Build Maintain Agreement, Design Build Maintain Agreement, Design Build Maintain Agreement
