Common use of TERMINATION BY THE OWNER Clause in Contracts

TERMINATION BY THE OWNER. 14.2.1 The Owner may terminate the contract if the Contractor: 14.2.1.1 refuses or fails to supply enough properly skilled workers or proper materials; 14.2.1.2 fails to make payment to Subcontractors for materials or labor in accordance with the respective agreements between the Contractor and the Subcontractors; 14.2.1.3 disregards laws, ordinances, or rules, regulations or orders of a public authority having jurisdiction; 14.2.1.4 is guilty of substantial breach of a provision of the Contract Document; 14.2.1.5 breaches any warranty made by the Contractor under or pursuant to the Contract Documents; 14.2.1.6 fails to furnish the Owner with assurances satisfactory to the Owner evidencing the Contractor's ability to complete the Work in compliance with all the requirements of the Contract Documents; 14.2.1.7 fails after commencement of the Work to proceed continuously with the construction and completion of the Work for more than ten (10) days, except as permitted under the Contract Documents. 14.2.2 When any of the above reasons exist, the Owner may without prejudice to any other rights or remedies of the Owner and after giving the Contractor and the Contractor's surety, if any, seven (7) days' written notice, terminate employment of the Contractor and may, subject to any prior rights of the surety: 14.2.2.1 take possession of the site and of all materials, equipment, tools, and construction equipment and machinery thereon owned by the Contractor; 14.2.2.2 accept assignment of subcontracts pursuant to Paragraph 5.4; and 14.2.2.3 finish the Work by whatever reasonable method the Owner may deem to be in the Owner’s best interest. 14.2.3 When the Owner terminates the Contract for one of the reasons stated in Subparagraph 14.2.1, the Contractor shall not be entitled to receive further payment until the Work is finished. 14.2.4 If the unpaid balance of the Contract Sum exceeds costs of finishing the Work, including compensation for the Architect's services and expenses, and any legal expenses, made necessary thereby, such excess shall be paid to the Contractor. If such costs exceed the unpaid balance, the Contractor shall pay the difference to the Owner. The amount to be paid to the Contractor or Owner, as the case may be, shall be certified by the Architect, upon application, and this obligation for payment shall survive termination of the Contract.