Common use of Termination for Contractor Default Clause in Contracts

Termination for Contractor Default. 26. If the Contractor shall fail to comply with any of the provisions or obligations under this Agreement or if the Contractor or any of its officers should be indicted or the subject of a governmental investigation (or if a subcontractor of Contractor or any of its officers has been indicted or the subject of a governmental investigation and Contractor does not terminate its subcontract with the subcontractor after instructions from Owner or Construction Manager to do so), Owner or Construction Manager shall have the right after three (3) days' written notice to the Contractor, to terminate in whole or in part Contractor's employment under this Agreement and to take possession of the Contractor's materials, tools, plant, equipment and appliances used or to be used for the construction, whether on or off the Site, (and for that purpose to enter the premises of the Contractor) and to cause the entire remaining Work to be finished and the materials therefor to be furnished by another contractor or contractors as the Owner or Construction Manager deems fit; and the Contractor shall not be entitled to any further payment unless and until all the Work specified in this Agreement shall be finished and then accepted by the Owner, at which time, if the unpaid balance of the amount to be paid under this Agreement shall exceed the expense incurred by the Owner and/or Construction Manager in finishing the Work, including overhead, attorneys' fees and damages incurred through the default of the Contractor, such excess shall be paid to the Contractor, but if such expense shall exceed such unpaid balance, the Contractor shall pay the difference to the Construction Manager if prior to Substantial Completion of the Work or to the Owner if after Substantial Completion of the Work. In the event of any such termination, Contractor shall comply with all directives of the Construction Manager or Owner with respect to Contractor’s activities on the Site, if any are permitted, and Contractor shall cooperate fully, as requested by the Construction Manager or Owner, to facilitate the efficient completion of Contractor's obligations hereunder. Should Contractor continue to perform Work following a termination, and should Owner or Construction Manager be willing to permit Contractor to do so, Contractor shall be deemed a volunteer with respect to any Work that was the subject of a termination, and Construction Manager’s or Owner’s willingness to permit Contractor to continue to perform such Work shall not be deemed a revocation of the termination. After the Work has been completed, the Contractor may remove such materials, tools, plant, equipment and appliances as remain, but neither the Construction Manager nor the Owner shall be liable for anything that has been lost, stolen, destroyed, worn or used. In addition, without terminating this Agreement, the Owner or Construction Manager may, under the circumstances set forth above, terminate the Contractor's right to proceed with any part of the Work or with the furnishing of any part of the labor and/or materials.