TERMINATION SETTLEMENT COSTS Sample Clauses
The 'Termination Settlement Costs' clause defines the obligations and procedures for determining and paying costs incurred when a contract is terminated before completion. Typically, this clause outlines what types of expenses are recoverable, such as work performed up to the termination date, materials ordered, or demobilization costs, and may specify how these costs are calculated or documented. Its core function is to ensure that parties are fairly compensated for work done and expenses incurred due to early termination, thereby reducing disputes and providing financial clarity in the event the contract ends prematurely.
TERMINATION SETTLEMENT COSTS. (a) The reasonable costs resulting from a termination order, including a previously issued stop−work order on a project’s work or grant, are eligible in nego- tiating a termination settlement.
(b) The department shall negotiate appropriate termination settlement costs with the grantee. The department shall pay rea- sonable settlement costs.