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15.02 Owner May Terminate for Cause
<br />A. The occurrence of any one or more of the following
<br />events will justify termination for cause:
<br />1. Contractor's persistent failure to perform the
<br />Work in accordance with the Contract Documents
<br />(including, but not limited to, failure to supply suffi-
<br />cient skilled workers or suitable materials or equip-
<br />ment or failure to adhere to the Progress Schedule
<br />established under Paragraph 2.07 as adjusted from
<br />time to time pursuant to Paragraph 6.04);
<br />2. Contractor's disregard of Laws or Regulations of
<br />any public body having jurisdiction;
<br />3. Contractor's disregard of the authority of
<br />Engineer; or
<br />4. Contractor's violation in any substantial way of
<br />any provisions of the Contract Documents.
<br />B. If one or more of the events identified in Paragraph
<br />15.02.A occur, Owner may, after giving Contractor (and
<br />surety) seven days written notice of its intent to terminate
<br />the services of Contractor:
<br />1. exclude Contractor from the Site, and take
<br />possession of the Work and of all Contractor's tools,
<br />appliances, construction equipment, and machinery at
<br />the Site, and use the same to the full extent they
<br />could be used by Contractor (without liability to
<br />Contractor for trespass or conversion),
<br />2. incorporate in the Work all materials and
<br />equipment stored at the Site or for which Owner has
<br />paid Contractor but which are stored elsewhere, and
<br />3. complete the Work as Owner may deem
<br />expedient.
<br />C. If Owner proceeds as provided in Paragraph 15.02.13,
<br />Contractor shall not be entitled to receive any further
<br />payment until the Work is completed. If the unpaid
<br />balance of the Contract Price exceeds all claims, costs,
<br />losses, and damages (including but not limited to all fees
<br />and charges of engineers, architects, attorneys, and other
<br />professionals and all court or arbitration or other dispute
<br />resolution costs) sustained by Owner arising out of or
<br />relating to completing the Work, such excess will be paid
<br />to Contractor. If such claims, costs, losses, and damages
<br />exceed such unpaid balance, Contractor shall pay the
<br />difference to Owner. Such claims, costs, losses, and
<br />damages incurred by Owner will be reviewed by Engineer
<br />as to their reasonableness and, when so approved by
<br />Engineer, incorporated in a Change Order. When
<br />exercising any rights or remedies under this Paragraph
<br />Owner shall not be required to obtain the lowest price for
<br />the Work performed.
<br />D. Notwithstanding Paragraphs 15.02.13 and 15.02.C,
<br />Contractor's services will not be terminated if Contractor
<br />begins within seven days of receipt of notice of intent to
<br />terminate to correct its failure to perform and proceeds
<br />diligently to cure such failure within no more than 30
<br />days of receipt of said notice.
<br />E. Where Contractor's services have been so terminated
<br />by Owner, the termination will not affect any rights or
<br />remedies of Owner against Contractor then existing or
<br />which may thereafter accrue. Any retention or payment of
<br />moneys due Contractor by Owner will not release
<br />Contractor from liability.
<br />F. If and to the extent that Contractor has provided a
<br />performance bond under the provisions of Paragraph
<br />5.01.A, the termination procedures of that bond shall
<br />supersede the provisions of Paragraphs 15.02.13, and
<br />15.02.C.
<br />15.03 Owner May Terminate For Convenience
<br />A. Upon seven days written notice to Contractor and
<br />Engineer, Owner may, without cause and without
<br />prejudice to any other right or remedy of Owner,
<br />terminate the Contract. In such case, Contractor shall be
<br />paid for (without duplication of any items):
<br />1. completed and acceptable Work executed in
<br />accordance with the Contract Documents prior to the
<br />effective date of termination, including fair and
<br />reasonable sums for overhead and profit on such
<br />Work;
<br />2. expenses sustained prior to the effective date of
<br />termination in performing services and furnishing
<br />labor, materials, or equipment as required by the
<br />Contract Documents in connection with uncompleted
<br />Work, plus fair and reasonable sums for overhead
<br />and profit on such expenses;
<br />3. all claims, costs, losses, and damages (including
<br />but not limited to all fees and charges of engineers,
<br />architects, attorneys, and other professionals and all
<br />court or arbitration or other dispute resolution costs)
<br />incurred in settlement of terminated contracts with
<br />Subcontractors, Suppliers, and others; and
<br />4. reasonable expenses directly attributable to
<br />termination.
<br />B. Contractor shall not be paid on account of loss of
<br />anticipated profits or revenue or other economic loss
<br />arising out of or resulting from such termination.
<br />15.04 Contractor May Stop Work or Terminate
<br />A. If, through no act or fault of Contractor, (i) the Work is
<br />suspended for more than 90 consecutive days by Owner
<br />or under an order of court or other public authority, or (ii)
<br />Engineer fails to act on any Application for Payment
<br />EJCDC C-700 Standard General Conditions of the Construction Contract.
<br />Copyright © 2002 National Society of Professional Engineers for EJCDC. All rights reserved.
<br />00700-40
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