Common use of Contract Default Clause in Contracts

Contract Default. The Contractor shall be in default of this Contract if it violates any material provision of this Contract which includes, but is not limited to, the following: i. The Contractor fails to commence the collection of Garbage, Recyclables, or Compostables, or fails to provide any portion of service under the Contract on the Date of Commencement of Service, or for a period of more than five (5) consecutive Days at any time during the term of this Contract, except as provided pursuant to the Service Disruption Section or Force Majeure Section. ii. The Contractor fails to obtain and maintain any permit, certification, authorization, or license required by the City, County, or any federal, state, or other regulatory body in order to collect materials under this Contract, or comply with any environmental standards and regulations. iii. The Contractor’s noncompliance with the terms of this Contract creates a nuisance, or hazard to public health or safety or the environment. iv. The Contractor disposes of uncontaminated Source-separated Recyclables or Compostables collected from clearly identified Recyclables or Compostables Containers, bags, or boxes, in a landfill, incinerates any of the foregoing materials at an incinerator or energy recovery facility, or disposes of any of the foregoing materials of as Garbage, without the prior written permission of the City. v. The Contractor fails to make any required payment to the City, as specified in this Contract. vi. The Contractor is assessed performance fees in excess of fifteen thousand dollars ($15,000) during any consecutive six (6) month period. vii. The Contractor fails to resume full service to Customers within twenty-one (21) Days following the initiation of a labor disruption. viii. The Contractor fails to maintain, in good standing, surety and insurance required by this Contract. The City reserves the right to pursue any remedy available at law or in equity for any default by the Contractor. In the event of default, the City shall give the Contractor ten (10) Days’ prior written notice of its intent to exercise its rights to declare the Contractor in default; however, if an emergency shall arise (including but not limited to a hazard to public health or safety or the environment) that does not allow ten (10) Days’ prior written notice, the City shall promptly notify the Contractor of its intent to exercise its rights immediately. If the Contractor cures the default within the stated period, or initiates efforts satisfactory to the City (in the City’s sole discretion) to remedy the default and the efforts continue in good faith, the City may opt to not exercise its rights for the particular incident or contractual violation. If Contractor fails to fully and promptly comply with any or all its contractual obligations, or fails to give any reason satisfactory to the City for noncompliance, and fails timely to correct the same, the City, after the initial ten (10) Days’ notice, may then declare the Contractor to be in default of this Contract and either begin the Dispute Resolution process or notify the Contractor of the termination of this Contract. A copy of said notice shall be sent to the Contractor and may be copied to the surety on the Contractor’s performance bond. Upon receipt of such notice, the Contractor agrees that it shall promptly commence dispute resolution or discontinue the Services provided under this Contract, depending upon the relief the City selects. If the City provided notice of Contractor’s default to the surety of the Contractor’s performance bond, the surety may, at its option, within ten (10) Days from such written notice, assume the Services provided under this Contract that the City has ordered discontinued and proceed to perform same, at its sole cost and expense, in compliance with the terms and conditions of the Contract, and all documents incorporated herein. In the event that the surety on the Contractor’s performance bond fails to exercise its option within the ten (10)-Day period, the City may complete the Services provided under this Contract or any part thereof, either through contract with another party or any other means. The City shall be entitled to recover from Contractor and the surety on Contractor’s performance bond as damages all expenses incurred, including reasonable attorneys’ fees, together with all such additional sums as may be necessary to complete the Services provided under this Contract, together with any further damages sustained or to be sustained by the City as a result of Contractor’s default. A surety performing under this Contract shall be entitled to payment in accordance with this Contract for Contract Services provided by the surety, and shall otherwise be subject to the same rights and obligations with respect to the Contract Services furnished by the surety as would be applicable if the Contract Services were to be performed by the Contractor. The City’s obligation to pay for such Contract Services shall be subject to satisfactory performance by the surety as well as to setoffs or recoupments for sums, if any, owed by Contractor to City on account of Contractor’s abandonment or default. If the City employees provide Garbage, Recyclables, or Compostables collection, the actual incremental costs of City labor, overhead, and administration shall serve as the basis for a charge to the Contractor and the surety on the Contractor’s performance bond.