Common use of Default by District Clause in Contracts

Default by District. Subject to the provisions of Section 0 below, in the event District defaults in its payment obligations under this Agreement and such default continues more than twenty (20) days after District receives written notice of such default from A/E, A/E shall be entitled to terminate this Agreement or to suspend the delivery of Services under this Agreement and, upon receipt of payment, to receive an adjustment in the Milestone Schedule for the period of such suspension. If A/E so terminates this Agreement, A/E shall be entitled to recover payment for all Services rendered by A/E hereunder up to the date of such termination, plus interest at the rate of eight percent (8%) per annum on the amount outstanding from the date payment was due until paid. In the event District materially defaults in any of its other obligations and such default continues for more than thirty (30) days after A/E delivers notice thereof to District, A/E shall be entitled to terminate this Agreement, in which event A/E’s compensation shall be determined in the same manner as though this Agreement had been terminated in accordance with Section 0 above. In no event shall the District’s failure to take actions pursuant to this Agreement during a suspension of the Project by District under 0 above (other than District’s failure to pay the amounts due in connection with such suspension) constitute a default by District.