Common use of DEFAULT BY SUBCONTRACTOR Clause in Contracts

DEFAULT BY SUBCONTRACTOR. 22.1. If Subcontractor fails (a) to maintain a sufficient skilled work force, including supervisors, sufficient equipment in good working order, and site and offsite support to meet the requirements of Subcontractor’s Work, or (b) to cause to be delivered to it at the Project site sufficient materials of the required quality to enable it to comply with its time and sequence schedule, or (c) to meet the requirements of such time and sequence schedules, or (d) to pay when due its laborers or its Lower Tiers, fuel or equipment suppliers, unions, taxing authorities, and other governmental entities, or (e) to comply with any of its other obligations or agreements herein contained, for a period of forty-eight (48) hours after receipt of written notice by Contractor specifying the failure complained of, Contractor, at any time while such failure continues, by written notice to Subcontractor may terminate the Agreement and/or Subcontractor's right to proceed with Subcontractor’s Work, in whole or in part.‌ 22.2. If Subcontractor becomes insolvent, or makes an assignment for the benefit of creditors, or applies to any tribunal for the appointment of a trustee or receiver of Subcontractor or for any substantial part of its assets, or commences any proceedings relating to Subcontractor under any bankruptcy, reorganization, insolvency, readjustment of debt or liquidation law, or if any such petition or application is filed and any such proceedings are commenced against Subcontractor and Subcontractor by any act consents thereto, or an order is entered appointing any such trustee or receiver or adjudicating Subcontractor bankrupt or insolvent or approving the petition in any such proceedings and such order remains in effect for more than thirty (30) days, or if an order is entered in any proceedings against Subcontractor decreeing its dissolution and such order remains in effect for more than thirty (30) days, Contractor, by notice to Subcontractor, may terminate the Subcontract and/or Subcontractor’s right to proceed with Subcontractor’s Work, in whole or in part. 22.3. In the event of any termination for cause under Articles 22.1 or 22.2, Contractor shall have the right to notify Subcontractor's surety (if any) of any default by Subcontractor and to exercise any other rights or remedies available at Law or in equity. In addition, Contractor shall have the right to finish Subcontractor’s Work by whatever method it may deem expedient, including, without limitation, the taking over of Subcontractor’s outstanding subcontracts and purchase orders and taking possession of and using in completing the Work, Subcontractor’s tools, equipment, scaffolding, materials, and supplies at or in transit to the Project site in connection with Subcontractor’s Work. 22.4. In the event of any termination, Subcontractor shall not be entitled to any further payment until the entire Project shall have been accepted by Owner. At the time of acceptance, Contractor shall aggregate its costs of completion, and all damages resulting from Subcontractor’s default, including, but not limited to, any liquidated damages provided for in the Contract Documents, other setoffs as provided for in the Agreement, and related damages and costs, including Contractor’s administrative costs and expenses, together with legal fees and other costs of enforcement (“Aggregate Costs of Default”). Upon delivery by Subcontractor to Contractor of appropriate waivers of lien and other documents required hereunder for final payment, Contractor shall pay to Subcontractor the excess, if any, of the balance of the Subcontract Amount less the Aggregate Costs of Default. If the Aggregate Costs of Default exceeds the balance of the Subcontract Amount, Subcontractor shall pay to Contractor such excess amount, promptly upon submission of an invoice for the same. Contractor shall have the right to withhold from any final payment a reasonable reserve to cover any unexpired warranties applicable to Subcontractor’s Work. 22.5. In the event that a termination for cause under this Article 22 is determined to be unjustified or wrongful, then the termination shall be treated as a “convenience termination” under Article 21, and Subcontractor’s remedies and damages are limited as provided for in such Article.

DEFAULT BY SUBCONTRACTOR. 22.116.1. If Subcontractor fails (a) to maintain a sufficient skilled work force, including supervisors, sufficient equipment in good working order, and site and offsite support to meet the requirements of Subcontractor’s Work's Services, or (b) to cause to be delivered to it at the Project site Site sufficient materials of the required quality to enable it to comply with its time and sequence schedule, or (c) to meet the requirements of such time and sequence schedules, or (d) to pay when due its laborers or its Lower Tiers, fuel or equipment suppliers, unions, taxing authorities, and other governmental entities, or (e) to comply with any of its other obligations or and agreements herein contained, for a period of forty-eight (48) hours after receipt of written notice by Contractor specifying the failure complained of, Contractor, at any time while such failure continues, by written notice to Subcontractor may terminate the Agreement and/or Subcontractor's ’s right to proceed with Subcontractor’s WorkServices, in whole or in part.‌part. 22.216.2. If Subcontractor becomes insolvent, or makes an assignment for the benefit of creditors, or applies to any tribunal for the appointment of a trustee or receiver of Subcontractor or for any substantial part of its assets, or commences any proceedings relating to Subcontractor under any bankruptcy, reorganization, insolvency, readjustment of debt or liquidation law, or if any such petition or application is filed and any such proceedings are commenced against Subcontractor and Subcontractor by any act consents thereto, or an order is entered appointing any such trustee or receiver or adjudicating Subcontractor bankrupt or insolvent or approving the petition in any such proceedings and such order remains in effect for more than thirty (30) days, or if an order is entered in any proceedings against Subcontractor decreeing its dissolution and such order remains in effect for more than thirty (30) days, Contractor, by notice to Subcontractor, may terminate the Subcontract and/or Subcontractor’s right to proceed with Subcontractor’s Work, in whole or in part. 22.316.3. In the event of any termination for cause under Articles 22.1 16.1 or 22.216.2, Contractor shall have the right to notify Subcontractor's ’s surety (if any) of any default by Subcontractor and to exercise any other rights or remedies available at Law or in equity. In addition, Contractor shall have the right to finish Subcontractor’s Work Services by whatever method it may deem expedient, including, without limitation, the taking over of Subcontractor’s outstanding subcontracts and purchase orders and taking possession of and using in completing the WorkServices, Subcontractor’s tools, equipment, scaffolding, materials, and supplies at or in transit to the Project site Site in connection with Subcontractor’s WorkServices. 22.416.4. In the event of any termination, Subcontractor shall not be entitled to any further payment until the entire Project shall have been accepted by Owner. At the time of acceptance, Contractor shall aggregate its costs of completion, and all damages resulting from Subcontractor’s default, including, but not limited to, any liquidated damages provided for in the Contract Documents, other setoffs as provided for in the Agreement, and related damages and costs, including Contractor’s administrative costs and expenses, together with legal fees and other costs of enforcement (“Aggregate Costs of Default”). Upon delivery by Subcontractor to Contractor of appropriate waivers of lien and other documents required hereunder for final payment, Contractor shall pay to Subcontractor the excess, if any, of the balance of the Subcontract Amount Price less the Aggregate Costs of Default. If the Aggregate Costs of Default exceeds the balance of the Subcontract AmountPrice, Subcontractor shall pay to Contractor such excess amount, promptly upon submission of an invoice for the same. Contractor shall have the right to withhold from any final payment a reasonable reserve to cover any unexpired warranties applicable to Subcontractor’s WorkServices. 22.516.5. In the event that a termination for cause under this Article 22 16 is determined to be unjustified or wrongful, then the termination shall be treated as a “convenience termination” under Article 2115, and Subcontractor’s remedies and damages are limited as provided for in such Article.