Common use of DEFAULT BY SUBCONTRACTOR Clause in Contracts

DEFAULT BY SUBCONTRACTOR. Should the SUBCONTRACTOR fail to deliver any part of the necessary materials and /or perform any part of the necessary work within the time schedule prescribed by the CONTRACTOR in Section 7 above, or fail to perform or comply with any term, covenant or condition contained in this Subcontract or in the General Contract, or abandon the work, or shall become insolvent or shall appear insolvent in the opinion of the CONTRACTOR, or shall have a claim or lien filed on or against him , or shall have a judgment filed against him, or make an assignment for benefit of creditors, or have a petition in bankruptcy filed by or against him, or shall die or become mentally or physically disabled, the CONTRACTOR shall have the right, if he elects, to declare this Subcontract in default by telegraphic notice to the SUBCONTRACTOR at his last known address. Unless the SUBCONTRACTOR corrects such default or satisfies the CONTRACTOR of his ability to do so within 72 hours after such telegraphic notice, the CONTRACTOR may, if he elects, and without prejudice to any other right or remedy it may have, terminate this Subcontract and take whatever steps it deems advisable to secure necessary labor and material by contract or otherwise, and may take over, together with all rights and title thereto, all of said SUBCONTRACTOR’S equipment, tools, supplies on the job site or enroute thereto, and may prosecute the work to completion. All money expended therefore including (but not restricted to) cost of supplies, equipment, materials, subcontracts, labor, administration, supervision, utilities, claims against the SUBCONTRACTOR, overhead, travel, legal and accounting fees and other costs and expenses incurred by the CONTRACTOR, or for which it may be liable, will be deducted from the Subcontract price herein stated, and if such expenditures exceed the amount otherwise due to the SUBCONTRACTOR hereunder, the SUBCONTRACTOR agrees to pay the CONTRACTOR on demand the full amount of such excess, together with interest thereon at the rate of 12% per annum (but not to exceed the legal rate allowable by contract if less Timberline Construction Vendor No: 100 ▇.▇. ▇▇▇ ▇▇▇ Contract No: 01001-06 ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ Code No: 16-100 - S Project No: 03-001 than 12%) until paid, or, in case of any default on the part of the SUBCONTRACTOR , the CONTRACTOR may exercise any other right or remedy available to him. In the event of a breach of this Subcontract or any of its provisions by the SUBCONTRACTOR, resulting in litigation by the CONTRACTOR to enforce its rights, the SUBCONTRACTOR agrees to pay to the CONTRACTOR a reasonable fee for attorney services, which fee may be recovered in the same suit as a part of the CONTRACTOR’S cause of action.

DEFAULT BY SUBCONTRACTOR. Should A. If Subcontractor, or any of its lower tier subcontractors, shall, in the SUBCONTRACTOR sole judgment of General Contractor, repeatedly refuse or fail to deliver any part of the necessary supply sufficient properly skilled workmen, supervisors, equipment or materials and /or perform any part of the necessary work within the time schedule prescribed by the CONTRACTOR in Section 7 abovehereunder, or fail to perform make payments promptly to workmen, material houses or comply with any termsubcontractors, covenant or condition contained in this Subcontract or in disregard the written instructions of the General ContractContractor, or fall behind the Work due to the actions or omissions of Subcontractor, or if actions or omissions of Subcontractor so as to prejudice General Contractor’s ability to finish the entire Project at the time required, or abandon the workWork hereunder, or, fail in the performance of any terms and conditions of the Agreement, or shall become insolvent or shall appear insolvent in the opinion of the CONTRACTOR, or shall have a claim or lien filed on or against him , or shall have a judgment filed against him, or make an assignment for the benefit of its creditors, or have then, in any such event, each of which shall constitute a petition in bankruptcy filed default hereunder by or against himSubcontractor, or shall die or become mentally or physically disabled, the CONTRACTOR General Contractor shall have the rightright to exercise any one or more of the following remedies if Subcontractor does not commence or present to General Contractor an appropriate remedy for approval to cure the default within seventy-two (72) hours after General Contractor gives Subcontractor written notice of such default: withhold making payments to Subcontractor, including both progress and final payments which are either due or may become due to Subcontractor under the Agreement, until such default is cured and, if he electssaid default is not cured, to declare this Subcontract in apply all such unpaid contract balances, including retainage, to reimburse General Contractor for all losses, expenses including reasonable attorney’s fees, damages, penalties, and fines, whether liquidated or unliquidated, direct or consequential which are incurred or sustained by General Contractor by reason of such default; require Subcontractor to provide and utilize, at its own expense, overtime labor (including Saturday and Sunday work) and additional supervisors, workmen and shifts as necessary to overcome the consequences of any delay attributable to Subcontractor; remedy the default by telegraphic notice to whatever means General Contractor may deem are reasonably expedient including, but not limited to, removing, replacing, correcting, furnishing, performing or completing the SUBCONTRACTOR at his last known address. Unless the SUBCONTRACTOR corrects such default Work, or satisfies the CONTRACTOR of his ability to do so within 72 hours after such telegraphic notice, the CONTRACTOR may, if he electsany part thereof, and without prejudice to repairing and replacing the Work or property of others that may have been damaged or destroyed by Subcontractor or its sub-subcontractors, by itself or through others (utilizing where appropriate any other right or remedy it may havematerials, terminate this Subcontract and take whatever steps it deems advisable to secure necessary labor and material by contract or otherwise, and may take over, together with all rights and title thereto, all of said SUBCONTRACTOR’S equipmentequipment facilities, tools, supplies on scaffolding and other items previously purchased or provided for such purpose by Subcontractor) and to recover the job site cost (including reasonable attorney’s fees) of such remedial action from Subcontractor within forty-five (45) days of the commencement of said default (plus an allowance for administrative burden equal to 15 % of such costs): terminate the Agreement without hereby waiving or enroute theretoreleasing any other rights or remedies against Subcontractor or its sureties, and, by itself or through others complete the Work and take possession of all materials, facilities, tools, scaffolds, appliances and other things belonging to Subcontractor and relating to the Work for such purpose, (and this Agreement shall be deemed to be an assignment by Subcontractor to General Contractor of the foregoing) and, for the purpose of securing to itself the payment of all costs (including reasonable attorney’s fees) incurred in completing the Work (plus an allowance for administrative burden equal to 15% of such costs) and all other damaged sustained as a result of the default and termination, which it shall be Subcontractor’s obligation to pay, General Contractor is hereby authorized to establish an adequate reserve to protect General Contractor and Owner during the period of guarantee required of Subcontractor, which reserve shall be reasonably determined by General Contractor based upon the nature of the Work and the exposure of General Contractor: recover from Subcontractor all losses, damages, penalties, and may prosecute the work to completion. All money expended therefore fines, whether liquidated or unliquidated, direct or indirect, or consequential, and all costs, such as extended overhead, and expenses (including (reasonable attorney’s fees and court costs) suffered or incurred by General Contractor as a result of Subcontractor’s default, including but not restricted to) cost of supplies, equipment, materials, subcontracts, labor, administration, supervision, utilities, claims against limited to extended overhead; terminate the SUBCONTRACTOR, overhead, travel, legal and accounting fees and other costs and expenses incurred by the CONTRACTOR, or for which it may be liable, will be deducted from the Subcontract price herein stated, and Agreement if such expenditures exceed the amount otherwise due Subcontractor fails to the SUBCONTRACTOR hereunder, the SUBCONTRACTOR agrees to pay the CONTRACTOR on demand the full amount of such excess, together comply with interest thereon at the rate of 12% per annum (but not to exceed the legal rate allowable by contract if less Timberline Construction Vendor No: 100 ▇General Contractor's prequalification program.▇. ▇▇▇ ▇▇▇ Contract No: 01001-06 ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ Code No: 16-100 - S Project No: 03-001 than 12%) until paid, or, in case of any default on the part of the SUBCONTRACTOR , the CONTRACTOR may exercise any other right or remedy available to him. In the event of a breach of this Subcontract or any of its provisions by the SUBCONTRACTOR, resulting in litigation by the CONTRACTOR to enforce its rights, the SUBCONTRACTOR agrees to pay to the CONTRACTOR a reasonable fee for attorney services, which fee may be recovered in the same suit as a part of the CONTRACTOR’S cause of action.

DEFAULT BY SUBCONTRACTOR. Should the SUBCONTRACTOR fail to deliver any part of the necessary materials and /or perform any part of the necessary work within the time schedule prescribed by the CONTRACTOR in Section 7 above, or fail to perform or comply with any term, covenant or condition contained in this Subcontract or in the General Contract, or abandon the work, or shall become insolvent or shall appear insolvent in the opinion of the CONTRACTOR, or shall have a claim or lien filed on or against him , or shall have a judgment filed against him, or make an assignment for benefit of creditors, or have a petition in bankruptcy filed by or against him, or shall die or become mentally or physically disabled, the CONTRACTOR shall have the right, if he elects, to declare this Subcontract in default by telegraphic notice to the SUBCONTRACTOR at his last known address. Unless the SUBCONTRACTOR corrects such default or satisfies the CONTRACTOR of his ability to do so within 72 hours after such telegraphic notice, the CONTRACTOR may, if he elects, and without prejudice to any other right or remedy it may have, terminate this Subcontract and take whatever steps it deems advisable to secure necessary labor and material by contract or otherwise, and may take over, together with all rights and title thereto, all of said SUBCONTRACTOR’S equipment, tools, supplies on the job site or enroute thereto, and may prosecute the work to completion. All money expended therefore including (but not restricted to) cost of supplies, equipment, materials, subcontracts, labor, administration, supervision, utilities, claims against the SUBCONTRACTOR, overhead, travel, legal and accounting fees and other costs and expenses incurred by the CONTRACTOR, or for which it may be liable, will be deducted from the Subcontract price herein stated, and if such expenditures exceed the amount otherwise due to the SUBCONTRACTOR hereunder, the SUBCONTRACTOR agrees to pay the CONTRACTOR on demand the full amount of such excess, together with interest thereon at the rate of 12% per annum (but not to exceed the legal rate allowable by contract if less Timberline Construction Vendor No: 100 ▇.▇. ▇▇▇ ▇▇▇ Contract No: 01001-06 ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ Code No: 16-100 - S Project No: 03-001 than 12%) until paid, or, in case of any default on the part of the SUBCONTRACTOR , the CONTRACTOR may exercise any other right or remedy available to him. In the event of a breach of this Subcontract or any of its provisions by the SUBCONTRACTOR, resulting in litigation by the CONTRACTOR to enforce its rights, the SUBCONTRACTOR agrees to pay to the CONTRACTOR a reasonable fee for attorney services, which fee may be recovered in the same suit as a part of the CONTRACTOR’S cause of action. ▇.▇. ▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇