Common use of Right to Terminate Contract Clause in Contracts

Right to Terminate Contract. 25.1 If Construction Manager fails to begin the Work within the (10) calendar days after the Project initiation Date, or fails to perform the Work with sufficient workers and equipment or with sufficient materials to insure the prompt completion of the Work, or shall perform the Work unsuitably, or cause it to be rejected as defective and unsuitable, or shall discontinue the prosecution of the Work pursuant to the accepted schedule or it’s Construction Manager shall fail to perform any material term set forth in the Contract Documents or if Construction Manager shall become insolvent or be declared bankrupt, or commit any act of bankruptcy or insolvency, or shall make an assignment for the benefit of creditors, or from any other cause whatsoever shall not carry on the Work in an acceptable manner, PROJECT MANAGER may give notice in writing to Construction Manager and its Surety of such delay, neglect or default, specifying the same. If Construction Manager, within a period of ten (10) calendar days after such notice, shall not proceed in accordance therewith, then CITY may upon written certificate from PROJECT MANAGER of the fact of such delay, neglect or default and Construction Manager's failure to comply with such notice, terminate the services of Construction Manager, exclude Construction Manager from the Project site and take the prosecution of the Work out of the hands of Construction Manager, and appropriate or use any or all materials and equipment that are an integral part of the Work on the Project site as may be suitable and acceptable. In such case, Construction Manager shall not be entitled to receive any further payment until the Project is completed. In addition CITY, may enter into an agreement for the completion of the Project according to the terms and provisions of the Contract Documents, or use such other methods as in CITY’s sole opinion shall be required for the completion of the Project according to the terms and provisions of the Contract Documents, or use such other methods as in CITY’s sole opinion shall be required for the completion of the Project in an acceptable manner. All damages, costs and charges incurred by CITY, together with the costs of completing the Project, shall be deducted from any monies due or which may become due to Construction Manager. In case the damages and expenses so incurred by CITY shall exceed the unpaid balance, then Construction Manager shall be liable and shall pay to CITY the amount of said excess. 25.2 If after notice of termination of Construction Manager's right to proceed, it is determined for any reason that Construction Manager was not in default, the rights and obligations of CITY and Construction Manager shall be the same as if the notice of termination had been issued pursuant to the Termination for Convenience clause as set forth in Section 28.1 below. 25.3 This Contract may be terminated for convenience in writing by CITY upon ten (10) days written notice to Construction Manager (delivered by certified mail, return receipt requested) of intent to terminate and the date on which such termination becomes effective. In such case, Construction Manager shall be paid for all work executed and expenses incurred prior to termination in addition to termination settlement costs reasonably incurred by Construction Manager relating to commitments which had become firm prior to the termination. Payment shall include Construction Manager’s Fee for work and/or services performed. No payment shall be made for profit for work and/or services that have not been performed. 25.4 Upon receipt of Notice of Termination pursuant to Section 25 or 25.1 above, Construction Manager shall promptly discontinue all affected work unless the Notice of Termination directs otherwise and deliver or otherwise make available the CITY all data, drawings, specifications, reports, estimates, summaries and such other information as may have been required by the Contract Documents whether completed or in process.

Right to Terminate Contract. 25.1 If Construction Manager CONTRACTOR fails to begin the Work within the (10) calendar days after the Project initiation Date, or fails to perform the Work with sufficient workers and equipment or with sufficient materials to insure the prompt completion of the Work, or shall perform the Work unsuitably, or cause it to be rejected as defective and unsuitable, or shall discontinue the prosecution of the Work pursuant to the accepted schedule or it’s Construction Manager CONTRACTOR shall fail to perform any material term set forth in the Contract Documents or if Construction Manager CONTRACTOR shall become insolvent or be declared bankrupt, or commit any act of bankruptcy or insolvency, or shall make an assignment for the benefit of creditors, or from any other cause whatsoever shall not carry on the Work in an acceptable manner, PROJECT MANAGER may give notice in writing to Construction Manager CONTRACTOR and its Surety of such delay, neglect or default, specifying the same. If Construction ManagerCONTRACTOR, within a period of ten (10) calendar days after such notice, shall not proceed in accordance therewith, then CITY may upon written certificate from PROJECT MANAGER of the fact of such delay, neglect or default and Construction ManagerCONTRACTOR's failure to comply with such notice, terminate the services of Construction ManagerCONTRACTOR, exclude Construction Manager CONTRACTOR from the Project site and take the prosecution of the Work out of the hands of Construction ManagerCONTRACTOR, and appropriate or use any or all materials and equipment that are an integral part of the Work on the Project site as may be suitable and acceptable. In such case, Construction Manager CONTRACTOR shall not be entitled to receive any further payment until the Project is completed. In addition CITY, may enter into an agreement for the completion of the Project according to the terms and provisions of the Contract Documents, or use such other methods as in CITY’s sole opinion shall be required for the completion of the Project according to the terms and provisions of the Contract Documents, or use such other methods as in CITY’s sole opinion shall be required for the completion of the Project in an acceptable manner. All damages, costs and charges incurred by CITY, together with the costs of completing the Project, shall be deducted from any monies due or which may become due to Construction ManagerCONTRACTOR. In case the damages and expenses so incurred by CITY shall exceed the unpaid balance, then Construction Manager CONTRACTOR shall be liable and shall pay to CITY the amount of said excess. 25.2 If after notice of termination of Construction ManagerCONTRACTOR's right to proceed, it is determined for any reason that Construction Manager CONTRACTOR was not in default, the rights and obligations of CITY and Construction Manager CONTRACTOR shall be the same as if the notice of termination had been issued pursuant to the Termination for Convenience clause as set forth in Section 28.1 below. 25.3 This Contract may be terminated for convenience in writing by CITY upon ten (10) days written notice to Construction Manager CONTRACTOR (delivered by certified mail, return receipt requested) of intent to terminate and the date on which such termination becomes effective. In such case, Construction Manager CONTRACTOR shall be paid for all work executed and expenses incurred prior to termination in addition to termination settlement costs reasonably incurred by Construction Manager CONTRACTOR relating to commitments which had become firm prior to the termination. Payment shall include Construction Manager’s Fee reasonable profit for work and/or services performed. No payment shall be made for profit for work and/or services that have not been performed. 25.4 Upon receipt of Notice of Termination pursuant to Section 25 or 25.1 above, Construction Manager CONTRACTOR shall promptly discontinue all affected work unless the Notice of Termination directs otherwise and deliver or otherwise make available the CITY all data, drawings, specifications, reports, estimates, summaries and such other information as may have been required by the Contract Documents whether completed or in process.