Common use of Termination by Owner for Cause Clause in Contracts

Termination by Owner for Cause. If the Contractor fails to commence and satisfactorily continue correction of a default within seven (7) working days after the written notification issued under Paragraph 11.2, or provide the Owner with written verification of positive action that is in process, then the Owner may, in lieu of or in addition to the remedies set forth in Paragraph 11.2, issue a second written notification to the Contractor. Such notice shall state that if the Contractor fails to commence and continue correction of the default within fourteen (14) working days of the second written notification, this Agreement may be terminated. The Owner also may furnish materials, equipment, appliances or tools and employ such workers or trade contractors as the Owner deems necessary to maintain the orderly progress of the Work. A written notice of termination shall be issued by the Owner to the Contractor at the time this Agreement is terminated. All costs incurred by the Owner in performing the Work, including attorney’s fees, shall be deducted from any moneys due or to become due the Contractor under this Agreement. The Contractor shall be liable for the payment of any amount by which such expense may exceed the unpaid balance of the Contract Price. If the unpaid balance of the Contract Price for Work performed in accordance with this Agreement exceeds the expense of finishing the Work, Contractor shall be paid for Work performed in accordance with the Contract Documents up to the amount that the unpaid contract balance exceeds the expense of finishing the Work. Upon request of the Contractor the Owner shall furnish to the Contractor a detailed accounting of the costs incurred by the Owner in finishing the Work.

Termination by Owner for Cause. If the Contractor fails to commence and satisfactorily continue correction of a default within seven (7) working days after the written notification issued under Paragraph 11.2, or provide the Owner with written verification of positive action that is in process, then the Owner may, in lieu of or in addition to the remedies set forth in Paragraph 11.2, issue a second written notification to the Contractor. Such notice shall state that if the Contractor fails to commence and continue correction of the default within fourteen (14) working days of the second written notification, this Agreement may be terminated. The Owner also may furnish materials, equipment, appliances or tools and employ such workers or trade contractors as the Owner deems necessary to maintain the orderly progress of the Work. A written notice of termination shall be issued by the Owner to the Contractor at the time this Agreement is terminated. All costs incurred by the Owner in performing the Work, including attorney’s fees, shall be deducted from any moneys due or to become due the Contractor under this Agreement. The Contractor shall be liable for the payment of any amount by which such expense may exceed the unpaid balance of the Contract Price. If the unpaid balance of the Contract Price for Work performed in accordance with this Agreement exceeds the expense of finishing the Work, Contractor shall be paid for Work performed in accordance with the Contract Documents up to the amount that the unpaid contract balance exceeds the expense of finishing the Work. AGC DOCUMENT NO. 200 STANDARD FORM OF AGREEMENT AND GENERAL CONDITIONS BETWEEN OWNER AND CONTRACTOR (Where the Contract Price is a Lump Sum) Upon request of the Contractor the Owner shall furnish to the Contractor a detailed accounting of the costs incurred by the Owner in finishing the Work.