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<br />EXHIBIT VIII-J, Cont.
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<br />In the event that any of the provisions of this Contract are violated by the Contractor, or by any of his
<br />subcontractors, the Owner may serve written notice upon the Contractor and the Surety of its intention to
<br />terminate the Contract, such notices to contain the reason for such intention to terminate the Contract, and
<br />unless within (10) days after the serving of such notice upon the Contractor, such violation or delay shall
<br />cease and satisfactory arrangement of correction be made, the Contract shall, upon the expiration of said ten
<br />(10) days, cease and terminate. In the event of any such termination, the Owner shall immediately serve
<br />notice thereof upon the Surety and the Contractor and the Surety shall have the right to take over and perform
<br />the Contract; provided, however, that if the Surety does not commence performance thereof within ten (10)
<br />days from the date of the mailing to such Surety Contractor and his Surety shall be liable to the Owner for any
<br />excess cost occasioned the Owner thereby, and in such event the Owner may take possession of and utilize
<br />in completing the work, such material, appliances, and plant as may be on the site of the work and necessary
<br />therefore.
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<br />24. Construction Schedule and Periodic Estimates
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<br />Immediately after execution and delivery of the Contract, and before the first partial payment is made, the
<br />Contractor shall deliver to the Owner an estimated construction progress schedule in form satisfactory to the
<br />Owner, showing the proposed dates of commencement and completion of each of the various subdivisions
<br />of work required under the Contract Documents and the anticipated amount of each monthly payment that
<br />will become due the Contractor in accordance with the progress schedule. The Contractor shall also furnish
<br />on forms to be supplied by the Owner: (a) a detailed estimate giving a complete breakdown of the contract
<br />price and (b) periodic itemized estimates of work done for the purpose of making partial payments thereon.
<br />The costs employed in making up any of these schedules will be used only for determining the basis of partial
<br />payments and will not be considered as fixing a basis for additions to or deductions from the Contract price.
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<br />25. Payments to Contractor
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<br />(a) Not later than the 15th day of each calendar month the Ownershall make a progress payment
<br />to the Contractor on the basis of a duly certified and approved estimate of the work performed during the
<br />preceding calendar month under this Contract, but to insure the proper performance of this Contract the
<br />Owner may retain five percent (5%) of the amount of each estimate until final completion and acceptance of
<br />all work covered by this Contract; PROVIDED, that the Contractor shall submit his estimate not later than the
<br />first day of the month; PROVIDED, FURTHER. that the Owner at any time after fifty percent (50%) of work
<br />has been completed, if he finds that satisfactory progress is being made, may make any of the remaining
<br />progress payments in full; PROVIDED, FURTHER, that on completion and acceptance of each separate
<br />building, public work. or other division of the Contract, on which the price is stated separately in the Contract,
<br />payment may be made in full, including retained percentages thereon, less authorized deductions.
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<br />(b) In preparing estimates the material delivered on the site preparatory to work done may be
<br />taken into consideration.
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<br />(c) All material and work covered by partial payments made shall thereupon become the sole
<br />property of the Owner, but this provision shall not be construed as relieving the Contractor from have been
<br />made or the restoration of any damaged work, or as a waiver of the right of the Owner to require the fulfillment
<br />of all of the terms of the contract.
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<br />(d) OWNER'S RIGHT TO WITHHOLD CERTAIN AMOUNTS AND MAKE APPLICATION
<br />THEREOF: The Contractor agrees that he will indemnify and save the Owner harmless from all claims
<br />growing out of the lawful demands of subcontractors, laborers, workmen, mechanics, material men, and
<br />furnishers of machinery and parts thereof, equipment, power tools, and all supplies, including commissary,
<br />incurred in the furtherance of the performance of this Contract. The Contractor shall, at the Owner's request,
<br />furnish satisfactory evidence that all obligations of the nature hereinabove designated have been paid,
<br />discharged, or waived. If the Contractor fails so to do, then the Owner may, after having served written notice
<br />on the said Contractor, either pay unpaid bills, of which the Owner has written, direct or withhold from the
<br />Contractor's unpaid compensation a sum of money deemed reasonably sufficient to pay any and all lawful
<br />claims until satisfactory evidence is furnished that all liabilities have been fully discharged hereupon payment
<br />to the Contractor shall be resumed, in accordance with the terms of this Contract, but in no event shall the
<br />provisions of this sentence be constructed to impose any obligations upon the Owner to either the Contractor
<br />or his Surety. In paying any unpaid bills of the Contractor, the Owner shall be deemed the agent of the
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<br />VIII-J-9
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<br />(Revised 5199)
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