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DocuSign Envelope ID:3ABDCDAE-4B84-4B22-A37C-A4D48BC759BA <br /> PO#:461001885 <br /> Routing#:22-HA4-ZG-00115 <br /> C. In the case of default under either Standard Specifications subsection 108.10(a)or 108.10(b): <br /> (1) The Department will revoke the Contractor's Prequalification. If the Department chooses to rebid the <br /> remaining Contract work on this project, the Contractor will not be allowed to submit a bid for this <br /> work. <br /> (2) The Department may appropriate or use materials at the project site and contract with others to <br /> complete the remaining Contract work. <br /> (3) The Department will determine the methods used for completion of the Contract. <br /> (4) Resulting costs and charges incurred by the Department will be deducted from payments owed the <br /> Contractor. If such costs exceed the payment owed the Contractor, the Contractor and Surety shall <br /> reimburse the Department for these costs.These costs and charges may include but are not limited to: <br /> cost of Contract completion, including designing, advertising, bidding and awarding the remaining <br /> work and liquidated damages or disincentives. <br /> D. If the notice of default is determined to be in error,the rights and obligations of the parties shall be the same <br /> as if the Contract had been terminated in accordance with Standard Specifications subsection 108.10. <br /> Damages for improper notice of default may be awarded accordingly. <br /> 14. TERMINATION OF CONTRACT <br /> Parties will act in accordance with the Standard Specification subsection 108.11 which requires: <br /> A. Termination Notice. The Department may terminate work under the Contract in whole or in part if the <br /> Engineer determines that termination is in the Department's best interest. Contract termination will be <br /> initiated by the Engineer's written Contract Termination Notice to the Contractor.The notice will specify the <br /> effective date. <br /> B. Canceled Commitments. The Contractor, after receiving the Contract Termination Notice, shall cancel any <br /> outstanding commitments for procurement of materials, supplies, equipment, and miscellaneous items. In <br /> addition, the Contractor shall use reasonable effort to cancel or divert any outstanding subcontract <br /> commitments to the extent they relate to any work terminated. With respect to such canceled commitments <br /> the Contractor shall: <br /> (1) Settle all outstanding liabilities and all claims arising out of these canceled commitments. Such <br /> settlements will be approved by the Engineer and shall be final;and <br /> (2) Assign to the Department all of the rights, title and interest of the Contractor under the terminated <br /> orders and subcontracts, as directed. The Department will then have the right to settle or pay any or <br /> all claims arising out of the termination of these commitments. <br /> C. Termination Claim. <br /> The Contractor shall submit the termination claim to the Engineer within 90 days after the termination notice <br /> effective date. During the 90 day period,the Contractor may make a written request for a time extension in <br /> preparing the claim.Any time extension must be approved by the Engineer. If the Contractor fails to submit <br /> the termination claim within the time allowed, the Engineer may determine the amount due the Contractor <br /> by reason of the termination. <br /> D. Payment <br /> Subject to subsection C above, the Contractor and Engineer may agree upon the whole or any part of the <br /> amount to be paid to the Contractor because of the termination. The amount may include reasonable <br /> cancellation charges incurred by the Contractor. The amount may also include any reasonable loss upon <br /> outstanding commitments for subcontracts which the Contractor is unable to cancel,provided the Contractor <br /> has made reasonable effort to divert the commitments to other activities. The amount agreed upon shall be <br /> embodied in a Contract Modification Order and the Contractor shall be paid that amount.Payments claimed <br /> and agreed to pursuant to termination shall be based on the Contract unit prices. Payment for partially <br /> completed lump sum items may be made in the proportion that the partially completed work is to the total <br /> lump sum item.Where work performed is of a nature that it is impossible to separate the costs of uncompleted <br /> work from completed units,the Contractor will be paid the actual cost incurred for the necessary preparatory <br /> work and other work accomplished. The Department may from time to time,under terms and conditions it <br /> may prescribe,make partial payments against costs incurred by the Contractor in connection with the contract <br /> Document Builder Generated Page 11 of 51 Version 0419 <br />