GENERAL55093 - Laserfiche WebLink

Home Browse Search

Article 43. STATE'S RIGHTS TO TERMINATE THE CONTRACT A. General If the Contractor should be adjudged a bankrupt, or'rf he should make a general assignment Tor the benefit of his creditors, or'rf a receiver should be appointed to take over his affairs, or'rf he should fail to prosecute his work with due diligence and carry the work forward in accordance with his work schedule and the time limits set forth in the Contract Documents, or if he should fail to subsequently perfbrm one or more of the provisions of the Contract Documents to be performed by him, the Principal Representative may serve Written Notice on the Contractor and the Surety on his performance and payment bonds, stating his intention to exercise one of the remedies hereinafter set forth and the grounds upon which the Principal Representative bases his right to exercise such remedy. In such event, unless the matter complained of is satisfactorily cleared within ten (10) days after serving such Notice, the Principal Representative may, without prejudice to any other right or remedy, exercise one of such remedies, at once. B. CondRions and Procedures (a) The Principal Representative may terminate the services of the Contractor, which termination shall take effect immediately upon serving notice to the Contractor and his Surety, whereupon the Surety shall have the right to take over and perform the Contract. If the Surety does not commence performance of the Contract within ten (10) days after service of the notice of termination, the Principal Representative may take over the work, take possession of and use all materials, tools, equipment and appliances on the premises and prosecute the work to completion by such means as he shall deem best. In the event of such termination of his service, the Contractor shall not be entitled to any further payment under his.contract until the work is completed and accepted. If the Principal Representative takes over the work and 'rf the unpaid balance of the contract price exceeds the cost of completing the work, including compensation for any damages or expenses incurred by the Principal Representative through the defauR of the Contractor, such excess shall be paid to the Contractor. If, however, the cost, expenses and damages as certified by the Principle Representative exceed such unpaid balance of the contract price, the Contractor and his Surety shall pay the difference to the Principal Representative. (b) The Principal Representative may take control of the work and either make good the deficiencies of the Contractor or direct the activities of the Contractor in doing so, employing such add'dional help as the Principal Representative deems advisable. In such event the Principal Representative shall be entitled to collect from the Contractor and his Surety, or to deduct from any payment then or thereafter due the Contractor, the costs incurred in having such deficiencies made good and any damages or expenses incured through the defauR of the Contractor, provided the Principle Representative approves the amount thus charged to the Contractor. (c) The Principal Representative may require the Surety on the Contractors bond to take control of the work at once and see to R that all the deficiencies of the Contractor are made good, with due diligence. As between the Principal Representative and the Surety, the cost of making good such deficiencies shall all be home by the Surety. If the Surety takes over the work, either upon termination of the services of the Contractor or upon instructions from the principal Representative to do so, the provisions of the Contract Documents shall govern in respect of the work done by the Surety, the Surety being substituted for the Contractor as to such provisions, including provisions as to payment for the work and provisions of this Article as to the right of the Principal Representative to do the work or to take control of the work. Colorado Division of Minerals 8 Geology GENERAL BID SPECIFICATIONS 1996 Page 15