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become due and payable to the Contractor,the amount of such liquidated damages;and if the amount so retained by the
<br /> Principle Representative is insufficient to pay in full such liquidated damages, the Contractor shall pay to the Principle
<br /> Representative the amount necessary to effect payment in full of such liquidated damages.
<br /> Article 41. DAMAGES
<br /> If either parry to this Contract shall suffer damage in any manner because of any wrongful act or neglect of the other party
<br /> or of anyone employed by him,then he shall be reimbursed by the other party for such damage,except that the Principal
<br /> Representative shall be responsible for and at his option insure against loss of use of any of his existing property,due to
<br /> fire or otherwise, however caused.
<br /> Claims under this clause shall be made in writing to the parry liable within a reasonable time of the first observance of such
<br /> damage and not later than the time of final payment,except as expressly stipulated otherwise in the case of faulty work or
<br /> materials.
<br /> Article 42. STATES RIGHT TO DO THE WORK
<br /> If the Contractor should neglect to prosecute the work properly or fail to perform any provision of the Contract,the Principal
<br /> Representative,after seven(7)days'written notice to the Contractor and the Surety may,without prejudice to any other
<br /> remedy he may have,make good such deficiencies and may deduct the cost thereof from the payment then or thereafter
<br /> due the Contractor.
<br /> Article 43. STATE'S RIGHTS TO TERMINATE THE CONTRACT
<br /> A. General
<br /> If the Contractor should be adjudged a bankrupt,or if he should make a general assignment for the benefit of his creditors,
<br /> or if a receiver should be appointed to take over his affairs,or if he should fail to prosecute his work with due diligence and
<br /> carry the work forward in accordance with his work schedule and the time limits set forth in the Contract Documents,or if
<br /> he should fail to subsequently perform one or more of the provisions of the Contract Documents to be performed by him,
<br /> the Principal Representative may serve Written Notice on the Contractor and the Surety on his performance and payment
<br /> bonds,stating his intention to exercise one of the remedies hereinafter set forth and the grounds upon which the Principal
<br /> Representative bases his right to exercise such remedy. In such event,unless the matter complained of is satisfactorily
<br /> cleared within ten (10)days after serving such Notice,the Principal Representative may,without prejudice to any other
<br /> right or remedy, exercise one of such remedies,at once.
<br /> B. Conditions and Procedures
<br /> (a) The Principal Representative may terminate the services of the Contractor,which termination shall take effect
<br /> immediately upon serving notice to the Contractor and his Surety,whereupon the Surety shall have the right to
<br /> takeover and perform the Contract. If the Surety does not commence performance of the Contract within ten(10)
<br /> days after service of the notice of termination, the Principal Representative may take over the work, take
<br /> possession of and use all materials,tools,equipment and appliances on the premises and prosecute the work to
<br /> completion by such means as he shall deem best. In the event of such termination of his service,the Contractor
<br /> shall not be entitled to any further payment under his contract until the work is completed and accepted. If the
<br /> Principal Representative takes over the work and if the unpaid balance of the contract price exceeds the cost of
<br /> completing the work, including compensation for any damages or expenses incurred by the Principal
<br /> Representative through the default of the Contractor,such excess shall be paid to the Contractor. If,however,
<br /> the cost,expenses and damages as certified by the Principle Representative exceed such unpaid balance of the
<br /> contract price,the Contractor and his Surety shall pay the difference to the Principal Representative.
<br /> (b) The Principal Representative may take control of the work and either make good the deficiencies of the
<br /> Contractor or direct the activities of the Contractor in doing so,employing such additional help as the Principal
<br /> Representative deems advisable. In such event the Principal Representative shall be entitled to collect from the
<br /> Contractor and his Surety, or to deduct from any payment then or thereafter due the Contractor, the costs
<br /> incurred in having such deficiencies made good and any damages or expenses incurred through the default of the
<br /> Contractor,provided the Principle Representative approves the amount thus charged to the Contractor.
<br /> (c) The Principal Representative may require the Surety on the Contractor's bond to take control of the work at once
<br /> and see to it that all the deficiencies of the Contractor are made good, with due diligence. As between the
<br /> Principal Representative and the Surety, the cost of making good such deficiencies shall all be bome by the
<br /> Surety. If the Surety takes over the work, either upon termination of the services of the Contractor or upon
<br /> instructions from the principal Representative to do so,the provisions of the Contract Documents shall govern in
<br /> respect of the work done by the Surety,the Surety being substituted for the Contractor as to such provisions,
<br /> including provisions as to payment for the work and provisions of this Article as to the right of the Principal
<br /> Representative to do the work or to take control of the work.
<br /> Article 44. TERMINATION FOR CONVENIENCE OF STATE
<br /> (a) The performance of work under this Contract may be terminated, in whole or from time to time in part, by the
<br /> State whenever for any reason the Principal Representative shall determine that such termination is in the best
<br /> Colorado Division of Minerals and Geology GENERAL BID SPECIFICATIONS
<br /> June 1,2002 Page 10
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