Contractor Bankruptcy or Default

Contractor Bankruptcy or Default. In the event of a contractor bankruptcy or default, any proposed agreements with the bonding company (other than the bonding company serving as general contractor or fully bonding another contractor acting as their agent) must be submitted for DWSIRLF loan allowability determination by the Department prior to execution. If the loan recipient determines that re- award of the construction contract or a portion thereof is necessary due to contractor bankruptcy or default, such proposed re-award contracts must be submitted for DWSIRLF loan allowability determination by the Department prior to execution. The loan recipient will be responsible for assuring that every appropriate procedure and incidental legal requirement are observed in advertising for bids or otherwise re-awarding a construction contract, if this course of action is taken.