Termination by the Owner for Cause

Termination by the Owner for Cause. A. The Owner may terminate the contract if the Contractor: (1) Repeatedly refuses or fails to supply enough properly skilled workers or proper materials; (2) Fails to make payment to Sub-contractors or suppliers in accordance with the respective agreements between the Contractor and the Sub-contractors or suppliers; (3) Repeatedly disregards applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of a public authority; (4) Is guilty of substantial breach of a provision of the contract documents; or (5) Fails to achieve substantial completion of the project within the time limits established by the contract documents. B. When any of the reasons described in Rule 5.1(A) exist, and upon advice of the Professional that sufficient cause exists to justify such action, the Owner may, without prejudice to any other rights or remedies of the Owner and after giving the Contractor and the Contractor’s surety, if any, seven days’ notice, terminate employment of the Contractor and may, subject to any prior rights of the surety: (1) Exclude the Contractor from the site and take possession of all materials, equipment, tools, and construction equipment and machinery thereon owned by the Contractor; (2) Accept assignment of subcontracts; and (3) Finish the work by whatever reasonable method the Owner may deem expedient. Upon written request of the Contractor, the Owner shall furnish to the Contractor a detailed accounting of the costs incurred by the Owner in finishing the work. C. When the Owner terminates the contract for one of the reasons set forth in Rule 5.1(A), the Contractor shall not be entitled to receive further payment until the work is finished. D. If the unpaid balance of the contract sum exceeds costs of finishing the work, including compensation for the Professional’s services and expenses made necessary thereby, and other damages incurred by the Owner and not expressly waived, such excess shall be paid to the Contractor. If such costs and damages exceed the unpaid balance, the Contractor shall pay the difference to the Owner. The amount to be paid to the Contractor or Owner shall be certified by the Professional, upon application, and this obligation for payment shall survive termination of the contract.