PART 7 - DEFAULT NOTICE Flashcards
GC 7.1 OWNER’S RIGHT TO PERFORM THE WORK, TERMINATE THE CONTRACTOR’S RIGHT TO CONTINUE WITH THE WORK OR TERMINATE THE CONTRACT.
7.1.1
If the contractor is adjudged bankrupt, or makes a general assignment for the benefit of creditors because of the contractor’s insolvency, or if a receiver is appointed because of the contractor’s insolvency, the owner May, without prejudice to any other right or remedy the owner may have, terminate the contractor’s right to continue with the work, by giving the contractor or receiver or trustee in bankruptcy notice in writing to that effect.
GC 7.1 OWNER’S RIGHT TO PERFORM THE WORK, TERMINATE THE CONTRACTOR’S RIGHT TO CONTINUE WITH THE WORK OR TERMINATE THE CONTRACT.
7.1.2
If the contractor neglects to perform the work properly or otherwise fails to comply with the requirements of the contract to a substantial degree and if the consultant has given a written statement to the owner and contractor which provides the detail of such neglect to perform the work properly or such failure to comply with the requirements of the contract to a substantial degree, the owner may, without prejudice to any other right or remedy the owner may have, give the contractor notice in writing, containing particulars of the default including references to applicable provisions of the contract, that the contractor is in default of the contractor’s contractual obligations and instruct the contractor to correct the default in the 5 working days immediately following the receipt of such notice in writing.
GC 7.1 OWNER’S RIGHT TO PERFORM THE WORK, TERMINATE THE CONTRACTOR’S RIGHT TO CONTINUE WITH THE WORK OR TERMINATE THE CONTRACT.
7.1.3
If the default cannot be corrected in the 5 working days specified or in such other time period as may be subsequently agreed in writing by the parties, the contractor SHALL be in compliance with the owner’s instructions if the contractor:
1) Commences the correction of the default within the specified time.
2) Provides the owner with an acceptable schedule for such correction, and
3) Corrects the default in accordance with the contract terms and with such schedule.
GC 7.1 OWNER’S RIGHT TO PERFORM THE WORK, TERMINATE THE CONTRACTOR’S RIGHT TO CONTINUE WITH THE WORK OR TERMINATE THE CONTRACT.
7.1.4
If the contractor fails to correct the default in the time specified or in such other time period as may be subsequently agreed in writing by the parties, without prejudice to any other right or remedy the owner may have, the owner may be giving notice in writing:
1) Correct such default and deduct the cost thereof from any payment then or thereafter due the contractor for the work provided the consultant has certified such cost to the owner and the contractor, or
2) Terminate the contractor’s right to continue with the work in whole or in part or terminate the contract.
GC 7.1 OWNER’S RIGHT TO PERFORM THE WORK, TERMINATE THE CONTRACTOR’S RIGHT TO CONTINUE WITH THE WORK OR TERMINATE THE CONTRACT.
7.1.5
If the owner terminates the contractor’s right to continue with the work as provided in paragraphs 7.1.1 and 7.1.4, the owner SHALL be entitled to:
1) Take possession of the work and products at the place of the work; subject to the rights of third parties, utilize the construction equipment at the place of the work; finish the work by whatever method the owner may consider expedient but without undue delay or expense.
2) Withhold further payment to the contractor until a final certificate for payment is issued.
3) Charge the contractor the amount by which the full cost of finishing the work as certified by the consultant, including compensation to the consultant for the consultant’s additional services and a reasonable allowance as determined by the consultant to cover the cost of corrections to work performed by the contractor that may be required under GC 12.3 - WARRANTY, exceeds the unpaid balance of the contract price; however, if such cost of finishing the work is less than the unpaid balance of the contract price, the owner SHALL pay the contractor the difference, and
4) On expiry of the warranty period, charge the contractor the amount by which the cost of corrections to the contractor’s work under GC 12.3 - WARRANTY exceeds the allowance provided for such corrections, or if the cost of such corrections is less than the allowance, pay the contractor the difference.
GC 7.1 OWNER’S RIGHT TO PERFORM THE WORK, TERMINATE THE CONTRACTOR’S RIGHT TO CONTINUE WITH THE WORK OR TERMINATE THE CONTRACT.
7.1.6
The contractor’s obligation under the contract as to quality , correction and warranty of the work performed by the contractor up to the time of termination SHALL continue in force after such termination of the contract.
GC 7.2 CONTRACTOR’S RIGHT TO SUSPEND THE WORK OR TERMINATE THE CONTRACT
7.2.1
If the owner is adjudged bankrupt, or makes a general assignment for the benefit of creditors because of the owner’s insolvency, or if a receiver is appointed because of the owner’s insolvency, the contractor may, without prejudice to any other right of remedy the contractor may have, terminate the contract by giving the owner or receiver or trustee in bankruptcy notice in writing to that effect.
GC 7.2 CONTRACTOR’S RIGHT TO SUSPEND THE WORK OR TERMINATE THE CONTRACT
7.2.2
If the work is suspended or otherwise delayed for a period of 20 working days or more under an order of a court or other public authority and providing that such order was not issued as the result of any act or fault of the contractor or of anyone directly or indirectly employed or engaged by the contractor, the contractor may, without prejudice to any other right or remedy the contractor may have, terminate the contract by giving the owner notice in writing to that effect.
GC 7.2 CONTRACTOR’S RIGHT TO SUSPEND THE WORK OR TERMINATE THE CONTRACT
7.2.3
The contractor may give notice in writing to the owner, with a copy to the consultant, that the owner is default of the owner’s contractual obligations if:
1) The owner fails to furnish, when so requested by the contractor, reasonable evidence that financial arrangements have been made to fulfill the owner’s obligations under the contract.
2) The consultant fails to issue a certificate as provided in part 5 of the general conditions - PAYMENT.
3) The owner fails to pay the contractor when due the amounts certified by the consultant or awarded by adjudication, arbitration or court, or
4) The owner fails to comply with the requirements of the contract to a substantial degree and the consultant, except for GC 5.1 - FINANCING INFORMATION REQUIRED OF THE OWNER, gives a written statement to the owner and the contractor that provides detail of such failure to comply with the requirements of the contract to a substantial degree.
GC 7.2 CONTRACTOR’S RIGHT TO SUSPEND THE WORK OR TERMINATE THE CONTRACT
7.2.4
The contractor’s notice in writing to the owner provided under paragraph 7.2.3 SHALL advise that if the default is not corrected within 5 working days following the receipt of the notice in writing, the contractor may, without prejudice to any other right or remedy the contractor may have, suspend the work or terminate the contract.
GC 7.2 CONTRACTOR’S RIGHT TO SUSPEND THE WORK OR TERMINATE THE CONTRACT
7.2.5
If the contractor terminates the contract by giving notice in writing to the owner under the conditions set out above, the contractor SHALL be entitled to be paid for all work performed including reasonable profit, for loss sustained upon products and construction equipment, and such other damages as the contractor may have sustained as a result of the termination of the contract.
