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Ce-Law Jamess
Ce-Law Jamess
2. Are there instances when the Owner is required to give prior notice before terminating
the Contract?
Yes, the following grounds for termination with cause require 15 days' written notice:
The Contractor repeatedly fails to supply, based on the construction schedule, the
sufficient number of skilled workmen or suitable materials or equipment;
The Contractor repeatedly fails to make without just cause prompt payments to
subcontractors for labor, materials or equipment, and completion of the Work is
being delayed;
The Contractor otherwise violates in any substantial way any provision of the
Contract; or
3. What happens if an Owner terminates the contract with cause?
The Owner may exclude the Contractor from the site and take possession of the Work and of all
the Contractor's tools, appliances, construction equipment and machinery at the site and use the
same and incorporate into the work all materials and equipment stored at the site including those
stored elsewhere for which the Owner has paid the Contractor, and finish the work as Owner
may deem expedient. In such case, the Contractor shall not be entitled to receive any further
payment until the work is finished.
It should be made clear that the Owner shall credit the Contractor for the value of all such tools,
materials and equipment which are integrated into and form part of the Work, and for the rental
value of the use of equipment. The excess or unused materials, unused equipment as well as the
heavy equipment shall be returned to the Contractor after use.
This provision is intended to allow the Owner only to possess them in order to use them if it
should be necessary to complete the Project, if possible, on time and within budget. It should not
be interpreted to mean an appropriation/ confiscation of such materials and equipment as
additional damages.