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Page | 39 <br />Revised 12/24 <br /> <br />40. TERMINATION FOR DEFAULT <br /> <br />40.1. If the CMAR fails to begin the Work under the Contract within the time specified, or the progress <br />of the Work is not maintained on schedule, or fails to complete the Work within the time above <br />specified, or shall allow the Work to be performed unsuitably or shall discontinue the prosecution <br />of the Work, or if the CMAR shall become insolvent or be declared bankrupt or commit any act of <br />bankruptcy or insolvency, or allow any final judgment to stand against it unsatisfied for a period of <br />seventy-two (72) hours, or shall make an assignment for the benefit of creditors, or for any other <br />cause whatsoever shall not carry on the Work in an acceptable manner, the Owner may give notice <br />in writing, sent by certified mail, return receipt requested, to the CMAR and its surety of such <br />delay, neglect or default, specifying the same, and if the CMAR within a period of ten (10) days <br />after such notice shall not proceed in accordance therewith, then upon the Owner’s issuance of <br />notice of default, the surety shall promptly take over the Work and complete the performance of <br />this Contract in the manner and within the time frame specified. In the event the surety shall fail to <br />take over the Work to be done under this Contract within fifteen (15) days after being so notified <br />and notify the Owner in writing, sent by certified mail, return receipt requested, that it is taking the <br />same over and stating that it will diligently pursue and complete the same, the Owner shall have <br />full power and authority, without violating the Contract, to take the prosecution of the Work out of <br />the hands of said CMAR, to appropriate or use any or all Contract materials and equipment on the <br />grounds as may be suitable and acceptable and may enter into an agreement, either by public letting <br />or negotiation, for the completion of said Contract according to the terms and provisions thereof or <br />use such other methods as in its opinion shall be required for the completion of said Contract in an <br />acceptable manner. All costs and charges incurred by the Owner, together with the costs of <br />completing the Work under Contract, shall be deducted from any monies due or which may <br />become due said CMAR and surety. In case the expense so incurred by the Owner shall be less <br />than the sum which would have been payable under the Contract, if it had been completed by said <br />CMAR, then the said CMAR and surety shall be entitled to receive the difference, but in case such <br />expense shall exceed the sum which would have been payable under the Contract, then the CMAR <br />and the surety shall be liable and shall pay to the Owner the amount of said excess. <br /> <br />40.2. It is further mutually agreed between the parties hereto that if at any time after the execution of this <br />Contract and the surety bonds hereto attached for its faithful performance, the Owner shall deem <br />the surety or sureties upon such bonds to be unsatisfactory, or if for any reason such bo nds cease to <br />be adequate to cover the performance of the Work, the CMAR shall, at its expense, within five (5) <br />days after the receipt of notice from the Owner so to do, furnish an additional bond or bonds in <br />such form and amount, and with such surety or sureties as shall be satisfactory to the Owner. In <br />such event no further payment to the CMAR shall be deemed to be due under this Contract until <br />such new or additional security for the faithful performance of the Work shall be furnished in <br />manner and form satisfactory to the Owner. <br /> <br />40.3. In the event it is determined by a court of law that termination under this paragraph was not <br />justified, the termination of the CMAR will be treated as if it were a termination for convenience <br />hereunder. <br /> <br />41. CONSTRUCTION MANAGER’S RIGHT TO STOP WORK OR TERMINATE THE CONTRACT <br /> <br />41.1. Should the Work be stopped for a period of three months by order of a court having jurisdiction or <br />by order of any other public authority due to cause beyond the fault or control of the CMAR, or if <br />the Owner should fail or refuse to make payment on account of a certificate issued by the Project <br />Designer within thirty (30) days after receipt of same, then the CMAR, after fifteen (15) days’ <br />written notice to the Owner and the Project Designer, may suspend operations on the Work or <br />terminate the Contract. <br /> <br />41.2. The Owner shall be liable to the CMAR for the cost of the Work delivered and performed on this <br />Contract plus all General Conditions costs incurred to date plus its fee earned to date, an d shall <br />Docusign Envelope ID: 5A9E3BC2-EAE1-4C35-82D9-B4D6A375FA78