Common use of Termination for Convenience of the Owner Clause in Contracts

Termination for Convenience of the Owner. The parties agree that the Owner may terminate this Contract or any work or delivery required hereunder, from time-to-time either in whole or in part, whenever the Owner shall determine that such termination is in the best interest of the Owner and pursuant to Article 14 of the AIA A201 General Conditions for Construction, as modified by the Owner. Termination, in whole or in part, shall be effected by delivery of a Notice of Termination signed by the Owner’s Director or designee, mailed or delivered to the Contractor, and specifically setting forth the effective date of termination. Upon receipt of such Notice, the Contractor, in addition to the requirements of Article 14 of the AIA A201 General Conditions for Construction, as modified by the Owner, shall: 1. Cease any further deliveries or work due under this Contract, on the date, and to the extent, which may be specified in the Notice; 2. Place no further orders with any subcontractors except as may be necessary to perform that portion of this Contract not subject to the Notice; 3. Terminate all subcontracts except those made with respect to Contract performance not subject to the Notice; 4. Settle all outstanding liabilities and claims which may arise out of such termination, and 5. Use its best efforts to mitigate any damages which may be sustained by him as a consequence of termination under this clause. After complying with the foregoing provisions, the Contractor shall submit a termination claim, in no event later than six months after the effective date of their termination, unless an extension is granted by the Owner. The Owner shall pay reasonable costs of termination, including a reasonable amount for profit on services delivered or completed. In no event shall this amount be greater than the original contract price, reduced by any payments made prior to Notice of Termination, and further reduced by the price of the services not delivered, or those services not provided. This Contract shall be amended accordingly, and the Contractor shall be paid the agreed upon amount. In the event that the parties cannot agree on the whole amount to be paid to the Contractor by reason of termination under this clause, the Owner shall pay to the Contractor the amounts determined as follows, without duplicating any amount which may have already been paid under the preceding paragraph of this clause: 1. With respect to all Contract performance prior to the effective date of Notice of Termination, the total of: a. Cost of the work performed; b. The cost of settling and paying any reasonable claims as provided in subparagraph 4 above; c. A sum as profit on (a) determined by the Owner as fair and reasonable 2. The total sum to be paid shall not exceed the Contract price, as reduced by the number of payments otherwise made, and as further reduced by the Contract Sum of services not terminated. In the event the Contractor is not satisfied with any payments which the Owner determines due under this clause, the Contractor may seek resolution of any claim or dispute in accordance with the “Claims and Disputes” clause of this Contract. The Contractor shall include similar provisions in any subcontract, and shall specifically include a requirement that subcontractors make all reasonable efforts to mitigate damages which may be suffered. Failure to include such provisions shall bar the Contractor from any recovery from the Owner whatsoever for loss or damage sustained by a subcontractor as a consequence of termination for convenience.

Termination for Convenience of the Owner. (a) The parties agree that performance of work under this contract may be terminated by Owner in accordance with the Owner may terminate this Contract section in whole, or any work or delivery required hereunder, from time-to-time either in whole or in part, whenever the Owner shall determine that such termination is in the best interest of the Owner and pursuant to Article 14 of the AIA A201 General Conditions for Construction, as modified by the Owner. Termination, in whole or in part, Any such termination shall be effected by delivery to Contractor of a Notice of Termination signed specifying the extent to which performance of work under the contract is terminated, and the date upon which such termination becomes effective. (b) After receipt of a Notice of Termination, and except as otherwise directed by the Owner’s Director or designee, mailed or delivered Contractor shall: 1. stop work under the contract on the date and to the Contractorextent specified in the Notice of Termination; 2. place no further orders or subcontracts for materials, services, or facilities except as may be necessary for completion of such portion of the work under the contract as is not terminated; 3. terminate all orders and subcontracts to the extent that they relate to the performance of work terminated by the Notice of Termination; 4. assign to Owner all the right, title, and specifically setting forth interests of Contractor under the orders and subcontracts so terminated, in which case Contractor shall have the right, in its discretion, to settle or pay any or all claims arising out of the termination of such orders and subcontractors if so directed by Owner; 5. settle all outstanding liabilities and all claims arising out of such termination of orders and subcontracts, subject to the approval of the Owner; 6. complete performance of such part of the work as shall not have been terminated by the Notice of Termination; and 7. take such action as may be necessary, or as Owner may direct, for the protection and preservation of the property related to this contract which is in the possession of the Contractor and in which Owner has, or may acquire, an interest. (c) After receipt of a Notice of Termination, the Contractor shall submit to Owner a verified termination claim. Such claim shall be submitted promptly, but in no event later than 30 days from the effective date of termination. Upon receipt of such Notice, the Contractorunless one or more extensions, in addition to the requirements of Article 14 of the AIA A201 General Conditions for Constructionwriting, as modified by the Owner, shall: 1. Cease any further deliveries or work due under this Contract, on the date, and to the extent, which may be specified in the Notice; 2. Place no further orders with any subcontractors except as may be necessary to perform that portion of this Contract not subject to the Notice; 3. Terminate all subcontracts except those made with respect to Contract performance not subject to the Notice; 4. Settle all outstanding liabilities and claims which may arise out of such termination, and 5. Use its best efforts to mitigate any damages which may be sustained by him as a consequence of termination under this clause. After complying with the foregoing provisions, the Contractor shall submit a termination claim, in no event later than six months after the effective date of their termination, unless an extension is are granted by the Owner. The Owner shall pay reasonable costs upon request of terminationContractor made, including a reasonable amount for profit on services delivered in writing, within such period or completed. In no event shall this amount be greater than the original contract price, reduced by any payments made prior to Notice of Termination, and further reduced by the price authorized extension of the services not delivered, or those services not provided. This Contract shall be amended accordingly, period. (d) Contractor and the Contractor shall be paid the agreed Owner may agree upon amount. In the event that the parties cannot agree on the whole or any part of the amount or amounts to be paid to the Contractor by reason of termination under this clause, the Owner shall pay to the Contractor the amounts determined as follows, without duplicating any amount which may have already been paid under the preceding paragraph of this clause: 1. With respect to all Contract performance prior to the effective date of Notice of Termination, the total of: a. Cost or partial termination of the work performed; b. The cost of settling and paying any pursuant to this article, which amount or amounts may include a reasonable claims as provided in subparagraph 4 above; c. A sum as allowance for profit on (a) determined by work done; provided that the Owner as fair and reasonable 2. The total sum to be paid shall not exceed the Contract price, contract price as reduced by the number amount of payments otherwise made, made and as further reduced by the Contract Sum contract price of services work not terminated. In terminated does not exceed the event the Contractor is not satisfied with any payments which the Owner determines due under this clause, the Contractor may seek resolution of any claim or dispute in accordance with the “Claims and Disputes” clause of this Contract. The Contractor shall include similar provisions in any subcontract, and shall specifically include a requirement that subcontractors make all reasonable efforts to mitigate damages which may be suffered. Failure to include such provisions shall bar the Contractor from any recovery from the Owner whatsoever for loss or damage sustained by a subcontractor as a consequence of termination for conveniencecontract sum.

Termination for Convenience of the Owner. The parties agree that the Owner may terminate this Contract or any work or delivery required hereunder, from time-to-time either in whole or in part, whenever the Owner shall determine that such termination is in the best interest of the Owner and pursuant to Article 14 of the AIA A201 General Conditions for Construction, as modified by the Owner. Termination, in whole or in part, shall be effected by delivery of a Notice of Termination signed by the Owner’s Director or designee, mailed or delivered to the Contractor, and specifically setting forth the effective date of termination. Upon receipt of such Notice, the Contractor, in addition to the requirements of Article 14 of the AIA A201 General Conditions for Construction, as modified by the Owner, shall: 1. Cease any further deliveries or work due under this Contract, on the date, and to the extent, which may be specified in the Notice; 2. Place no further orders with any subcontractors except as may be necessary to perform that portion of this Contract not subject to the Notice; 3. Terminate all subcontracts except those made with respect to Contract performance not subject to the Notice; 4. Settle all outstanding liabilities and claims which may arise out of such termination, and 5. Use its best efforts to mitigate any damages which may be sustained by him as a consequence of termination under this clause. After complying with the foregoing provisions, the Contractor shall submit a termination claim, in no event later than six months after the effective date of their termination, unless an extension is granted by the Owner. The Owner shall pay reasonable costs of termination, including a reasonable amount for profit on services delivered or completed. In no event shall this amount be greater than the original contract price, reduced by any payments made prior to Notice of Termination, and further reduced by the price of the services not delivered, or those services not provided. This Contract shall be amended accordingly, and the Contractor shall be paid the agreed upon amount. In the event that the parties cannot agree on the whole amount to be paid to the Contractor by reason of termination under this clause, the Owner shall pay to the Contractor the amounts determined as follows, without duplicating any amount which may have already been paid under the preceding paragraph of this clause: 1. With respect to all Contract performance prior to the effective date of Notice of Termination, the total of: a. Cost of the work performed; b. The cost of settling and paying any reasonable claims as provided in subparagraph 4 above; c. A sum as profit on (a) determined by the Owner as fair and reasonable 2. The total sum to be paid shall not exceed the Contract price, as reduced by the number amount of payments otherwise made, and as further reduced by the Contract Sum of services not terminated. In the event the Contractor is not satisfied with any payments which the Owner determines due under this clause, the Contractor may seek resolution of any claim or dispute in accordance with the “Claims and Disputes” clause of this Contract. The Contractor shall include similar provisions in any subcontract, and shall specifically include a requirement that subcontractors make all reasonable efforts to mitigate damages which may be suffered. Failure to include such provisions shall bar the Contractor from any recovery from the Owner whatsoever for loss or damage sustained by a subcontractor as a consequence of termination for convenience.