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AIA Document A201 – 2007. Copyright © 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007. All
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<br />Documents” are trademarks of The American Institute of Architects. This draft was produced at 09:51:37 PT on 05/13/2024 under Order
<br />No.4104243047 which expires on 06/10/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with
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<br />§ 14.2 TERMINATION BY THE OWNER FOR CAUSE § 14.2.1 The Owner may terminate the Contract if the Contractor
<br />.1 repeatedly refuses or fails to supply enough properly skilled workers or proper materials;
<br />.2 fails to make payment to Subcontractors for materials or labor in accordance with the respective
<br />agreements between the Contractor and the Subcontractors;
<br />.3 repeatedly disregards applicable laws, statutes, ordinances, codes, rules and regulations, or lawful
<br />orders of a public authority; or
<br />.4 otherwise is guilty of substantial breach of a provision of the Contract Documents.
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<br />§ 14.2.2 When any of the above reasons exist, the Owner, upon certification by the Initial Decision Maker that
<br />sufficient cause exists to justify such action, may without prejudice to any other rights or remedies of the Owner and
<br />after giving the Contractor and the Contractor’s surety, if any, seven days’ written notice, terminate employment of
<br />the Contractor and may, subject to any prior rights of the surety:
<br />.1 Exclude the Contractor from the site and take possession of all materials, equipment, tools, and
<br />construction equipment and machinery thereon owned by the Contractor;
<br />.2 Accept assignment of subcontracts pursuant to Section 5.4; and
<br />.3 Finish the Work by whatever reasonable method the Owner may deem expedient. Upon written
<br />request of the Contractor, the Owner shall furnish to the Contractor a detailed accounting of the costs
<br />incurred by the Owner in finishing the Work.
<br />
<br />§ 14.2.3 When the Owner terminates the Contract for one of the reasons stated in Section 14.2.1, the Contractor shall
<br />not be entitled to receive further payment until the Work is finished.
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<br />§ 14.2.4 If the unpaid balance of the Contract Sum exceeds costs of finishing the Work, including compensation for
<br />the Architect’s services and expenses made necessary thereby, and other damages incurred by the Owner and not
<br />expressly waived, such excess shall be paid to the Contractor. If such costs and damages exceed the unpaid balance,
<br />the Contractor shall pay the difference to the Owner. The amount to be paid to the Contractor or Owner, as the case
<br />may be, shall be certified by the Initial Decision Maker, upon application, and this obligation for payment shall
<br />survive termination of the Contract.
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<br />§ 14.3 SUSPENSION BY THE OWNER FOR CONVENIENCE
<br />§ 14.3.1 The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work in
<br />whole or in part for such period of time as the Owner may determine.
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<br />§ 14.3.2 The Contract Sum and Contract Time shall be adjusted for increases in the cost and time caused by
<br />suspension, delay or interruption as described in Section 14.3.1. Adjustment of the Contract Sum shall include
<br />profit. No adjustment shall be made to the extent
<br />.1 that performance is, was or would have been so suspended, delayed or interrupted by another cause
<br />for which the Contractor is responsible; or
<br />.2 that an equitable adjustment is made or denied under another provision of the Contract.
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<br />§ 14.4 TERMINATION BY THE OWNER FOR CONVENIENCE
<br />§ 14.4.1 The Owner may, at any time, terminate the Contract for the Owner’s convenience and without cause.
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<br />§ 14.4.2 Upon receipt of written notice from the Owner of such termination for the Owner’s convenience, the
<br />Contractor shall
<br />.1 cease operations as directed by the Owner in the notice;
<br />.2 take actions necessary, or that the Owner may direct, for the protection and preservation of the Work;
<br />and
<br />.3 except for Work directed to be performed prior to the effective date of termination stated in the
<br />notice, terminate all existing subcontracts and purchase orders and enter into no further subcontracts
<br />and purchase orders.
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<br />§ 14.4.3 In case of such termination for the Owner’s convenience, the Contractor shall be entitled to receive payment
<br />for Work executed, and costs incurred by reason of such termination, along with reasonable overhead and profit on
<br />the Work not executed.
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