Section 5: Terminations

As stated in Article 8.8, “Termination of Contract,” contracts may be terminated whenever:

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  • the contractor is prevented from proceeding with the work:
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    • as a direct result of an executive order of the President of the United States or the Governor of the State,
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    • due to a national emergency, or when the work to be performed under the contract is stopped, directly or indirectly, because of the freezing or diversion of materials, equipment, or labor as the result of an order or a proclamation of the President of the United States,
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    • due to an order of any federal authority, or
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    • by reason of a preliminary, special, or permanent restraining court order where the issuance of the restraining order is primarily caused by acts or omissions of persons or agencies other than the contractor; or
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  • the Department determines that termination of the contract is in the best interest of the State or the public. This includes but is not limited to the discovery of significant hazardous material problems, right of way acquisition problems, or utility conflicts that would cause substantial delays or expense to the contract.
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Coordinate with CST to process contract terminations. CST will provide written notice of termination to the contractor specifying the extent and effective date of the termination. The notice will include specific instructions to the contractor regarding the scope of termination and continued work performance associated with the contract. Ensure that the contractor complies with the specific instructions contained in the written notice.

The contractor will submit a final termination settlement proposal within 60 calendar days of the date of the written termination notice. The District will prepare a CO by adding only the acceptable costs for termination and work performed since the last progress estimate, if any. Do not zero-out the remaining items of the contract. The CO should include the applicable CO reason code for Termination (7A-7G) as the primary CO reason. Do not include anticipated profits. Include reasonable and verifiable termination costs as provided in Section 8.8.2, “Settlement Provisions.” Then process the final estimate to release the project from SiteManager.

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