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Section 5: Terminations

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Policy

As stated in Article 8.7, “Termination of Contract,” of the Standard Specifications, contracts may be terminated whenever:

  • the contractor is prevented from proceeding with the work as a direct result of an executive order of the President of the United States or the Governor of the State
  • the contractor is prevented from proceeding with the work 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
  • the contractor is prevented from proceeding with the work due to an order of any federal authority
  • the contractor is prevented from proceeding with the work 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
  • 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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Procedures

Coordinate with CST-FE to process contract terminations. CST-FE 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.

Obtain a final termination settlement proposal from the contractor within 60 calendar days of the date of the written termination notice. Prepare a change order (CO) reducing the affected quantities of work and add acceptable costs for termination. Do not include anticipated profits. Include reasonable and verifiable termination costs as provided in Article 8.7.B., “Settlement Provisions,” of the standard specifications.

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