Para 6.11.2 — WORKS_MANUAL

i) has seriously or repeatedly breached the contract, including a) failure to complete the work within the time period

(s) specified in the contract, or any extension thereof granted; b) failure to obey instructions in relation to his progress or defective work, material or plant; c) breach of the prohibition against sub-contracting d) Failure to supply sufficient and suitable constructional plant, temporary works, labour and material as proposed in the work programme; e) Substantial suspension of work for more than the specified days without authority from the engineer and failure to proceed with the work within the specified days of receipt of notice from the engineer f) Failure to comply with the requirements regarding JVs ii) committed fraud iii) If the contractor fails to perform any other obligation under the contract within the period specified in the contract or any extension thereof granted.

6.11.2 Cancellation of Contract for Default Without prejudice to any other remedy for breach of contract, such as removal from the list of enlisted contractor, by written notice of default sent to the Contractor, the contract may be terminated in whole or in part, if the contractor has:

6.11.4 Termination of Contract for Procuring Entity’s Failure or Convenience After placement of the contract, there may be an unforeseen situation compelling Procuring Entity to cancel the contract. In such a case, a suitable notice has to be sent to the contractor for cancellation of the contract, in whole or in part, for its (Procuring Entity’s) convenience, inter alia, indicating the date with effect from which the termination will to become effective. This is not Procuring Entity’s legal right– the contractor has to be persuaded to acquiesce. Depending on the merits of the case, the contractor may have to be suitably compensated on mutually agreed terms for terminating the contract. Suitable provisions to this effect should be to be incorporated in the tender document as well as in the resultant contract. If termination occurs because of Procuring Entity's convenience or a fundamental breach on his part, the engineer will certify the value of works executed, value of any materials lying at site, reasonable cost of removal of equipment, repatriation of project staff, cost of protecting and securing the works and deducting from it:

(i) pending advances;

(ii) other recoveries; and

(iii) taxes as due.

iv) If the contract is terminated in whole or in part, recourse may be taken to any one or more of the following actions:

a) Forfeiture of the performance security; b) Upon such terms and in such manner as it deems appropriate, taking over the site and to complete the works himself or with another contractor (risk Purchase) and use the contractor's materials, equipment, temporary works as he/ they think proper. In small value contracts, instead of Risk Purchase, a fixed percentage recovery may be provided in the SBD; and c) However, the contractor shall continue to fulfil the contract to the extent not terminated.

Before cancelling the contract and taking further action, it may be desirable to obtain legal advice. 6.11.3 Termination of Contract for Insolvency

If the contractor becomes bankrupt or becomes otherwise insolvent or undergoes liquidation or loses substantially the technical or financial capability (based on which he was selected for award of contract), at any time, the contract may be terminated, by giving a written notice to the contractor, without compensation to the contractor, provided that such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter to Procuring Entity.