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Prosecution and Progress

1808Default of Contractor

MN · 2025 Standard Specifications✓ Full text on BuildSpecBook pages 123–0 Save this section

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The Commissioner, after giving due notice to the Contractor and its Sureties, will have full power and authority to take the prosecution of the Work out of the hands of the Contractor without violating the terms of the Contract if the Contractor commits any of the following events of default:

(1)Fails to start the Work by the Contract Starting Date and any intermediate starting date,

as required in 1806, “Determination and Extension of Contact Time”

(2)Fails to perform the Work with sufficient workers and Equipment or with sufficient

Materials to ensure prompt completion of the Work as required in 1804.1, “Prosecution Control”

(3)Fails to perform the Work satisfactorily as required by 1512, “Unacceptable and

Unauthorized Work”

(4)Suspends the prosecution of Work without permission of the Engineer as required in

1803.3, “Temporary Suspensions”

(5)Neglects or refuses to remove Materials or reconstruct Work rejected as defective or

unacceptable as required in 1512, “Unacceptable and Unauthorized Work”

(6)Fails to resume suspended Work within a reasonable time after notice to do so, as

required by 1803.3, “Temporary Suspensions”

(7)Becomes insolvent, is declared bankrupt, or is the subject of a voluntary or involuntary

bankruptcy petition

(8)Makes an assignment for the benefit of creditors
(9)Fails to comply with the labor provisions required by the Contract
(10)Fails to carry on the Work in an acceptable manner for any other cause whatsoever
(11)Repeatedly fails to make payment in accordance with the Contract to S ubcontractors or

suppliers for labor or Materials

(12)Fails to procure or maintain insurance coverage required by the Contract

The Engineer will give the Contractor and Sureties written notice of any default, and will identify the facts of the events of default together with a demand that the Contractor correct such events of default to the satisfaction of the Engineer. If within a period of 10 Business Days after such notice the Contractor and Sureties fail to correct the identified events of default, the Commissioner will exercise any lawful authority and take any lawful action with respect to such default and with respect to securing performance of the Work. The Contractor and Department acknowledge the following:

(1)A notice of default is duly served when it is delivered in person or by registered mail to

the Contractor and Sureties or to their authorized representatives, including persons in charge of their offices

(2)The service of the notice is complete and sufficient when a properly addressed and

stamped envelope containing the notice is registered and deposited in any post office or U.S. letter box in the State The Commissioner's authority to take the prosecution of the Work out of the hands of the Contractor shall include the right to appropriate or use any or all Materials and E quipment on the ground as may be suitable and acceptable, and to enter into an agreement with others for completion of the Work according to the terms and provisions of the Contract, or to use such other methods as may be required to complete the Work in an acceptable manner. The Department will deduct all costs and charges incurred by the Department, together with the cost of completing the Work under Contract, from any moneys due the Contractor or that would have become due the Contractor under the Contract if the Contractor had completed the Work . If the cost and charges incurred by the Department exceed the amount that would have been payable under the Contract, the Contractor and the Sureties shall be liable for the excess. If a default of the Contractor is later determined to be without cause, the default of the Contractor will revert to a termination of the Contract in the best public interest as allowed in 1809, “Termination of Contract.”

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Source: Minnesota Standard Specifications for Construction, 2025 Edition. Pages 123–0 of 1,081. View official source ↗

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