OAR 734-010-0500: Contract Suspension; Termination Procedures

(1) Suspension of Work. In the event ODOT suspends performance of Work for any reason considered by ODOT to be in the public interest other than a labor dispute, the Contractor shall be entitled to a reasonable extension of Contract time, and to reasonable compensation for costs, including a reasonable allowance for related overhead, incurred by the Contractor as a result of the suspension. (2) Termination of Contract by mutual agreement for reasons other than default. (a) The parties may agree to terminate the Contract or a divisible portion thereof if: (A) ODOT suspends Work under the Contract for any reason considered to be in the public interest (other than a labor dispute or any judicial proceeding relating to the Work filed to resolve a labor dispute); and (B) Circumstances or conditions are such that it is impracticable within a reasonable time to proceed with a substantial portion of the Work. (b) When a Contract, or any divisible portion thereof, is terminated pursuant to section (2) of this rule, ODOT shall pay the Contractor a reasonable amount of compensation for preparatory Work completed, and for costs and expenses arising out of termination. ODOT shall also pay for all Work completed, based on the Contract Price. Unless the Work completed is subject to unit or itemized pricing under the Contract, payment shall be calculated based on percent of Contract completed. No claim for loss of anticipated profits will be allowed. (3) Public interest termination by ODOT. ODOT will include in its Contracts, terms detailing the circumstances under which the Contractor shall be entitled to compensation as a matter of right in the event ODOT unilaterally terminates the Contract for any reason considered by ODOT to be in the public interest. (4) Responsibility for completed Work. Termination of the Contract or a divisible portion thereof pursuant to this rule shall not relieve either the Contractor or its surety of liability for claims arising out of the Work performed. (5) Remedies cumulative. ODOT may, at its discretion, avail itself of any or all rights or remedies set forth in Division 7 rules, in the Contract, or available at law or in equity.