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Contract Default

Contractor having difficulties performing work. Read Spec section 8-9. Talk with DCE about options. Contract Default.

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Contract Default

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  1. Contractor having difficulties performing work Read Spec section 8-9. Talk with DCE about options. Contract Default Various letters of concern may come from either Resident, District or Central office to Contractor to alert to difficulties; copy surety in on letters of concern (when guided by legal.) If letters of concern produce no result, Resident Engineer will be asked to provide recommendation to issue Notice of Intent to Default. * Include specific reference to which paragraph (a through k) of section 8-9 that contractor is violating. * Include a specific “cure”; what can the contractor do to “get out of trouble.”

  2. DCE will send his recommendation for Notice of Intent to Default to Central Office. Contract Default • Central Office issues NOTICE OF INTENT letter. (All of this is done in conjunction with guidance from Central Office legal staff.) Project folks monitor project and see if contractor does any work at fixing deficiencies. DAILY RECORDS are important during this time.

  3. If, during the time specified, the contractor meets FDOT expectations, Resident Engineer sends e-mail to DCE informing status of work, and if work is acceptable, recommends not proceeding with default. If contractor fails to meet FDOT defined work effort, Resident Engineer recommend issuing Notice of Default. Contract Default DCE will send his recommendation for Default to Central Office. • Central Office issues NOTICE OF DEFAULT. (Again, all of this is done in conjunction with guidance from Central Office legal staff.)

  4. AFTER LETTER OF DEFAULT IS ISSUED Contract Default Surety is brought in to takeover contract. Much discussion with Central Office legal staff. • If you are contacted by anyone outside of FDOT regarding the project, you should not discuss project with them unless specifically ok’d to do so by DCE and/or Central Office attorney.

  5. AFTER LETTER OF DEFAULT IS ISSUED Contract Default • Information that Central Office may want: • Work completed to date (acceptably) • Work completed but remedial work needed. • Contract work remaining to do • Amounts paid for work done • Any $$$ withheld on work done • Amounts remaining to be paid on contract.

  6. AFTER LETTER OF DEFAULT IS ISSUED Contract Default • If Central Office approves, we might ask you to work with surety and their replacement contractor(s) to show them what work is completed, what needs to be done still. Avoid discussions about anything other than work on the project. Avoid talking about “old” contractor. Avoid discussions about any contractual matters. Leave all that to the attorneys.

  7. AFTER LETTER OF DEFAULT IS ISSUED Contract Default • Normally we do not suspend time or add contract time because a contractor defaults. • Keep writing dailies every day. • If the surety of the takeover contractor want to talk about time related to the default, send them back to District.

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