Or. Admin. Code § 629-029-0130 - Contract Cancellation Procedures

(1) Grounds for cancellation. The STATE may, at its option, cancel a contract, for any material violation of the provisions of the contract. Such provisions generally include, but are not limited to:

(a) Standard terms and conditions included in all contracts;

(b) Product or service specifications;

(c) Delivery or completion requirements; or

(d) Contracted pricing.

(2) Remedies cumulative. No cancellation of a contract shall, unless other remedies are expressly limited by the terms of the particular contract, restrict or abrogate any other remedy available to the STATE that is provided either by law or under the particular contract.

(3) Notice. The STATE will provide the PURCHASER written notice of the grounds for cancellation and its intention to cancel the contract. If the PURCHASER provided a performance and payment bond, the surety may also be provided with a copy of the notice of contract cancellation. The notice may include (i) the effective date of the intended cancellation, (ii) notice of the amount of time (if any) in which the STATE will permit the PURCHASER to correct the failure to perform. The contract may provide contract cancellation procedures that are different from, or in addition to, those provided in this rule.

(4) Contract completion by substitute contractor. If the PURCHASER has provided a performance and payment bond, the STATE may afford the PURCHASER's surety the opportunity, upon the surety's receipt of a PURCHASER's contract cancellation notice, to provide a substitute contractor as qualified by STATE, to complete performance of the contract. Performance by the substitute contractor shall be rendered pursuant to all material provisions of the original contract, including the provisions of the performance and payment bond. Such substitute performance does not involve the award of a new public contract and shall not be subject to competitive bidding provisions.

Notes

Or. Admin. Code § 629-029-0130

FB 1-1997, f. 9-4-97, cert. ef. 1-1-98

Stat. Auth.: ORS 526.041

Stats. Implemented: ORS 530.050