(a)
- (1) General. Any contract which is determined in writing by the State Procurement Director, or the procurement official, or a designee of either officer, to be terminable due to a breach of any of the terms and conditions of the contract, mistake, misrepresentation, or other cause, may be terminated as a result of such cause.
- (2) Declaration of default and/or contract termination may only be determined by the procurement official who awarded the contract and only after the contractor has been afforded the opportunity to discuss with the director or agency procurement official circumstances giving rise to the potential cause for termination and potential cures.
(b) Default. A default in performance by a contractor for which a contract may be terminated shall include, but shall not necessarily be limited to:
- (1) Failure to perform the contract according to its terms, conditions, and specifications; or
- (2) Failure to make delivery within the time specified or according to a delivery schedule fixed by the contract.
- (c) Contractor’s liability. The contractor and/or his or her surety, if a performance or payment bond has been required under the contract, shall be jointly and severally liable to the state for any and all loss or damage as provided in the contract between the state and the contractor as a result of the contractor’s default, provided, however, that a contractor’s surety’s liability shall not exceed the final sum specified in the contractor’s bond.
Codification Notes: This section was promulgated as R1:19-11-246 of the Procurement Rules prior to codification into the Code of Arkansas Rules.