5355.1 WASA shall not be liable for the contractor's costs on undelivered work, and shall be entitled to the repayment of advance or progress payments, if any, applicable to that work.

5355.2 WASA shall pay to the contractor the contract price for any completed work, services or supplies and the amount agreed upon by the Contracting Officer and contractor for any manufacturing materials acquired by WASA. However, before such payment is made, the Contracting Officer shall protect WASA from liability to laborers and material suppliers, and may withhold from the amount due for services, supplies, or materials, any amount the Contracting Officer determines necessary to protect WASA's interest.

5355.3 The contractor shall be liable to WASA for any excess cost incurred in reproducing supplies or materials similar to those to be obtained under the contract terminated for default, and for any other damages, whether or not repurchase is effected.

5355.4 If after consideration of all the facts and circumstances, the Contracting Officer determines that a termination for default is proper, the Contracting Officer shall issue a notice of termination.

SOURCE: Emergency Rulemaking published at 46 DCR 613 (January 22, 1999) [EXPIRED]; as Final Rulemaking published at 46 DCR 7349 (September 17, 1999).