(a) The board of the authority may debar a contractor pursuant to section 1004.6 of this Part if it approves a recommendation to debar by a hearing panel made pursuant to sections 1004.5 and 1004.6 of this Part, including that the contractor has:

1. (i) failed to substantially complete all the work within the total adjusted time frame by more than 10 percent of the total adjusted time frame; or
2. (ii) failed to progress the work in a manner so that it will be substantially complete within 10 percent of the total adjusted time frame and has refused or in the opinion of the authority is unable to accelerate the work so that it will be substantially complete within 10 percent of the total adjusted time frame, and such refusal or failure is an event of default under the contract; or
3. (iii) with respect to contracts for services, or for manufacture or supply of materials, equipment, or rolling stock, as to any such services, materials, equipment or rolling stock that must be delivered by a deadline, materially failed to deliver such services, materials, equipment, or rolling stock by more than 10 percent of the total adjusted time frame.
4. (2) asserted a claim or claims for payment of additional amounts beyond the total adjusted contract value and one or more of such claims are determined in whole or in part to be invalid under the contract’s dispute resolution process or if no such process is specified in the contract in a final determination made by the chief engineer or otherwise by the authority, and together the sum of any such invalid claims exceeds by 10 percent or more the total adjusted contract value. An invalid claim is a claim or claims that cannot be supported by the facts or a nonfrivolous argument that it is warranted by the contract or existing law. A claim for payment of additional amounts to a subcontractor that a contractor is contractually obliged to submit to the authority on behalf of such subcontractor that is determined to be invalid, shall not be deemed to be an invalid claim asserted by the contractor, and shall be deemed an invalid claim submitted by the subcontractor.

5. (3) The authority shall initiate a debarment proceeding upon determining that one or more grounds for debarment exist under paragraph (1) or (2) of this subdivision, except that:

   1. (i) if a contractor has made a good faith request for an extension of the total adjusted time frame because of excusable delay or otherwise, which request, if granted by the authority, would eliminate grounds for debarment under provision of paragraph (1) of this subdivision, the authority shall defer initiating a debarment proceeding until it has evaluated and determined such request; and
   2. (ii) the authority may defer initiating, or determine not to initiate or pursue, a debarment proceeding for good cause shown, provided that the determination to defer or to not initiate or pursue a debarment proceeding after grounds for debarment have been determined to exist is presented to the authority’s board for ratification or nullification at the next regularly scheduled meeting thereof. The Authority’s Finance Committee shall be notified immediately upon a determination to defer initiating or not initiate or pursue a debarment proceeding, and all such determinations to defer initiating or to not initiate or pursue a debarment proceeding for good cause shown shall be presented to the Authority’s Finance Committee for recommendation before submission to the board. In the event that a determination to defer initiating or to not initiate or pursue a debarment proceeding is rejected by the board, authority personnel shall immediately commence a debarment proceeding

(1)