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If at anytime the NIA is of the opinion, after verifying the facts that the Contract Work is delayed to any cause whether or not due to the fault of the Contractor and the Project may not be finished within the Contract Time, then the NIA may, without rescinding the Contract after approval by NIA Board and after written notice to the Contractor and his sureties of its intention, take over or delete part of the Contract Work. Such notice shall contain the reason or reasons for taking over or deleting part of the Contract Work. If within 20 calendar days after serving such notice to the Contractor, he (Contractor) fails to take the necessary steps or make satisfactory arrangements for the proper prosecution of the Contract Work, acceptable to the Administrator, then the NIA shall have the right without necessity of judicial proceedings to take over or delete part of the unfinished portion of the Contract Work as specified in the Notice and to undertake by Administration or otherwise. The NIA or its representative shall not be civilly liable for any act done by them in pursuance of these provisions.

The Contractor, after the lapse of the 20-day notice and without having reached a satisfactory arrangement with the NIA for the timely completion of the Contract Work, shall immediately vacate the premises of that portion of the work involved and transfer possession thereof to NIA. All Works partially finished, and all materials, form works, scaffolding, and other erections within the portion of the Contract Work taken by NIA shall remain where they are, their cost shall be ascertained and fixed by the Administrator and be credited to the Contractor subject to the provisions of Article GC-25, DISPUTES AND ARBITRATION.

The Administrator shall immediately stop payment for that part of the Contract Work taken over by NIA. The Contractor and NIA shall jointly determine the total estimated value thereof based on the agreed estimated quantities and corresponding Contract unit prices of the different items of work involved. In case the actual total expenditures of NIA is less than the total estimated value of that portion of the Contract Work taken over by NIA based on the original Contract unit prices or latest approved escalated unit prices, then their difference shall be used to settle unpaid claims filed under Articles GC-33 and GC-63, PAYMENTS BY CONTRACTOR-UNPAID CLAIMS, AND LIQUIDATED DAMAGES, respectively, if any. Any balance will remain to NIA.

Notwithstanding this partial takeover, in the event that the Contractor is delayed in completing the remaining Works falling under his responsibility, liquidated damages per day proportionate to the total amount of the remaining Works under his responsibility as provided for under Article GC-63, LIQUIDATED DAMAGES will still be imposed.

Provided that, in the event the partial take over was due to the fault of the Contractor, he (Contractor) and his Sureties shall be liable to NIA in case the actual cost of that portion of the Works taken over by NIA exceeds the original value based on the Contract unit prices before the time of partial take over. The Performance Bond filed by the Contractor and other monies due the Contractor from NIA shall also be answerable for such expense.

The decision of NIA to take over part of the Contract Work is final and will not be subject to arbitration.