What actions can a court or government authority take that would indicate a default by the Contractor?

A court or government authority may indicate a default by the Contractor through the action of appointing a custodian. This step involves designating a third party to take control of the Contractor's operations or assets, usually to ensure compliance with applicable laws or contractual obligations. This indicates a significant concern regarding the Contractor's performance or ability to fulfill the terms of an agreement, which is a clear sign of default.

The appointment of a custodian suggests that the authority is taking proactive steps to protect the interests of the project or other stakeholders, signaling that the Contractor is not meeting the expected standards or requirements. In this context, a custodian serves to manage and rectify the issues at hand, ensuring that necessary actions are taken to address the default.

Other actions, such as ordering a financial audit or issuing temporary relief from default, may not carry the same weight of indicating a default. While these actions can be related to compliance and oversight, they do not inherently reflect a direct indication of the Contractor's failure to meet obligations in the way that appointing a custodian does. Taking no action also does not suggest default but rather indicates a lack of concern or involvement from the court or authority.