Who is responsible for the costs incurred when the City cures an Event of Default?

The responsibility for the costs incurred when the City cures an Event of Default lies with the Contractor. This means that if there is a situation where the Contractor has failed to meet the terms of the agreement—referred to as an Event of Default—the City will step in to resolve the issue, but the financial burden for those corrective actions falls entirely on the Contractor.

This clause is significant in contractor agreements as it emphasizes the accountability of the Contractor for maintaining compliance with contractual obligations. It serves as an incentive for Contractors to adhere closely to the agreed-upon terms and conditions, ensuring that they fulfill their duties to avoid any defaults that would result in additional costs.

Furthermore, this structure also helps mitigate risks for the City because it ensures that they will not be financially responsible for addressing faults that are the result of the Contractor's actions or failures. Thus, it clarifies the expectations and responsibilities from both parties' perspectives in the agreement, safeguarding the City's interests.