37-705. Contract provisions as to beginning and
completion dates; forfeiture for failure to prosecute work
A. The contract with the state shall provide that the work shall begin within six
months from the date of the contract, and shall be prosecuted diligently and continuously
to completion, and that cessation of work for a period of six months shall be a ground of
forfeiture of all rights under the contract, upon which the state may obtain a judgment
of forfeiture and recover the penal sum named in the bond. No property or right which
was vested in the applicant or contractor at the date of the contract shall be
forfeited. In such cases the forfeiture shall extend only to the portions of the system
unconstructed at the time of default, and to the penalty of the bond.
B. Upon failure of the contractor to comply with any requirement of his contract,
the state land department shall notify the contractor that, unless he complies with such
requirements within sixty days from the date of the notice, the bond and contract shall
be forfeited to the state, and, if not complied with, the department will advertise for
proposals to complete the work, and may contract with the bidder who will pay the
original contractor the highest amount for the works partially completed to complete the
works as stated in the original contract. If no bid is received the department shall
proceed to collect the bond.
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