• iv. If the Contractor is in default of the contract and the contractor has provided a Performance Bond, the provisions of this section shall be exercised in accordance with the conditions of the Performance Bond.
  
  
• v. If the contractor fails to comply with the provisions of 3(1) or 3(2) the Corporation may without prejudice to any other right or remedy it may have:
  
  
  1. correct such default and deduct the cost thereof from the payment then or thereafter due to the contractor; or
  2. terminate the Contractor's rights to continue with the work in whole or in part or terminate the contract.
     
     
• vi. If the Corporation terminates the Contractor's right to continue with the work in whole or in part, the Corporation will be entitled to:
  
  
  1. take possession of the working area or that portion of the working area devoted to that part of the work terminated;
  2. utilize the Contractor's equipment and any material within the working area which is intended to be incorporated into the work, the whole subject to the right of third parties;
  3. withhold further payments to the Contractor with respect to the work or the portion of the work withdrawn from the contractor until the work or portion thereof withdrawn is completed;
  4. charge the Contractor the additional cost over the contract price of completing the work or portion thereof withdrawn from the Contractor, as certified by the Engineer and any additional compensation paid to the Corporation for such additional service arising from the correction of the default;
  5. charge the Contractor a reasonable allowance, as determined by the Engineer, to cover correction to the work performed by the Contractor that may be required;
  6. charge the Contractor for any damages the Corporation may have sustained as a result of the default; and
  7. charge the Contractor the amount by which the cost of corrections to the work exceeds the allowance provided for such corrections.
     
     
• vii. If the Corporation's cost to correct and complete the work in whole or in part is less than the amount withheld from the Contractor the Corporation will pay the balance to the Contractor as soon as the final accounting for the contract is complete.
  
  
• viii. The Contractor's obligation under the contract as to quality, correction and warranty of the work performed prior to the time of termination of the