2006 New York Code - Performance Of Contracts.

 
    §  32. Performance of contracts. The performance of every contract for
  the improvement, maintenance or repair of  the  canal  system  shall  be
  under  the  supervision  and control of the corporation, and it shall be
  its duty to see that every such contract is performed in accordance with
  the provisions of the contract and with  the  plans  and  specifications
  forming a part thereof. If the corporation shall determine that the work
  upon  any  contract  for  the  improvement, maintenance or repair of the
  canal system is not being performed according to the contract or for the
  best interest of the state, including the corporation, the execution  of
  the  work  by  the  contractor  may  be  temporarily  suspended  by  the
  corporation, who may then proceed with the work under its own  direction
  in  such  manner  as will accord with the contract specifications and be
  for the best interest of the state including the corporation,; or it may
  terminate the contractor's employment under the contract while it is  in
  progress,  and  thereupon,  proceed  with the work, in affirmance of the
  contract, by contract negotiated or publicly let, by the use of its  own
  forces,  by  calling  upon the surety to complete the work in accordance
  with the plans and specifications  or  by  a  combination  of  any  such
  methods;  or  it  may  cancel the contract and readvertise and relet the
  work as provided in section thirty of this article. Any  excess  in  the
  cost  of  completing  the  contract  beyond  the  price for which it was
  originally awarded shall be  charged  to  and  paid  by  the  contractor
  failing  to  perform  the work or by such contractor's surety. Where the
  estimate for the completion of a cancelled contract is in excess of  the
  balance  of  the  amount originally set aside by the state including the
  corporation, to provide for the improvement, maintenance  or  repair  of
  the  canal system, or a part thereof, together with any amount otherwise
  provided, the corporation is authorized to  set  aside  from  any  funds
  available  for  the  improvement,  maintenance  or  repair  of the canal
  system, or a part thereof, an additional sum equal to such excess and to
  pay such excess in the first instance, pending recovery of  excess  cost
  from  the defaulting contractor and surety, as provided in this section.
  Every contract for the improvement, maintenance or repair of  the  canal
  system, or a part thereof, shall reserve to the corporation the right to
  suspend  or  cancel  the contract as above provided, and to complete the
  work thereunder by contract negotiated or publicly let or by the use  of
  its  own  forces,  or  affirm the contract and thereupon to complete the
  work thereunder according to any of the methods above  provided  as  the
  corporation may determine.