N.Y. Canal Law § 32: 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.