§ 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.