Sec 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.