7-12-2139. Procedure if person entering contract defaults on work. (1) If the contractor who may have taken a contract does not complete the contract within the time limited in the contract or within a further time that may be given, the engineer selected as provided in this part shall report the delinquency to the board of county commissioners.

(2) (a) The board may relet the unfinished portion of the work after pursuing the formalities prescribed in 7-12-2131 through 7-12-2137 for the letting of the contract in the first instance.

(b) The board may complete the contract and deduct any cost in excess of the contract price from any money, bond, or warrant due the contractor. If there is no money, bond, or warrant due the contractor from which to deduct the cost, then the board may sue the contractor and recover the costs.