Not every construction project goes according to plan. When disputes arise or a party fails to meet its obligations, the decisions made next can determine whether a project stays on track or grinds to a halt.
Here at The Dempsey Law Firm, we are committed to helping make this process straight-forward and as easy as possible, ensuring your project gets completed on time.
Terminating a contract or suspending work is a serious step—one that can affect timelines, costs, and legal rights long after the decision is made. The good news is that even when a project runs into trouble, the process of resolving it doesn’t have to be overwhelming. This Miami-based contractor default attorney can guide you through contract terminations and work suspensions, helping protect your interests while minimizing risk.
Understanding Contractor Default Terminations
Most construction contracts contain default provisions that define what happens when one party violates the agreement. If a contractor or subcontractor breaches the contract, the non-defaulting party may have the right to terminate the agreement. However, this authority is not unlimited. Termination must be carried out in good faith and cannot be based solely on frustration, dissatisfaction, or minor disagreements.
Equally important is following the contract’s required procedures. Many construction contracts require notice and an opportunity to cure before termination can occur. This means the defaulting party must be given a chance to correct the issue within a specified time frame. Skipping these steps can turn an otherwise valid termination into an expensive legal mistake.
How Termination for Convenience Is Different
Some construction contracts also include a termination-for-convenience clause. Unlike a default termination, this provision allows a client or general contractor to end a subcontractor’s remaining work even when no contractual violation has occurred.
Termination for convenience is often used when circumstances change—such as a loss of project funding or a shift in project scope—making it impractical to continue. While this type of termination offers flexibility, it still carries legal and financial consequences that must be handled carefully.
Even if you believe you understand your rights under a construction contract, it is critical to consult with an experienced attorney before taking action. A knowledgeable construction lawyer at The Dempsey Law Firm can help you avoid costly missteps, protect your contractual rights, and position you for the best possible outcome.
