Building Strategies That Yield Optimal Results

Possible reasons for termination of a construction contract

On Behalf of | Jan 25, 2022 | Construction Law |

When two or more parties in California or elsewhere reach an agreement to initiate operations on a new project, they may start by setting forth terms for the arrangement via a contract. Construction contracts can be complex in nature and may cover a multitude of factors, potentially including the scenarios in which the agreement might be terminated. Regardless of how it happens, the termination of a construction contract could still prompt intense construction disputes and leave the parties involved in search of guidance on how best to resolve the situation. 

While there may be various circumstances in which one party might seek to terminate a construction contract, some common examples might include: 

  • Default:  Experts indicate that a common cause of contract termination may involve scenarios in which either a contactor or project owner defaults and fails to rectify the situation. 
  • Project suspension:  In some cases, a construction contract may also include terms regarding termination in circumstances in which operations are suspended due to uncontrollable factors. 
  • Convenience:  The parties involved may also have the option to include terms regarding the termination of a contract for convenience. 

Even if the reason for termination rests within the terms of the initial contract, there is still a possibility that such a scenario could lead to conflict among the parties involved. 

Construction disputes stemming from the termination of a contract can be hotly contested matters. Those who encounter similar disputes and wish to seek guidance in protecting their interests could benefit from consulting with an attorney for advice on their available options. An attorney in California can evaluate the situation a client is facing, along with the terms of the construction contract, and assist in creating a strategy with which to seek the most favorable outcome possible through the proper channels.