Section 8.25 Termination Provisions
Library | Construction Law 2016 Supp |
A. (§8.25) Termination Provisions
Termination of a construction contract can occur in at least three ways:
1. Termination by mutual agreement
2. Termination for convenience without the fault of either party
3. Termination or excusal of performance by a party because of the material breach of the other party
The most problematic issue is the determination of when a breach is sufficiently material to excuse performance of the party entitled to performance and allow that party to terminate the agreement. See the discussion of termination for material breach in §8.27 below. The typical construction contract addresses the general circumstances under which termination may occur, as well as the rights and remedies available to the parties in the event of termination. Issues that should be considered in contemplating termination include the:
· timing and manner of notice that needs to be given;
· opportunity to cure, if any, the reasons for termination and how these reasons may affect the notice and opportunity for cure;
· damages available to the nonbreaching party upon termination; and
· rights of the breaching party to any additional compensation upon termination.
In addition, notification of the contractor’s surety and the surety’s role in completing...
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- Section 8.1 Introduction
- Section 8.2 Change Order Procedures
- Section 8.3 Dispute Resolution Procedures for Changes in the Work
- Section 8.4 “Extra Work” vs. “Additional Work”
- Section 8.5 Methods of Compensation for Extra Work
- Section 8.6 Differing Site Conditions and Other Compensable Changes
- Section 8.7 Differing Site Conditions—Public Works Projects
- Section 8.8 Written Change Order Requirements
- Section 8.9 Oral Waiver of Written Change Order Requirements
- Section 8.10 Requirement of Written Contracts—Public Works Projects
- Section 8.11 Waiver of Written Change Order Requirement by Course of Conduct or Silence
- Section 8.12 Defining Time of Performance
- Section 8.13 Time of Essence
- Section 8.14 Types of Delay
- Section 8.15 Excusable Delay
- Section 8.16 Notice of Delay
- Section 8.17 Contractor Liability to Owner for Delay
- Section 8.18 Contractor Liability to Subcontractors and Other Contractors for Delay
- Section 8.19 Design Professional’s Liability for Delay
- Section 8.20 Compensable Elements of Delay
- Section 8.21 Owner Liability to Contractor for Delay
- Section 8.22 “No Damages for Delay” Clauses—Private Contracts
- Section 8.23 “No Damages for Delay” Clauses—Public Works Contracts
- Section 8.24 Consequential Damages
- Section 8.25 Termination Provisions
- Section 8.26 Rescission vs. Termination
- Section 8.27 Termination for Material Breach
- Section 8.28 Termination for Commercial Frustration or Impracticality
- Section 8.29 Termination for Nonpayment
- Section 8.30 Excuses for Abandonment of Contract
- Section 8.31 Measure of Damages Upon Termination
- Section 8.32 Substantial Completion and Performance
- Section 8.33 Stop Work Notices
- Section 8.34 Termination for Convenience
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