Florida Default & Convenience Terminations Lawyer
Unfortunately, not all construction projects run as smoothly as our clients would like. Determining how to proceed after a contracting party defaults can make or break a project, as can handling a termination when a party is no longer needed on a project. At Linkhorst & Hockin, P.A., we counsel clients regarding work suspensions and terminations of construction contracts, including situations involving terminations for cause and terminations for convenience. From assessing your right to terminate to analyzing the financial impact of termination to seeking appropriate relief, our attorneys will ensure your rights and interests are protected.
Facilitating the Process of Default Terminations
Generally, construction contracts contain default provisions stating that the violation of an express contractual condition will constitute a default, allowing the non-defaulting party to terminate the contract. Accordingly, when either party defaults, termination of the contract may occur. However, the terminating party must act in good faith—the termination cannot be based in bad faith or a trumped up showing of dissatisfaction. The parties to a construction contract must also take care to follow any default terminations procedures outlined in their contract. Failure to strictly comply with procedural requirements could result in a termination that is ineffective and costly.
In many cases, the non-defaulting party must give the defaulting party an opportunity to cure the problem before termination. For example, if a subcontractor violates a contractual term, the contractor must provide the subcontractor with notice of the default, as well as the opportunity to fix the issue. If the subcontractor does not perform a cure within a stated amount of time, the contractor then sends a second notice advising of the contract termination. With this second notice, arrangements may be made for the completion of the construction project without the defaulting subcontractor.
Assisting with Terminations for Convenience
Many construction contracts also include a clause allowing owners or general contractors to terminate a (sub)contractor’s remaining work on a project for convenience. Convenience terminations are not due to any fault on the part of the (sub)contractor. Rather, contractual convenience clauses are intended to provide the owner or general contractor with the option to terminate the remaining balance of the contracted work for a reason other than default. For example, if the owner cannot obtain additional financing necessary to complete the project, the owner can terminate the balance of the work for convenience if there is a termination for convenience clause in the contract.
Contact Experienced Florida Construction Lawyers to Discuss a Default or Convenience Termination
Before terminating any party contracted to work on a construction project, it is important to consult with an experienced construction law attorney to ensure you handle the termination appropriately. Not doing so could result in an ineffectual termination or a lawsuit. In the Palm Beach County area, contact Linkhorst & Hockin, P.A. We are board-certified construction law attorneys who understand all aspects of construction contracts, including termination clauses.