Cian BrennanFounder, Quantum Contract Solutions · Founder

Ensure this is in your Construction Contract

Name: Ensure this is in your Construction Contract
Uploaded: 2023-02-07T07:18:00+00:00
Duration: 40 s
Channel: Cian Brennan
Description: Construction contracts often let clients fire contractors but don't give contractors the same right to walk away if the client stops paying. You need…

7 Feb 2023 · 1 min

Watch on YouTube

0:40

Construction contracts often let clients fire contractors but don't give contractors the same right to walk away if the client stops paying. You need reciprocal termination language so you can stop work if they breach, or you'll keep working with no money coming in.

Chapters

In construction, the client can terminate you in so many different ways. They can terminate you for convenience, they can terminate you for default, right? But that's not the most important thing. The most important thing is, can you terminate them? A lot of contracts, if you look in the termination section of the contract, it doesn't give you an outlet to terminate them if they don't comply with the contract, which is a huge deal, right? So imagine you're in a situation where they don't pay you, which is them not complying with the contract, but you keep having to work. And so month 1 goes by and they haven't paid you, and now you're into month 2 and you don't know if they're going to pay you again. Obviously it impacts cash flow. It can be very, very bad for your business. So make sure in the termination clause is what we call reciprocal. It means you can terminate them, they can terminate you. It's fair for everybody.