Cian BrennanFounder, Quantum Contract Solutions · Founder

The Shocking Truth About Termination on Construction Projects

Name: The Shocking Truth About Termination on Construction Projects
Uploaded: 2022-10-10T05:30:23+00:00
Duration: 33 s
Channel: Cian Brennan
Description: Construction contracts often lack a termination-for-default clause, leaving clients unable to stop work even when contractors fail to pay. Adding this…

10 Oct 2022 · 1 min

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Construction contracts often lack a termination-for-default clause, leaving clients unable to stop work even when contractors fail to pay. Adding this provision explicitly protects you from being forced to continue without payment assurance.

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The problem we have here is you can't terminate them if they default in lots of contracts. So if they default on their obligations on the contract, you can't terminate them. So what are we talking about? What are we actually concerned about really? Their main one is to pay you on time. And say they don't pay you on time, that's them not doing what they should do in the contract, which means you should be able to terminate them for default if you need to. And so if you don't have that negotiated into your contract, then you can't do it. And you get into that situation, you gotta keep working even though you're not sure if you're gonna get paid.