Cian BrennanFounder, Quantum Contract Solutions · Founder

The What, Why, and How of Termination Clauses in Construction Contracts

Name: The What, Why, and How of Termination Clauses in Construction Contracts
Uploaded: 2023-10-17T22:00:00+00:00
Duration: 22 s
Channel: Cian Brennan
Description: In this segment, the speaker stresses the importance of drafting construction contracts that not only list the various ways a party can terminate the…

17 Oct 2023 · 0 min

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In this segment, the speaker stresses the importance of drafting construction contracts that not only list the various ways a party can terminate the other (such as termination for convenience or for default) but also ensure that the contracting party retains the ability to terminate the counterpart unless the counterpart pays. This reciprocal termination right is highlighted as a critical safeguard, giving the party the strength to exit the agreement and avoid incurring further costs if the other side fails to meet payment obligations.

We want to make sure that you can get out. A lot of the contracts, the way they're written, they have to list all the ways that they can terminate you. Termination for convenience, termination for default, whatever it happens to be. But then you look at it and go, ah, there's no way I can terminate them. You, in theory, you could do it outside of the contract, but make sure that you can terminate them unless they pay you. That's probably one of the biggest ones. It gives you the most strength to be able to get out and not keep incurring costs.