Terminations

Shields | Mott attorneys are experienced at resolving the high-stakes issues that arise when an owner, general contractor, or subcontractor contemplates default or termination of a construction contract. Whether “for cause” or “for convenience,” termination is a drastic step that must be approached with caution and adherence to the procedural and notice requirements contained in the contract documents. Severe consequences attach to wrongful termination, affecting construction principals’ rights to contract funds and profits, project sureties’ bond liability — and all parties’ exposure to litigation. What qualifies as a default event or material breach justifying termination for cause? Does your contract allow termination for convenience? What alternatives exist to termination? What are the parties’ rights and obligations under the contract of construction? What remedies and damages may be sought in the case of bad faith or wrongful termination? Our firm counsels and represents construction owners, contractors, and sureties alike on these matters at the contract negotiation stage, during a contemplated default or termination, and thereafter.

Shields | Mott’s expertise in this area includes: