Chadd Reynolds article, “Understanding Termination for Convenience," in Construction Business Owner
In an article published in Construction Business Owner on April 13, Senior Associate Chadd Reynolds discusses the importance of not only including essential terms like price and scope of work in a construction contract, but the need to include clauses for when parties need to terminate a contract.
Chadd says, “Historically, parties to construction contracts could only terminate their contract when the other party materially breached it. This “termination for cause” or “termination for default” clause is often the most utilized clause for terminating a contract, but it’s not the only method a party may use.
Another, less common method, is “termination for convenience” clause that allows a party to be terminated in the event a material breach has not occurred.”
Chadd goes on to outline what a termination for convenience looks like, how it’s utilized, and considerations for both parties if used.
To learn more, subscribers may view the full article here.