Can a Gc terminate my contract based on the termination for convenience clause before we even start the project
1 reply
Mar 12, 2020
Generally, yes - if a termination for convenience clause is present in the contract, then that contract may be terminated for convenience at any time (unless the contract specifically says otherwise). Of course, some restrictions apply.
The termination must still be made in good faith, even where a termination for convenience clause is present. And, if the contract has specific provisions about how the contract should be terminated (i.e. like providing written notice X days in advance of the termination), then those requirements must be followed, too. Otherwise, a proper termination may not have occurred - like we discussed in this article: Improper Termination Notice Costs GC Over $26M.
Of course, the exact terms of the contract will be crucial in determining whether a termination was properly executed. So, consulting a local Missouri construction attorney should provide a lot of clarity there. They'll be able to review the agreement and advice on your rights.