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How can you collect lost profits on a dead construction project?

CaliforniaConstruction Contract

Alex, I enjoyed the article. The AIA form contract grants Contractor lost profits for a termination of convenience, but the project got completely shut down due unanticipated change orders. Does the change in circumstances protect the builder from paying Contractor lost profits on the terminated contract? Note: If the Owner kept building the loses would have only increased. Thanks.

1 reply

Oct 8, 2019
Good morning!  These issues (termination for convenience vs. termination for default) are extremely fact-sensitive.  To accurately answer your question, a construction lawyer will need to review your particular AIA contract and have a better understanding of all the facts leading up to the unanticipated change orders (including correspondence and notices exchanged between owner and contractor) to determine whether there is a plausible argument for a termination by default. ---CN
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