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How to terminate a contract

California

I am on a project that has been delayed for over a year. I am the sub contractor and this job, through mis-management on the part of the prime contractor it has caused many cost overruns and continuing delays. I am unable to now finish the project for the amount of money outstanding(if i get paid at all), Historically i have been shorted on every project with this company I want to walk away from this disaster. What is my best course of action

1 reply

Jan 16, 2020
Most contracts will set forth specific steps that must be taken in order to terminate the contract prematurely. First and foremost, always follow the steps outlined in the contract, if any. Beyond the contract termination provisions, identifying any and all breaches of the contract by the other party, whether it be delay, lack of payment, etc. will help support an argument that you are entitled to be relieved of your responsibilities under the agreement. To the extent delays or other unanticipated issues have increased your costs, you may consider submitting change orders for those costs. Your best course of action will depend on the specifics of your situation. But generally the preferred approach is to make your case to the other side why delays and other issues have frustrated the purpose of the contract and attempt to reach a mutual agreement to terminate the relationship.
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