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Implications of a termination on convenience

When a contract for construction is terminated under a contract for convenience by a party rendering the service or supplying the materials are there any financial implications for the other party other than paying the terminating party for the services rendered or the materials supplied

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Apr 7, 2020

When handling a termination for convenience, the exact terms of the contract will be really important. The agreement may provide some guidance on what steps should be taken surrounding that termination. Even if the contract is silent on that front, then the costs may still vary depending on the specific circumstances and other terms of the contract. But, by and large, the parties will square away all of the payments, costs, fees, etc. owed before parting ways. And, collecting a final lien waiver in exchange for final payment would be wise to ensure claims won't be made later on. Finally, if it's hard to settle on what to pay the terminated contractor, or if it seems like the terminated contractor might pursue payment claims, then consulting with an Alabama construction attorney to assist with the termination might be useful.

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