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In NV if a construction contract is terminated for convenience is it required to pay for lost profits on unperformed wor

NevadaConstruction ContractNotice of Termination

In Nevada is there a NRS or NAC regarding the termination of a Construction Contract for convenience that required the terminating party to pay the sub for profits lost on unperformed work?

3 replies

May 29, 2020
Good morning, There is no such statute that exists, but the subcontract itself generally dictates what the contractor must pay the subcontractor in the event of a termination for convenience. If there is no such meeting of the minds in the subcontract and no enforceable waiver of consequential damages provision, the common law may permit you to recover your "benefit of the bargain" damages and, possibly, lost profits. ---CN
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May 29, 2020
The answer to this lies in advice my former boss gave me: if all else fails, read the contract! Christopher is correct that no law governs this, since a termination for convenience is based on a contract right. Some T for C provisions allow profit, some don't. If you have a subcontract, then be sure to look at any termination provision in the general contract. That provision may "flow down" to you by virtue of an incorporation by reference provision.
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Aug 8, 2022
I do not have a signed contract with my contractor, ( neither party signed the proposed contract). I gave the contractor a credit card deposit for 50 percent of the contract but before the contractor began work I decided not to use that contractor and informed him I would not be using his services. Tge credit card company canceled the charge for tge deposit as there was no signed contract, but tge contractor has now sued me claiming damages for breach of contract. The deposit was for 50 percent of the total cost of the job
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