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Terminate subcontract for suspension of work

Minnesota

Work has been suspended on a private project in Mpls for a minimum of three months. We are a subcontractor. We have no contractual right to terminate in our subcontract for suspension. The Prime Contractor does have a right to terminate after 60 of suspension, but they are not going to exercise that right. Does that same right to terminate flow down to us even if the Prime doesn't exercise it? Also is there any statutory rights related to this scenario? Either for termination or cost of suspension. Minnesota law governs.

1 reply

Oct 7, 2022
As you alluded to, this question requires a close examination of the subcontract and the reasons the job is on hold. The terms of the contract create private law between the parties and will control over most statutory rights unless those terms are unenforceable. This is the case whether considering the subs rights to terminate the contract or recouping damages resulting from the suspension. The sub should consult an experienced construction attorney sooner than later for advice on this situation, and to ensure future contracts it enters into aren’t so one-sided.
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