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What are the legal cancellation time frames for a notice to a General Contractor in the state of Colorado?

ColoradoConstruction Contract

They have demanded a cancellation within 7 days. We have done nothing wrong and they have not stated any wrong doing. We have labor and materials on a small part of their project. Should we tell them they have to provide us a with a 30 day legal notice as required by law? One issue is that I need to work up a bill for our time and materials and the Project Manager is on vacation for this week. So I won't know what he performed on their job until he returns. Please let me know what your recommendation is on how to best go about this cancellation. They signed up on 7/09/2021. They put down a deposit of 22,000.00. What are our rights on cancellation? We don't want to do their job but want to be fair to ourselves as business owners and as the acting General contractor.

2 replies

Jan 5, 2022

There is no 30 day legal notice required by law for construction contracts. If your contract had cancellation provisions, then review those and follow those terms, including notice requirements, to the letter. A party may not, without potential consequences, cancel a contract unless the contract provided that right and provided a waiver. 

If your contract had cancellation provisions (which is not common), then review those and follow those terms, including notice requirements to the letter. They must do the same, again, assuming the contracts provided for unilateral or mutual cancellation rights. 

You need to hire a construction attorney if you want advice as to your rights, your risks, and your options as the attorney must reivew the contract, the law, and the facts. It is impossible to state the best way to do things without doing legal analysis and that can only be done with all the documents and information I noted being provided to your attorney. 

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Jan 5, 2022
Your damages are determined either by your written contract or quantum meruit (what something's worth). You're certainly entitled to all of your profit on all of your quality installed work. The contract would state any notice of time to terminate; there is no law on termination.
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