The current contract with my perspective builder does not contain a termination clause if the builder defaults. Looking for a builder default clause that is fair for both builder and owner
1 reply
Jan 24, 2020
Getting a default clause right can be important, and as you mention above, it's always good to look for one that's fair to all of the parties involved. However, I'm afraid I don't have any personal sample clauses or examples to provide here. It looks like Law Insider has some sound provisions, though.
As for what goes into a fair default termination clause - that's a bit easier. Generally, a fair default termination clause will require that a separate, written notice of the default be given before the contract can be terminated. And, typically, the contractor will have some limited opportunity to cure the default(s) shortly after receiving the notice of default. And, of course, it should be specified what sorts of defaults will give rise to termination. Minor issues or things that are easily correctable generally shouldn't serve as the basis for termination.
Beyond that, though, it might be helpful to consult with a local construction attorney if you're looking for how to write a specific clause for your contract. They'll be able to get a better sense of what you're looking for and tailor a clause to suit your needs.