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what is the most standard form of amount owed to the GC if the customer terminates the contract

TexasConstruction Contract

Im the customer and the GC wants to have a clause that i terminate the contract i need to pay him all the overhead, profit, general conditions even if the work is not completed

2 replies

Apr 29, 2021

There is no "standard" amount - it is negotiable. Typically, if I were negotiating the contract concerning a termination for convenience provision, the termination date would be the ending date for any overhead, profit, or general conditions.

But, if the termination was for default, there would be no payment at the time of termination - typically, the contractor would owe the owner money.

Retain a construction attorney to evaluate your situation and to provide advice.

Good luck.

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Jun 9, 2021

Personal opinion:

Absolutely not. You guys are able to agree or not agree as you feel necessary. That is almost egregious.

E. Aaron Cartwright
214.799.0776
Aaron@EACLawyer.com

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