Enter to open, tab to navigate, enter to select
Termination for Convenience
Practical Law Glossary Item 0-562-3569 (Approx. 2 pages)
Glossary
Termination for Convenience
A contractual provision that enables an owner to terminate the contract of a contractor, construction manager, or design-builder (builder) for reasons other than the builder's contractual default. While the owner does not customarily have to state a reason for terminating the contract, the parties may restrict the owner's right to terminate the contract for convenience to things such as:
- The inability to obtain required governmental permits or authorizations.
- The owner's financial inability to proceed with the project.
The contract usually contains provisions describing such things as:
- The manner of service of the notice of an intention to terminate for convenience.
- The amount of advance notice the builder is entitled to receive.
- The builder's obligations to secure the site and the work in progress on termination.
- The manner in which the builder is compensated at termination.