Termination and Suspension Clauses in Construction Contracts

A project owner confronted with a contractor that defaults on its contract obligations may be tempted to simply terminate the contractor, but this is an extreme remedy that can ultimately increase the time and expense of the project. It’s important for a construction contract to provide the owner with a variety of options when dealing with a defaulting contractor.

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Related Content

• Construction Contract
  Use this template to draft a fixed-price construction contract.

• Default and Termination Clause (Construction Contract)
  Include this default and termination clause in your next construction contract.

• Suspension Clause (Construction Contract)
  Incorporate this clause in a construction contract to give the owner the right to suspend work for a limited amount of time.

• Changes in Work and Claims Provisions in Construction Contracts
  Read this practice note to learn how to draft effective change in work provisions for a construction contract.

• Construction Dispute Resolution Resource Kit
  Review this resource kit to find a full set of construction dispute resolution resources.

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