Aron B. Beezley and Nathaniel J. Greeson | BuildSmart Government contracts often include a termination for convenience clause, generally allowing federal agencies to cancel agreements when it serves the government’s interest. While this power is fairly broad, it is not absolute — and when misused, contractors may have legal recourse. Several court cases highlight situations… Continue reading What to Do if Your Federal Contract was Wrongfully Terminated by the Government
Tag: Termination for Convenience Clause
The Government Contractor’s Guide to Termination for Convenience
Aron C. Beezley and Nathaniel J. Greeson | BuildSmart The Trump administration, as part of its efforts to reshape the federal government, began terminating federal contracts for the convenience of the government almost immediately after coming back to town. These contract terminations show no signs of slowing in the near term. Accordingly, government contractors need… Continue reading The Government Contractor’s Guide to Termination for Convenience
What Happens After A Termination For Convenience?
Karalynn Cromeens | The Cromeens Law Firm Most commercial construction subcontracts have a termination for convenience clause. This clause means that the general contractor can terminate the subcontractor at any time for no reason, just because it is convenient to the general contractor. But what happens after a termination for convenience? A termination for convenience clause exists… Continue reading What Happens After A Termination For Convenience?
A Termination for Convenience is not a Termination for Default
David Adelstein | Florida Construction Law Updates A termination for convenience is NOT a termination for default. They are NOT the same. They should NOT be treated as the same. I am a huge proponent of termination for convenience provisions because sometimes a party needs to be able to exercise a termination for convenience, but… Continue reading A Termination for Convenience is not a Termination for Default
Ohio Court Reforms Construction Contract to Correct “Manifest Absurdity” in Termination for Convenience Term
Anthony Melon | Troutman Pepper Hanuman Chalisa, LLC v. BoMar Contr., Inc., 2022-Ohio-1111, 187 N.E.3d 1108 (Ct. App.) Hanuman Chalisa LLC (owner) contracted BoMar Contracting, Inc. (BoMar) to construct a hotel in Columbus, OH. The contract consisted of the AIA A101-2007 and AIA A201-2007. The owner later terminated BoMar, alleging deficiencies in BoMar’s work. The parties… Continue reading Ohio Court Reforms Construction Contract to Correct “Manifest Absurdity” in Termination for Convenience Term