Not every construction project goes as smoothly as the client and contractor plans. Deciding how to move forward when one party defaults can affect whether the project continues or comes to a halt. Also, the decision can affect what happens when a project no longer needs one of the parties. Just because a project isn’t running smoothly doesn’t mean that the decision-making process has to be difficult. A Fort Lauderdale contractor default attorney can provide professional counsel in regard to contract terminations and work suspensions to ensure that your best interests and rights are protected.
In general, there are default provisions in construction contracts. These provisions state that violating any of the contractual conditions will result in a default. Because of that, the non-defaulting party will have the authority to terminate the contract. However, the party that decides to terminate the contract can only do so in good faith. The party can’t base the decision simply on dissatisfaction.
Also, the terminating party needs to follow the procedures that the contract outlines. For example, construction contracts often require the non-defaulting party to give the defaulting party the chance to fix the problem before the contract is terminated officially. Not doing so could result in a costly and ineffective termination.
There could be a clause for convenience terminations in your construction contract too. Such a clause allows the client or general contractor to terminate the remaining work that a subcontractor is supposed to do for a project.
However, the termination doesn’t occur because the subcontractor violated any of the contractual conditions. Instead, such clauses afford the power to terminate the subcontractor for other reasons. For instance, the client can terminate the balance of remaining work if the client can’t get the funding necessary to finish the project.
Even when you know your rights in regard to a contractor default, it’s important to consult with an attorney before you make any decisions. At the law firm of Johnathan P. Cohen, P.A. in Fort Lauderdale, Florida, our team is dedicated to providing professional representation for construction contracts. We will evaluate your rights, determine the financial impact and seek suitable relief. If you run into a contract violation, call 954-462-8850 to schedule an appointment with our team before you take action.