Default and Termination Clause (Construction Contract)
Summary
This default and termination clause may be included in construction contracts and is drafted from the perspective of the owner. It provides all the remedies available to an owner when a contractor in a construction project is in default, in addition to termination of the contract. This clause includes practical guidance and drafting notes. During a construction project, owners are often confronted with a contractor that is in default in its contract obligations. The treatment of a defaulting contractor is often handled in a contract provision entitled "Termination for Default". However, a Termination for Default clause frequently does not give an owner the broad powers it may want in order to deal with a defaulting contractor in addition to the right to terminate the contractor for default. For this reason a broader contract clause may be desired. The capitalized terms used in this clause should be conformed to the defined terms in the relevant construction contract. For a full listing ...