In an article published on September 20, 2022, in Construction Executive, Atlanta-based Senior Associate Chadd L. Reynolds discusses the “termination for convenience” clause in public contracts, which is permitted to terminate construction contracts in the absence of the contractor’s default. He writes that, unlike termination for cause, the right to terminate for convenience is almost never given to the downstream party and is now found in private contracts, including many of the commonly used construction contract forms.
“A typical termination for convenience clause will entitle the terminated party to receive the costs for the work it completed on the project, and maybe a portion of its lost profits or overhead, up until the date of termination,”
