Friday, July 14, 2006

Terminating the Contract-Rule #1

The issue of how to go about terminating the contract should be addressed in the contract itself. It can be agreed that either side can terminate the contract with a certain amount of notice in writing. The more complicated issue is what one considers a valid reason for termination.

For the homeowner, reasons might include abandoning the job (not showing up for a certain amount of time), substandard work as determined by an outside inspector, failure to comply with building codes or the pulling of permits, unreasonable delays (as determined by another contract provision), etc..

The contractor may find that the homeowner is causing delays, has unreasonably hired outside parties to perform aspects of the job, is contracting directly with subcontractors or making unreasonable demands of employees, is expecting work beyond the scope of the contract without being willing to pay for change orders, etc.

As you can see, the list is extensive. Although it is impossible to anticipate everything that may go wrong, the parties can attempt to define what constitutes reasonable grounds for terminating the contract. This can prevent numerous problems down the road.

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No where does it say how long you must wait until you can figure the job is abandoned. I need roof done before insurance time limit runs out or the holdback will be lost, yet roofer has not contacted me in 3 months and only 4 more weeks til holdback is lost. At what point can I declare job abandoned and quickley hire a new, faster roofer? This roofer doesn't care about holdback because he will charge me full price anyway, I'LL lost out.

 
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I am a painting contractor and I have been locked out of my current job by the owner who "terminated" my contract for "violating" and they owe me a good chunk of money.
Can an independent contractor be locked out of a job by the home owner?

 
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